Delicious Yakitori to Take on the World

For 11 consecutive years, we’ve seen Japanese food-related exports increase. If we look at up to 2023, they reached JPY 1.45 trillion. This has been consolidated overseas by the growing popularity of Japanese restaurants, which grew from 55,000 in 2013 to more than 200,000 today. How do you account for this substantial rise in Japanese food exports? Why is now the time for washoku to shine internationally?

Washoku has been certified as a UNESCO World Heritage Culture, but with that being said, in the future, Japanese food will gain popularity through its healthiness, creativeness, and sustainability. I'm part of the Japan Food Product Overseas Promotion Center (JFOODO), run by The Japan External Trade Organization (JETRO), and within this organization, there are aims to reach JPY 5 trillion by 2030. I think this will also be a tailwind for us. With this tailwind, we think that Japanese food and ingredients will continue to gain popularity around the world.

Your company seems to be very in sync with these huge developments taking place. Over the past two years, you have grown significantly since establishing a holding company. Can you give us your vision up to 2030 and tell us where you expect your business to be in terms of international growth?

As for domestic versus international restaurants, I think that by 2030, we plan to have more than 2,000 restaurants in total, with about 600 of them overseas, making up approximately 30% of the total. In the future, however, we believe that the number of restaurants outside of Japan will increase to more than domestically, accounting for more than 50%.

You mentioned the JFOODO target of JPY 5 trillion by 2030. Do you think this ambitious target is achievable by 2030? If so, what are some of the main steps that the Japanese government along with companies, need to take in order to achieve it?

I honestly think that is a stretch goal. Japanese brands overseas tend to focus on high-end ingredients, but in order to achieve the JPY 5 trillion goal, I believe it is necessary to expand into more affordable price ranges and markets. Personally, I think it will be very difficult to achieve that goal without adopting this approach.

Our East Asian partner companies are hopeful that, amidst the economic downturn, the price range of Torikizoku will work to their advantage. Torikizoku is said to be the winner of deflation, with JPY 370 skewers being quite unbeatable.

We’ve seen with many international restaurants price pressures are being put on them, such as supply chain disruptions and rising labor costs, among many others. Can you tell us about some of the strategies you are employing to maintain such a competitive price for your customers despite these obvious challenges?

In the domestic market, we have chain restaurants, which allows us to operate in a very efficient way. We have increased our purchasing power by having these chain operations. As a specialty restaurant for yakitori, we operate sales efficiently and have established a system to do so. This has been possible by concentrating on chicken as our main ingredient. The pricing of chicken is more stable compared to beef or pork. It has allowed us to have a very stable supply.

Recent trends have suggested that worldwide, there is more knowledge regarding sustainability and the need to reduce meat consumption. This is particularly true with beef since it generates huge amounts of greenhouse gasses and huge water requirements. Chicken is a healthier option and has a more stable supply chain. How can your focus on chicken help address some of the global sustainability and climate challenges?

In terms of livestock farming, chickens emits less CO2 than beef or pork, so using chicken enables us to be a more environmentally friendly business.

Torikizoku's specialty "KIZOKUYAKI”. Our signature Yakitori, made with juicy thigh meat, is large and filling. Since our founding, we have developed a sweet, soy sauce-based sauce through a lot of thought and error to create a rich sauce that brings flavor of Yakitori.

Part of your mid-term management plan outlines the idea of establishing yakitori as a more global food product. You’ve also outlined goals of growing your total number of restaurants and reaching annual sales of JPY 60 billion. Can you tell us more about your vision and some of the core strategies outlined in your mid-term management plan?

We aim to become a “Global YAKITORI Family,” so we want to work together with partners and other yakitori restaurants to try to meet demands around the world. Secondly, I want to establish more partners overseas to meet the unique demands of each country through both direct operations and franchises.

We understand that you have been very active in securing new partnerships, and you’ve expressed interest in finding new partners overseas. Which markets are you looking at in particular?

As one example, our next Medium-Term Management Plan outlines our intention to expand into Southeast Asia, and basically, we are looking at direct operations there as sole investors. However, each country does come with its own risks. Depending on the uniqueness of each country, we may need to partner with local entities. Although we will be doing operations directly, we also understand the possibilities of running franchises in foreign locations.

In terms of countries, I am looking at Thailand, Indonesia, and Vietnam, but we are also looking into Europe, Australia, and China as possibilities.

Your company’s core values outline uniform pricing and locally sourced ingredients, and this is why your company has become so successful. As you expand into new markets, will you maintain these core values and comparatively low prices?

Uniform pricing will depend on the country, and although we will go with that strategy, things may have to be adjusted based on the locality. Regarding supplies, we are aiming to have local supplies because not only will we be able to source high-quality ingredients, but we will also be contributing to the countries we are in. I think that sort of expansion would be ideal in terms of sustainability.

Countries like Thailand, for example, have very particular tastes, and with Thailand as the example, local people really love spicy foods. Will you tweak your menu in any way to adapt to local tastes?

I would like to be flexible and adjust to the flavor preferences of local customers. The ultimate goal at the end of the day is to make the customers happy. Of course, we will bring our Japanese yakitori sauce, but we will also develop localized flavors separately for those local markets.

The COVID-19 pandemic had a significant impact on food supply chains, and during the pandemic, many restaurants were forced to close and turn to online food delivery platforms. How do you see this continued trend impact consumer preferences and your business going forward?

Yes, as you said, the pandemic did force the rise of online delivery services, but in recent years, those companies have been losing profits. Face-to-face communication over food is coming back, and as a company, this is where we see real value. I’m not too concerned about the impact.

Many food companies these days are looking to reduce waste by upcycling ingredients, and some examples might be the use of offcuts from sushi to flavor broths and unsold food being turned into animal feed. What are some of the initiatives your company is taking to improve your environmental performance and reduce waste?

Firstly, we use reusable chopsticks. In terms of food loss and waste, we have an ordering system where we can place an order on the day we require it, meaning the inventory system enables the selling of the entire inventory. Company-wide, we have a lot of initiatives to save food and reduce food loss. In our offices, we also work paperless.

What is your favorite menu item?

KIZOKUYAKI Thigh with leek (sauce).

What do you hope to achieve by the time your company reaches 40 years old?

This year marks the start of our international expansion, so by our 40th anniversary in 2026, I hope to have succeeded in that expansion.

For more information, please visit their website at: https://eternal-hospitality.co.jp/