This provides an in-depth analysis of the disruptive business model used by the Japanese eel restaurant chain, Unagi no Naruse, which has rapidly expanded to hundreds of locations within three years. The core strategy hinges on achieving profitability despite an unusually high food cost ratio (over 40%) by drastically cutting other fixed costs like labor and rent. This is accomplished by utilizing a specialized cooking machine that negates the need for skilled chefs, employing a small staff in inexpensive secondary locations, and maintaining a zero-waste operation with pre-processed ingredients. The company successfully targets customers who want high-quality, generously portioned eel at roughly half the price of traditional shops and with significantly faster service (under 10 minutes), essentially creating a new market segment centered on high cost and time performance.

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