Onigilly Japanese Kitchen

When&nbsp;<a href="https://www.linkedin.com/in/koji-kanematsu-6223546/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=koji-kanematsu-turned-a-2000-year-old-japanese-staple-into-one-of-the-most-scalable-restaurant-franchise-models-2729317" target="_blank" rel="nofollow">Koji Kanematsu</a> moved from Japan to the U.S., he was shocked to find that while sushi was everywhere, onigiri — a centuries-old Japanese comfort food — was nowhere to be found. That realization sparked the beginning of a now-thriving restaurant brand that’s proving its ability to scale quickly and profitably.“I grew up eating onigiri, but when I came here, I couldn’t find it anywhere,” he told 1851 Franchise’s&nbsp;<a href="https://www.linkedin.com/in/powills/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=koji-kanematsu-turned-a-2000-year-old-japanese-staple-into-one-of-the-most-scalable-restaurant-franchise-models-2729317" target="_blank" rel="nofollow">Nick Powills</a> on an episode of&nbsp;<a href="https://www.youtube.com/watch?v=MD7L0YSqx9Q&utm_source=1851franchise.com&utm_medium=article&utm_campaign=koji-kanematsu-turned-a-2000-year-old-japanese-staple-into-one-of-the-most-scalable-restaurant-franchise-models-2729317" target="_blank" rel="nofollow">"The Franchisor Hot Seat"</a> podcast. “I really missed it, so in 2008, I started selling it. I believed it could revolutionize fast food here — it's quick, nutritious and simple.”Kanematsu is the founder of&nbsp;<a href="https://onigillyfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=koji-kanematsu-turned-a-2000-year-old-japanese-staple-into-one-of-the-most-scalable-restaurant-franchise-models-2729317" target="_blank" rel="nofollow">Onigilly Japanese Kitchen</a>, a fast-growing concept offering freshly made Japanese rice balls in compact mall kiosks and storefronts. Since launching in 2008 with a food cart in San Francisco, Kanematsu has built a business model that combines Japan’s rich culinary tradition with automation and simplicity, drawing inspiration from Subway’s efficiency and American tastes.“We use technology from Japan, like rice-cooking machines and robotics,” he said. “Our operations are simple. We only cook rice on-site and get weekly deliveries of pre-cooked fillings from our commissary kitchen. The setup is similar to Subway—no hood, no complicated kitchen equipment.”&nbsp;A transcript of Powills’ interview with Kanematsu has been provided below. It has been edited for brevity, clarity, and style.Powills:&nbsp;How did you accidentally fall into franchising? What's your franchise backstory?Kanematsu: Our concept is&nbsp;<a href="https://1851franchise.com/onigilly/info">Onigilly Japanese Kitchen</a>. We’re technically a restaurant, but we're in a unique space. Onigiri is very popular in Japan — it’s a rice ball wrapped in seaweed with traditional fillings like sour plum or salmon. It has over 2,000 years of history and is comparable to a sandwich in the U.S. — portable, healthy and convenient.I moved to the U.S. in 2006. I grew up eating onigiri, but when I came here, I couldn’t find it anywhere. I really missed it, so in 2008, I started selling it. I believed it could revolutionize fast food here — it's quick, nutritious and simple.We started with a food cart in San Francisco. At first, we struggled because people didn’t know what onigiri was. Many expected sushi and were confused when they saw cooked ingredients instead of raw fish. Based on customer feedback, we created an “American-style” onigiri — two rice patties with fillings like teriyaki chicken, spicy shrimp, garlic and bacon.We opened our first storefront in the Financial District, then expanded to five locations in the Bay Area. During COVID, we struggled because our stores were in office-heavy areas. We pivoted to shopping malls, and it was a huge hit. Malls turned out to be a great fit — people wanted something quick and portable, and onigiri worked perfectly.Our vision from the beginning was to expand nationwide. We always aimed to franchise. Our model is scalable — we use technology from Japan, like rice-cooking machines and robotics. Our operations are simple. We only cook rice on-site and get weekly deliveries of pre-cooked fillings from our commissary kitchen. The setup is similar to Subway — no hood, no complicated kitchen equipment.Powills:&nbsp;I love that. A few follow-ups — how did you raise the funds to do this back in 2008, especially during a market crash?Kanematsu: I didn’t have a credit history as an immigrant, so banks rejected my loan applications. Landlords also said no. I found an NPO incubation kitchen in San Francisco called La Cocina. They supported immigrant entrepreneurs and provided us with a commercial kitchen.We started at farmer’s markets, which required minimal investment — just a table and tent. Later, we got a loan from an NPO lender and bought a food cart. We built credit history and, after three years, secured a bank loan to open a restaurant.Powills: Were you stressed during that time?Kanematsu: Not really. My wife had a full-time job, so I didn’t have financial pressure. That gave me the freedom to treat it like an R&amp;D phase. If I had needed the business to support my family, it would have been much harder.Powills: Early on, were your customers mainly Japanese Americans, or were non-Japanese Americans willing to try onigiri?Kanematsu: I targeted American audiences from the start. Our first pop-up was at a Japanese festival and sold out — lots of Japanese Americans there. Then we went to street food festivals and did well with foodies. But at a music festival, we sold only 400 of 4,000 onigiris because most attendees didn’t know what onigiri was. American audiences unfamiliar with Japan didn’t get it — people expected pizza or burgers.Powills:&nbsp;Did Japanese Americans respond with excitement because they hadn’t seen onigiri available in the U.S.?Kanematsu: Yes. Many hadn’t seen onigiri here since childhood — only in Japanese grocery stores or in Hawaii. They were excited to see it available fresh.Powills:&nbsp;Flash forward — where is the business today?Kanematsu:&nbsp;We have five locations and are opening two more this spring. We opened our first storefront in 2012, and aside from COVID, revenue has grown every year. We were profitable from month one.At first, it was hard to educate people, but once they tried it, they understood it. We have strong repeat customer rates, even in competitive areas like San Francisco’s Financial District. Shopping malls have worked well — we expected a drop-off after opening, but sales have continued to grow.In Japan, onigiri has a 2,000-year history. It's convenient and healthy, and people get it once they try it. We believe it can work anywhere.Powills: Have friends or family from Japan been surprised that you figured out how to bring onigiri to the U.S.?Kanematsu:&nbsp;They think onigiri is already popular here because of Japanese grocery stores and TV shows. But we’re targeting outside of those areas — non-Japanese customers. That requires education, but it’s what makes our model different.Powills: The mall seems like the perfect setting. Do you think part of the success is that you can hook new customers who are just walking by?Kanematsu: Yes. It’s functional. Like Auntie Anne’s pretzels, we don’t need a storefront — just a kiosk in the mall. Not everyone wants a full meal, so a light snack like onigiri fits perfectly. People see our open kitchen, get curious, try it, and enjoy it.Powills: Let’s talk about investment. What’s the range in your FDD?Kanematsu:&nbsp;We list $260,000 to $600,000. If you take over a second-generation space or build a mall kiosk, it can be lower. We don’t need a hood — just power and water.Powills: What are you putting in Item 19 for performance?Kanematsu: Last year, our shopping center location did $1.7 million. Our newest location is approaching $2 million.Powills: That’s significant. Most restaurant brands doing $1.5 to $2 million cost at least $1 to $1.5 million to open. You’re doing it for $200,000 to $600,000. That’s best-in-class. For comparison, Auntie Anne’s average unit volume is $768,000, and your investment range is about the same. That makes your model very compelling.Kanematsu: In Japan, onigiri is prepackaged and produced in large automated facilities. Here, because of food safety laws, we had to do fresh-made, like Subway. We brought over machines from Japan and created a hybrid model — part robotic, part human.That gives us great throughput even in a 300-square-foot space. We keep prices low — $10 gets you two onigiris. It’s filling, healthy, and affordable. The combination of onigiri’s uniqueness, our operational efficiency, and customer demand makes this model work. It’s been proven in Japan, and now we’re proving it in the U.S.Powills: I’ll close with this: You should be proud. You've built a beautiful brand, weathered tough times, and created something scalable. Annie Anne’s investment is nearly identical to yours, yet you’re more than doubling average sales. You’ve engineered a model that hits all the key points—speed, value, customer experience, and brand strength. Great job.Watch the full interview&nbsp;<a href="https://www.youtube.com/watch?v=MD7L0YSqx9Q&utm_source=1851franchise.com&utm_medium=article&utm_campaign=koji-kanematsu-turned-a-2000-year-old-japanese-staple-into-one-of-the-most-scalable-restaurant-franchise-models-2729317" target="_blank" rel="nofollow">here</a>.&nbsp;To find out more information on costs to buy this franchise, please visit&nbsp;<a href="https://1851franchise.com/onigilly">https://1851franchise.com/onigilly</a>.

How Koji Kanematsu Built Onigilly Into a Scalable Franchise Model

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By blending robotic efficiency with cultural authenticity, Onigilly is drawing strong unit-level economics and repeat customers — and is now ready to franchise nationwide.

Koji Kanematsu Turned a 2,000-Year-Old Japanese Staple Into One of the Most Scalable Restaurant Franchise Models

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Onigilly Japanese Kitchen - Deep Dive 2026 - 1851 Franchise

Onigilly Franchise Costs, Fees, Profits, and Data for 2026

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SAN FRANCISCO —&nbsp;<a href="https://onigillyfranchise.com/">Onigilly Japanese Kitchen</a>, the fast-casual concept centered on traditional onigiri rice balls, is closing 2025 with record sales, double-digit traffic growth and a fast-growing franchise pipeline, marking its evolution from a founder-led concept into a scalable modern brand poised for wider expansion in 2026.Founder and CEO&nbsp;<a href="https://www.linkedin.com/in/kojikanematsu/">Koji Kanematsu</a> says 2025 was the brand’s strongest year to date, driven by demand for convenient, healthier global flavors and a more structured approach to growth.“This year, we anticipate around $2 million in revenue across our corporate locations,” Kanematsu said. “We’re seeing rising interest in onigiri, and our concept is attracting more customers across all our units.”Across&nbsp;<a href="https://1851franchise.com/onigilly/info">Onigilly’s</a> core locations, guest traffic surged in 2025. The San Francisco restaurant saw a 28 percent increase in traffic, while the San Jose location grew 18 percent. A new restaurant in San Francisco’s Stonestown Galleria is already approaching $1.8 million in annualized sales.“For sure, we can say double-digit growth,” Kanematsu said.On the culinary front, Onigilly continued to lean into simple, focused innovation. The team introduced a limited-time spicy pumpkin onigiri around Halloween and Thanksgiving, which quickly became a guest favorite.“We keep our menu simple, but because of the success, we are planning to do more,” Kanematsu said.The brand also launched a loyalty program called SAMURAI CLUB and stepped up marketing efforts in 2025, further strengthening its foundation for franchising.This year marked a turning point in Onigilly’s evolution from a small, founder-driven operation into a franchise-ready system. The company filed its Franchise Disclosure Document and received approval to franchise in California in September.Since then, Onigilly has opened its first franchise location and built a robust pipeline of new restaurants.“We have one franchisee currently operating, and another five who have either secured leases or are very close to doing so,” Kanematsu said.Unlike many emerging brands, Onigilly’s corporate team takes an active role in guiding franchisees through the real estate process.“As the franchisor, we assist in identifying and negotiating locations, then offer those options to our franchisees,” Kanematsu said. “This support reduces the heavy lifting for them, helping them get started quickly and accelerate growth.”In addition to the six committed franchisees, Onigilly is in discussions with several more prospective partners and has identified multiple promising new sites.“Right now, we’re confident about opening 15 to 20 franchise locations next year, with the potential for even more,” Kanematsu said.Kanematsu says the first year of franchising underscored the differences between a franchise business and operating corporate locations, as well as the importance of building systems around owner success.“Managing a corporate location is more straightforward because we hire and guide the general manager, and we have a clear line of sight into operations and success,” he said. “Franchise ownership is a different structure, which requires a different approach. Even with manuals and training, there’s a unique process in how you motivate and support franchisees effectively.”Those lessons are shaping Onigilly’s priorities for 2026. The company is investing in its headquarters support team and establishing systems to ensure deliberate growth with the right partners.“Our focus now is on our franchisees’ success,” Kanematsu said. “Our team is strong, but we’re investing in additional support, so franchisees have the resources they need to thrive. Support is our top priority.”While many of Onigilly’s franchisees are already interested in multi-unit development, the brand is taking a disciplined, one-restaurant-at-a-time approach to expansion.“Our priority is making sure franchisees are happy, well-supported, and fully understand the gap between their expectations and reality,” he said. “Once that foundation is in place, they can consider additional locations. We want to ensure they are both capable and motivated—that’s our approach.”Beyond the numbers, Kanematsu remains focused on Onigilly’s founding mission: introducing authentic, healthier Japanese fast casual to a wider American audience and establishing onigiri as a mainstream option.“That has been my primary motivation,” he said. “We’re not pursuing growth or profitability at the expense of quality. Onigiri remains a niche category in the U.S., and as a category leader, we recognize that we are often the first point of exposure for many guests. Their initial experience must be exceptional, because that experience helps define the category as a whole.”Kanematsu views Onigilly not only as a growth business but as a steward of the onigiri category. “We may be a single company, but we see ourselves as leaders of the category,” he said. “Our goal is to bring onigiri into the mainstream as a better, healthier and more convenient fast-food option. At its core, Onigilly is about rethinking what fast food can be.”That mindset is reflected in how the brand approaches franchise recruitment. Kanematsu says Onigilly is not looking for anyone who simply wants to buy territory; it is looking for partners who believe in the concept and will champion it in their local markets.“We’re confident in our strength, but we’re selective about who we partner with,” he said. “We’re not looking for someone who simply has capital or wants to claim territory. We want partners who share our culture, values, and mission because those are the people who will represent the brand and lead the category in their communities.”With record sales, double-digit traffic growth, its first franchise locations coming online and a carefully built pipeline for 2026, Onigilly is stepping into the new year as an emerging player in healthy global fast casual, backed by both strong performance and a clear, values-driven growth plan.To find out more information on costs to buy this franchise, please visit&nbsp;<a href="https://1851franchise.com/onigilly">https://1851franchise.com/onigilly</a>.About Onigilly Japanese KitchenOnigilly Japanese Kitchen is a fast-casual franchise bringing Japan’s favorite grab-and-go food, onigiri rice balls, to the U.S. Founded by Koji Kanematsu in 2008, Onigilly has grown from a food cart in San Francisco to a scalable franchise concept designed for efficient operations, healthy menus, and compact footprints. With a focus on fresh, nutrient-rich ingredients and streamlined systems that keep costs low, Onigilly offers entrepreneurs the opportunity to join a brand that blends innovation, culture, and consumer demand for healthier dining. To learn more about franchise opportunities, visit&nbsp;<a href="https://onigillyfranchise.com/">onigilly.com</a>.

Image of Onigilly restaurant franchise Reports Record 2025 Growth in Fast Casual

The fast-casual Japanese brand celebrates new openings, menu innovation and franchise development progress as it enters the new year.

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Koji Kanematsu Turned a 2,000-Year-Old Japanese Staple Into One of the Most Scalable Restaurant Franchise Models

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