Healthy Flavors for Every Table

Washoku, or traditional Japanese cuisine, has gained worldwide recognition for its balance of health and flavor, a trend reflected in three key statistics. First, 36.8 million tourists visited Japan last year, many drawn by the opportunity to experience authentic Japanese food. Second, exports of Japanese food-related products reached JPY 1.45 trillion in 2023, underscoring the growing global demand. Third, bento box culture is expected to expand significantly, with projections estimating the market will reach JPY 1.27 billion by 2030 and a 14% increase in the number of U.S. restaurants offering bento boxes. What do you think is driving the continued global rise in Japanese food and bento box culture?

One key factor is the influx of inbound tourists, who benefit from a favorable exchange rate, making Japanese food more affordable and accessible during their visits. Another important factor is the quality of ingredients. For example, many foreign visitors find Japan’s marbled meat exceptionally flavorful, and the quality of sushi is often higher than what is available overseas.

From my experience, Japanese restaurants in Japan tend to offer a more authentic and refined dining experience than those I’ve visited abroad. I have personally observed this difference many times while dining at Japanese restaurants overseas.

Japan is facing a population crisis, with a projected 12% worker deficit by 2040. This challenge is particularly evident in the agriculture sector, where the average age of farmers has risen to 65 years. What steps is your company taking to address and overcome this issue?

While Japan’s population is declining, we remain confident in our ability to succeed in this market. Our strategy is to expand gradually and sustainably, avoiding overextension while steadily increasing our number of stores. With this measured approach, we believe we can secure a strong share of the Japanese market.

Currently, we have around 1,000 employees, including 70 foreign workers, with 20 more set to join soon. Looking ahead, we aim to grow to 1,000 Japanese employees and 500 international team members, with the hope that those joining us from abroad will feel welcomed and supported in building fulfilling lives in Japan. If more companies take a similar approach, it could help counteract population decline over time.

In terms of digital transformation (DX), we acknowledge that we are lagging behind in IT adoption. Our company is built on a handmade approach to food preparation, which is central to our identity. While we introduce automation where possible, we are cautious about implementing it too extensively, as it could diminish the uniqueness and craftsmanship of our products. This presents an ongoing challenge.

That said, we are exploring IT solutions to streamline areas such as purchasing and sales processes. Additionally, in the U.S. market, we are actively seeking global technology partners and IT specialists, with a dedicated staff member leading these efforts.

Ultimately, our core priority remains the quality, taste, and healthfulness of our bento boxes. While we aim to leverage advancing technologies, including AI and supply chain management, we want to ensure that technology enhances rather than compromises the essence of our products.

What countries are you targeting for those foreign workers?

We want to increase the number of workers from Myanmar.

From a non-Japanese perspective, bento boxes in Japan are often associated with salarymen, truck drivers, and people on the move. What challenges do you face in internationalizing bento culture, and how do you plan to shift this image to make bento boxes more accessible and appealing to a global audience?

Bento boxes are a significant part of our sales, but our core concept goes beyond just the bento itself. Our stores aim to provide a complete meal experience, offering a variety of options from salads to desserts. Rather than solely focusing on the bento box format, our primary mission is to create safe and healthy meals for everyone, including families with children. This focus on nutritious, well-balanced dishes is at the heart of our approach as we expand into new markets.

A bento that balances health and taste

You’ve mentioned plans to expand your number of stores across Japan. What kind of in-store experience do you aim to provide for your customers?

We want visitors to our stores to enjoy the experience of seeing and selecting their dishes. We offer bento boxes made with vegetables and healthy ingredients and also emphasize variety, allowing customers to either make a quick selection or take their time exploring their options.

Our approach incorporates traditional Japanese preparation methods, such as nimono (simmering ingredients like vegetables, tofu, or meat in a seasoned broth), to maintain authenticity. However, these types of dishes haven't been as popular in Japan. That said, consumer preferences may differ in foreign markets like the U.S., so we are still exploring how these offerings might be received internationally.

 A look inside one of the bento shops

As you mentioned, your dishes are handmade rather than automated, allowing you to replicate the home-cooked flavor. You also prioritize fresh, natural ingredients, with most containing no additives. How do you achieve this homemade taste in your dishes while maintaining quality and consistency?

Our concept is to create dishes without preservatives or additives. For example, when we first started, we did not include sausages in our bento boxes because most commercially available sausages contain additives, and additive-free options are typically expensive. However, since sausage is a staple in bento boxes, we found a solution by producing our own in-house, just as we do with most of our products. In fact, some of our ingredients are even grown on our own farms, allowing us to maintain quality and traceability from start to finish. This not only ensures the quality and purity of the ingredients but also helps reduce costs, allowing us to stay true to our commitment to natural, additive-free food.

Among the dishes you offer are Vietnamese pho and white sesame dan dan noodles. Which of your dishes would you personally recommend, and what makes them stand out?

That’s a difficult question because we offer a wide variety of dishes and don’t specialize in any specific category like noodles. Our goal is to provide a diverse selection, ensuring that customers can find dishes that suit their individual tastes.

If we focus on noodles, aside from Vietnamese pho, all of our other noodles are made in-house. One of the biggest challenges with fresh noodles is maintaining their texture over time. Freshly boiled noodles have a great texture, but this can deteriorate over time. To overcome this, we conducted extensive research and developed techniques that allow us to produce noodles that retain their texture for an extended period.

Beyond noodles, we also make our own sauces and other ingredients in-house. One major reason is our commitment to using no additives, but another reason is quality control. When outsourcing production to food manufacturers—even when using our own recipes—the final product often suffers because manufacturers tend to cut costs by using lower-quality ingredients or processes. By producing everything in-house and using only high-quality raw materials, we can ensure that our food remains authentic, fresh, and of the highest quality.

Beyond your ready meals, you also operate a bakery, a processed meat division, and provide home meal deliveries to kindergartens, institutional clients, and elder care facilities. What synergies have you been able to create across these different segments, and are there any new areas you’re considering expanding into?

We produce everything in-house and adapt our offerings to meet market demand. For example, although kindergartens reached out to us to provide meals, this segment isn’t particularly profitable. However, our motivation goes beyond financial returns—we are committed to making delicious, high-quality food for children. Even though this segment doesn’t generate significant profits, we take pride in offering nutritious meals that contribute to children's well-being, which aligns with our broader mission.

You collaborate with a variety of domestic partners, including department stores and pharmacies, such as Mitsukoshi Isetan. Additionally, you work closely with local farmers to source high-quality ingredients. Looking ahead, are you seeking international partnerships, and if so, what types of collaborations are you interested in pursuing?

While we have domestic partnerships, our business model is fully self-operated—we rent retail spaces, produce our own products, and employ our own staff for sales. We do not sell wholesale, allowing us to maintain full control over our operations, from production to customer experience.

For international expansion, particularly in the U.S., our approach will be different. Since we lack deep knowledge of the U.S. market, we believe it is essential to collaborate with local partners who understand the landscape. However, our top priority will always be food quality.

In Japan, we can directly manage everything—our spaces, employees, and product standards. But in the U.S., we recognize that we won’t have the same level of control. That’s why it is critical to work with partners who share our values, commitment to quality, and passion for great food. Local knowledge and alignment in standards and philosophy will be the key to our successful expansion overseas.

Continuing with the topic of international expansion, your company established a joint venture in Vietnam in 1994 for ingredient sourcing and actively recruit from Myanmar. As you mentioned earlier, you are also planning to expand into the U.S., particularly in Texas. Are there any specific regions or areas you are considering for future expansion?

We haven’t made a final decision yet, but Portland, Oregon is one of several cities we’re actively exploring for expansion. We’re especially drawn to places with a welcoming atmosphere and communities that value health and wellness, as these align closely with our brand and mission.

While New York may seem like a logical market choice, our experience there felt different—people appeared to be very business-driven and less welcoming. On the other hand, in Portland, I had a much more positive experience. Even when dining alone at a restaurant, I found the people to be friendly and warm, which left a lasting impression.

If we expand to Portland, it wouldn’t just be about entering a new market; it would also be a cultural exchange. Our employees would spend time there, experience the local environment, and bring that sense of community and hospitality back to Japan.

When would you like to start operations there?

Our staff member currently in the U.S. will return to Japan in June, but he will travel back later to oversee the store's opening. Based on our current plans, the earliest we anticipate launching operations in the US would be in two years. This timeline allows us to carefully prepare, establish the right partnerships, and ensure a successful market entry.

Beyond the United States, which remains your primary focus, are you exploring expansion into other countries? For example, do you see halal dishes as a potential market opportunity?

We are not actively pursuing halal dishes at the moment, but we have produced them before and found a company in Okinawa that expressed interest. We also attempted to introduce halal dishes to traditional Japanese ryokan hotels, but the demand was lower than expected.

That said, we recognize that there could be potential in markets like Dubai, where there is a stronger demand for halal cuisine. While it’s not a current priority, it’s something we may revisit in the future if the right opportunities arise.

Your company is celebrating its 68th anniversary this year. If we return for your 70th anniversary in two years, what key goals or ambitions would you like to have achieved by then?

Our biggest goal is to become a more IT-driven company, particularly in administration and operations. While we estimate that fully achieving this transformation will take three to four years, we aim to make significant progress within the next two years. This shift will be especially critical as we expand our business, ensuring that our systems and processes are efficient, scalable, and prepared for growth.

If you had to define your company in one sentence, what would it be?

Our company's core belief is that we are shaped by what we eat, and our mission is to consistently provide healthy food that nourishes both the mind and body.

For more information, please visit their website at: https://www.chikuya.co.jp/corporate/company/