TOKYO - Zensho Holdings, operator of the Sukiya beef bowl chain, reported a 17.7% rise in annual revenue to 1.1366 trillion yen for the fiscal year ending March 2025—marking the first time a domestic restaurant company in Japan has exceeded 1 trillion yen in sales.
According to Zensho, this marks the first time a domestic restaurant company has surpassed the 1 trillion yen mark in annual sales.
The company also announced a leadership change: Executive Vice President Yohei Ogawa, the second son of Chairman and President Kentaro Ogawa, will be promoted to president in June.
Zensho Holdings was established in 1982 and has grown to become one of Japan’s largest food service companies, best known for its flagship beef bowl chain Sukiya. Founded by Kentaro Ogawa, the company started with the aim of creating a “food infrastructure” that could ensure safe, affordable meals for everyone. From its earliest days, Zensho emphasized vertical integration, managing everything from food procurement to distribution and retail, a model that has helped it maintain cost competitiveness and quality control. Sukiya, launched in 1982, quickly gained popularity across Japan for its inexpensive and fast gyudon (beef bowl) meals, and became a major rival to Yoshinoya and Matsuya in the fast-food beef bowl sector.
Throughout the 1990s and 2000s, Zensho expanded aggressively, opening thousands of Sukiya locations and acquiring or launching other restaurant brands, both in the casual and family dining categories. Its portfolio grew to include chains such as Coco’s Japan, Big Boy, Nakau (offering udon and rice bowls), Hanaya Yohei (sushi), and Jolly-Pasta, enabling the company to tap into various market segments beyond gyudon. Zensho also moved into the international market, setting up operations in countries including the United States, China, and Brazil, though its overseas presence has remained smaller than its domestic operations.
One of the key characteristics of Zensho’s strategy has been its commitment to a fully integrated supply chain, which includes everything from owning farms and processing facilities to logistics and retail outlets. This model allows the company to respond quickly to changes in food safety standards, consumer preferences, and cost fluctuations. Zensho has also embraced technology in its operations, using data analysis to optimize menu pricing, store layouts, and supply chains. Despite facing labor shortages and rising costs in Japan’s food industry, the company has continued to grow steadily, driven by its scale and diversification.
In the 2010s, Zensho weathered some challenges, including labor disputes related to long working hours and wage issues, especially at Sukiya stores. The company responded by restructuring its labor model and investing in automation to improve working conditions. Under the long-serving leadership of Kentaro Ogawa, Zensho continued to strengthen its core businesses while also expanding into new areas such as food retail and meal delivery. By maintaining a focus on affordability and operational efficiency, Zensho positioned itself as a leader in Japan’s highly competitive restaurant industry.
As of the fiscal year ending March 2025, Zensho became the first domestic restaurant company in Japan to surpass 1 trillion yen in annual sales, marking a major milestone in its history. This achievement underscores its dominant presence in the food service market and reflects decades of expansion and operational refinement. The announcement of a leadership transition, with Kentaro Ogawa’s son Yohei set to take over as president, also signals the company’s intention to maintain continuity while preparing for its next stage of growth.
Source: テレ東BIZ
