Saizeriya's Low-Price Strategy and Delicious Food Fuel Its Resurgence

Saizeriya, a family restaurant chain that originated in Tokyo, Japan, in the late 1960s, is experiencing a resurgence after a period of stagnation. When founder Teikoku Daioku opened the first store, it faced imminent closure due to a lack of customers. However, following his mother's advice, he reduced all menu prices by 70%, attracting a new wave of customers.

Saizeriya subsequently gained popularity in Japan with its concept of being an 'affordable yet delicious' restaurant. Recognizing that price competitiveness alone was not enough for sustained growth, the company has recently focused on improving both taste and service.

Current president Hideharu Matsuda has announced plans to expand the number of stores to 2,000, aiming to position Saizeriya as a 'fast-casual' restaurant, offering a more affordable option than family restaurants and a more attentive experience than fast-food establishments. To achieve this, they are developing new menu items and enhancing employee training in service excellence.

In a February survey, 61.5% of respondents stated that they choose Saizeriya because of its affordability. However, Saizeriya is not solely relying on its price competitiveness and is seeking differentiation through enhanced taste and service to achieve a comeback.

In particular, they aim to enhance customer satisfaction by maintaining the existing price competitiveness of their core menu items, 'Milanese Cutlet' and 'Milanese Doria,' priced at 400 yen and 300 yen respectively, while simultaneously upgrading their preparation methods and taste. They are also strengthening in-store service training to further improve competitiveness through a combination of affordability, enhanced taste, and superior service quality.

Saizeriya, which faced challenges in its early stages, has established itself as a leading family restaurant chain in Japan through bold pricing strategies and a commitment to taste differentiation. It remains to be seen whether its current menu and service improvement strategies will pave the way for further expansion, not only within Japan but also globally.