Key Facts
• Chateraise faced multiple scandals in 2025, including unpaid leave and illegal overtime.
• CEO Yuji Furuya acknowledged compliance neglect due to rapid growth.
• Sales tripled from ¥43 billion in 2014 to ¥131.3 billion in 2023.
• Store count increased 2.2 times during the same period.
• COVID-19 boosted suburban store performance, exempt from closure mandates.
• New store openings reduced to 30 in early 2025, with none planned for later.
• Labor Safety Promotion Department was established to enhance compliance.
• Measures include biannual legal reviews and consultant evaluations.
• Scandals include subcontracting law violations and unpaid foreign worker benefits.
• Strengthening corporate foundation will take at least two years, with no set deadline.
Summary
Chateraise, a leading confectionery company, faced significant compliance scandals in 2025, including unpaid leave and illegal overtime. CEO Yuji Furuya admitted that rapid growth, which saw sales triple and store numbers double since 2014, led to a neglect of compliance. To address these issues, the company has frozen new store openings, limiting them to 30 in early 2025, and established a Labor Safety Promotion Department. Additional measures include biannual legal reviews and consultant evaluations. Despite potential supply shortages, Furuya emphasized prioritizing corporate responsibility and compliance over expansion. The company aims to strengthen its foundation over at least two years, with no fixed timeline.
