Japanese-style pub operator Watami Co has recently made a strategic move by acquiring the Japanese unit of Subway sandwich chain in order to diversify its business. Through this acquisition, Watami has secured a franchise contract with Subway International B.V. to operate Subway stores in Japan for the next decade.
With Subway Japan G.K. generating 536 million yen in revenue in 2023, Watami plans to significantly increase the number of Subway stores in Japan from 178 to over 3,000. Chairman Miki Watanabe expressed that this ambitious expansion is made possible by the strong brand presence of Subway.
Due to the challenges posed by the COVID-19 pandemic, the izakaya industry has been compelled to explore new revenue streams. Despite a partial recovery, sales at bars and izakayas in Japan are still below pre-pandemic levels. In contrast, fast food stores have seen growth, highlighting the shift towards takeout and delivery services.
In response to changing consumer behavior, Watami has been implementing diversification strategies including the launch of new barbecue restaurants and enhancing its food delivery services.
© KYODO