As M&A activity in Japan's food-service industry intensifies, growth strategies centered on udon chains are coming into focus. Brand acquisitions and global expansion are gathering pace, including Saint Marc Holdings' succession to the Tsurutontan business.
In recent years, M&A in Japan's food-service industry has increasingly involved transactions aimed not only at business succession but also at acquiring brands and expanding into multiple business formats. Listed major companies are seeking to strengthen their business portfolios while addressing the business succession needs of mid-sized and smaller companies.
Against a backdrop of rising costs and labor shortages, strategic partnerships are becoming more widespread. Strengthening business platforms through M&A with well-capitalized major companies and bringing in brands and new business formats are being viewed as part of corporate growth strategies.
In the udon-chain segment, Toridoll Holdings, which operates Marugame Seimen, and Yoshinoya Holdings are pursuing diversification. Major chains are developing growth strategies centered on udon, including the acquisition of Sukesan Udon by Sukesan Holdings, which is based in Kyushu.
Saint Marc Holdings has agreed to take over the Tsurutontan business for ¥12.8 billion. Tsurutontan is a full-service format rather than a high-priced self-service format, and Saint Marc Holdings aims to expand its Japanese food brands while drawing on product development capabilities across its group.
Overseas expansion is also accelerating. Sukesan Udon opened its first overseas store in Taiwan. In Thailand, it is expanding its brand in Asian markets, including the opening of the first overseas Yamashita Honki Udon store through a local joint venture with Singha Garden.