Japanese ramen noodles chain restaurant Korakuen announced on Oct 27, that they made a franchise contract with Pepper Food Service which runs streak restaurant Ikinari Steak.
Korakuen is popular ramen chain which offers dishes in lower prices. Though it has been hiked in 2014, it had sold their ramen in 290 yen before. The reason of the hike was that they wanted to raise the average sale per customer. They currently provide their ramen from 490 yen, and it’s still lower price compare to others.
Ikinari Steak is steak restaurants which energetically increase their branches recently. Ikinari Steak has opened their branch in New York and assembles a mass of customers. The unique characteristic they have is, they offer steaks in a lower price as a fast food restaurant. And also, they don’t have seats except for some branches, which means that customers eat standing. Stand-up eating style is common among soba noodle shops in Japan. It leads customers to eat and leave fast, and raise the turnover rate of seats.
Korakuen’s going to open their first franchised Ikinari Steak in Fukushima prefecture. The advantage to have franchised restaurants for Korakuen is that, they want to prompt their strategic dominance. Strategic dominance stands for a strategy which drive out competitors from the area.
This franchise contract also benefits Pepper Food Service running Ikinari Steak, because they has a plot to have 1,000 branches as soon as possible.