Fast-food chain Lotteria to disappear in Japan after 54 years

The Lotteria brand, which debuted in 1972 with its first outlet in Tokyo, will be retired, as recently announced by its operator Zensho Holdings, according to Nikkei.

Zensho Holdings, a major food service operator in Japan, acquired Lotteria Japan in 2023 and opened the first Zetteria outlet in Tokyo in September that year.

Since then, it has steadily converted existing Lotteria stores. As of end-December 2025, Japan had 106 Lotteria outlets and 172 Zetteria outlets, for a combined total of 278 stores.

This makes the chain the country’s fourth-largest burger operator, behind McDonald’s with 3,025 outlets, Mos Burger with 1,309, and Burger King with 337.

The number of Lotteria outlets has fallen sharply in recent years, declining from 358 in January 2023 to 222 by June 2025, a drop of nearly 40% in about two and a half years.

This decline reflects not only store closures but also Zensho’s strategy of converting existing outlets and changing business formats.

The brand is positioned between fast food and a cafe. Zensho has accelerated its expansion by re-purposing Lotteria locations, changing store signage and concepts.

Through the consolidation of the two brands, Zensho aims to cut costs by streamlining raw material procurement and logistics, while improving operational efficiency.

Although Lotteria and Zetteria have shared menu names such as the Zeppin Cheeseburger, they previously relied on separate procurement, production and distribution systems, resulting in differences in buns, patties and sauces.

Weekly magazine Shukan Bunshun described Zetteria outlets as “spaces that do not feel like fast food restaurants.”

The stores feature spacious layouts, wider seating, subdued lighting and interior designs that resemble cafes. Some locations offer charging points for laptops, and many have introduced table tablet ordering in place of traditional counter service.

Menus have also been adjusted. While basic burgers are priced from JPY250 (US$1.58), the signature Zeppin Beef Burger starts at JPY540, making it costlier than Lotteria’s earlier offerings. The brand has expanded its premium lineup with limited-time items such as roast beef burgers.

Industry observers see Zetteria’s emergence as emblematic of wider shifts in Japan’s fast food sector, as operators seek to move beyond simply offering quick, inexpensive meals.

One industry official said as cited by The Asia Business Daily: “As competition in the dining-out market intensifies, differentiation in fast food is essential. Zetteria is an experimental brand aiming for a new position as both a fast food restaurant and a cafe.”