TOKYO, 22 February 2026 – Japanese restaurant operators Skylark Group and Watami are planning to open new production facilities in Southeast Asia as part of a broader strategy to strengthen supply chains and support regional expansion of their dining brands.
The move marks a notable corporate pivot by the companies, best known in Japan for domestic family restaurant chains, towards greater localisation of food production and supply operations in fast-growing ASEAN markets. Industry watchers say the facilities are likely intended to serve local restaurant outlets more efficiently while reducing reliance on imports from Japan.
Why Production Sites in Southeast Asia?
Skylark and Watami have both been expanding their footprint beyond Japan in recent years, and the planned production sites are expected to help support their operational scalability across multiple markets. Locally based production, particularly for soups, sauces, prepared ingredients and key food components, can help:
- Cut logistics and import costs for restaurants in Southeast Asia
- Ensure fresher supplies and consistent quality
- Respond faster to local consumer tastes and dietary preferences
- Enhance competitiveness against regional foodservice chains
The Southeast Asian region’s youthful demographics, rapid income growth and rising restaurant consumption have made it an attractive target for Japanese food and beverage players seeking growth beyond saturated domestic markets.
Background on Skylark and Watami
Skylark Group operates a wide range of casual dining brands in Japan and has been pursuing overseas expansion for years. According to the company’s own investor materials, it already has dozens of stores in Taiwan and Malaysia as well as a nascent presence in the U.S., and has been laying the groundwork for further growth by aligning local supply chains and partnerships.
Watami, another iconic Japanese foodservice brand with restaurants across Asia, similarly appears readying production infrastructure to better support its Southeast Asian outlets.
Together, the two companies are signalling a new phase of internationalisation in which running production nearer to core markets becomes a strategic priority, rather than relying predominantly on exports from Japan.
Implications for Southeast Asia’s Food Sector
For regional markets such as Malaysia, Singapore, Thailand and Vietnam, the arrival of production sites could contribute to:
- Job creation in food manufacturing and logistics
- Technology transfer in food processing and quality assurance
- Stronger suppliers for local restaurant ecosystems that cater to casual dining and family segments
Industry analysts say Japanese food investors have historically favoured ASEAN for expansion due to cultural affinity, growing middle-class demand and established trade frameworks under initiatives such as the Japan-ASEAN cooperation platform.
Greater localisation in food production may also help companies tailor offerings to diverse regional tastes, for example, halal certification requirements in Muslim majority markets like Malaysia and Indonesia, while building stronger brands with local consumers.
Strategic Context
The trend fits within a broader pattern of Japanese corporates re-centering operations closer to growth markets, particularly in Southeast Asia where consumer spending on dining out continues to rise. Market participants say having local production hubs can reduce vulnerability to global supply chain disruptions and currency fluctuations, while supporting smoother expansion planning and faster new restaurant openings.
Outlook
While specific sites, timelines and investment sizes have not yet been detailed publicly, the announcement by Skylark and Watami reflects a significant shift toward deeper regional integration. As these Japanese players build out production capacity in Southeast Asia, they join a growing cohort of multinational food and beverage firms seeking to embed themselves more fully in local markets, not just as restaurant operators, but as employers, supply chain facilitators and long-term regional stakeholders.
