Zensho ramping up expansion of its restaurants overseas
TOP JAPANESE food company Zensho Group is pursuing a plan to expand beyond its home market, particularly in Asean. The group’s vision is to become the No 1 Japan-based global food company.
The company plans to increase significantly the contribution its overseas business over the next three to five years, said Nobuyasu Watada, managing director of local subsidiary Zensho (Thailand).
Within two years, the company expects to double its business in Thailand, both in sales and the number of restaurants, from 2011, when it established itself here with its flagship Sukiya brand.
The company currently operates 12 Sukiya restaurants in Thailand, of which 11 are in Bangkok and one in Sri Racha district, Chon Buri. The 11th Sukiya restaurant in Bangkok was officially opened yesterday at the Promenade Mall on Ramindra Road.
Zensho has a 49-per-cent stake in the Thai subsidiary, while 51 per cent is held by its Thai partners. However, the parent company controls everything in the Thai subsidiary.
After starting its restaurant business in 1982, Zensho Group now operates 4,800 Japanese restaurants in Japan under 19 different brands. The group also operates 180 restaurants in seven other markets around the world: Brazil, Mexico, mainland China, Taiwan, Thailand, Malaysia and Indonesia.
Sukiya, a chain of gyudon beef bowl restaurants, and Hamazushi, a conveyor-belt sushi restaurant chain, are the group’s flagship brands for expanding into overseas markets.
Zensho Group posted net sales revenue of 511.8 billion yen (Bt172.6 billion) in the fiscal year ended March 31, 2015.
“While the restaurant market in Japan is full [for opening new branches] with an annual growth rate of between 5 and 10 per cent, we have seen higher business potential overseas with a faster growth rate of approximately 30 per cent per year,” Watada said.
He said the group this year would open its newest Sukiya restaurant in Ho Chi Minh City, Vietnam.
“We try to go anywhere around the world [where there is] business potential for the opening of Japanese restaurants and with [a big] population. Such potential markets include those in Asean.”
Watada said the overseas expansion would be conducted directly by Zensho Group, which has no franchise system.
He said that with its strong network, the group would be able to source products, including raw food materials, from all over the world.
“Thailand is the most advanced country in Asean in terms of Japanese restaurants, with estimated market value at about Bt22 billion and average growth of between 10 and 15 per cent per annum.
“Nevertheless, sushi restaurants are new [now] coming into the country with strong growth potential, even it is still smaller than Malaysia at the moment. There are many sushi restaurant chains planning to come into Thailand,” Watada said.
He added that there was a high chance of the group’s Hamazushi sushi restaurant brand to be launched in Thailand in the near future. Zensho Group currently operate 400 Hamazushi restaurants in Japan alone.
