[Company analysis] Mos Food Services, Inc. (モスフードサービス)

「Mos Food Services, Inc. (モスフードサービス)」is a holding company that owns「Mos Burger(モスバーガー)」, a hamburger chain store that originated in Japan. As a hamburger franchise, it has second largest market share after「McDonald's Japan」. is. As of March 2018, they own 1,341 stores in Japan and 352 stores overseas. The number of consolidated employees is approximately 1,384.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Mos Food Services, Inc.
Company name (Japanese)	モスフードサービス
Date of establishment	Friday, July 21, 1972
Headquarters location	〒141-6004 東京都品川区大崎二丁目1番1号
Capital	11,412
Consolidated sales	66,264
Consolidated operating profit	517
Consolidated total assets	60,588
Consolidated capital	45,460
Capital adequacy ratio	75.0%
Consolidated number of employees	1,384

 

 

 

2. Summary and Features

 
Sakurada Satoshi(櫻田慧), who left「Nikko Securities(日興証券)」that is the predecessor of current「SMBC Nikko Securities Inc.,(SMBC日興証券)」, established「Mos Burger」on March 12, 1972. They benchmarked management method of American hamburger chain「Tommy's」, opened the first store in Tokyo. From its starting, unlike McDonald's, they choose a luxury strategy based on high prices and high quality.

The core marketing strategy of「Mos Burger」is, "differentiation strategy".  Especially, in order to differentiate from McDonald's, which is the largest in the fast food industry, they intentionally set the price high and focused on quality improvement. Even in the later half of the 1990s when the peak of price competition among the fast food chain stores, only「Mos Burger」refused to make a discount and sticked their own strategy.

At once,「Mos burger」is categorized as fast food. But they have several factors of slow food, for example,「Mos burger」adopted "after-order made" that starts making after receiving the order. In addition, they have lineup that uses healthy ingredients such as vegetables. In terms of interiors, many store is decorated with wooden furnitures, so it has strong image of restaurant rather than a fast food chain store.

Nowadays, this company has the second largest share in the hamburger market in Japan after「McDonald's Japan 」, and they have 1,341 stores in Japan as of 2018. Besides, they are expanding their business mainly in Asia, including Taiwan, Thailand, Hong Kong, China, Singapore, Australia, Indonesia and South Korea. In particular,「Mos burger」 has 246 stores in Taiwan, which is slightly smaller number than McDonald's(338 stores).

 

 

 

3. Major Business

 

■ Hamburger chain store business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		70,929	71,387	66,264
Consolidated operating profit		4,663	3,736	517
Consolidated total assets		61,589	62,056	60,588
Consolidated net assets		46,140	48,034	45,460
Breakdown of sales	Mos burger business	66,874	67,772	62,743
	Other food business	3,329	2,878	2,766
	Others	725	737	754