100% Home Delivery/Takeaway in Japan

PROSPECTS

Third party online ordering services offer benefits and constraints

Third party online ordering services continued to emerge at the end of the review period, particularly within the Tokyo area. These services are also becoming increasingly convenient and accessible, particularly following the launch of UberEats in some areas of Tokyo in September 2016.

Convenience stores and home cooking kits pose growing competition

Convenience stores are proving increasingly creative as they push for a larger share of consumer foodservice sales, particularly within nakashoku (home meal replacement). The leading convenience stores chains 7-Eleven, Family Mart and Lawson have made nakashoku a key area of competition, with a focus on exclusive and frequently-updated offerings.

Pizza chains seek to bolster sales by expanding networks and competing on price

Chained pizza 100% home delivery/takeaway was the only area to expand outlet numbers in 2017 over the previous year, with this largely due to expansion by leader Domino’s Pizza. The leading players are also competing heavily on price in this area, with the use of discount vouchers in particular increasing among chains such as Domino’s Pizza and Pizza Hut.

COMPETITIVE LANDSCAPE

Plenus innovates and expands but cannot halt sales decline

Plenus’ Hotto Motto remained the clear leader in fragmented 100% home delivery/takeaway, accounting for close to 7% value share and remaining three percentage points ahead of its nearest competitor. The company proved willing to innovate and expand towards the end of the review period, working hard to retain its lead.

Origin Toshu benefits from blurring boundaries with delicatessens

Origin Toshu was one of the few leading players in 100% home delivery/takeaway to achieve current value sales growth in 2017 over the previous year. This company faced the same challenges as other bento specialists but benefited from introducing a new format during the review period, with its Origin Delica outlets blurring the boundaries between 100% home delivery/takeaway and delicatessen counters.

Domino’s Pizza takes control but Christmas gamble backfires

Domino’s Pizza bought out its Japanese joint venture partner Bain Capital for USD42 million in late-2017, thus gaining the remaining 25% of its shares in Domino’s Pizza Japan. The company has ambitious expansion plans for Japan, with its outlet numbers expanding by 6% in 2017 to reach 500 outlets.

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