Saizeriya, a Japanese-owned Italian restaurant chain, has unveiled an ambitious plan to double its presence in China from its current footprint to approximately 1,000 outlets by the year 2035.
In order to facilitate its expansion, Saizeriya established a subsidiary in Wuhan in July. Furthermore, they have plans to inaugurate a $30 million plant in Guangzhou next year. This new plant will produce local ingredients, including sauces, pasta, and pizza.
The restaurant chain aims to attract “cost-conscious” consumers with its pricing strategy. As an illustration, at its Shanghai branches, Milan-style rice is priced at 15 yuan (roughly $2), and squid-ink pasta is available for 16 yuan.
Noboru Nagaoka, the General Manager for overseas business, provided insight into the company’s performance. According to Nagaoka, the company currently generates an annual operating income of $40 million, a figure that is triple the amount earned from its operations in Japan.
“We initially wanted to challenge the notion that Western food had to be expensive. Our goal was to demonstrate that genuine Italian meals could also be affordable,” he explained.
Saizeriya launched its first branch in Guangzhou in 2007, followed by a branch in Beijing in 2008. Recently, in July, the restaurant chain established a head office in Guangdong Province. This office is responsible for managing its operations in China and standardizing menu development.
Nagaoka stated, “The Chinese market is of utmost importance to us. Our profits from this market have already surpassed those from Japan. Moreover, the potential for future growth in China is much larger.”
To continue expanding its presence in the Chinese market, Saizeriya plans to open a minimum of 50 new stores per year. This would align its presence in China with the approximately 1050 restaurants it currently operates in Japan.
What is Saizeriya’s expansion plan for China?
Saizeriya aims to double its presence in China to about 1,000 outlets by 2035.
How does Saizeriya plan to support its expansion in China?
The company plans to open a $30 million plant in Guangzhou to produce local ingredients. Additionally, a subsidiary has been established in Wuhan, and a head office has been set up in Guangdong Province to manage operations and standardize menu development.
What is Saizeriya’s pricing strategy?
Saizeriya targets “cost-conscious” diners by offering affordable prices for its dishes. For instance, at its Shanghai branches, Milan-style rice is priced at 15 yuan, and squid-ink pasta is available for 16 yuan.
