Delivering Affordable Luxury in Japanese Dining Worldwide

When I think of Japanese cuisine, or washoku, three things come to mind: health, exquisite taste, and culinary artistry. I believe these qualities are reflected in two key trends. First, the 36.8 million tourists who visited Japan last year—many drawn by the desire to experience authentic Japanese food. Second, the global expansion of Japanese restaurants, which grew from 55,000 in 2013 to nearly 200,000 by 2023. How do you explain the continued rise and growing global appeal of washoku in recent years?

There are several reasons, many of which you touched on in your question. Health consciousness has become a major global trend across the food industry—not just for washoku—but Japanese cuisine aligns well with this shift through its balanced use of fresh, seasonal vegetables and seafood.

Social media has also played a big role. Both visitors and those outside Japan are increasingly exposed to washoku through shared photos, videos, and recommendations, which helps introduce people to Japanese dishes and restaurants. Beyond taste and sustainability, I believe hospitality is another key factor. In Japan, exceptional service is a hallmark of the dining experience, and at RDC, we’re committed to offering the highest level of hospitality to our customers.

Lastly, with the depreciation of the yen, Japanese food has become more affordable for many international visitors, which has also contributed to its rising popularity. Taken together, all of these factors have played a part in the growing global appeal of washoku in recent years.

The Japanese government has set a target of attracting 60 million tourists by 2030. The restaurant sector will play a vital role in achieving that goal, offering everything from Michelin-starred dining to sushi chains and casual izakayas. These diverse dining experiences are expected to be a cornerstone of food-driven tourism. How is your company preparing to accommodate the anticipated surge in foreign visitors, and what opportunities does this represent for RDC?

Naturally, we’re working to adapt to the increasing number of foreign tourists coming to Japan, and Japanese cuisine plays a key role in attracting those visitors. We do our best to offer a diverse and appealing menu while offering a variety of food options to international guests.

One specific initiative we’ve implemented is multilingual support across our restaurants. This includes signage at the entrance, multilingual menus, and digital menu systems to make it easier for guests to browse and order.

We’re also focusing on extending these services to rural areas, where many of our restaurants are located. While tourist traffic tends to concentrate in major cities, we’d like to help change that. For instance, TripAdvisor previously lacked information and booking capabilities for many of our locations, so we worked to improve that and ensure English-language support is available.

No company or industry is exempt from the population crisis affecting Japan and other parts of the world. In the food sector, one pressing concern is the aging agricultural workforce—the average age of farmers is now 65. At the same time, Japan’s overall labor force is projected to shrink by 12% by 2040. This demographic shift is expected to lead to production bottlenecks, a shrinking domestic market, and intensifying competition for talent. How is your company addressing these challenges?

As you mentioned, the number of Japanese restaurants worldwide is growing—a positive trend for the industry. We’ve discussed some of the reasons behind this, but one factor we haven’t touched on is that many companies are expanding overseas because they can no longer rely on growth within Japan. The domestic market is shrinking, so businesses, including ours, are looking beyond Japan’s borders to reach new audiences.

In addition, we’ve been reducing the number of employees needed to operate each restaurant. Several years ago, it took around 40 staff members to run a single location; today, we’ve brought that number down to 30. This has been made possible, in part, through digitalization—such as the touch-panel ordering systems I mentioned earlier.

We’re also hiring foreign workers to help address the labor shortage in Japan. Just yesterday, we held an introductory course for 30 to 40 new team members from Vietnam and Myanmar. Another key area of our company’s advancement is training. In the past, it could take up to ten years to properly train a sushi chef. Our goal is to train Gatten Sushi store managers in four years..

All of these efforts—streamlining operations, leveraging technology, expanding internationally, and improving training—are part of our strategy to adapt and thrive in Japan’s increasingly challenging domestic market.

When someone visits a Japanese restaurant, they’re not only looking for good value and high-quality food—they also care deeply about the service and overall experience. How does your company ensure all of these elements are consistently delivered?

We’re working to keep pace with other major players in the industry by offering accessible pricing without compromising on quality. In that sense, we’re not unique—the key lies in striking the right balance. It’s about combining digitalization and automation with well-trained chefs and staff, together with using high-quality ingredients to deliver both a great product and a memorable dining experience.

Your company was founded in 1986 and has grown from a small sushi restaurant into a global restaurant operator. You've championed the concept of affordable luxury—offering high-quality, indulgent dining at accessible prices. Why do you think this concept resonates so strongly with customers? And how do you strike a balance between delivering a luxurious dining experience while maintaining affordability?

The concept of affordable luxury resonates strongly with Japanese customers today because it reflects a desire to enjoy high-quality, indulgent experiences in everyday life—without excessive spending. Of course, this isn’t unique to Japan. We’re not reinventing the wheel. You can find elements of affordable luxury even in convenience stores and fast-food chains in Japan. What we’re trying to offer goes beyond that baseline.

Our version of affordable luxury is about creating a memorable experience—something that feels special, like a birthday celebration or a meaningful family gathering. After all, people don’t go to a sushi restaurant every day; it’s more of an occasional treat. Our restaurants aren’t necessarily cheap, however, they deliver quality and atmosphere that justify the price. That’s what affordable luxury means to us: value without compromising the experience.

As for the business model, it’s about finding the right balance—between price, quality, accessibility, ambiance, and how the food is presented. This principle applies across all the different types of cuisine we offer in our restaurants.

In the domestic market, you’re competing with many Japanese companies offering similar cuisine—whether it’s tonkatsu, sushi, or other traditional dishes. What would you say are your main competitive advantages that make your restaurants the go-to choice for customers?

What sets us apart from other sushi or washoku restaurants is our strong “Gatten-Shochi! (can-do!)” spirit—a mindset that permeates everything we do, both internally and in how we serve our customers. We’re committed to doing whatever it takes to meet our customers’ needs, always striving to provide the best service and the highest-quality products. That attitude is at the core of our competitive advantage.

We also place a strong emphasis on training and skill development. For example, one of our employees can prepare 34 pieces of sushi in just three minutes—faster than what you’ll see in most other restaurants. That level of speed and efficiency is something our customers truly appreciate.

Your business spans several segments—casual fast dining, family-oriented midrange, buffets—with Gatten Sushi as your flagship brand. Beyond Gatten, which segment do you see as having the strongest growth potential for RDC? Are there any new segments you're currently exploring or considering for the future?

RDC’s strategy is built around a portfolio of brands that serve multiple segments. Our core focus has always been on the fast casual and family-oriented midrange categories, which have consistently offered the strongest business opportunities since our foundin g—and we believe they continue to do so. Our primary customer base is families.

These segments have grown to meet the needs of consumers who are looking for convenient, high-quality dining at reasonable prices. That’s the essence of our concept. In terms of growth, we see potential across all of our brands and are looking to expand by opening more restaurants. That said, while we’ve achieved impressive speed in sushi preparation, the speed at which we’re able to open new locations has been slower than we had expected it to be. Improving that pace is something we’re actively working on. Food court locations, in particular, present an attractive opportunity for expansion.

One important point I’d like to highlight is the need to balance automation with the pride and craftsmanship of our chefs. Introducing more machines can certainly improve efficiency, speed, and profitability. However, we must be cautious not to compromise the techniques and skills that our chefs have spent years perfecting. Striking that balance is our responsibility and our goal is to preserve those traditional techniques while continuing to bring joy to both our customers and our chefs.

Your portfolio now includes 30 brands, including the previously mentioned “Gatten Sushi”, known for its gourmet conveyor belt sushi; “Katsu Hana Tei”, which offers premium tonkatsu; and “Yushoken”, specializing in authentic ramen. Of all your brands, is there a particular dish you’d recommend to our readers? What’s a must-try item you'd suggest?

Before highlighting a specific dish, I’d like to mention a unique aspect of our Gatten Sushi restaurants: the fish come from not only traditional markets—but also it’s delivered directly from fishing vessels to our restaurants. Our direct supply chain ensures exceptional freshness and quality, which is a key part of what sets us apart.

Every year we hold an in-house contest in which all employees participate in developing new products and the winning product is sold for a limited time at all restaurants in RDC group.—and this year, the tortilla tonkatsu was the winner. So if I had to recommend one dish, it would be that tortilla tonkatsu. Our crispy tonkatsu is wrapped in a tortilla shell, topped with fresh vegetables, and a flavorful sauce. It’s a unique fusion that’s been very well received.

Your international expansion has been steady over the years, with entries into Shanghai in 2008, South Korea in 2010, the Philippines in 2013, Vietnam in 2020, and most recently, Hong Kong. What is your strategy for future growth abroad? Are you primarily looking for franchise partners or planning to open directly owned stores? Where does RDC see the greatest potential for further expansion?

We plan to continue expanding into several new countries. Our recent entry into Hong Kong has been going well, and in about a year and a half, we’ll be opening our first restaurant in Singapore. Our current strategy is largely focused on Southeast Asia, with Thailand being a key target. I also see strong potential in the Australian market.

Regarding franchising, yes—we’re actively looking for partners. Ideally, they would already have experience operating restaurants, but more importantly, we’re looking for individuals who share our passion and values. Skills and techniques can be taught, but having the right mindset and a willingness to grow together is what matters most to us.

Your company is now celebrating its 37th anniversary. Let’s imagine we return in three years to speak with you again for your 40th anniversary. What goals or dreams would you like to have achieved by then?

We’ve already set clear targets for the next three years and our goal is to reach ¥50 billion. This is our benchmark for growth.

Furthermore, we also want to expand our international presence. We're currently operating in seven countries, and are aiming to increase that number to ten with annual sales goal of ¥70 to ¥80 billion. Beyond that, I’d like to diversify our brand portfolio. Right now, we’re best known as a sushi restaurant group, but we offer much more than that. One of my goals is to strengthen and elevate our other brands so they achieve the same level of recognition as our flagship sushi concept.

Please give a message to the magazine's 75 million readers.

If I may, I have two messages to share. First, when you visit Japan, be sure to stop by a Gatten Sushi and RDC group restaurant. And second, if you come across an RDC restaurant in your own country, we’d love for you to drop in there as well.

For more information, please visit their website at: https://www.rdcgroup.co.jp/en/company/profile/