Saizeriya Thrives While Gusto Struggles in China
Listen to the story
Two Japanese restaurant chains are showing very different results in China. Saizeriya, which sells Italian food, is doing extremely well, with about 604 restaurants in the country.
Gusto, another Japanese chain, is struggling in China. Its business there has been much weaker than Saizeriya's success.
A third Japanese chain, Hama-zushi, which sells sushi, has around 200 restaurants in China. This shows that many Japanese food companies are trying to grow there.
However, doing business in China comes with what is often called "China risk." This term describes the extra uncertainty foreign companies face because of changing rules and political tensions.
Despite this risk, some Japanese companies, like Saizeriya, keep opening more shops in China. This creates a kind of contradiction, or "twist," in how Japanese firms are acting.
Adding to the concern, China has recently revised its National Defense Mobilization Law. This law can allow the government to use private resources during emergencies.
Some analysts see this change as a signal from Chinese leader Xi Jinping, possibly linked to future plans involving Taiwan. They worry it could increase risks for Japanese companies that rely heavily on the Chinese market.
This situation highlights the difficulty facing Japanese firms: they want to grow in China's large market, but they also need to be careful about political and legal risks there.
Vocabulary10 words
- chain
- many shops with the same name and owner
- uncertainty
- not knowing what will happen
- twist
- an unexpected or strange change in a situation
- National Defense Mobilization Law
- a Chinese law about using resources for national defense
- revise
- to change or update something, like a law
- analyst
- a person who studies and explains information
- Xi Jinping
- the leader of China
- Taiwan
- an island near China with its own government
- rely on
- to depend on something a lot
- market
- a place or system where goods are bought and sold
Quiz
Answer key
1. Saizeriya is thriving while Gusto is struggling 2. The uncertainty foreign firms face due to China's changing rules 3. True
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Two Japanese restaurant chains are showing very different _____ in China.
Saizeriya, which sells Italian food, is doing extremely well, with about 604 _____ in the country.
Gusto, another Japanese chain, is _____ in China.
A third Japanese chain, Hama-zushi, which sells sushi, has around 200 restaurants in _____.
However, doing business in China comes with what is often called "China _____."
Despite this risk, some Japanese companies, like Saizeriya, keep opening more _____ in China.
China has recently _____ its National Defense Mobilization Law.
Some analysts see this change as a signal from Chinese leader Xi _____.
They worry it could increase risks for Japanese companies that _____ heavily on the Chinese market.
Discussion questions
- Why do you think Saizeriya is successful in China while Gusto struggles?
- What risks do foreign companies face when doing business in another country?
- Should companies keep expanding in markets with political uncertainty? Why or why not?
- How might changes in laws affect international businesses?