Leading izakaya restaurant chain Watami says it has agreed terms to buy the Japan operations of the Subway sandwich company. It will acquire all the shares of privately held Subway Japan and make it a wholly owned subsidiary.
The deal includes a franchise agreement with the US-based parent to operate the Japanese outlets for the next 10 years. It didn’t disclose the acquisition price.
Watami says it plans to increase the number of Subway restaurants in Japan, mainly in commercial facilities and around train stations.
Subway had more than 400 outlets across Japan 10 years ago, but the number has since dropped to 178.
Watami CEO Watanabe Miki says the company aims to open 250 Subway outlets in the next 10 years. After that, it plans to open 150 Subway stores a year.