IN FOCUS: Japanese Chain K10 on Thriving Through the Recession and How They Differentiate Themselves in a Crowded Marketplace
Following their recent expansion we sat down with Japanese chain K10 to learn more about the brand, how they made it through the recession with a city-based clientele and where they see the next opportunity.
QSR: How would you explain the K10 concept?
We are a Kaiten (conveyor belt) Modern Japanese restaurant
QSR: How do you set yourselves apart from the likes of Itsu and Yo! Sushi?
Itsu and Yo do a great job. We have a much broader menu - over 150 items in our recipe book and we really focus on delivering very high quality food at great value
QSR: What do you see as your competitive advantage in such a competitive city lunch market?
A great team - our people come first. Treat them right they will treat our customers in the same way. Also great food and offering fantastic value for money. It's simple but the execution, day in, day out isn't.
QSR: You’ve recently opened in Minster Court, do you plan to open more stores over the next 12 months? If so, how many?
We have plans to open a few more sites. It's driven by people and property. We have the people it's the property. We will not pay crazy premiums and rents that will be unsustainable in the next downturn.
QSR: Do you have any plans beyond London, and/or beyond the UK?
Our short term focus in the UK is London. It's easier to manage sites that you can easily access. We will move out of London once we have a few more sites open. We have had a tremendous amount of interest internationally. Interestingly it's mainly from major international financial centres. New York, Chicago, Frankfurt, Munich, Dubai etc. it's a bit early in our development but we are discussing opportunities but it's it's still in the early stages
QSR: What is the long term plan for K10? How big do you see yourselves becoming?
It goes back to what I said earlier. It's about People and Property. We are one of the few business out there that have a restaurant, Takeaway and Delivery model all in one so our growth is not limited to just conveyor belt restaurants. With out third site open we are finessing systems and processes and will grow where the opportunity arises. We are not under any pressure by our backers to open up x number of sites a year.
QSR: What is your most popular menu item?
Eat in is Chilli squid. Takeaway is Chicken Katsu Curry
QSR: We’ve seen a fair bit of menu innovation from some other Japanese chains recently- what is your approach to developing new menu items?
It's about quality, flavour and consistency. There is absolutely no point in launching a product that doesn't match the customers expectations. They order once and never again. It reflects on your whole offer. It's about having customers return on a regular basis.
QSR: We’ve come through a pretty tough economic climate that had a big impact on the City. What, if anything, did you have to change about the way you operated to get though the tough times?
We have had to focus more on recruiting the right people, ensuring consistency and making sure we provide great value and hospitality. Service is mechanical. Hospitality is that intangible that gives customers a feel good factor. We also took a conscious decision to improve our quality rather than cut it to save on cost. That was fundamental to our thriving in the recession.
QSR: What do you find the most and least challenging aspects of running K10?
The most challenging thing is finding the right people. Least challenging? Don't think that exists....everything can be improved so we are always challenging ourselves.
