Case Study

SFP Dining Co., Ltd.
(Business Succession)Investment Track Record

Investment Theme

Aim to increase the corporate value by continuing the strategy of opening new “Isomaru Suisan” brand outlets, in addition to the established “Toriyoshi” brand, while strengthening corporate governance and improving business and financial controls.

Investee Company’s Strengths

Solid customer base for well-established “Toriyoshi” brand and growth potential for new “Isomaru Suisan” brand.
High profitability due to conservative new outlets opening policy and resulting quick recovery of costs.
Good reputation for quality of food/service, compared with competitors, and solid customer base.

Investee Company’s Issues

Strengthening of management controls after the withdrawal of the previous owner.
Opening new outlets at the same pace and improving their success rate.
Strengthening of sales promotion and publicity.
Maintenance of service level while controlling HR costs.

Polaris’s Solutions

Management structure

  • Create a new administrative headquarters and put in a Chief Administration Officer (CAO) and a Chief Financial Officer (CFO).

Brand mix

  • Establish a structure whereby half of the sales and profits come from “Toriyoshi” and half from “Isomaru Suisan” by aggressively opening new “Isomaru Suisan” outlets.
  • Create a third brand to add to “Toriyoshi” and “Isomaru Suisan”.

Open new outlets

  • Develop strategies and standards for the opening of new outlets based on dominant outlets strategy in prime highly populated locations.

Strengthen sales promotion and publicity

  • Stop outlet-specific promotion and implement company-wide promotion with review of effectiveness

Control HR costs

  • Implement effective HR cost controls by preparing spreadsheet analysis to visualize the ration of cost of part-timers to sales.