EXCLUSIVE: Colowide, Others Mulling Acquiring Cafe Veloce Operator

Tokyo, Feb. 20 (Jiji Press)–Major Japanese restaurant chain operator Colowide Co. and others have expressed interest in acquiring the operator of the Cafe Veloce coffee shop chain, as its parent is considering selling it off, Jiji Press learned Friday. Longreach Group Ltd., an investment firm based in Japan and Hong Kong, is mulling divestment of Cafe Veloce’s operating company, C-United Co. Other firms expected to make bids for the operator include Japanese investment fund Nippon Sangyo Suishin Kiko Ltd., or NSSK. Initial negotiating rights may be granted as early as next week. C-United was founded in 2021, after Longreach Group acquired Cafe Veloce’s previous operator and merged it with the group’s Coffee-Kan coffee shop chain. In 2023, C-United absorbed Pocca Create Co., the operating firm of the Cafe de Crie chain, and now manages seven coffee chains. Colowide apparently aims to strengthen its cafe business through the potential purchase of the Cafe Veloce operator. It runs a wide range of restaurant chains such as Japanese set meal restaurant chain Ootoya and Japanese grilled meat restaurant chain Gyukaku, but lacks a strong presence in the cafe segment. Meanwhile, NSSK is looking to expand its investment in the restaurant sector and monetize retail real estate. In Japan, the coffee shop chain industry has maintained steady demand despite the country’s declining population, and C-United has continued to open new outlets. However, the industry faces challenges such as the diversifying needs of customers, intensifying competition from rivals including convenience store chains, and increasing expenses such as labor and utility costs. END [Copyright The Jiji Press, Ltd.]