Japan Qsr Industry
Essay by vanillayama • January 17, 2016 • Case Study • 846 Words (4 Pages) • 1,146 Views
As a country has a reputation for convenience living, the Japanese society and food industry undergoes extensive remodeling that changed from traditional dietary and eating patterns to modern style, which they used to like long time spending in home-prepared meals but now prefer fast food, takeout food and dining out. The food industry revenue is obviously increasing these years. On account of most of modern Japanese have very busy and fast-paced lives, fast food plays a significant role in the whole food industry. The fast food industry in japan, focus on high volume, low cost and high speed product. to put it simply, including noodles, chicken, burgers, donuts and so on. In 1993, the burger king japans established a franchise contract with the united states burger king corporation, open chain stores on their own by SEIBU Properties. In 1996, as the holding company of the united states burger king corporation, cooperated with the UK company (grand metropolitan), founded the JT of burger king Japan. Due to high competition, all of the Japanese locations were closed in 2001, however, BK reentered the Japanese market in June 2007, established a joint venture new burger king Japan by lotto and revamp. In 2010, lotteria (Korean corporate) acquired these companies. Masanori Tatsuiwa, is the Burger King Japan's general manager for business management. The first BK japan store opened in Shinjuku, until February 2015, it has 90 stores in japan.
The macroscopic environment in Japan relevant to the QSR industry
Political factors: The same as many developed countries, the Japanese government's target of initiatives aimed at improving health and reducing obesity. Policy makers are targeting lifestyle diseases such as obesity, diabetes, and lung cancer (Euromonitor 2009) And the tax hike implemented at April 2014, with VAT increasing from 5% to 8%, lead to a increasing of products price.
Economic factors: Japan remains world‘s third-largest economy, with a GDP of 4601.46 billion US dollars in 2014. Per capita spending on fast food increased 2.5%. In 2014 GDP growth show a slightly trend, partly because the Japanese household income slowly growth and increase the price of the product. QSR industry revenue overall growth 5% and largely due to convenience fast food.
Sociological factors: Japan‘s population is aging faster than any other country in the world. The aging population lead Japanese society demand for health and wellness value of food. While the fast food public image looks like not that healthy, but the society is more health-conscious. What’s more, because of the busy, fast paced lifestyle of Japanese, more female entering and staying in the workforce, the increasing number of single households, the casual atmosphere of the fast food restaurants and cheap prices, the needs of fast food and food delivery are increasing. Japanese-style fast food generally include noodles, rice plates and street foods.
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