Japan Says Sayonara Wendy's

Several news agencies have reported that Wendy’s, the third largest burger chain in the United States, will see its Japanese outlets closed by year’s end. The largely Ohio-based franchisor, which merged with Arby's in 2008, has struggled to understand and expand internationally. Its Japanese master franchisee has decided to end its agreement that has given Wendy’s a seven-year development window, in this latest effort. The Wendy's brand has been in Japan since 1980.

Zensho Co., which runs the burger chain in Japan, will end its contract with Ohio-based franchisor Wendy's/Arby's Group Inc. and close all of its 71 outlets by the end of this year, Zensho spokesman Naoki Fujita said. “We decided that it was no longer necessary to invest funds and human resources” into the chain, he said. – The China Post

An unusual public announcement like this is probably the Japanese way to say: “These Americans from Ohio don’t know their assets from a hole in the ground. We're not putting another penny into this loser.”

But where Wendy's has failed, Japan is McDonald's largest market outside of the United States. It has nearly 4,000 restaurants there. Since the CEO was obviously too busy, one of Wendy's vice presidents spoke to the press about the situation:

"Japan is an important market, and we intend to pursue new development opportunities in the country with new franchisees or joint venture partners," said Andy Skehan senior vice president, Wendy's/Arby's International. - Reuters

Germany or Australia can be described as important markets. But "important" just doesn't work in describing a place that has more franchise owner-operators than anywhere else except the United States. Being booted out by a single licensee there is like being kicked out of the Boston to Miami market.

Zensho also develops many other franchised brands and envisions itself one day as  "the world's ichiban (No. 1) company in the food industry."