Their 4 stores in Tokyo are PR loss leaders. From my decade plus of living in Tokyo, I can tell you they're located in nose-bleed rental areas and the delivery logistics alone preclude them ever making money.
Anyway, here's what someone wrote on Reddit:
Their real superpower is the franchising model. Franchisees have no goodwill, if GYG goes bankrupt the franchisees are assets not creditors and can forced to do anything, outsourced risk to franchisees, churn and burn sites RFG style, no staff issues- franchisees problem, control the wholesale supply chain with kickbacks and the franchisee has to buy from you, pull $$$ from the franchisees turnover - who cares if they’re barely making a profit you still making bank, need more money- introduce a new marketing campaign and extract more dollars, force a new POS or store fit out (see kickback or better yet own the fit out firm. Franchisee complain breach notice them to death, pick up the store for nixs, resell and/or turn a good site into a corporate after bankrupting the franchisee.
GYG Price at posting:
$32.26 Sentiment: Sell Disclosure: Not Held
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