News

Wendy's expands Japanese presence through hybrid restaurant concept

June 1, 2016

Wendy's is making a big move in Japan with the acquisition of 136 First Kitchen restaurants. The chain and its Japanese franchisee, Suntory Holdings Ltd, will convert the existing First Kitchen restaurants into Wendy's First Kitchen restaurants. The resulting hybrid concept features a blended, revamped menu and new décor. A news release said the combined restaurant brand has been in testing in Tokyo, yielding positive results. 

The First Kitchen acquisition was made possible when North Asian private equity firm, the Longreach Group, acquired a majority stake in the Higa Industries' subsidiary, Wendy's Japan. Two locations of the new hybrid concept in the Roppongi and Ueno sections of Tokyo have been performing well, according to the news release.

"The First Kitchen restaurant brand is well-established with a presence in many desirable, busy locations throughout Japan. We anticipate the acquisition will leverage the strengths of both Wendy's and First Kitchen, while providing a springboard for growth in the coming years," said Wendy's Executive Vice President and COO Bob Wright. "This deal would not have been possible without the vision and dedication of Ernie Higa and the Wendy's Japan team, who understand the importance of great customer service, continuous innovation and playing a different game when competing against well-entrenched restaurant competitors. … This is an example of how we are bringing our 'narrow and deep' international strategy to life by initially focusing on four key markets — Japan, India, Brazil and the Middle East — where we see considerable upside potential over the next few years. We believe our best approach is to support our franchisees in building Wendy's brand strength in local markets and enhancing the economic model of their restaurants."

The hybrid restaurants will offer consumers "the best of both worlds" from the two brands, said Wendy's spokesman Bob Bertini. 

"From Wendy’s –a variety of hamburgers (like the Baconator) and chicken sandwiches, while many of the First Kitchen items are reflective of the Japanese roots of the chain — different types of pasta, like seasoned Hakata cod roe spaghetti and pasta with squid and mushrooms, along with shrimp burgers, various desserts and more," he said.

Wendy's has 6,500 company-owned restaurants in the U.S. and 28 countries globally.