Yomiuri Shimbun Correspondent
BANGKOK -- The expansion of major Japanese restaurant operators into Thailand is continuing, despite an outlook for the country that is not necessarily rosy.
Thailand has a strong economic presence in Southeast Asia, but its population has started to decline, leading to concerns over future success.
Major conveyor belt sushi chain Kura Sushi Inc. announced in August it had established a joint venture in Thailand with a local company. The sushi chain plans to open a restaurant in the country around 2027, which will be its first outlet in Southeast Asia.
Industry peers such as Akindo Sushiro Co. and Hama-Sushi Co. have already entered the Thai market and are expanding their store networks. In many cases, these stores are located in prime locations near the entrances of shopping malls. Kura Sushi will be a latecomer, but it has concluded that Thailand is a promising market with a strong potential customer base due to the popularity of Japanese cuisine in the country.
Komeda Holdings Co., the operator of coffeehouse chain Komeda's Coffee, announced in August that the company will open its first store in Thailand by the end of the year. Toridoll Holdings Corp., the operator of udon noodle chain Marugame Seimen, plans to enter the Thai market by March. Monogatari Corp., which also operates the Yakiniku King barbeque restaurant chain, opened its first store in Thailand in March this year.
"There is strong support for Japanese cuisine, and growth in the foodservice market is expected," said a spokesperson of Monogatari.
Japan's declining birth rate and aging population are drivers of the push by major Japanese restaurant chains into overseas markets. Once they achieve a certain number of outlets in Japan, these companies look overseas to achieve further expansion. In addition to the United States and Taiwan, Thailand is frequently chosen as the first destination for expansion because of its affinity for Japan and its economic presence in Southeast Asia.
Moves to withdraw also seen
A closer look at Thailand's domestic circumstances reveals that the outlook is not entirely positive.
Thailand once experienced rapid growth by attracting Japanese automakers with its abundant labor force and low costs, solidifying its status as one of the "Tiger Cub Economies." However, in recent years, it is said to have fallen into the "middle income trap," where growth stagnates once a certain income level is reached. Excluding the COVID-19 pandemic period, Thailand's GDP growth has hovered around 1% to 4% in recent years, the lowest level in Southeast Asia.
Like Japan, Thailand also faces a declining birth rate and an aging population. Thailand's registered population peaked in 2019. In February, the Financial Times carried an article describing Thailand as the "sick man" of Asia.
Japanese automakers have been scaling down their operations in Thailand. Subaru Corp. shut down its assembly plant in the country in December 2024. Suzuki Motor Corp. ended operations of its local plant in 2025. Mitsubishi Motors Corp. plans to suspend operations at one of its three assembly plants in Thailand in mid-2027.
The number of Japanese nationals working in Thailand with work permits decreased to 21,536 as of November 2025, more than 30% below the peak.
According to the Bangkok office of the Japan External Trade Organization (JETRO), the number of Japanese restaurants in Thailand decreased for the first time since the survey began in 2007, dropping by 2.2% to 5,781 units in 2025. In September 2025, the tempura rice bowl chain Tenya, operated by Royal Holdings Co., withdrew from Thailand.
JETRO said this decline reflects the nation's sluggish economy and stagnant growth in the food service industry. "The industry has matured as Thai consumers' knowledge and experience with Japanese cuisine have improved," a JETRO spokesperson said. "It is now difficult to achieve growth simply by opening new stores."
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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