Jon Gilliam became chief executive of Yoshinoya America Inc. in June 2021 and set about transforming the Torrance-based company.

With about 2,000 franchise locations, including 21 in California, Yoshinoya provides fast, inexpensive Japanese cuisine.

Starting next year, the company will begin to look for new franchisees to expand in California and surrounding states.

Please give us an overview of your franchise operation. For example, how did your company get started? How many franchisees do you have now and how many do you plan to have by the end of 2024? 

Yoshinoya is the first and the largest chain of beef bowl restaurants with more than 3,000 outlets around the world, serving more than 500,000 meals daily. The company was founded by Eikichi Matsuda in 1899 in a small shop in Nihonbashi Fish Market in his hometown, Yoshino-Cho, Osaka. Over the years, Yoshinoya has rapidly expanded around the world including Japan, the United States, Hong Kong, China, Cambodia, Indonesia, Malaysia, the Philippines, Taiwan, Thailand and Singapore. Yoshinoya came to the U.S. in 1973 and we now have more than 100 locations located across California with plans for expansion to new states. In 2024, we plan to open four new Yoshinoya locations with our new Heritage prototype.

We currently have 19 franchisees with 21 franchise locations in California and are seeking franchisee partners both within the state of California and in surrounding states, starting in 2025.

At Yoshinoya America we are focused on creating affordable, freshly prepared, delicious authentic Japanese cuisine featuring quality flavors and ingredients inspired by its Japanese heritage. Our original menu featured Yoshinoya’s signature Gyūdon Beef Bowl and has now grown to include more than 20 bowls, including our recently introduced Tokyo Fried Chicken. Each fresh bowl includes a choice of rice, protein and vegetables. In addition to full meals, we also offer appetizers, snack-sized options, desserts and a new line of Boba drinks. 

What are the financial requirements for potential franchisees?

Opening a new Yoshinoya location will have an initial investment range of $385,000 to $1.4 million depending on various elements. New investors must fulfill the following minimum requirements:

• Liquidity of at least $300,000.

• A net worth of more than $1 million.

• A credit score of 700 or higher.

• Additional fees include the following, but may vary slightly by location:

• Franchise fee: $27,500 (for first store) and $24,750 for subsequent locations.

• Continuing royalty collections includes 5% to 5.5% of net sales by location.

• Advertising fees include 3.5% of net sales.

• A grand opening fee of $12,000.

What do you think are the advantages of owning a franchise? What do you emphasize to prospective franchisees about the business they are about to enter?

There are many benefits to owning a franchise but the one I feel is the most impactful is that franchisees have the best of both worlds; they are an independent business owner but have the full support and learnings from the parent company. They have the ability to launch their business with the comfort of knowing the brand has seen success with other locations and has popular product offerings. They can also learn from other franchisees in the network.  

And the flip side: Any disadvantages?

As a franchisee you have responsibility to shepherd a growing brand with more than a 100 years of heritage. The support, structure and business stability that a franchise provides naturally comes with the responsibility to represent a brand while not having full control. It requires a shared vision in the future and a relationship of mutual respect and partnership, which we are committed to at Yoshinoya. 

Generally speaking, what do you believe is the future of franchising in California? 

Given the labor environment, it is critical that brands not only have strong value perceptions today, but also have a solid plan to help support consumers with limited spending power, alongside ensuring healthy margins for our parent company as well as our franchisees. Yoshinoya has a leadership value position in consumers’ hearts and minds and has a strong value evolution plan underway.