🍜 Chinese restaurant chains with thousands of outlets across mainland China are flooding into Japan. From Haidilao hot pot to Yang Guo Fu malatang to budget drink chain MIXUE, Chinese-origin eateries are becoming an increasingly common sight on Japanese streets. With fierce competition at home pushing them overseas, these chains are targeting both the Chinese population living in Japan and the booming inbound tourism market.
A Brief History of Chinese Chains in Japan
Chinese restaurant chains first began seriously entering Japan in the late 2000s. The first wave consisted of hot pot restaurants. Mongolian hot pot chains like Xiaoweiyang and Little Sheep led the charge, followed by Sichuan-style premium hot pot chain Haidilao, which opened its first Japan location in Ikebukuro in 2015.
Haidilao gained attention for its distinctive "hospitality" approach cultivated in mainland China, offering complimentary nail services, snacks, and entertainment during wait times. The chain now operates more than 8 locations across Tokyo, Osaka, Kanagawa, and Fukuoka, drawing both Chinese residents and Japanese customers.
Around 2018, a "second wave" brought more casual Chinese street food chains. Yang Guo Fu, specializing in malatang (spicy numbing soup), established its first Japan store in Ikebukuro and has since expanded to over 20 locations nationwide, including Ginza, Osaka, Kyoto, and Fukuoka.
Why the Expansion Rush Now?
Several structural factors are driving Chinese restaurant chains to expand into Japan.
First, there's brutal competition in the Chinese domestic market. As China's food service industry has grown, chain restaurants have proliferated, leading to what's been called the "9.9 yuan war" (about $1.40 USD price competition) in the drink sector. Between January and August 2024, 1.63 million food service establishments closed in China—a five-year high. Companies hitting growth ceilings at home are increasingly looking overseas.
Second, there's a substantial Chinese population in Japan. Approximately 800,000 Chinese nationals live in Japan, creating natural demand for hometown flavors. Among students and younger generations especially, trends from mainland China spread rapidly through social media, and information about new chain openings goes viral almost instantly.
Third, inbound tourism provides a tailwind. In 2024, approximately 6.98 million Chinese tourists visited Japan, ranking second in travel spending by nationality. These visitors often prefer eating at familiar brands even while abroad, providing Chinese chains with a stable customer base.
Winners and Losers in the Japanese Market
After roughly a decade of expansion, Chinese chains in Japan have seen mixed results.
The standout success story is Yang Guo Fu malatang. In 2024, malatang became a genuine trend among Japan's Gen Z, with TikTok and Instagram posts about "hour-long waits" going viral. The chain now counts Japanese women as 70% of its customer base. The customizable nature—choosing your own ingredients—and the novel "spicy numbing" flavor profile resonated strongly with younger consumers.
On the other hand, budget drink chain MIXUE (蜜雪氷城) has struggled. Despite operating over 40,000 stores in China to become one of the world's largest restaurant chains, the company has only managed about 10 locations in Tokyo and Osaka since its 2023 Japan entry—far short of its stated goal of 1,000 stores by 2028. The ultra-low pricing that drives success in China has proven difficult to maintain in Japan, and critics point to insufficient market research.
Coffee chain Cotti Coffee proclaimed it would "surpass Starbucks' store count with 2,000 locations within one year" upon entering Japan, but currently operates fewer than 10 stores.
Impact on Japan's Food Service Industry
The influx of Chinese chains is affecting Japan's domestic food service industry in several ways.
Most notably, an entirely new market category has emerged: malatang. Following Yang Guo Fu's success, Japanese-origin malatang chain Shichiho has also grown rapidly, forming partnerships with major food service operators to franchise aggressively and now operating over 25 locations centered in the Kanto region. Major food manufacturers like Nissin have entered the market with cup-style malatang products.
The spread of hot pot culture has also influenced how Japanese consumers enjoy shabu-shabu and other communal dining. Self-service ingredient selection and spice customization—Chinese-style approaches—are gaining acceptance in Japan.
Competition has intensified as well. In areas with large Chinese populations like Ikebukuro, Takadanobaba, and Shin-Okubo, "authentic Chinese" restaurants have clustered densely, competing not only with each other but also with Japanese establishments.
Two-Way Traffic: Japan-China Food Service Relations
Interestingly, food service business between Japan and China has become bidirectional.
Many Japanese chains have significant presence in China: Yoshinoya operates 696 stores, Saizeriya has 456, and Sushiro, Marugame Seimen, and Ippudo all maintain substantial footprints. For Japan's food service industry, China represents one of the largest overseas markets.
Chinese expansion into Japan, by contrast, is relatively new. What was once a one-way street—Japanese companies entering China—has become two-way traffic as Chinese companies develop the capability to open markets abroad. This reflects the maturation of China's food service industry and its growing global expansion capabilities.
The situation of food service companies from both nations competing and coexisting in each other's markets represents a new dimension of Japan-China economic relations.
Looking Ahead
Given the economic slowdown in mainland China, expansion into Japan is expected to continue strengthening. New entrants are anticipated particularly in tea drinks, coffee, and fast food sectors.
However, simply transplanting Chinese business models won't guarantee success in Japan. Yang Guo Fu succeeded partly through fortunate timing that aligned with taste trends among Japanese youth. MIXUE and Cotti Coffee's struggles, meanwhile, have been attributed to entering without sufficiently understanding Japanese market characteristics.
Going forward, the ability to capture Japanese consumers—not just Chinese residents—will determine which Chinese chains succeed in Japan.
In Japan, the "gachi-chuka" (authentic Chinese food) boom has made genuine Chinese cuisine more accessible than ever. How does your country view foreign restaurant chains entering the market? Does coexistence with local food culture work well? We'd love to hear about the situation in your country.
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Reactions in Japan
First time trying Yang Guo Fu malatang and I'm hooked... You can get lots of veggies, choose your spice level—perfect for me on a diet. Might start going 3 times a week.
The speed at which Chinese chains open stores is impressive. Honestly, Japanese chains could learn from Haidilao's service level. Their approach to waiting time service is just different thinking.
The north exit of Ikebukuro is so full of Chinese signs I get lost. Not complaining since the authentic Chinese food is delicious, but sometimes I forget whether I'm in Japan or China.
Chinese companies entering Japan is a sign of the times. Japanese companies have profited plenty from China, so bidirectional flow is natural. The question is whether Japan can maintain competitiveness.
Been running my local Chinese restaurant for 40 years, but I feel like authentic chain stores are taking my customers. I can only compete with traditional flavors, but young people want the real deal.
MIXUE's pricing is so awkward. It's dirt cheap in China but moderately priced in Japan. At that price, I might as well go to a Japanese bubble tea shop. Marketing strategy fail?
Went to Haidilao for lunch and it was pricier than expected... But the service really is amazing. The face-changing show isn't something you see often in Japan—enjoyed it as entertainment.
Honestly don't like Chinese companies flooding into Japan. Worried about food safety and such. Feel like we should protect Japanese food culture.
Used to eat Yang Guo Fu all the time when I studied in Shanghai, so happy to find it in Japan. Japanese stores are cleaner and taste just as good. Though prices are about 3x higher lol
Been watching Haidilao's parent company Tehai International stock. Considering Japan market growth potential, could be an interesting investment. Japanese people's love for spicy food is a tailwind.
Took my kids to Haidilao and they had a kids' space—so helpful. Chinese chains seem family-friendly. Wish Japanese family restaurants would learn from them.
Malatang honestly divides people into those who get hooked and those who don't. I got addicted to that Sichuan pepper numbing sensation. But my friend said it tastes 'medicinal.'
So unfair that it's all Tokyo. Want Chinese chains in rural areas too. Apparently Fukuoka has Yang Guo Fu, but my prefecture has nothing.
Nissin releasing cup malatang is symbolic. Japanese manufacturers moving into a market Chinese chains created. Like saying 'thanks for developing the market for us.'
The malatang battle zone in Takadanobaba is intense. How many shops within 100 meters? Competition improving quality is fine, but worried about them destroying each other.
Chinese colleague took me to try authentic hot pot for the first time. Too spicy—messed up my stomach the next day—but delicious. Restaurants that don't tone it down for Japanese are actually better.
Watching to see if this becomes another bubble tea bust. That boom exploded then vanished. Malatang is actual 'food' so I think it'll last, but drink chains seem risky.
I guide Chinese tourists and surprisingly many want to visit Chinese chains in Japan. They say 'I want to see how Japan's Haidilao differs.' It's comparative consumption.
Chinese American in San Francisco here. We have Haidilao in the US too, but it costs over $50 per meal. Jealous that Japan's prices are much lower. Still nothing compared to mainland China prices, but better than the US.
Based in Germany. Chinese restaurant chains are starting to enter Europe too, but still seem targeted at Chinese communities. Japan's example of local youth acceptance is instructive. A marketing victory.
In Paris, Chinese food still has an upscale image. The spread of casual Chinese chains like in Japan is culturally interesting. Some might see it as a threat to French cuisine, but diversity should be welcomed.
Taiwanese here. Visited Haidilao during my Japan trip. We have stores in Taiwan too so I could compare—Japan locations had more attentive service. Interesting fusion of Japanese hospitality culture and Chinese-style service.
Based in London. Yang Guo Fu opened here too, but British people aren't familiar yet. Interesting that Japan's Gen Z is hooked. Proof that Asian flavor trends are spreading globally.
Korean here. The malatang boom hit Korea before Japan. Interesting that Korean-origin malatang chains are now entering Japan. There's a China→Korea→Japan flow happening.
Sydney, Australia resident. MIXUE opened here too and made waves. Ultra-low prices are the selling point, but quality concerns exist. Makes sense they're struggling in Japan. Developed markets are tough.
From mainland China. Can't be helped that Chinese chains in Japan charge 2-3x mainland prices. Labor and rent costs differ. But happy that Japanese people are accepting Chinese flavors.
As an Italian, I find the contrast interesting—Saizeriya (Italian chain from Japan) succeeds in China while Chinese chains enter Japan. Great example of bidirectional food culture flow in globalization.
Living in Vietnam. Southeast Asia already has many Chinese chains. MIXUE is especially popular. Japan's market must be tougher competition. Southeast Asia might be easier to enter.
Korean American. Chinese hot pot chains increasing in LA too. But many Americans find it too spicy. Maybe Japanese have higher spice tolerance? The malatang boom might be uniquely Japanese.
Living in Spain. In Europe, Chinese food = takeout image is strong. Fresh to hear young Japanese visit Chinese chains as a trend. Maybe the food culture acceptance level differs.
Vancouver, Canada resident. Lots of Chinese immigrants so lots of Chinese chains. But not much local adaptation. Japan's strategy of localizing for Japanese consumers seems smart.
Japanese Brazilian living in São Paulo. We have many Asian restaurants but no major Chinese chains yet. Watching Japan's market, hoping they'll come to South America eventually.
Living in New Zealand. Chinese chains don't have much presence here yet, but Japanese trends often reach us a few years later. Maybe the malatang boom will come too?
Chinese living in Singapore. Singapore feels like a testing ground for Chinese chains' overseas expansion. Brands succeeding in Japan versus Singapore seem slightly different.