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TOKYO, Japan — Watami, one of Japan’s largest restaurant chains, is opening a fried chicken establishment in Shanghai this month as part of its international expansion strategy, despite the country’s coronavirus prohibitions. The move reverses the company’s decision to leave China last year, after the pandemic forced the closure of seven Watami-branded izakaya gastropubs in the nation. Watami has signed a franchise deal with TANSH Global Food Group, the operator of Shanghai Min eateries, for the Japanese company’s Karaage no Tensai fried chicken chain. TANSH plans to open its first facility in Shanghai and expand to other parts of China, as well as seek franchisees. Watami’s yakiniku grilled beef restaurants will be brought to China, and the partners will consider forming a joint venture. According to the Japan Food Service Association, the restaurant market in Japan shrank by 15.1 percent in 2020. Infections have continued to rise as a result of the country’s sluggish implementation of coronavirus vaccines, and restaurants in Greater Tokyo are still restricted in terms of store hours and serving alcohol. However, several international markets are booming back. According to Nomura Research Institute, China’s restaurant market dropped 17% in 2020 but increased 70% year over year in the first two months of 2021. COVID- Many restrictions in the United States and Europe have been eased, and people are returning to restaurants. As a result, others in Japan’s restaurant business are looking to expand internationally as well. This fiscal year, Zensho Holdings wants to add a total of 388 outlets outside of Japan, including stores in China under its flagship beef bowl Sukiya chain and more takeout sushi restaurants in the United States. In Japan, the company plans to open only 116 locations. Zensho’s international openings fell to 294 in the fiscal year ended March 2020, down from 344 the previous fiscal year. Leading restaurant operators are expanding, according to a Nikkei study published in late May. In fiscal 2021, Japan’s top 100 publicly traded eatery companies plan to open at least 730 sites abroad, up more than 20% from the previous year./nRead More

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