Japanese chain restaurants are gaining in popularity and it's easy to see why an entrepreneur would consider opening one. Because chain restaurants are already successful, opening a franchise Japanese restaurant is much safer than opening a stand-alone restaurant. Customers will already know what to expect.

Still, a smart business owner must consider all of the pricing and costs of Japanese restaurant chains before making a decision. There are many costs associated with opening Japanese food chains and you need to decide whether you can turn a profit.

There are many different types of Japanese restaurant franchises to consider:

1. Ramen shops. When it comes to Japanese restaurant chains, ramen shops may be the cheapest option. Customers expect the décor to be bare-bones, perhaps just a counter and a few small tables.

2. Sushi restaurant chains. These can range from low to high end, depending on the area you want to open the restaurant in. Sushi is a popular exotic food.

3. Teppanyaki. Western customers often enjoy the spectacle of the chefs cooking on the "teppan" (iron griddle), but this is not traditional Japanese food.

4. Buffets. Buffet Japanese food franchises allow customers to sample a wide range of foods.

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Think about the costs of purchasing a Japanese food restaurant chain

When you purchase a restaurant chain, you must make an initial payment to the company for the franchise and then continue to pay a percentage in royalties. The price of chain Japanese restaurants typically runs from $100,000-$500,000, depending on the style of food. Royalty percentages are typically 3-6%.

I recommend: The Franchise Mall lists the costs of several Asian fast food chains, including Japanese restaurants. Entrepreneur lists Japanese food chains.

Price the restaurant supplies for Japanese food chains

While all restaurants need the basics such as refrigeration, stoves, tables and chairs, there are some things that are specific to Japanese style restaurants.

I recommend: Galasource.com offers Asian restaurant supplies, ranging from $8 for a sushi roller to $250 for specialized ladles. Super Wholesaler offers decorative items for up to 75% off when you purchase several. This creates the right atmosphere for your restaurant.

Research wholesale food supply companies for Japanese food chains

Restaurants must purchase food to cook their customers. This is the highest recurring cost, so it's important to look for the best deals. Prices can range from a few dollars for soy sauce to several hundred dollars for the freshest specialty seafood.

I recommend: Agar specializes in supplying food to Asian restaurants. You can talk to a Japanese food specialist to help determine your needs. Eat Japan offers a trade directory that lists where you can buy several different Japanese food products.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When thinking about the pricing and costs of Japanese restaurant chains, consider who you want to hire. Chefs that are from Japan add authenticity to your restaurant, but you will have to pay for the cost of their visa.

Japanese restaurant chains are located in cities all over the country. Their menus offer a variety of Japanese cuisine including sushi and salad. People like them because they can get an authentic Japanese meal for a reasonable price without having to prepare it themselves.

Cash in on a sushi restaurant franchise by opening your own in your city. Large conglomerates own these chains and franchise them out, so get the scoop on start up costs and other regulations. Decide if you will run it yourself or hire a management team. Look for the following when deciding on franchise terms for Japanese restaurant chains:

1. Choose Japanese food chains and serve healthier meals.

2. Locate the start up capital investment needed to open Japanese food franchises.

Normal 0 MicrosoftInternetExplorer4 3. Choose your Japanese franchise based on name recognition.

Action Steps
The best contacts and resources to help you get it done

Check availability and pricing for local a Japanese restaurant business

Not every franchise has openings in your area. Once you have decided on a chain, contact them to find out if you can open a store in your area. If they have no need in your local area, they will send you a list of close areas that need a local restaurant. You can also decide on a restaurant chain based on total price or down payment needed. You can check your state to see which restaurant chains have openings.

I recommend: Todai offers franchise opportunities in the US and other countries. Begin your application process by filling out their brief form. Edo Japan offers franchise opportunities. Review their process and fill out their application to get started.

Ask the Japanese restaurant franchises about initial investment

Initial investments for restaurant chains is usually high however, some cost less than others cost. Before you decide, find out exactly what monetary commitments you will need to make upfront. Remember also, that the initial investment for the franchise fee only covers the franchise itself and you will still need working capital for such expenses as electricity, phone and payroll.

I recommend: Koya Japan offers franchises requiring a net worth of $100,000 and a $25,000 franchise fee. The total investment is $165,000 to $250,000. Hogi Yogi offers Japanese chain franchises under the name of Teriyaki Stix. You must have liquid assets of $50,000 with a net worth of $150,000. There is a franchise fee of $15,000 to $30,000 and a royalty fee of 6 percent. Total investment ranges from $135,000 to $452,500.

Open Japanese chain restaurants for immediate business

When you open a chain store, you are cashing in on the name of the franchise. People know that whether your store is in Maine or California, they will get the same menu and service and they stop at a familiar place. This is why you buy a franchise but the down side is there are tight regulations on franchises. You will get your operating schedule, menu and décor from the company. If you fail to meet your obligations, which usually include buying all of your supplies from them, you will lose your franchise.

I recommend: Food Franchise provides franchises available in every state. You can also check franchise availability based on total price. Check the facts about the restaurant chain that interests you before purchasing the franchise. Franchise Advantage lists available franchise restaurant chains. Check hours of operation, how much supplies will cost and other restrictions for the restaurant chain store before you buy into that company.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Obtaining financing to start your Japanese cuisine chain can be a difficult process since many financial institutions consider restaurant franchises high risk. Improve your loan chances by putting down as much upfront cash as possible. When the bank sees you taking part of the risk, they will give your loan application closer scrutiny.

Japanese restaurant chains or Japanese restaurant franchises are popular with many who wish to enjoy, experience and taste a bit of Asian culture. Similar to other restaurant chains, management responsibilities in Japanese food chains involve ownership of a restaurant's performance. This includes marketing, sales, recruitment, training and customer satisfaction.

A cursory glance at Japanese chain restaurants want ads show that many of the skills required to manage Japanese food franchises can be acquired through proper education and training. If you aspire to be a manager at either Japanese restaurants or even sushi restaurant chains, consider the following to receive proper Japanese restaurant chains management education and training:

1. Enroll in courses to gain a thorough knowledge of Asian cultures. Being comfortable working closely with Asian staff is a given in any Japanese cuisine chain.

2. Become highly knowledgeable about Japanese food, which is a must in the Japanese restaurant business.

3. Earn a degree in restaurant management, the basic skills of which can translate to Japanese restaurant chains management.

Action Steps
The best contacts and resources to help you get it done

Study Asian cultures to successfully manage Asian employees that work in Japanese restaurant chains

Japanese restaurants, including steakhouses and Sushi restaurants, tend to employ chefs and staff knowledgeable in Asian culture and cuisine. An ability to understand Asian culture is helpful to ensure success with training, development and communications.

I recommend: Pomona College in California offers many courses related to Asian culture in its Asian Studies program. Susquehanna University offers an Asian studies major and minor program. Many of these courses are offered online.

Become an expert in Japanese food, an absolute must in any Japanese food chains

Even though a Japanese restaurant manager is not responsible for actually cooking the food, it is a must that he/she be familiar with the dishes to be able to conduct quality and taste testing that ensures customer satisfaction. A thorough knowledge of Japanese cuisine is also important since a restaurant manager is also responsible for overseeing inventory and ensuring the best and appropriate ingredients are readily on hand.

I recommend: Japanese Language Culture Food offers a detailed introduction to common Japanese dishes. The Virtual Japanese Restaurant website is designed to provide "a broader perspective to how diverse and in depth the culture really is" and contains information about Japanese dishes and dining etiquette.

Earn a degree in restaurant management and translate it to Japanese chain restaurants management

A degree in restaurant management can translate to a career in any restaurant. An education in restaurant and hospitality management teaches its students the nuances of training, development, marketing and sales unique to the restaurant business.

I recommend: The undergraduate program of the University of Houston's Conrad N. Hilton College of Hotel and Restaurant Management in Houston, TX, includes 19 credit hours in hotel and restaurant management. Drexel University offers a two-year MS in Hospitality Management that can be taken online.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Many restaurants, including Japanese restaurant chains, are benefiting from software that helps control the flow of reservations as well as inventory management. A background or training in this sort of software may improve your marketability as a chain restaurant manager.

There are many different types of Japanese restaurants that are internationally popular. A Benihana-style restaurant, where chefs provide entertainment for customers while cooking teppanyaki style on a grill, is one type of chain. Other Japanese restaurant chains feature sushi and sashimi, prepared by trained chefs. Like most chains, the choice of a stand-alone building or a location in a mall is a consideration of the franchisee and the corporate decision-makers.

Action Steps
The best contacts and resources to help you get it done

Street front or food court

Street front restaurants can be stand-alone restaurant buildings or locations within a block on a busy street. Food court locations in a mall tend to offer less square footage for the actual food preparation area but more seating within the food court. They also usually offer fewer menu selections.

I recommend: Edo Japan discusses details of street front and food court operations, providing square footage and advantages of both formats.

Teppanyaki and hibachi

Teppanyaki and hibachi each refer to a Japanese steakhouse style of cooking that was originally popularized in the US by the Benihana chain, where chefs put on a show by cooking on a metal griddle in front of customers and juggling cooking utensils. In Japanese, 'teppan' means iron grill, and 'yaki' refers to something grilled. Hibachi is actually a small Japanese grill, but the term 'hibachi-style' is applied in the US to teppanyaki cooking.

I recommend: Wolf Stoves shows pictures and specifications of a teppanyaki griddle.

Sushi and sashimi

Both sushi and sashimi usually use very fresh, uncooked, saltwater fish. Sashimi is used to describe the pieces of raw fish, while sushi refers to rectangular pieces of rice flavored with rice vinegar and topped with slices of raw fish. Sushi also refers to wraps and rolls. Certain Japanese restaurant chains specialize in these items.

I recommend: Britannica gives a definition of sashimi.

Shochu

While sake (rice wine) may be more famous as Japanese alcohol, shochu is a popular drink in Japan that is becoming known gradually in the US. Shochu is a clear alcohol spirit with about 25% alcohol content. It can be made from corn, rice, sweet potato or buckwheat. The liquid can be mixed into cocktails or consumed by itself.

I recommend: Sake-world.com has more information about shochu.

Sushi Chef Institute

The Sushi Chef Institute trains chefs in the traditional way of preparing sushi. The goal is to create dishes that provide a feast for the eyes as well as the palate. In addition, students are taught the proper handling of raw fish.

I recommend: Sushi Chef describes its mission and methods of training.

Rice

Rice is a staple of Japanese cooking, used in many different ways. It can be a side dish to a meal, or used to make mochi (soft rice cakes). Other uses are senbei (rice cracker), sake (rice wine), or in combination with soybeans to make a type of miso.

I recommend: Japan-guide.com discusses the many uses of rice.