Wendy’s Japan snaps up 136 First Kitchen sites from Suntory Holdings
The deal will close by end-June.
Wendy’s Japan has nabbed all 136 First Kitchen sites from Suntory Holdings, and intends to roll-out its hybrid concept Wendy’s First Kitchen upon the completion of the deal.
Wendy’s Japan announced in a news release that it is expanding its footprint by converting the First Kitchen branches into Wendy's First Kitchen restaurants and building new locations over time.
In order to enable the acquisition, The Longreach Group acquired a majority stake in Wendy’s Japan, which is in turn a wholly owned Higa Industries Co., Ltd. The closing of the deal is anticipated at the end of June.
"The First Kitchen restaurant brand is well-established with a presence in many desirable, busy locations throughout Japan. We anticipate the acquisition will leverage the strengths of both Wendy's and First Kitchen, while providing a springboard for growth in the coming years," said Bob Wright, Executive Vice President, Chief Operations Officer and International, The Wendy's Company.
"This is an example of how we are bringing our 'narrow and deep' international strategy to life by initially focusing on four key markets – Japan, India, Brazil and the Middle East – where we see considerable upside potential over the next few years. We believe our best approach is to support our franchisees in building Wendy's brand strength in local markets and enhancing the economic model of their restaurants," added Wright.
Wendy’s First Kitchen has been in test in Tokyo since 2015 in Roppongi and Ueno. Wendy’s Japan reports that both locations have registered robust performance.
