#Japan #Tokyo #Rice Production #Japan Agriculture #Genki GDC

Genki GDC's Move Towards Sustainable Agriculture

In a strategic shift to bolster its supply chain, Genki Global Dining Concepts (Genki GDC) announced the establishment of a new agricultural subsidiary named 清原Genkiファーム (Kiyohara Genki Farm), set to launch operations on April 1, 2026. This initiative aims to ensure a stable supply of rice and contribute to the sustainability of local agriculture in Japan.

Why Agriculture Now?

The decision to diversify into agriculture comes amidst growing concerns over the challenges facing Japanese rice farming, including labor shortages, aging farmers, and the impact of climate change. These issues threaten not only the agricultural landscape but also the fundamental aspects of Japan's food culture and its capacity to provide consistent food supplies. As a restaurant chain, Genki GDC recognizes the necessity of evolving its procurement strategy to address these core issues effectively.

Genki GDC questions if they should simply remain in a purchasing role without influencing the production process. With a commitment to quality and flavor, the company has chosen to engage directly in agricultural production, solidifying its role as a partner in local farming and striving to create a sustainable food future.

Objectives and Goals of the Agricultural Corporation

1. Entering the Production Sector as a Key Strategy
To enhance its long-term competitive edge, Genki GDC will now be involved in agricultural production. The new farming corporation is a key component of their upstream strategy, focusing on vertically integrating the supply chain to secure both quality and stable supply.

2. Strengthening Procurement Power to Mitigate Risks
The farm aims to produce rice to strengthen procurement capabilities, planning to expand from the current 150 tons to approximately 500 tons in the future. This significant increase aims to buffer against price fluctuations and supply uncertainties, ultimately leading to stable restaurant operations.

3. Promotion of Community Contributions and CSR
Engaging in agriculture will also enable Genki GDC to tackle regional challenges, such as utilizing abandoned farmland and promoting green tourism, thereby enhancing community welfare through job creation and local engagement.

Connecting Production with Restaurant Operations

Genki GDC, having cultivated expertise in restaurant operation and product development, views entering agriculture as a new challenge. The company envisions creating a seamless agricultural model that integrates production, distribution, and consumption.

1. Collaboration with Local Farmers
The company will work closely with local farmer Tomizo Yamaguchi, who has years of farming experience in Utsunomiya. By leveraging his expertise in cultivation and field management, Genki aims to establish a reliable production system, ensuring consistent quality outputs. A joint venture, 清原Genkiファーム, is planned with Yamaguchi’s new firm slated for launch in April 2026.

2. Utilizing Advanced Technology for Efficiency
The incorporation of cutting-edge technologies, such as drones and sensors for field monitoring, is also in the pipeline, aiming to enhance production efficiency and ensure product quality. By merging experienced farming techniques with high-tech innovations, Genki aspires to design a sustainable agricultural model.

Overview of the Business Plan

1. Rice Production and Utilization
Initially, the objective is to supply rice to their group restaurants in Tochigi Prefecture, targeting an annual production of about 500 tons to cover local demand. Furthermore, Genki plans to support farmers who may struggle with the continuation of their farms due to aging by taking over their land to expand rice cultivation.

2. Vegetable and Fruit Production Plans
Alongside rice production, Genki aims to grow vegetables and fruits to diversify and stabilize its agricultural business. These products will eventually be integrated into menu offerings at their restaurants, enhancing their culinary experiences with fresh, locally sourced ingredients.

3. Community Outreach Initiatives
Engagements such as farming experiences and green tourism are planned to encourage community participation. This will involve creating opportunities for local interaction while contributing to regional revitalization efforts.

Future Schedule

• - April 1, 2026: Establishment of 清原Genkiファーム.
• - September 2026: Acquisition of certified agricultural status and first harvest.
• - Fall 2026: Begin serving rice in Tochigi's restaurants, including Fish Bay and Genki Sushi.

Looking Ahead

The journey of strengthening procurement capabilities through this upstream strategy is just beginning. Genki GDC is committed to ongoing dialogue with local producers, fostering trust, and growing together to evolve their practices in sustainable food production. By embracing these initiatives, the company not only seeks to generate new value as a dining enterprise but also aims to contribute meaningfully to the construction of a sustainable food future.

Joint Venture Overview

• - Company Name: 清原Genkiファーム (Kiyohara Genki Farm)
• - Establishment Date: Scheduled for April 1, 2026
• - Location: 1-4-22 Ōdōri, Utsunomiya, Tochigi Prefecture
• - Representative: Tomizo Yamaguchi
• - Capital: 50 million yen

Company Overview

• - Company Name: Genki Global Dining Concepts (TSE Standard Code: 9828)
• - Location: 3-24-6 Ueno, Taitō, Tokyo
• - Founded: December 12, 1968
• - Incorporation: July 26, 1979
• - CEO: Masazō Fujio
• - Business Segment: Handling restaurant chains
• - Company Website: Genki GDC
• - Company Philosophy: We provide rich and enjoyable moments with heartfelt dishes, energizing the world.