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#2 Opening an F&B store in Japan: The challenge of construction and execution

You've secured a location, but the journey of building a restaurant in Japan is just beginning. Discover the strict regulations and sky-high costs involved in transforming an empty space into your dream store.

Bui Thanh Tam
Bui Thanh Tam

02/11/2025

Opening an F&B store in Japan: The challenge of construction and execution
Photo of the construction phase at Banh Mi Xin Chao Okubo, Tokyo. Photo: Quy Dang

Preparation phase

The next step is to focus on building out your store. Japan is an extremely challenging country when it comes to construction: renovations, electrical work, plumbing, exhaust systems, fire alarms... Everything must be done by companies with the corresponding licenses.

Japanese people typically only call construction companies for design and quotes after signing the lease agreement. The quoting process usually involves inviting 3 companies to get the most reasonable options and costs. This process can take about 1.5 months of rent despite not having made any sales yet.

Bùi Thanh Tâm (right) and his brother Bùi Thanh Duy (left) posing for a photo with a Japanese customer at Banh Mi Xin Chao Takadanobaba.
Bùi Thanh Tâm (right) and his brother Bùi Thanh Duy (left) posing for a photo with a Japanese customer at Banh Mi Xin Chao Takadanobaba.

Construction costs are very high. For example, renovating a 70m² space can cost at least 10 million yen (approximately 1.7 billion VND). Hiring Vietnamese companies may be cheaper and faster but comes with risks regarding expertise and quality.

Rest assured, if you franchise with Bánh Mì Xin Chào, we handle all of this for you. Beautiful, substantial, affordable, fast, accurate, and meticulous.

Construction phase

Standard construction items include: wall construction, kitchen floor elevation, ventilation systems, electrical work, plumbing, gas, toilets, signage, tables and chairs, decoration, air conditioning, internet, telephone, and fire alarms.

  • Gas: Seems simple but isn't easy. There are 2 types: bottled gas and city gas. Installing city gas pipelines to your shop can cost 200,000-1,000,000 yen and take a month just to schedule an appointment.
  • Electricity: Japan uses 110V electricity, different from Vietnam's 200V. Careful calculation of power usage is needed for proper installation, especially for machines using 200V (single-phase or three-phase). This requires knowledge and experience—one small mistake can lead to big problems.
  • Water: Wastewater must flow to a separate filtration tank before entering the public system. Direct discharge into the sewer is absolutely prohibited.
  • Kitchen construction: The kitchen area needs elevated flooring, both to accommodate the filtration tank and ensure hygiene. The floor must be constructed by experienced professionals to prevent water leakage—otherwise, compensation costs could equal 5 years of your salary combined!
  • Exhaust and fire alarm systems: Extremely important and must comply with legal regulations. If the shop is on a high floor, chimney construction costs can be 5-10 times more expensive. The fire alarm system must also be inspected and approved by the local fire department.
Illustrative photo. Source: Gemini
Illustrative photo. Source: Gemini

In general, it's complicated and expensive. Building an F&B shop in Japan has never been easy.

End of Episode 2. We invite you to read Episode 3: Licenses & the "heart" of the Restaurant.

This article belongs to the series: Opening an F&B Store in Japan: Easy or Hard? (4)

Opening an F&B store in Japan: From dream to business license
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Opening an F&B store in Japan: The challenge of construction and execution
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