Shabu-shabu franchise Guide

Shabu-shabu is a classic Japanese hot pot dish in which thinly sliced meat and vegetables are dipped into a hot broth before eating. In addition to beef, pork, and lamb, seafood and vegetables are also used, attracting attention as a health-conscious, experience-oriented Japanese dining style.

This article summarizes the strengths of shabu-shabu franchising in the United States from a managerial perspective. It also explains advantages that distinguish tonkatsu franchises from other Japanese food franchise models.

Why Choose a Shabu-Shabu Franchise

Shabu-shabu (Japanese hot pot) is recognized in the American market as a healthy dining option, as thinly sliced meat is cooked in broth rather than oil. The ability to enjoy a wide variety of vegetables, along with the experiential appeal of tabletop cooking, is another factor contributing to its popularity in overseas markets.

Unlike yakiniku and ramen, because much of the cooking process is carried out by customers, shabu-shabu is also attracting attention as a business model that can reduce kitchen labor costs.

Let’s examine the advantages of a shabu-shabu franchise from three perspectives: profitability, competitiveness, and operations.

Profitability

For reference, the first Shabuyo restaurant in the United States set its basic all-you-can-eat course at $36.99 per person^*1. At Shabu-Tatsu in New York, where diners can choose premium meats à la carte, Wagyu Rib Eye Beef is offered at $65.00^*2.

Based on this information, shabu-shabu can be regarded as a category with a relatively high average check among Japanese food businesses. Although shabu-shabu is often discussed as a single concept, it encompasses a wide range of ingredients such as beef, pork, lamb, and crab. This flexibility makes it easier to adjust menu offerings in response to fluctuations in ingredient prices, contributing to more stable revenue.

Families, couples, coworkers, and groups of friends typically dine and pay together, which tends to increase revenue per party.

Competitiveness

According to POI Data Platform, there are 280 shabu-shabu restaurants in the United States^*3. Compared to sushi restaurants within the same Japanese food category (22,611 locations^*4) and Japanese-style steakhouses (1,428 locations^*5), competition in the shabu-shabu market remains relatively limited (all data as of October 2025).

Because locations are concentrated in California, expansion into other states offers ample opportunity to establish a brand position as the region’s first shabu-shabu specialty restaurant.

Operations

Since customers cook meat and vegetables at their table, the restaurant’s cooking process is relatively simple.

The tasks performed by the kitchen staff include preparing the dashi (Japanese soup stock), slicing meat, plating dishes, and controlling temperatures, and advanced culinary skills are not required. This business model reduces the burden of staff training and facilitates the standardization of restaurant operations.

However, safety and hygiene management during service, including the safe operation of tabletop heating equipment and food sanitation controls, is essential. By joining a franchise, you can efficiently acquire operational expertise through the headquarters’ manuals and training programs.

Summary by the Editorial Team

Shabu-shabu, which is typically enjoyed in groups, lends itself well to higher sales efficiency. The number of locations is still limited, making it relatively easy to establish a first-mover advantage, particularly in states other than those on the West Coast.

While there may be competition with similar hot pot formats (e.g., Chinese hot pot, Korean hot pot), differentiation can be achieved by joining a franchise originating in Japan and leveraging authentic dashi, sauces, and ingredient supply networks.

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