[Grandpa Saw It!] Part 2: Saizeriya Founder, Yasuhiko Shogaki

About 20 years ago, I had the opportunity to listen to a lecture by Yasuhiko Shogaki, the founder of Saizeriya and current Chairman and Representative Director.

During the lecture, I was fortunate enough to be able to ask a question and have Mr. Shogaki answer it. I would like to share his intense response.

This is the second part. The first part should be read first to follow the story.

✅ A store manager's one-line daily report!?

Filled with an 'infinite innovativeness that is not satisfied with small successes or any common success,' Mr. Shogaki's confident lecture was a very enjoyable time.

'Saizeriya now has about 300 stores, but even now, I spend three hours every morning reading through all the daily reports written by every store manager.'

'Since it became impossible to read everything if one person wrote a full A4 page, we call them "one-line daily reports" internally, and I have them send me a one-line email. Well, it's not exactly one line, though.'

*Assuming Mr. Shogaki's reading speed is the Japanese average of 600 characters per minute, the amount he can read in three hours in the morning is 10,800 characters, which is 360 characters per person for 300 people. I suppose that's about one-third of a full A4 page?

'When I read the store managers' daily reports, I get a hunch that a certain store has a problem.'

'When I get that hunch, I go to see that store in the afternoon. And sure enough, there is a problem.'

'If I realize that customers are too concentrated, I immediately plan to open a store nearby that same day. That is how I disperse the customers and help the store manager.'

What do you think? The vitality of this charismatic business leader, Mr. Shogaki?

I believe that without this, he could not have built an Italian restaurant chain with a 10% ordinary profit margin in the food and beverage industry.

✅ The greatness of a charismatic leader!?

'Since we have this opportunity, does anyone have a question for President Shogaki? Yes, Grandpa, go ahead.'

(Grandpa) President Shogaki, thank you for your lecture. Let me ask you one question. You mentioned earlier that you read all 300 store managers' daily reports to discover problems. If 2,400 store managers, eight times as many, were to send in daily reports, you would have to read them 24 hours a day without sleeping. As Saizeriya continues to develop as a listed company, I believe you are thinking about delegation of authority and organizational management, so I would like to hear your thoughts.

(President Shogaki) Even then, I will read them all. You cannot manage without knowing the reality of the field. I will definitely read them all.

What do you think? This charismatic response. Isn't it amazing!?

This is what tells the story of the 'intense desire for self-actualization,' 'competitive spirit stronger than anyone else's,' and 'extraordinary hard work' of a charismatic leader who grows a company significantly in one generation, and I think this is the point that differentiates him from a salaryman president.

Still, don't you think it's an amazing answer? I haven't forgotten it even after 20 years.

✅ To achieve a going concern!?

Nowadays, people talk about SDGs and CSV (Creating Shared Value: balancing social and economic value), but it is amazing that 20 years ago, in a lecture, he spoke about social issues like an aging society, bedridden elderly, and nursing care, saying, 'I want to contribute to a society where people can die peacefully without needing hospitals by providing healthy, cheap, and easy-to-prepare food.' (In modern terms, this is Saizeriya's purpose.)

Moving forward, in modern terms, I believe it is important for charismatic leaders to avoid falling into traps in order to achieve corporate sustainability (the ability of a company to continue developing into the future).

Grandpa thinks that means gracefully stepping back from the front lines of management and entrusting the company to professional managers.

Apple, Microsoft, and Amazon all successfully transitioned from their charismatic founders.

Speaking of the restaurant industry, Takashi Ryo's novel 'Seinen Shacho' (Young President) depicts Watami's charismatic founder, Miki Watanabe, who is also a very intense person. (Which is perhaps why he became the subject of a novel.)

To save up the capital to open the first Watami store, he worked as a truck driver, sacrificing sleep and meals until he broke his body, and managed to open the business in a short time. He led Watami to success as someone with 'intense self-actualization desire,' 'a stronger-than-average competitive spirit,' and 'extraordinary diligence.' However, his management style and remarks, which expected all employees to share his exact philosophy, caused controversy, and he once stepped back from the front lines of management.

However, it seems he has returned as president.

I hope it doesn't end up like Daiei's Mr. Nakauchi, who, as soon as he succeeded in his V-shaped recovery, removed his contributors, returned himself, and plotted to make his eldest son president, ultimately causing the collapse of the Daiei empire. Are you okay, President Watanabe?

A founder who grew a company in one generation, and the sense of unity where many employees are charmed by that charisma and work together to grow the company.

I think a 'charismatic' leader is a necessary presence for a company in its growth phase, but for a company that has graduated from the cottage industry stage where all employees are like family, I believe it needs not only the philosophy of a successful charismatic leader but also the aspect of management based on the logic of scientific management.

If you misjudge that, employees' hearts may drift away, and the company culture might be ruined by internal politics of sycophants (who cannot voice opinions to the charismatic leader) and employees who only wait for instructions?

Especially since the 'island nation mentality' is ingrained in Japanese DNA, we tend to glorify personalization, partial optimization, and long working hours. We must be careful because there is a tendency to dislike logic.

Well, it will be interesting to see what happens to Mr. Shogaki's Saizeriya.
I wrote this article while remembering Mr. Shogaki's lecture from 20 years ago.
How was it?

Finally, I have pasted an interview article with Mr. Shogaki himself below, so please read it if you are interested!

Thank you for reading until the end.

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