TOKYO - Major izakaya chain operator Watami has acquired Subway Japan in a large-scale acquisition it views as a 'second founding,' aiming to establish a foothold in the fast-food market.
Watami Chairman and CEO Miki Watanabe (65): "I’m tackling this with the same excitement as my first founding—it’s really fun. I want to spark a new boom."
Speaking with a smile, Watami's CEO, 65-year-old Miki Watanabe, has ventured into fast food for the first time.
Watanabe (October 25): "I want the 'Watami of Izakayas' to be known instead as the 'Watami of Subway.'"
Watami has fully acquired Subway Japan, taking a major step into the fast-food business with the goal of building a chain that can rival McDonald's.
With a bold plan to expand from the current 178 locations to 3,000 over the next 20 years, Watami has set an ambitious target.
On October 7th, Watanabe was seen in front of Kawasaki Station in Kanagawa Prefecture.
During a 20-minute site inspection, he walked around four candidate areas, assessing foot traffic and the presence of nearby eateries. After comparing notes with data, he gave the go-ahead for several new locations.
Watanabe: "(Q: What are you looking for in the area?) The main thing is the vibe—how lively people are. Some people just walk by without shopping, and understanding their consumer behavior is crucial."
Visionary CEO Prepares 'Ultra-C' Announcement
Even while traveling, Watanabe keeps a notebook to record his ideas—a habit since the company’s founding.
Watanabe: "(Notes say) it’s about properties, numbers, right? Store count for next year."
His notes include targets for new store openings: 25 locations this fiscal year, 50 next year, and 100 in three years.
He also monitors stock prices, exchange rates, and economic news on his tablet.
Watanabe: "Someone’s saying ‘reaching 3,000 stores like McDonald's will be tough.’ Well, we’re preparing an ‘Ultra-C’ that will surprise everyone."
Subway Acquisition Marks ‘Second Founding’
Watanabe’s next stop was a Subway location, where he assessed the taste from a customer’s perspective.
He requested "extra" vegetable toppings on his order.
Watanabe: "(Q: You ordered extra vegetables?) I just love vegetables. Absolutely love them."
With Watami’s agricultural arm, "Watami Farm," already producing vegetables at seven locations across Japan, Watanabe expects synergy with the Subway business.
After placing his order, Watanabe moved to the tasting stage, his earlier smile replaced by a critical eye.
Watanabe: "I just wrote that for morning items, you can’t just offer cheap drinks—you need to create proper set menus."
Watanabe is meticulous in his directives, viewing the Subway acquisition as a "second founding."
Watanabe: "Compared to pre-COVID, the izakaya (pub) business hasn’t regained 20% to 25% of its customers. Recovery is happening in takeout, delivery, and fast food. (For Watami overall) we’re aiming for a trillion-yen group in 24 years. I see Subway as the central business supporting our 300-billion-yen domestic food service target."
Source: ANN
