Consumer
Izakaya Chain Buys Subway Japan in Challenge to McDonald’s
- Watami takes over local unit and signs 10-year franchise deal
- Looks to expand number of stores to 3,000 from current 178
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Watami Co. is buying the operator of the Subway sandwich chain in Japan as it seeks to branch out from its portfolio of izakaya-style restaurants and take on fast food rival McDonald’s Holdings Co. Japan.
The Tokyo-based company, which already runs a slew of popular franchises including TGI Fridays in Japan, signed a 10-year master franchise contract with Subway International B.V., it said in an exchange filing Friday. It didn’t disclose a price for the acquisition but said it would fund the deal using bank loans.