MOS Burger: Japan's Answer to Fast Food Burgers

Recently this column has called out a wealthy person for using their nearly limitless resources to patronize an American fast food restaurant during a visit to Japan. (See "Zuck in Translation") Now we would like to take advantage of an anniversary to indulge in some fairly blatant hypocrisy, which we will attempt to explain away by highlighting a few convenient facts, while ignoring a whole host of others in the hopes you won't notice. We have written about Japanese fast food chain Mos Burger before in the constellation of fast food in Japan (See "Japanese Harvest Moon Festival - I'm Lovin' It?"). March 12th is the firm's birthday. Let's learn more about this Japanese burger chain.

Kei Sakurada and Sho Yoshino, former employees of Nikko Securities, opened their first Mos Burger store on March 12, 1972, near Narimasu Station’s south exit on the Tobu Tojo Line in Tokyo's Itabashi Ward. Initially operating as an experimental setup in the Narimasu Meitengai shopping center's basement, it later evolved into a full-fledged store as the brand expanded its presence along the Tojo Line. Inspired by the American chain Tommy's, Mos Burger aimed to carve out a unique identity in the competitive fast-food market. The company, MOS Burger, styled in all caps, derives its name from the backronym "Mountain, Ocean, Sun". Initially, it was a spinoff of Atsushi Sakurada's previous company, Merchandising Organizing System.

From its inception, Mos Burger took a path less trodden by focusing on quality over quantity, setting its prices higher to match the premium offerings. The founders believed that Japanese consumers' discerning taste buds would appreciate their focus on flavor, despite their initial lack of advertising budget and prime location challenges. Their strategy relied on word-of-mouth promotion, driven by the belief that quality would naturally draw customers.

Sakurada adopted a unique approach to product development. He insisted on tasting new menu items on a full stomach, underlining the philosophy that truly delicious food must be enjoyable regardless of hunger levels. MOS burger is widely regarded as the inventor of the "rice burger," a traditional burger with pressed rice balls (onigiri) rather than bread buns. MOS burger began selling the burgers with the rice alternative "buns" in December 1987, and were soon followed by variations at other chains.

In a significant brand evolution, Mos Burger transitioned from using a yellow M logo on a red background, reminiscent of McDonald's, to a white M logo, signaling a fresh identity.

In 2004, amidst growing consumer awareness for health and safety due to issues like avian flu and pesticide residues, Mos Burger responded by adopting green in its signage to represent safety, security, and environmental consciousness. This shift to a "green moss" theme marked a departure from being just a fast-food chain towards a "fast casual" dining experience, with renovations and menu updates reflecting this change. However, challenges such as rising raw material costs and deviations from fast food norms led to mixed reactions among customers and franchises alike.

Despite initial plans to fully transition to "Green Moss" by fiscal 2008, adjustments were made due to operational hiccups. The brand decided to phase out the "Red Moss" and "Green Moss" distinctions, focusing instead on uniformity across stores while continuing renovations and introducing new products selectively.

Amid these changes, Mos Burger also took a stand on health concerns by announcing a smoke-free policy across all domestic outlets by March 2020, following a brief dip in profitability due to a food poisoning incident.

On the international front, Mos Burger has made its mark across eight countries, primarily in Asia, with significant growth in Taiwan. Despite fierce competition from global giants like McDonald's, Mos Burger has held its own with a robust expansion strategy showcasing its unique global brand proposition.

Mos Burger's journey from a small Tokyo store to a budding global fast-food brand highlights its commitment to innovation, quality, and cultural integration. Despite initial challenges like high prices and location disadvantages, the brand differentiated itself by focusing on taste and quality, appealing to the discerning Japanese palate. Its strategic evolution, from adopting a distinctive green motif to symbolize health and environmental consciousness to implementing smoke-free policies, showcases its responsiveness to consumer health concerns and changing societal values. Mos Burger's growth, marked by its international expansion and continuous menu innovation, exemplifies how a brand can maintain its core values while evolving to meet customers' diverse tastes and demands worldwide.