■DD Group ＜3073＞ Company Overview

1. Business content

The “food and beverage amusement business,” which develops multiple brands of restaurants, cafes, specialty cooking businesses, darts, billiards, karaoke, etc. in major cities nationwide, starting with the Tokyo metropolitan area, is characterized by a brand management system that makes use of the diversity of owned brands and dominant development where stores are intensively opened in good locations. Also, since it acquired Shonan Label Co., Ltd. etc. in 2019/12, it is also developing a “hotel/real estate business” such as hotels, rental containers, and real estate sales.

Since starting restaurant management in 2001, it has had a reputation for business type development capabilities based on unique ideas that emphasize “concept,” “space,” and “story,” and while creating unique popular brands such as “VAMPIRE CAFE,” “Alice's Fantasy Restaurant,” and “Versailles Pig,” they are developing high-profit brands such as “warayaki shops,” “Imaiya,” and “BAGUS.” Furthermore, expansion of the business category portfolio and area expansion to Tokai, Kansai, Chugoku (Hiroshima Prefecture, Okayama Prefecture), and Kyushu (Fukuoka Prefecture), such as the development of non-alcoholic business categories such as cafes through aggressive M&A, have supported the company's growth until now.

In addition to the “food and drink and amusement business,” which is the main force, the business segment is classified into two categories: the “hotel/real estate business,” which was added from the 2021/2 fiscal year. The “food and drink amusement business” accounts for approximately 94% of sales (results for the first half of the fiscal year ending 2025/2).

An overview of each business segment is as follows.

(1) Food and beverage/amusement business

a) Food and drink

Diamond Dining Co., Ltd., which is the group's core company, has developed businesses such as restaurants, specialty restaurants, cafes, etc. in its own group, and is expanding in major cities nationwide, mainly in the city center and the metropolitan area. The wedding division that entered in 2017/9 is also included*. Also, SLD ＜3223＞, which was consolidated in 2019/3, is characterized as a collaboration event with IP content (creations such as anime, games, comics, music, etc.) owned by other companies in the dining/cafe business category. Meanwhile, the overseas food and beverage business was withdrawn in August 2021 due to a share transfer of overseas subsidiaries.

* As a wedding division, we operate “Kyoto Kisen” (Higashiyama-ku, Kyoto-shi), “NOVEL SHINSAIBASHI” (Chuo-ku, Osaka-shi), and “CASA FELIZ (closed in 2024/12)” (Nishi-ku, Hiroshima-shi).

b) Amusement

Similar to food and drink, Diamond Dining, which is the group's core company, operates high-class billiard, darts, karaoke, etc. stores, simulation golf, complex cafes, etc. with “BAGUS” as the main brand, and is also developing directly managed stores such as the gastropub & sports bar “THE PUBLIC” and the capsule hotel “GLANSIT” mainly in Tokyo.

The number of directly managed stores (entire group) in the “food and beverage amusement business” at the end of 2024/8 was 314 stores* with 116 brands. Among them, 194 top-class restaurants in the food and beverage industry have been opened (dominant development) along the Yamanote Line, and store opening areas such as Tokai, Kansai, China, and Kyushu have also expanded.

※ We also have 11 other stores as licensed and contracted stores.

(2) Hotel and real estate business

It is centered around the Shonan label, which was consolidated in 2019/12. Under the slogan “Shonan to the SHONAN of the world,” we are focusing on businesses related to people's lives, based on Shonan's highly sensitive beach culture. In addition to the 5 hotel management businesses in Kanagawa Prefecture, it is also involved in multiple businesses such as container rental business, rental business, and share house business.

(Written by FISCO Visiting Analyst Ikuo Shibata)