Recently, many branches of the famous Japanese beef bowl chain "Yoshinoya" in Taiwan have been closed one after another, which has attracted market attention and heated discussions among netizens. It was reported on the 10th that the 30-year-old Yoshinoya store in Xinbeitou will also close its doors, with the last day of business being December 12th, which shocked the locals.
In fact, as early as May, people discovered that Yoshinoya's Wenshan store, NCCU store, Wanfang Hospital store in Wenshan District, as well as the Gongguan and Xindian Dapinglin stores were closing down their stalls. At least 4 Yoshinoya branches in Shuangbei were closed down. People are worried about whether there will be a wave of bankruptcies.
In this regard, Yoshinoya also responded at the time that the leases of the above-mentioned stores happened to expire recently, and after comprehensive evaluation, they decided not to renew the lease; the Gongguan store could not renew the lease due to reconstruction, and the Dapinglin store did not meet the characteristics of the business district. Yoshinoya clarified at the time that there were no problems with its current operations and it could not be said to be a wave of bankruptcies.
Yoshinoya has a history of 36 years in Taiwan and is the first Japanese beef donburi brand to be deployed in Taiwan. It currently has branches in Taipei, Taoyuan, Hsinchu, Taichung, Kaohsiung, Pingtung and other places, with a total number of more than 50 stores. However, as more and more similar Japanese brands plant their flags in Taiwan, the market is gradually divided, and Yoshinoya's operating conditions have attracted attention.
Clarify that this is not a wave of store closings and operations are normal! Yoshinoya explained the reasons for closing the store: the lease expired and the characteristics of the business district did not match
In recent years, Japanese chain rice bowl operators such as Sukiya, Matsuya, and Yayoiken have successively entered the Taiwanese market. In addition to Yoshinoya, consumers have more other choices, which has also made competition in Taiwan's rice bowl market fierce in recent years.
"EBC News" reported that marketing expert Tang Yuanjun believes that after the epidemic, Japanese groups or global strategies have changed, so investment in the Taiwan market, including the development of new store types, second-generation stores, etc., may be suspended and adjusted to old stores. Renovate or gradually close old branches.
In the past, Yoshinoya's stores were relatively large, with many stores having first and second floors, and operating costs were therefore higher. As Taiwan is experiencing labor shortages and manpower shortages, Tang Yuanjun analyzed that subsequent stores are expected to become smaller and use external delivery to make up for the turnover gap, but the speed of store opening will also be slowed down as a result.
Yoshinoya: Will continue to transform, eliminate store types on the first and second floors, and also test market response with new store types
Regarding whether this wave of closures is part of a wave of closures, Yoshinoya stated in May that the leases of several stores had expired recently and they decided not to renew the contracts after a comprehensive evaluation. For example, the Wanfang Hospital store is because the building is old, the Gongguan store was rebuilt due to the landlord's decision, and the Dapinglin store is not in line with the characteristics of the business district. Yoshinoya emphasized at the time that the store closure was not due to operational issues, but the result of comprehensive considerations.
Faced with the changing market and increasingly fierce competition, Yoshinoya has also stated that it will continue to transform. For example, after considering customer convenience and safety, the old store types on the first and second floors will be gradually eliminated in the future and transferred to stores with only the first floor. Recently, new store types have also been launched to test the market response. The open kitchen that can be seen makes the dining process transparent and the overall style is brighter.
Learning Management from Current Affairs: When faced with challenges, don't expand blindly! 5 possible next steps for Yoshinoya
Yoshinoya's recent closure of five branches in Taiwan has attracted widespread attention from the market and consumers. Although Yoshinoya emphasizes that these store closures are due to lease expiration and incompatibility with the characteristics of the business district, rather than operational issues, competition in the Taiwan rice bowl market is becoming increasingly fierce. Facing challenges from other Japanese brands such as Sukiya, Matsuya and Yayoiken, Yoshinoya needs to continue to transform. , Only by responding flexibly to market changes can we remain invincible in the competitive environment.
Judging from the current situation, Yoshinoya has chosen not to renew the contract for some stores, which shows that Yoshinoya is cautious in resource allocation and cost management. In the face of operational challenges, managers should adjust business strategies based on actual conditions rather than blindly expand or insist on untimely business models. Closing or repositioning some businesses in a timely manner can help concentrate resources and enhance corporate competitiveness.
Combined with the next developments announced by Yoshinoya and the reform strategies of other similar industries. In the future, several possible transformation directions for Yoshinoya may be:
- Reduce store size: Change the store type on the first and second floors into single-story small stores to reduce rent and operating costs.
- Launching new store types to test market response: Yoshinoya also mentioned that it is continuously testing new store types, such as open kitchen designs, allowing customers to see the food production process to enhance the dining experience.
- Strengthen food delivery services: Strengthen cooperation with food delivery platforms to improve the quality and efficiency of food delivery services. At the same time, we develop our own delivery system to ensure consistent service standards.
- Digital ordering: More and more restaurants are introducing digital ordering systems, self-service ordering machines and other technological means to simplify the ordering process and improve customer convenience. Yayoi-ken has been particularly quick to introduce this aspect. Each dining table is equipped with its own ordering machine. Continuous meals, soup refills, etc. can be completed through the ordering machine.
- Adjust product mix to improve profits: "THE INTERN" once reported that in 2003, Japan's Yoshinoya adjusted its price strategy and divided a bowl of beef bowl into several portions, which are now common small bowls, medium bowls, and value-for-money bowls. bowl and extra-large bowl options, allowing profits to return to the past; in 2019, Yoshinoya once again tried to launch mini bowl with smaller portions, and extra large bowl with added beef, and the portion size options changed from 4 available in 6 varieties, it not only created a buzz, but also successfully attracted regular customers due to the increased amount of beef. It was well received as soon as it was launched, and the mini bowls captured the potential needs of female customers.
Reference materials: ETtoday, EBC News
