First, please tell us about the Franchise & Licensing Team that you belong to.

Our predecessor began as a new venture in 2019, primarily supporting companies expanding overseas. We assisted companies looking to export, helped them exhibit at trade shows, and conducted overseas product test marketing. However, we wanted to create a more sustainable way to support companies. We turned our attention to "franchising" as a means to establish Japanese food culture overseas, leading to the creation of our current department. Initially, we planned to expand overseas. However, the COVID-19 pandemic began around that time, and the prolonged difficulty in traveling meant we first focused on finding companies within Japan with whom we could build a strong brand together. We are now also actively pursuing franchising overseas.

In this context, what kind of brand is "BREAD, ESPRESSO &" that you've partnered with?

"BREAD, ESPRESSO &" is a brand that, as the name suggests, offers authentic bread, espresso, and café menus. Each store leverages the regional characteristics of its location, with every single outlet differing from one another--from its name and exterior to its interior design and menu. In December 2022, HIS entered into a domestic and international partnership agreement with "HitoBito Inc.," the operator of "BREAD, ESPRESSO &." While the main business involves matching franchise owner candidates with the brand, the approach differs slightly between overseas and Japan. Overseas franchise development begins with effectively communicating and gaining understanding of the technical expertise, subtlety, and trend appeal inherent in Japanese bread, especially given the significant differences in bread culture and taste preferences across countries. Furthermore, since the brand's track record as a Japanese bakery brand is still in the early stages of its international expansion, it is essential to build trust by clearly explaining not only the brand's strengths but also how it will take root locally and what specific support can be provided. We believe the key perspective is that this is not merely about finding licensees, but about seeking partners who can help spread Japanese bread culture together. In Japan, where bread culture is so well-developed, the challenge lies in how effectively we implement these conditions and transform them into sustained value. Carefully assessing the compatibility between the brand and the specific characteristics of the neighborhood, foot traffic, and location context is vital. It also demands that the owner deeply understands the local environment and is committed to nurturing the brand for the long term. Furthermore, expectations for the brand are high, and the quality of each individual store is rigorously scrutinized. Therefore, it's not just about expanding the number of stores; it's crucial to establish the brand as an entity that generates foot traffic within the community, taking into account the surrounding environment and relationships with the local area. Based on this perspective, we believe the essence of partnership in Japan lies in fulfilling the role of connecting the brand, the owner, and the community.

Could you tell us about the "47 Prefectures 'Local Pan-Es' Project" currently being rolled out across Japan?

This project recruits owners nationwide who wish to operate "BREAD, ESPRESSO &" locations, providing support for opening and management. To prevent cannibalization, only one owner is permitted per prefecture. Each location will offer menus reflecting local specialties, while the exterior, interior, and shop name will be tailored to incorporate the spirit of the region and the owner's vision, mirroring our company-owned stores. While owners enjoy freedom to create original local menus, the headquarters, "Hitobito," provides advice and proposals to maintain brand quality, making this a co-creation project. Our selection criteria are driven by "brand love." Given the brand's distinctive and unique nature, understanding this is essential for successfully running the store. We also look for owners with a personal story--individuals who possess a genuine desire to contribute to their local community.

HIS's role involves building a framework to raise project awareness and attract applications, conducting market research, deepening brand understanding through information sessions for applicants, and coordinating licensing agreements. Operations related to bread making and staff training will be carried out in collaboration with Hitobito.

What were the underlying motivations of the two companies behind the launch of this project?

Personally, I approach this with the mindset of "creating new tourist destinations." Even in locations with slightly poor access, if there's a wonderful space and great products, people will gather specifically for that experience, creating new foot traffic and communities. Rather than trendy Tokyo shops entering popular commercial facilities, I believe that even old houses tucked away in back alleys with poor access can draw visitors if the space and products are well-crafted. I truly think that's where the potential for new foot traffic and communities lies.
Hitobito's vision stems from a genuine appreciation for Japan's diversity: "Each prefecture and region has its own unique climate, local products, and customs--which is a wonderful thing. It would be amazing to express those regional differences through our store designs and product lineups across the country." Both companies also share a deep commitment to regional revitalization, including promoting local consumption, addressing the shortage of the next generation of artisans, and maintaining stable employment.

So far, six shops have opened since the project began. Could you share some stories about how you found the right local owners for these locations?

The story of our first store in Kuwana, Mie Prefecture, remains deeply memorable. The site was in a facility with very little foot traffic, and initially, even we worried whether customers would actually come. However, the owner--a Kuwana native--had a powerful emotional connection to that specific property, so we decided to take the leap. Once we opened, the unique atmosphere and the local menu featuring "Hamaguri" (clams) became a sensation. It transformed the quiet site into a bustling destination. Seeing the owner's humble yet passionate dedication to recreating our brand made our dream of "creating foot traffic" a reality. It was a moment of pure joy that filled me with a sense of accomplishment, fulfillment, and above all, endless possibility.

In addition to your domestic projects, you are also expanding overseas. Could you tell us more about your international operations?

We currently have stores in the United States and Taiwan. For overseas expansion, HIS holds exclusive licensing rights, handling everything from market research and strategic planning to recruiting potential licensees. We also support the brand's international expansion by selecting target regions, conducting interviews and evaluations of potential master franchisees, and coordinating contract negotiations. While preserving Japanese brand identity, we jointly build expansion plans tailored to each country's market and food culture. In fact, "BREAD, ESPRESSO &" had previously attempted overseas expansion, but communication gaps due to language and cultural barriers led to brand misalignment, resulting in a withdrawal. By leveraging HIS's local branches as a bridge, we now operate by maintaining Japan's high quality standards while achieving the right balance of "localization" to suit local tastes.

Most recently, on October 1, 2025, we opened a new store in Ximending, a popular area for young people in Taiwan. Seeing the "BREAD, ESPRESSO &" logo lighting up a giant digital billboard for the opening was truly moving and made my heart leap. Expanding overseas is a continuous series of real challenges--from logistics and differences in taste preferences to balancing the menu, and more. Yet, witnessing a wonderful Japanese brand being embraced across the ocean through a process of trial and error and deep respect for local culture makes me feel the immense reward of this work.

In the U.S., there is currently a massive boom for "moist, Asian-style bread," with Korean and Taiwanese brands rapidly expanding to hundreds of locations. Yet, authentic Japanese brands are virtually absent in this space. Entering the U.S. market--a major franchise powerhouse--is quite complex and has high barriers to entry. Few companies provide support, and even fewer businesses overcome these hurdles. We believe our role is to serve as a bridge, allowing local communities to experience "authentic" Japanese food and culture.