TamJai International gains franchise rights to operate new Marugame Seimen stores

TamJai International (TJI) has signed a master franchise agreement with its controlling shareholder Toridoll Holdings Corporation (東利多株式會社), to obtain the franchise rights to operate new stores for Japanese noodle brand Marugame Seimen (丸龜製麵) in Hong Kong for three years. 

The master franchise agreement has an initial term of three years commencing on 13 November 2023 and ending on 12 November 2026, and may be renewed subject to mutual agreement of both parties and compliance with all applicable regulatory requirements.

Under the agreement, TamJai International will be granted exclusive rights in Hong Kong to establish and operate the “Marugame Seimen” restaurant business, and license unaffiliated third parties to develop and operate the franchised restaurants.

In a conversation with MARKETING-INTERACTIVE, a spokesperson from TamJai said the total value of the contract will depend on the number of stores TamJai plans to open. "Japanese comfort food has a strong presence in the Hong Kong market, and Marugame Seimen's attractive pricing proposition allows us to expand our reach to various neighbourhoods."

TamJai also believed that the franchise arrangement would enable it to leverage its know-how and best practices to ensure successful operations and scale the business more efficiently with a shorter implementation timeline and at lower costs.

This strategic move aims to expand TamJai's brand portfolio and market presence as part of its multi-brand growth strategy and commitment to diversification. "We recognise the growth potential for Marugame Seimen, which has received positive customer feedback in Hong Kong. Its stores in Hong Kong also adopt the unique practice of making Japanese udon freshly at the store," said the spokesperson.

This brand character will be effectively reflected in the new brand image which TamJai plans to unveil for Marugame Seimen in Hong Kong. This branding exercise will aim at elevating Marugame Seimen’s brand awareness and highlighting its value propositions to TamJai's target audience in Hong Kong.

"As we leverage our branding and marketing capabilities to expand the renowned Japanese udon noodle brand, Marugame Seimen, in Hong Kong, we envision engaging in further collaborations with marketing agencies in Hong Kong for the above branding campaign and other promotional initiatives," said the spokesperson. 

Daren Lau, chairman, executive director and chief executive officer of Tam Jai International, said: “Building on our success in providing store management services to Marugame, we are delighted to take it a step further and operate the business of this renowned noodle brand in Hong Kong through franchise arrangements.”

“The strategic collaboration with our shareholder, Toridoll Japan, offers tremendous synergies and opportunities to expand our market reach.  Growing beyond our established presence in the mixian arena in Hong Kong, this new venture paves the way for further diversification of our brand portfolio, thereby driving the overall growth of the Group’s business," he added.

Currently, Toridoll Holdings Corporation has around 20 F&B brands in its portfolio. Moving forward, TamJai International will look to deepen its partnership with Toridoll and penetrate the Japanese comfort food segment in Hong Kong.

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Most recently, TamJai International entered into a joint venture agreement with ST Group Food Industries Holdings to expand into Australia, marking the Group’s first foray into a Western market and developing its business with a franchise model. 

A joint venture company, which is 49% owned by TJI and 51% owned by ST Group, has been established and the JV Company will be granted the master franchise rights to operate restaurants and associated delivery services under one of the Group’s brands in Australia and New Zealand. In addition, the JV Company will be able to enter into further sub-franchise agreements with other partners to facilitate the Group’s expansion.

Separately, TamJai also announced a potential franchise partnership with a subsidiary of the Philippine conglomerate, Suyen Corporation, regarding the proposed entry into the market in the Philippines.

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