Key facts
- Yoshinoya Holdings will acquire U.S. ramen chain operator Kizuki International for approximately $28.7 million.
- Kizuki International operates 17 ramen restaurants, mainly in the Seattle area.
- The acquisition is part of Yoshinoya's strategy to expand its ramen business globally.
- Yoshinoya aims to increase ramen sales to 40 billion yen by fiscal 2029 and reach 500 ramen restaurants.
- The company seeks to diversify its product portfolio due to rising rice prices and beef import costs.
Yoshinoya Holdings, a Japanese company primarily known for its beef bowls, is set to acquire U.S. ramen chain operator Kizuki International for approximately $28.7 million. This strategic move aims to significantly expand Yoshinoya's global presence in the ramen market, making it the company's third major business pillar after beef bowls and udon noodles.
Kizuki International currently operates 17 ramen restaurants, with a concentration in the Seattle area. The acquisition is part of Yoshinoya's broader midterm business plan through fiscal 2029, which includes diversifying its product offerings to reduce reliance on beef bowls. This diversification is driven by factors such as soaring rice prices and the increased cost of imported beef due to a weakened yen.
Yoshinoya has set ambitious goals for its ramen business, targeting 40 billion yen in ramen sales by fiscal 2029, a fivefold increase from fiscal 2024 levels, and aims to operate 500 ramen restaurants worldwide. The company has already made strategic moves in fiscal 2024 by acquiring a ramen restaurant company and a ramen ingredient manufacturer. Over the next five years, Yoshinoya plans to invest 40 billion yen in mergers and acquisitions, primarily focused on its ramen ventures, in addition to expanding its existing ramen brands and noodle manufacturing subsidiary.