Marugame Seimen profits fall amid rising competition in Japan

The Japanese udon industry is facing intensifying competition, leading to a shift in market dynamics. Marugame Seimen, operated by Toridoll Holdings, reported a 16.0% decrease in operating profit for the period of April to June 2026, a sharp reversal from its record highs in the previous fiscal year.

Toridoll Holdings attributed this decline to rising labor and operational costs that could not be fully offset by sales. Despite price increases implemented in early 2026, the company has struggled with declining customer numbers at existing stores, particularly in recent months where customer counts dropped significantly.

Meanwhile, Sukisan Udon, recently acquired by Skylark Holdings, is aggressively expanding its footprint. After growing from 74 stores at the time of acquisition to 110 by June 2026, the brand plans to open over 50 more stores from 2027 onwards. Other competitors, such as Monogatari Corporation, are also entering the space with new specialized udon concepts.