Business Yoshinoya to ramp up overseas ramen production amid noodle boom

Yoshinoya Holdings plans to turn ramen into a third main business alongside gyudon and udon, and will expand its overseas capacity for soup and noodles as well as its global restaurant network. The company plans to double production at its Takara Sangyo plants in California and near Paris by fiscal 2029, with a new building scheduled for the French site in 2026 and a possible new facility under consideration in the United States. Takara already supplies ramen ingredients to Yoshinoya and other firms.



Production centres in Southeast Asia will be updated to meet halal standards, enabling them to export more widely across the region. Altogether, the company expects to invest about 5 billion yen over five years in ramen-related facilities, including work at domestic factories. Yoshinoya also aims to expand its overseas ramen restaurant count to around 500 shops by fiscal 2029, roughly four times the current number.

Demand for ramen continues to expand overseas amid a global boom in Japanese cuisine. The global ramen market was valued at about $57.9 billion in 2023, according to U.S.-based Marketresearch.biz, and is projected to grow about 60% by 2033, to $94.1 billion. In Scotland, Yoshinoya operates a ramen shop under its Bari-Uma brand. The establishment offers ramen bowls at 14.90 pounds ($20), about three times the price in Japan, yen-for-yen. The price difference boosts profitability. Yoshinoya Holdings' ramen business segment logged a profit margin of 5.2% for the March-August period, exceeding the 5% for the namesake Yoshinoya chain and the company's 4% overall figure. The Yoshinoya chain plans to open a new processing plant in California this year for making sliced beef and other products. This supply chain expansion will support the parent company's plan to boost the number of Beef O' Brands shops to 1,120 over the next five years, up 12% from the previous five years. Japanese rivals are expanding their overseas footprint as well. Italian-themed restaurant chain Saizeriya aims to grow to about 1,000 locations in China by 2035, a roughly 80% gain. Next year, Saizeriya will invest over 4 billion yen to start up a new plant in Guangzhou.

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Paywall alert:

It appears that within Japan, the number of ramen shop bankruptcies is increasing.
This is a news report from 2023.

Sharp Rise in Ramen Shop Bankruptcies — Annual Total May Hit Record High… Even Popular Shops Closing. What's Behind It? (September 15, 2023)

Since the beginning of this year, ramen shop bankruptcies have been rapidly increasing. This program visited a ramen shop that decided to close at the end of this month. What led to this difficult decision?
■ A Popular Local Ramen Shop Forced to Close
Ramen is one of Japan's most beloved national dishes, yet many ramen shops are now facing hardship.
On September 12, Tokyo Shoko Research announced that 28 ramen shops had gone bankrupt between January and August, 3.5 times more than during the same period the previous year. At this pace, the annual number may reach a record high.
One such shop is "Ramen Hagunsei" in Koshigaya City, Saitama Prefecture, which opened five years ago.
Junichi Naka (40), Owner of Ramen Hagunsei:
"Unfortunately, we've decided to close in September."
Although the shop is bustling with locals during lunchtime, Naka says he had no choice but to make the painful decision to close.
Regular customers shared their thoughts:
Regular customer (39): "This was my favorite ramen shop in the area. I'm really sad it's going away."
Regular customer (60): "I can't give up that thick, rich flavor. People tell me, 'Think of your age,' but I can't stop."
One of the most popular menu items among regulars is the back-fat tonkotsu ramen.
Although the shop has long been loved by the community, Naka had a particular concern for his customers that influenced the decision to close. What was it?
■ Reducing Labor Costs — Handling All Work Alone Outside Peak Hours
Naka:
"I've been working in ramen shops since I was about 22 or 23. I always hoped I could open my own shop by the time I was 35."
Five years ago, he finally opened his dream shop in Koshigaya.
At its peak, more than 200 customers came in a single day. During the pandemic, he barely managed to survive with government subsidies and zero-interest loans — but then new hardships emerged.
Naka:
"Food prices, water, utilities — nothing is going down; everything just keeps rising. Costs have increased by at least 1.5 times since last year."
Although he employs part-time workers, he handles everything alone outside busy hours to save on labor costs.
■ Price Increases Would Burden Customers — "I Can't Raise Prices Any Further"
In March of this year, he reviewed the menu and raised ramen prices by about 100 yen.
Naka:
"I wanted as many people as possible to enjoy my ramen at an affordable price. I really didn't want to compromise on that."
However, ingredient and utility costs continued to rise, and Naka felt he could no longer raise prices without putting too much burden on customers. He therefore decided to close the shop at the end of this month.
Naka:
"(Q: What about repayment of the zero-interest loan?) I'm paying it back — there's still an outstanding balance. I'll work somewhere while continuing the repayments. I borrowed several million yen."

(From the September 15, 2023 broadcast of "Oshita Yoko Wide! Scramble")