Focus: Asia Franchise Markets April 2016 | Page 10

Food & Eating Out.

Franchise Sectors

Overview
Despite the global economic situation Japan remains a solid market for
luxury packaged products and gourmet foods. This is mainly due to
Japan having a cultural adversity to debt, so unlike most western
countries the individual’s debt to savings ratio is very positive.
In terms of eating out we are seeing a new trend in price conscious
consumers and the market is reacting. In a country where quality has
always been valued over cost, price orientated campaigns are now an
integral part of promotion.
QSR restaurants, franchise restaurants, cafes and home delivery
businesses have been less affected by this lifestyle change compared
to independent one site owners, so there exists an opening for
overseas franchisors who have a strong domestic base. With people
also entertaining more at home there remains good opportunities to
sell quality, store bought produce.
Other growth food sectors for franchises to consider:
Health foods.
Ready-to-eat foods.
Organic and fair-trade products.

Frozen foods.
Private brands.
Desserts.

Summary
Travel opportunities, curiosity, media influence and existing products
means a global lifestyle is desirable in Japan and this rolls over into
their perception of food.
Japanese people love new experiences and exciting flavours so quality
foods from the USA and Europe sell well. The increased consumption of
foreign food has also created a knock-on increase in demand for
foreign ingredients.