Japanese restaurant chain Zensho to buy Lotteria Japan

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Sukiya beef bowl chain’s operator, Zensho Holdings, is to acquire burger franchise Lotteria Japan from Lotte Holdings for an undisclosed sum.
The deal is expected to be completed on April 1.
Entering Japan in 1972 with the first store opened in Tokyo’s Nihonbashi, Lotteria had 358 stores across the country as of January 1.
Zensho Holdings said it has decided to acquire the shares based on the judgment that the synergistic effect of its mass merchandising system and wide range of food business will contribute to the future expansion and development of Lotteria’s business.
The deal is part of an operational restructuring by South Korea’s Lotte Holdings.
“We believe this is the best option for Lotteria to pursue new growth,” Lotte Holdings said in an announcement.
The company said the Lotteria brand will continue for a certain period after the transfer of the shares but the new owners may rename it in the future.
As of March 31 2022, Zensho Holdings managed and developed 10,078 restaurants, with sales of about US$4.9 million. Its portfolio of brands includes Sukiya, Big Boy, Nakau, Victoria Station and Jolly Pasta. The company previously operated US burger chain Wendy’s restaurants’ in Japan.
Questions & Answers
Q.Why is Lotte Holdings selling Lotteria Japan?
Why is Lotte Holdings selling Lotteria Japan?
Lotte Holdings views the sale as an operational restructuring move. They believe it is the best option for Lotteria to pursue new growth, according to a company announcement.
Q.Will the Lotteria brand continue after the acquisition?
Will the Lotteria brand continue after the acquisition?
The Lotteria brand will continue for a certain period after the transfer of shares. However, the article states the new owners may rename it in the future, indicating potential change.
Q.What is Zensho Holdings' reasoning for acquiring Lotteria Japan?
What is Zensho Holdings' reasoning for acquiring Lotteria Japan?
Zensho Holdings believes the synergistic effect of its mass merchandising system and broad food business will help Lotteria's future expansion and development. This judgment led to their decision to acquire the shares.
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