Operations
How Onigilly scaled from founder-led concept to a 20-unit franchise pipeline
Founder and CEO Koji Kanematsu said the brand's corporate locations are expected to generate approximately $2 million in revenue this year.
December 29, 2025 by Cherryh Cansler — Editor, FastCasual.com
Onigilly Japanese Kitchen is entering the new year with record-breaking sales and a rapidly expanding franchise pipeline, marking its transition from a local startup to a scalable national brand.
Founded in 2007 in San Francisco, the concept specializing in traditional Japanese rice balls reported double-digit traffic growth across its core locations in 2025. Founder and CEO Koji Kanematsu said the brand's corporate locations are expected to generate approximately $2 million in revenue this year.
"This year was the brand's strongest to date, driven by demand for convenient, healthier global flavors," Kanematsu said in a company press release.
Surging demand and innovation
The brand's growth was most visible at its California brick-and-mortar sites. Its San Francisco flagship saw a 28% increase in guest traffic, while its San Jose location grew by 18%. Additionally, a unit at San Francisco's Stonestown Galleria is on pace for $1.8 million in annualized sales.
Onigilly has also focused on menu innovation to maintain momentum. Seasonal offerings, such as a spicy pumpkin onigiri introduced for the fall holidays, became instant favorites, Kanematsu said. The company also launched a loyalty program, the "Samurai Club," to increase customer retention.
A new era of franchising
The year 2025 served as a pivotal turning point for the company's business model. After receiving approval to franchise in California in September, Onigilly opened its first franchised location and has since secured a pipeline of five additional partners who have either signed leases or are in final negotiations.
Kanematsu expects a significant surge in the coming 12 months.
"Right now, we're confident about opening 15 to 20 franchise locations next year, with the potential for even more," he said.
To support this growth, the corporate team has taken a hands-on approach to real estate, identifying and negotiating sites on behalf of franchisees to reduce the barriers to entry.
Prioritizing quality over quantity
Despite the aggressive expansion goals, Kanematsu emphasized that the brand remains selective about its partners. The company is prioritizing "values-driven" growth over rapid territory sales, focusing on candidates who align with the brand's mission of making healthy Japanese food a mainstream American staple.
"We are not pursuing growth or profitability at the expense of quality," Kanematsu said. "As a category leader, we recognize that we are often the first point of exposure for many guests. Their initial experience must be exceptional."
Looking toward 2026, Onigilly plans to invest heavily in its headquarters support team to ensure new franchise owners have the systems and training necessary to thrive in the competitive fast casual market.
About Cherryh Cansler
Related Media
Subscribe
Get the latest news and resources from Fast Casual.
