00:00Tokyo is a foodie's paradise, known for delicacies like sushi and ramen.
00:05But Wall Street is looking past that and betting on American hamburgers and fried chicken.
00:12Private equity firm Carlyle paid about $600 million for KFC Japan in 2024.
00:19And last year, Goldman Sachs' investment arm bought Burger King Japan for about $450 million.
00:24And now, both Burger King and KFC plan to open about 100 new stores annually
00:29and competition is surprisingly thin.
00:32Demographic changes, such as a rise in single-person households and dual-income families,
00:37both of which favor convenient quick meals, are fueling sales at fast food joints in Japan.
00:42McDonald's Japan dominates the market here, with over 3,000 stores,
00:46leaving plenty of room for a strong number, too.
00:49That's where KFC and Burger King want to come in.
00:52Their new Wall Street owners are planning faster expansion,
00:55splashy marketing, and more Japan-only menu items.
00:59Last fall, KFC scored a hit with its limited-time Tatsuta chicken burger.
01:03It's basically a chicken burger with a Japanese-style karaage marinated in soy and ginger.
01:09And what are Burger King's latest play is a burger stacking chicken on beef,
01:13drenched in garlic sauce and gouda.
01:15But winning the market over won't be that easy.
01:18Japan's famed convenience stores and new fast food entrants from Korea are becoming formidable rivals.
01:23The U.S. chains are focusing more on things like self-ordered kiosks, delivery, frequent diner apps,
01:29and using consumer data to fine-tune their menus.
01:32Wall Street sees prominence in Japan wanting more American fast food.
01:35The question is, how much will diners dig in?
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