Article

World's oldest QSR rebrands, expands in US

The time may never be more ripe for 118-year-old Yoshinoya to hit a growth spurt in the U.S. The brand's U.S. CEO offers insight into what's coming as the Japanese-based beef bowl chain begins rebranding on American soil.

January 12, 2017 by S.A. Whitehead — Food Editor, Net World Media Group

In hopes of expanding its American presence, Japan's 118-year-old fast food brand, Yoshinoya, is rebranding its U.S. locations.The chain, which specializes in beef bowls, is implementing a remodel, adding digital menu boards, a more open kitchen and new menu items.

"We cook for you, and we do not use microwaves in our restaurants, which differentiates Yoshinoya from typical western-style fast food restaurants," U.S CEO Dar Vasseghi, said in a recent interview with QSRweb.com . "We value people, and we want to be a part of people's lives."

Ready to roll

Known as the world's oldest QSR, Yoshinoya quietly announced at the end of last year that its American locations were outperforming the overall QSR sector in same-store sales growth with a 6 percent yield-to-date versus 2.3 percent for the entire QSR sector in the U.S. at that time. The brand, which Dar said offers a fast casual experience, was just coming off a 4-year, same-store sales lead across all of its more than 100 U.S. locations, which financial results indicated were also attaining both higher average check totals and steady increases in transactions.

At about the same time, 2017 restaurant trend lists were all indicating that ethnic Asian foods in the U.S. were riding a wave with its crest yet to be reached.

Just 10 years after U.S. franchising began for the global chain, Yoshinoya's time may never be better than now for expansion across America beyond its current 104 units, all in California.

"Asian food is the fastest-growing cuisine in the U.S. and customers are wanting bold, exciting flavors. …" Vasseghi said in the interview," Dar said. "At Yoshinoya, our guests receive a generously portioned, freshly prepared hot home-cooked style meal at a great value. We focus on satisfying the customer's desire to taste unique Asian flavors."

Although Yoshinoya started as a "quick-service" beef bowl stand on the outskirts of Edo Castle in the Nihonbashi Fish Market of Chuoku, Tokyo, it has grown into a modern-day brand with major expansion plans.

"Successful brand evolution is a very personal thing that you work through with your loyal customers."     -Yoshinoya America CEO Dar Vasseghi

As Yoshinoya begins publicly rebranding its U.S. sites, we spoke with Vasseghi to find out how the American Yoshinoya translation would unfold, as well as differ from the brand's 1,800-plus other mostly Asian locations in Japan, Australia, Hong Kong, Mainland China, Malaysia, Singapore, Taiwan and the Philippines.  

Q: As this U.S. expansion and rebranding begins, can you share details of how the sites here will differ from those elsewhere? 
A: Yoshinoya's menu has really evolved over the past few years. Until recently, the menu was largely centered around the Original Japanese Beef Bowl and our very popular Teriyaki Chicken bowl. Those items are still favorites of our customers, but today we have developed many new entree items to complement the menu and bring more variety to our guests. 

In the last 3 years … we have successfully launched several more entree items like Angus Steak, Grilled Tilapia, Honey Walnut Shrimp, Orange Chicken and Spring Rolls. We will continue to develop new menu items going forward. We have focused on the need to satisfy customers' desires for bold Asian flavors, but done the Yoshinoya way, which is freshly cooked for you. …

Globally, Yoshinoya locations all offer the same core menu items and then make menu modifications to better serve the palates of guests in each country. … 

Over the next couple of years, our future locations will be concentrated in the western half of the U.S. They will include our newest design which includes digital menu boards and with a more open kitchen layout. These locations will include an expanded menu while still offering our traditional favorites such as the Original Japanese Beef Bowl and Teriyaki Chicken.

Q: What kind of research and groundwork has gone into your rebranding and growth plan, and precisely how does the brand intend to grow globally? 
A: We have been working on a rebranding strategy for the last four years and have worked with Chermayeff & Geismar & Haviv, headquartered in New York, in creating our new logo. … We conducted qualitative and quantitative guest research (and) hired branding, menu and design consultants, all with the goal of helping us meet the needs of our current and future guests. We tested various restaurant designs and made numerous adjustments before determining our final new store design.  

But most important of all, our management team took the time to learn about our brand and our customer.  No one can solve your problems for you.  Successful brand evolution is a very personal thing that you work through with your loyal customers. 

In the year ahead, you will see more premium menu items, a new logo implementation, and within the next two years, a full remodel of all of our company-owned locations.  
Internationally, Yoshionoya is expanding into new countries by making slight adjustments to store designs and menus, while always remaining true to the Yoshinoya brand's core values.  Global expansion continues to be a focus for the brand.

Q: How is the brand using technology to speed service and ensure quality? 
A: Online ordering and payment are fast becoming a requirement for today's customer and we are working on implementing those features. In the kitchen, we put a lot of focus on ensuring we use clever design and equipment to create an efficient kitchen process. Even though we offer an eating experience that is far from traditional fast food, our customer still wants their food prepared quickly.

"We see Panda, El Pollo Loco, and Del Taco as direct competition, and we also compete with many fast casual concepts"

Q: Who do you see as direct competition in the West, and what kind of competition have you historically faced in Japan? 
A:We see Panda, El Pollo Loco, and Del Taco as direct competition and we also compete with many fast casual concepts because of the nature of our product and the eating experience of a bowl that is cooked for you.

(In Japan) the Japanese beef bowl market is very robust. The Beef Bowl — which is known as gyudon in Japan — is a staple. There are a few other chains that have popped up over the years to compete in the segment that Yoshinoya created (nearly) 120 years ago.

"You could say we learned what not to do by watching other concepts compromise on taste in order to reach other goals."

Q: What has your brand learned from Western QSR concepts and what do you think your brand will teach chains in places like Europe and the U.S.?
A: In the QSR industry, speed of service is, of course, important, but it is secondary to serving a fresh, hot, well-portioned meal to guests at an affordable price. We deliver speed, value and many healthy options, but great taste is something that we will not compromise on.  

You could say we learned what not to do by watching other concepts compromise on taste in order to reach other goals. We think that's a mistake and it is one we will not make. Customers don't want to eat something that tastes like cardboard, no matter how fast it can be served or how low the price. We know we can provide great tasting food quickly and at an affordable price. We just have to continue to work a little harder every day. 

Feature photo: iStock

Photos in content: Provided by brand

About S.A. Whitehead

---

Pizza Marketplace and QSRweb editor Shelly Whitehead is a former newspaper and TV reporter with an affinity for telling stories about the people and innovative thinking behind great brands.