Hong-Kong based restaurant chain firm Toridoll Holdings, the majority shareholder of local fast foods joint Teriyaki Japan, has offloaded its stake to its Kenyan partner.
Toridoll Holdings has received the green light from Competition Authority of Kenya (CAK) to sell 90 per cent of its share capital of Toridoll Kenya Limited to Roroma Limited, a Kenyan firm that held the other 10 per cent stake. Roroma also imports and sells printing ink from Japan.
Toridoll Holding’s exit from the local market comes in the wake of heated competition from other fast-food joints that have set up shop in Kenya over the past five years. Teriyaki Japan is mainly known for its grilled chicken and noodles.
The competition watchdog in a gazette notice published on Friday said that the firm made Sh898,520 in 2016 against a target of Sh73,924,991, an indicator that Toridoll Kenya Limited, which started local operations the same year had performed below the investor’s expectations.
Toridoll Holdings’ quest to sell its shares was excluded from requirements of the Competition Act because the firms combined turnover was below Sh1 billion.
“The authority confirms that Toridoll Holdings Limited, a Hong Kong-based company, was exempted from provisions of Part IV of the Competition Act No. 12 of 2010 following an application to sell 90 per cent of its issued share capital in Toridoll Kenya Limited to Roroma Africa Limited. Roroma Africa Limited is a Kenya company which at the time held a 10 per cent stake in the Toridoll Kenya Limited,” said CAK communications and external relations manager Mugambi Mutegi.
Toridoll Holdings decided to open shop in Kenya citing “rapid economic growth and a population increase”, according to Japanese media firm Asia and Japan Watch, which first reported the plans. Toridoll Holdings is currently doing business in nine countries, with more than 75 outlets operated either as subsidiaries, joint ventures or franchises.
Some Japanese-themed fast-food outlets currently in Kenya include Tokyo Restaurant and Haru Japanese Restaurant both which are in Karen, Misono on Ngong Road and Furasato in Westlands in Nairobi. These restaurants serve a wide range of dishes.