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117-year-old Japanese brand outperforms industry average

Apparently after nearly 120 years in business, you can still learn a thing or two about the restaurant industry. At least that's been the case for Yoshinoya Japanese Kitchen, which has turned in a year of above-industry average sales growth.

November 17, 2016 by S.A. Whitehead — Food Editor, Net World Media Group

Apparently after nearly 120 years in business, you can still learn a thing or two about the restaurant industry. At least that's been the case for Yoshinoya Japanese Kitchen, which has again turned in a year of above-industry average sales growth. According to a news release, the year-to-date same-store sales growth for the company's U.S. outlets is more than 6 percent, and the upward trend appears to be continuing. 

The chain, which has more than 100 U.S. locations, has turned in four years of same-store sales growth. The growth is attributed to both higher average checks and steady increases in transactions. Meanwhile, the  industry in general in the U.S. is ailing, as is evident in this comparison chart of the chain's performance versus that of the overall QSR section in the U.S. 

"I am pleased with our positive sales performance and the progress we’ve made towards meeting our strategic initiatives," said Yoshinoya America CEO Dar Vasseghi. "Our team’s efforts have helped put our brand on a path of continued growth and expansion into new markets."

So one of the questions, of course, is why. The company itself gives part of the credit to new menu items created to broaden appeal to U.S customers while also improving overall ingredient quality. Menu additions include Angus steak, grilled tilapia, shrimp and orange chicken bowls, along with the brand's longtime offerings of beef and teriyaki bowls.

In fact, the chain has instituted price increases, which a news release said were put in place to help with rising costs. Nonetheless, a steady rate of growth in the number of transactions has affirmed that move, which Yoshinoya said is part of its core company values.

"Yoshinoya offers our guests freshly prepared, delicious Japanese rice bowls that are affordably priced," said the chain's Marketing Vice President Bobby Williams, in a news release. "It was very important for us to fulfill a greater share of our current customers' expectations while continuing to build on those connections spilling over into new customer segments. What excites us is hearing customer feedback and knowing that we are keeping up with exactly what they want and need in their busy lives."

The brand just started remodeling its existing U.S. units with plans to warm and update all locations by the end of 2018. The refresh also includes a new logo design. 

Yoshinoya opened its first unit in 1899 inTokyo and operates or franchises more than 1,833 restaurants in Japan, Mainland China, Shanghai, Taiwan, Hong Kong, Singapore, Philippines and the United States. 

About S.A. Whitehead

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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.