Japanese fast food makers eye U.S. market

A study by research company MarketResearch.com found that total Asian and Indian food retail sales across all sectors — from ethnic markets to convenience stores — jumped 27.3 percent to $3.3 billion between 2000 and 2004.

The U.S. fast food industry as a whole continues to expand, which means plenty of opportunities for newcomers, Caranfa said. The National Restaurant Association forecasts that quick-service restaurants in the U.S. will reach $142 billion in sales in 2006, up 5 percent from the previous year.

Moreover, Caranfa says younger age groups — major fast food consumers — are especially keen to try new flavors.

“We’re finding that American teenagers and younger consumers are more adventurous with their food choices than their parents might be,” Caranfa said. “I do think even octopus could catch on.”

Part of the fun of the octopus dumplings is watching them being cooked. It takes the chefs months to learn to grill the takoyaki to a crisp golden brown on the outside, while keeping the inside soft and fluffy, according to Makoto Takasu, who heads Gindaco’s operations in Hong Kong.

“Everybody who tries them loves them, even those who feel squeamish about octopus,” Takasu said of takoyaki. “And our customers love watching the cooks. They know their food is fresh off the grill.”

Other Japanese chains going global include Shigemitsu Industry Co.’s noodles-in-soup restaurant, Ajisen Ramen — whose network now includes stores in China, Southeast Asia, Australia, the U.S. and Canada — and the Japanese beef-and-vegetable dumplings giant Osho Food Service Corp., which opened its first overseas store in China in 2005.

Another is the Tokyo-based Koots Green Tea chain, which opened its first overseas store in Seattle in May, hoping to tap the U.S. cafe market with a lineup that includes green tea lattes and smoothies.

“Koots translates traditional Japanese green tea culture into an everyday experience for U.S. consumers,” said Tomoko Takahashi, a spokesman for Koots in Tokyo. The company intends to open four more stores in Washington state this year.

And Beard Papa, a cream puff store chain run by Japan’s Muginoho Corp., has opened popular outlets in New York and San Francisco.

Sase and his staff at Gindaco say they’ve struck a winning formula with their octopus balls and don’t intend to change a single ingredient for their overseas customers. And if overseas expansion goes as planned, HotLand expects its overseas sales to reach $89 million by 2010, about the same as its current domestic sales.

To woo octopus skeptics, U.S. stores may feature additional entertainment, says Yohei Miki, who heads the company’s overseas operations.

“We’re thinking of getting our cooks to chop the spring onions using Japanese swords,” Miki chuckled. “You know the Americans, they love attractions.”