Japan: leading fast-food restaurants by store number 2024

High population density in metropolitan areas, paired with a promising socio-economic situation, made Japan into an early target for the expansion ambitions of the largest American fast food restaurant chains in the world, which entered Japan at the beginning of the 1970s. As of January 2024, McDonald’s was the leading fast food restaurant chain in Japan in terms of facilities, operating around three thousand outlets. Other fast food restaurant chains of foreign origin, such as KFC, and Domino’s, have also recorded an extraordinary upward trajectory and are likewise firmly established in the Japanese market, operating over 1,000 facilities. Much of this explosive expansion of the largest chains was made possible by the franchise business model, which allows local operators to use the brand name in exchange for royalties.

Fast food restaurant types

Japan’s restaurant industry is enormous. This also means that it is highly saturated and incredibly contested. The success of Western-style fast food restaurant chains prompted the emergence of regional competition, as well as diversification in the local fast food industry. Japan’s most prominent native burger brand is MOS Burger, which was established shortly after KFC’s and McDonald’s entry into the Japanese market. The company was also able to aggressively expand and claim a large share of the fast food market for itself. Other than burger shops, the fast food segment in Japan also features bento shops, and pizza restaurants. The leading bento shop brands are Hotto Motto, and Hokka Hokka Tei, while Domino’s and Pizza Hut are the dominating pizza restaurant brands.

Financial performance during the COVID-19 period

The COVID-19 pandemic was a difficult period for the restaurant industry in Japan, during which the market contracted significantly. However, the impact was very different depending on the industry subsegment. While bars and drinking places, dinner restaurants, and coffee shops recorded abysmal sales revenues, the fast food segment actually grew during the period, proving to be the most resilient among all restaurant segments. One of the reasons for this was that some consumers shifted to food delivery during the worst periods of the pandemic.