The restaurant chains 日高屋 and 幸楽苑 continue to grow steadily. Their performance is attributed to factors including in-house production facilities, renovations of existing stores and longer operating hours, while plans for future store openings have also emerged.
The restaurant chains 日高屋 and 幸楽苑 reported steady sales and rising customer numbers at existing stores in their 2026 results. 日高屋 posted revenue of ¥62.2 billion and operating income of ¥6.5 billion for the fiscal year ended February 2026, renewing its record highs. Monthly customer numbers and average spend per customer at existing stores exceeded the previous year from March through August, putting another record profit within reach. Meanwhile, 幸楽苑 delivered a substantial increase in revenue to ¥29.4 billion and operating income to ¥1.5 billion for the fiscal year ending March 2026, progressing its recovery from losses through cost controls and higher productivity.
Both companies are consolidating procurement and production through their in-house production facilities, strengthening the foundation for cost control and low-price strategies. 日高屋 operates the Gyoda plant in Saitama, while 幸楽苑 has two facilities, in Koriyama and Odawara, helping ensure a stable supply of ingredients and consistent quality. Both companies are also boosting customer numbers through renovations of existing stores, with 日高屋 renovating 25 stores and 幸楽苑 23 during the year. Longer operating hours have also contributed to higher earnings.
Their differing growth strategies are also becoming clear. 日高屋 has set long-term targets of revenue above ¥100 billion, an operating margin of at least 10% and more than 700 stores. In 2026, it opened a store near Niigata Station, beginning its first franchise expansion outside the Kanto region. 幸楽苑 is targeting 500 stores by 2033 and plans to bring its third in-house production facility into operation in 2028. By combining station-front and roadside locations, the companies are seeking to strengthen their positions in the low-price segment.
The overall strength of the ramen market is also providing a tailwind, and competition in the Chinese food and ramen sectors is expected to intensify, alongside 王将フードサービス's plans to expand in eastern Japan. The recovery in inbound demand is another factor, and both companies are expected to pursue further store openings and sustained earnings growth.
The key issue is how the companies' different formats and stages of growth will drive future expansion. 日高屋 is using its station-front locations as the foundation for its casual-drinking strategy, while 幸楽苑 is pursuing new customer segments through both roadside and station-front stores. The pace of future store openings and developments in their pricing strategies will be closely watched.