Tokyo-based izakaya chain Watami has acquired the Japanese Subway business as part of a strategy to diversify its business.
Watami will oversee Subway stores in Japan for the next 10 years under an agreement where financial details were not disclosed. Watami also reportedly intends to grow the number of Subway stores in Japan from 178 to more than 3000.
According to local sources, Watami is also looking into McDonald’s Japan as part of its aim to expand in the fast food market, which represents a “major shift” for the company.
Subway currently operates some 37,000 stores in more than 100 countries. Watami has more than 700 branches in Asia Pacific and specializes in Japanese-style restaurants and pubs.
Subway debuted in Japan in 1991 under an exclusive arrangement with Suntory Holdings, and the business sold its stake in Subway in 2016.
