The Business Model of Ichiran: Japan's Most Profitable Ramen Chain
What is Ichiran?
Ichiran is a ramen chain headquartered in Fukuoka City, Fukuoka Prefecture, Japan. It is particularly known as a specialty tonkotsu (pork bone broth) ramen restaurant and has gained immense popularity not only among locals but also among international tourists. The ramen features a unique tonkotsu-based broth and has expanded its presence across Japan.
Ichiran's Top-Selling Store and Estimated Revenue
The highest-grossing Ichiran store is said to be the "Atre Ueno" branch in Tokyo. Despite having no particularly unique interior, this location achieves remarkable sales figures.
Average daily visitors: Over 1,500
Monthly visitors: Over 40,000
Average price per bowl: 800–900 yen
Monthly revenue: Approximately 40 million yen
Annual revenue: 4–5 billion yen
Considering that the price of a single bowl of ramen in Japan is about $6 (approximately 800 yen), it is astounding that a single location can generate such massive revenue.
Ichiran's Overall Revenue and Profit Margin
Ichiran’s total revenue across all locations exceeds 25 billion yen, with consistent year-over-year growth. Furthermore, it boasts one of the highest operating profit margins in the restaurant industry, reaching 15%. This means an operating profit of approximately 4 billion yen.
The key to this extraordinary profitability lies in Ichiran’s unique business model and strategies. Here are three major factors behind its success.
The Secrets Behind Ichiran's Success
1. The Purpose of the "Ramen Focus Booth"
Ichiran is known for its signature "Ramen Focus Booths," where each seat is partitioned, allowing customers to enjoy their ramen in solitude. This design serves several strategic purposes.
1-1. Brand Story Reinforcement
Unlike other ramen shops where customers may be distracted by conversations or menu options, Ichiran’s partitions limit their visual field. As a result, diners naturally read Ichiran’s brand story displayed in front of them, subconsciously reinforcing the idea that "Ichiran’s ramen is special."
1-2. Increased Customer Turnover
Even if customers visit in groups, they are directed to individual booths, reducing conversations.
With limited opportunities for small talk, customers finish eating faster.
Digital displays inside the restaurant show available seats, ensuring a smooth flow of customers.
As a result, Ichiran achieves over twice the turnover rate compared to typical ramen shops.
1-3. Efficient Ordering System
Customers place their orders using handwritten order sheets, eliminating the need for staff interactions.
Additional noodles ("kaedama") can be ordered with a simple button press, ensuring quick service.
This system reduces order mistakes, enhances operational efficiency, and improves customer satisfaction simultaneously.
2. Unconventional Hiring Strategy
In the restaurant industry, staff interactions often influence customer satisfaction. However, Ichiran has implemented a system where customers rarely see the faces of employees.
2-1. A Workplace for Everyone
Because Ichiran minimizes customer-staff interactions, it enables a hiring approach that is uncommon in the restaurant industry:
No restrictions on appearance (e.g., dyed hair, piercings, tattoos are accepted).
People who may struggle to find jobs in traditional restaurants can work here.
Those who prefer not to be recognized by customers can work without concern.
As a result, Ichiran boasts exceptional hiring capabilities in an industry suffering from labor shortages.
3. Centralized Kitchen and Order Management
A key strength of Ichiran is its ability to maintain consistent quality and operational efficiency across all locations.
3-1. Centralized Kitchen System
Ichiran employs a centralized production system where:
Soup, noodles, and toppings are manufactured in a central factory and distributed to each store.
In-store preparation is reduced to minimal cooking tasks.
There is no variation in cooking skills, ensuring the same taste at every location.
Thanks to this system, ramen quality remains consistently high, and staff workload is significantly reduced.
3-2. Multilingual Support and Appeal to Foreign Tourists
Ichiran is extremely popular among international tourists, and one major reason is its fully contactless ordering system.
The ticket vending machines and order sheets are available in multiple languages, eliminating the need for staff with language skills.
Even without interacting with staff, foreign visitors can easily place their orders.
This approach has helped Ichiran capture a large share of the inbound tourism market.
Conclusion
Ichiran’s success is not just due to serving "delicious ramen" but is driven by its innovative business strategies:
The Ramen Focus Booths, which enhance branding and customer turnover
A unique hiring strategy that ensures a strong workforce
Centralized kitchens and streamlined operations for efficiency
These elements create a sustainable competitive advantage, protected by patents and economies of scale, making it difficult for competitors to replicate.
Next time you visit Japan, try experiencing Ichiran from a new business perspective.