Rather than deploying deep discounts to remain competitive in deflationary China, Japanese beef bowl chain Yoshinoya changed its business recipe.
It redesigned menus, offering items with vegetable toppings and expanding combo sets, to enhance value without sacrificing margins. Yoshinoya’s China business is now on track to report a record profit this year, CEO Tetsuya Naruse said in an interview.
"We had a really hard time until last year,” he said. "But we are seeing double-digit growth in many areas, like Chongqing and Fujian. The intermediate holding company in China will probably report a record profit this year.”
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.