Family Restaurant Frenzy: A Look at Japan’s Expanding Casual Dining scene
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Teh casual dining scene in Japan is booming, with family restaurants expanding rapidly across the archipelago. For residents of Kyushu and Shikoku, 2024 brought a especially exciting growth: the arrival of Saizeriya, a popular chain previously absent from those regions. “I can finally go to Saizeriya,” exclaimed one delighted customer,highlighting the anticipation surrounding the brand’s expansion. This surge in restaurant openings reveals a fascinating story of competitive strategies and regional dominance.
Gusto Takes the Lead in Restaurant Openings
Japan’s family restaurant industry has seen explosive growth as Skylark’s founding in Fuchu City, Tokyo, in 1970. The market, valued at ¥872.6 billion in 2023, is projected to surpass ¥980 billion by 2028, according to fuji Keizai. This expansion is reflected in the aggressive growth strategies of major players. Currently, Gusto boasts the highest number of restaurant openings, followed closely by Saizeriya, Joyful, and Coco’s.
Regional Power Plays: Who Reigns Supreme?
A closer look at the regional distribution of these chains reveals distinct patterns. While population density influences the number of restaurants in each prefecture, the competitive landscape is far from uniform. Gusto and Coco’s have achieved nationwide presence,but Joyful’s reach is concentrated in eastern Japan,and saizeriya maintains a strong foothold in Kyushu. Interestingly, both Gusto and saizeriya dominate the Tokyo metropolitan area, while Coco’s has carved a niche in the northern Kanto region.
A map visualizing the dominant chain in each prefecture further underscores these regional disparities. Gusto’s widespread presence contrasts sharply with Saizeriya’s concentration in metropolitan areas. Coco’s strong showing in northern Kanto and Hokuriku is mirrored by Joyful’s dominance in Kyushu and Yamaguchi. This dynamic illustrates the nuanced strategies employed by each chain to secure market share.
Restaurant chains Expand Reach: A Look at Saizeriya’s Southern Expansion
The restaurant industry is a competitive landscape,and strategic expansion is key to success. A recent analysis reveals how the location of a company’s founding can significantly influence its growth strategy and market dominance. this is particularly evident in the expansion of Saizeriya, a popular Italian restaurant chain in Japan.
Kazuki tanigashira,a chain store researcher,explains this phenomenon: “The location where each company was founded and its dominant strategy are related.” This “dominant strategy,” he notes, often involves concentrating expansion efforts around the company’s original location, leading to stronger market presence in surrounding areas.
This pattern is visible in several major chains. Family Restaurant Skylark (parent company of Gusto), such as, is rooted in Fuchu City, Tokyo, while Saizeriya originated in Ichikawa City, Chiba Prefecture. Joyful’s beginnings are in Oita City,and Coco’s,with its American influences,launched its first location in Tsuchiura City,Ibaraki Prefecture.
Tanigashira highlights the impact of this localized strategy: “As a result of promoting a ‘dominant strategy’ of opening stores in the same area, centering on each company’s founding area, there is a tendency for companies to become stronger in areas surrounding thier founding area.” Though, he acknowledges exceptions, such as Coco’s success in the Hokuriku region, largely attributed to a franchise agreement with a strong local partner.
Saizeriya’s Expansion into New Territory
2024 marks a shift in Saizeriya’s expansion strategy. The chain is aggressively opening new locations in previously untapped markets, such as Tokushima and Ehime prefectures. A significant milestone was reached on December 20th with the opening of its first restaurant in Oita Prefecture.
This expansion is generating considerable excitement among residents. A 16-year-old high school student in Oita City, familiar with Saizeriya only through online videos, expressed his enthusiasm: “I saw it on YouTube and thought, ‘I really want to go there.’ When I heard about the opening, I was excited.I want to go there at the end of the year and try out all the menu items I want to try.” His reaction reflects the broader anticipation surrounding Saizeriya’s arrival in new markets.
Japan’s Family Restaurant Industry Faces Headwinds: A Fight for individuality
The Japanese family restaurant industry is in a period of intense transformation, grappling with rising prices, evolving consumer preferences, and a surge in competition from unexpected sources. this dynamic landscape is forcing established players to rethink their strategies for survival and growth.
One significant development is Skylark Holdings (HD)’s acquisition of Shisan Udon, a regional udon chain from Kitakyushu. This move signals a broader shift in the market. The first Kanto region Shisan Udon location opened December 27th in Yachiyo City, Chiba Prefecture. The plan is to challenge established udon giants like Marugame Seimen and Hanamaru Udon,known for their robust Sanuki-style udon,with Shisan Udon’s softer Fukuoka-style noodles.
“It’s tough if you don’t have individuality” – A Family Restaurant Outlook
According to an industry expert, Mr. Tanigashira, the current climate is characterized by a “difficult time without individuality.” He points to accomplished niche players like Bikkuri Donkey (hamburgers) and Saizeriya (Italian), highlighting their strong brand identities and loyal customer bases. Even Royal Host, operating in a higher price bracket, thrives on its high-quality food and service. Conversely, mid-priced restaurants lacking a distinct identity are struggling, with a significant decline in the number of locations.
The rise of convenience stores and supermarkets offering prepared foods, coupled with the explosive growth of food delivery services during the pandemic, has further intensified the competition. Mr. Tanigashira observes, “I think it’s a difficult time for family restaurants as they have to look at a wide range of industries. In order to survive, companies must make efforts to change customers’ mindset of ‘this is good’ to ‘this is good’ and increase their ‘recommendations.'” This underscores the need for restaurants to actively cultivate positive word-of-mouth marketing and build stronger customer loyalty.
Post-pandemic, dining habits have shifted dramatically. Many consumers report reduced alcohol consumption with meals. Mr. Tanigashira notes, “The atmosphere that everyone had been vaguely feeling before the coronavirus suddenly came to the surface.” This shift is reflected in Saizeriya’s expansion strategy, moving beyond its traditional station-front locations (known for its “Saize drinking” culture) to suburban and rural areas accessible by car.
The industry also faces the significant headwind of rising food costs. Beyond attracting new customers, retaining the core customer base that sustains the business is crucial for survival in this challenging environment.
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