Sweet Buns and Crispy Meat Challenge McDonald’s as Zetteria Seeks Its Moment in the Hamburger Chain War

The fluffy bread has a sweetness, and the fried chicken is crispy. Considering the price of 440 yen, it’s a luxuriously tasty bargain.

What I tried was the Tartar Chicken Burger from the hamburger chain Zetteria. Ordering with fries (“Furu-Po”) and a drink (mellow green tea, medium) on a large tablet (three items for 1,060 yen), the staff handed it over in a paper bag in about five minutes.

The battle for the average consumer’s appetite among hamburger chains is heating up. The total number of stores in Japan far exceeds 6,000, and the market size for fiscal year 2025 is expected to reach a record 1.03 trillion yen. Economic journalist Takashi Matsuzaki explains:

“The largest player is the global giant McDonald’s, with more than 3,000 stores in Japan. In comparison, the second-tier group includes Mos Burger with about 1,300 stores, Burger King with about 300, and Zetteriawith about 270 stores. That shows the scale of McDonald’s.

However, McDonald’s dominance isn’t unshakable. Rising costs for ingredients and energy are eroding McDonald’s key advantage of low prices. In February this year, McDonald’s announced price increases on about 60% of its items—from 450 to 480 yen for a Double Cheeseburger and 480 to 500 yen for a Big Mac—making it increasingly difficult to promote cheap and tasty.”

Affordable yet Luxurious

A potential threat to the “Gulliver” McDonald’s is Zetteria, introduced at the start of the article. In April 2023, the restaurant chain Zensho Holdings acquired all shares of Lotteria from major confectionery company Lotte Holdings. By the end of April this year, the brand is being refreshed from Lotteria to Zetteria.

Zetteria seems to have a chance, Matsuzaki continues:

“Lotte, as a confectionery company, lacked know-how in the restaurant business, and Lotteria’s management wasn’t strong. On the other hand, Zensho—the largest domestic restaurant chain operating Sukiya beef bowls, Nakau udon shops, and more—has extensive experience.

They have a well-established supply chain from sourcing ingredients to consumption and can likely procure high-quality meat relatively cheaply. They can offer products with a luxurious feel at lower prices than McDonald’s.”

Matsuzaki also notes the chain’s attention to its menu selection:

“They focus on Japanese-style items, like teriyaki burgers and Tatsuta-age-style chicken. Even with momentum, it’s impossible to topple a global giant like McDonald’s overnight. By differentiating with Japanese-style burgers versus American-style McDonald’s, they are likely aiming to expand their share of the Japanese market.”

The newly reborn Zetteria, formerly Lotteria, is now under Zensho. Burger One President Takushi Inoue expressed at a press conference in February, “I don’t know how many years it will take, but we aim to be number one,” showing his ambition. With its flagship “Exquisite Burgers” and “Cafeteria” offerings, Zetteria could become the storm center in the intensifying hamburger chain wars.