◼The world’s second-largest chain “struggles only in Japan” What is the fast food chain with the most stores in the world? To this question, most people would probably answer “McDonald’s.” So what is the second largest chain after McDonald’s, which boasts approximately 39,000 stores worldwide?
Starbucks? KFC? Actually, it’s neither. The answer is “Subway.” Subway, headquartered in the United States, is a huge restaurant chain that operates approximately 37,000 stores in over 100 countries and regions around the world. Its signature product is the oval-shaped “submarine sandwich,” which is also the origin of the store’s name. It has been a long-time favorite for about 60 years since it first opened, as it allows customers to easily eat plenty of vegetables. At one time, Subway boasted more stores than McDonald’s. There is one country where this “giant” of the chain world is struggling. Yes, Japan. At its peak in 2014, the company operated approximately 480 stores nationwide, but since then, a series of store closures have reduced the company’s size to approximately 180 stores, one-third of its peak number. This number is lower than that of McDonald’s or KFC, as well as Lotteria and Burger King, making it a very disappointing situation for a global chain. But then, suddenly, a “savior” appeared at Subway. On October 25th, Watami, a giant in the restaurant industry, announced that it had signed a master franchise agreement with Subway and would make Subway Japan a wholly owned subsidiary. ◼Get a “new toy”… The master franchise agreement gave Watami the exclusive right to operate Subway in Japan. In addition, the operating rights of approximately 180 existing stores will also be transferred to Watami. “We want to change the image of the restaurant as an izakaya restaurant to something that is synonymous with ‘Subway Watami’ and gain support from younger generations. “We believe that Subway has great potential, and we will support the company’s challenge while demonstrating Watami’s unique style,” Watami Chairman and CEO Miki Watanabe said with confidence at a press conference on the 25th. The company has also launched ambitious plans to open a new flagship store in Tokyo in February or March 2025, and in the longer term, aims to expand to 3,000 stores. However, the reaction from industry insiders at the press conference was quite cold. (omitted) ◼Hopelessly incompatible with the Japanese character And thus Watami acquired Subway. Is there really any chance of winning? At present, the “sandwiches” that Subway sells are experiencing a tailwind. Although the market size (2023) is expected to be 12.3 billion yen, smaller than hamburgers (981.1 billion yen) and chicken (177.6 billion yen), it is still expected to expand to 15.5 billion yen by 2028 due to the growing health consciousness. However, Nagata points out that the chances of a Watami Subway being successful are still extremely low. The reason for this is the Subway system itself, which has not changed since the Suntory era and which “has never been popular among Japanese people.” “Choose your favorite sandwich from the menu, choose your bread, add your toppings, and then choose your favorite vegetables, dressing and sauce. It goes without saying that this ordering system does not suit Japanese people. In the Japanese restaurant industry, one of the factors for success is said to be that the “broad outline of the menu” is set to a certain extent. For Japanese people, who are indecisive and have difficulty making choices, narrowing down the menu options suits their personality. Furthermore, the reason why Subway enjoys enduring popularity, especially in Europe and the United States, is that customers enjoy not only the deliciousness of the food, but also the ability to “interact with the staff” through the ordering system. This enjoyment is hard to feel for Japanese people, who tend to avoid casual conversations with strangers.” Full text below [Gendai Business] 2024/11/12 (Tue) 7:34 *Previous thread.
It’s easier to eat something the size of a small roll sandwich or a tortilla than the thick rolls you get at convenience stores. Subway is too big for the small mouths of Japanese people.
Does the ordering system really matter? The staff will explain everything to you, so you just follow the instructions and say yes or no to choose anything, and it’s done. Starbucks’s system is much more confusing.
America has a highly developed meat industry, but vegetable farming cannot be intensively expanded, so fresh vegetables are relatively expensive. Eating a veggie sandwich is as much of a winning mode as typing on a computer at a crappy Starbucks. In developing countries, Japan doesn’t have any other developed industries, so veggie sandwiches aren’t appreciated at all, and no one would buy one even if they were sold as something from LA lol.
>>9 I think it’s probably this. In Japan, if you want to eat vegetables, you can get a salad cheaply at the supermarket or convenience store. But if you want to eat something meaty cheaply, you have to go to a fast food restaurant. I don’t think it’s because they let you choose.
If Watami were to start a new business, it would probably be a resignation agent service, which is likely to be thriving as there are many people who want to leave the Watami Group.
I go to Burger King because I don’t like pickles. When I want to eat lots of tuna, I go to Subway. When I find tomatoes annoying, I go to Burger King or Subway. I’m grateful for the two stores that allow me to eliminate ingredients I don’t like.
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