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Shinichi Kasa President & CEO Burger King Japan Co Ltd May 17, 2007

Return of the Whopper

Chris Betros

Good news for burger lovers. The world’s No. 2 hamburger chain, Miami-based Burger King, makes its long-awaited return to the Japanese market on June 8 when it opens at Nishi-shinjuku (Shinjuku i-Land). A second restaurant will open June 22 in Ikebukuro.

Burger King was forced to quit the Japanese market amid a price war in 2001, but is now back as a group company of Lotte and Revamp. The ever-popular Whopper will be the mainstay of the menu, which is almost the same as in the U.S. The size of the Whopper will be the same, too. Burger King will be using 100% New Zealand beef in its patties which are flame-grilled.

Burger King Japan President Shinichi Kasa says the company plans to open eight restaurants in the Kanto area by the end of fiscal 2007 and is confident the company will succeed this time. Born in Osaka in 1952, Kasa has spent nearly 32 years in the food industry.

Japan Today editor Chris Betros visits the Burger King Japan office in Sasazuka to hear more.

What is your background?

After graduating from 'Ritsumeikan University in Kyoto, I joined McDonald’s where I spent 29 years. My last job there was COO. Then I was at Wendy’s Japan for 1 1/2 years. I came to Burger King last September and the company was formally established in November.

What is the structure of Burger King Japan?

Burger King Japan is a franschisee, reporting to Burger King Asia-Pacific, based in Singapore. In Japan, it is operated as a group company of Revamp and Lotte. Lotte owns the Lotteria fast food chain and we were able to share their store development and administration staff.

Why did Burger King fail before?

I talked to many former Burger King Japan staff. The price war was the main reason that BK failed. Ten years ago, all companies in the food industry were doing big discount promotions. Not just hamburger outlets, but Yoshinoya, Mister Donuts, everybody. Burger King came to Japan as that was happening. Its prices were a little bit higher than its competitors. So were its food costs. Burger King didn’t cut prices and suffered as a result.

What about this time?

This time, the economy is different. It is showing signs of a recovery. All hamburger chains have started to sell higher-priced burgers, some costing more than 300 yen. There won’t be another price war because customers are prepared to pay for quality hamburgers.

What is Burger King’s strength?

The Whopper. It is our core product. It tastes better than any other burger. The beef patties are cooked by flame broiler. No other competitor does this. Chicken, onion rings and salads will also be popular menu items.

Will the menu be the same as in the U.S.?

Yes. There have been some rumors that size of the Whopper would be different for Japan, but it is not true. It will be the same. That is a strict rule for all franchisees in every country. We may introduce some seasonal items, though.

How about a breakfast menu?

Not in June. But from July, we’ll serve omelets, hash browns and croissants.

What are your expansion plans?

The first store will open June 8, and the second one June 22 in Ikebukuro. By the end of March 2008, we plan to have eight restaurants, all in the Kanto area, mainly Tokyo. After that, we’ll be looking at Chiba. Saitama, Kanagawa and then maybe Nagoya, Osaka and Fukuoka.

What sort of an advertising campaign are you doing?

Interviews like this. We have just started some marketing in magazines, but no TV advertising yet. Before doing TV commercials, we need at least 100 restaurants.  We are also doing a radio campaign from three days prior to the June 8 opening and we will distribute fliers for free Coke.

What are the stores’ business hours?

Stores open at 7 a.m. and I am confident that customers will eat burgers for breakfast. They’ll close about 10 p.m. In future, we will look at all-night operations.

How are you training your staff?

Many of our staff have had experience in the food industry. In January, I and two managers had four weeks’ training in the U.S. More recently, eight restaurant managers went to Shanghai for training. The part-time staff will be training at our first restaurant prior to its opening.

What trends do you see happening in the industry?

Part of my job will be to watch trends among competitors and also check out their menus, as well as those of family restaurants and gyudon places. For example, we will study the use of e-money for the future, as well as Internet access at our restaurants.

What is a typical day for you?

I come to the office usually about 8:15. I have meetings, and then I visit the stores to see how they are coming along. I normally finish between 7 or 7:30 p.m., although I expect to be working much later than that in the lead-up to June 8.

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	There won't be another price war because customers are prepared to pay for quality hamburgers.
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