"Management is ultimately a battle against efficiency"

Den Fujita (藤田 田) was born in Osaka Prefecture in 1926. His name, "Den," was unique—chosen by his Christian mother in the hope that the kanji 田, resembling a mouth (口) and a cross (十), would bless him with eloquence. This kanji actually also means 'rice paddy'. His father, an electrical engineer for a British firm, was an outspoken critic of the war, closely monitored by military police.

Tragedy struck during World War II when American bombing raids killed Fujita’s father and two sisters, destroying one-third of Osaka, including their home. His mother, one of the few survivors, later built a Methodist church—a feat that inspired young Fujita. "If a woman could do this, I felt that with a strong will, I could do anything," he later recalled.

An exceptionally bright student, Fujita studied law at the University of Tokyo. A classmate described him as a genius who looked down on even the smartest students. Despite excelling academically, he found the law faculty uninspiring, calling it a gathering of "sexual perverts" and "idiots" who had "never even seen a woman's face." Though he rarely attended classes, he maintained top grades and was offered a position at the Ministry of Finance. He declined, believing civil servants were resistant to innovation: “They don’t want to do anything new, and I don’t want to do anything that’s been done before.”

He sought work at MacArthur's headquarters, passed the recruitment exam, and became an interpreter. While working as an interpreter, Fujita met Wilkinson, a Jewish sergeant, which profoundly influenced his life. Fascinated by Jewish business principles, he studied them intensely, earning the nickname "The Jew of Ginza." He was particularly struck by how Wilkinson, though of a lower military rank and looked down upon as a Jew, lived lavishly—dressing well, driving a luxury car, and surrounding himself with beautiful women. To Fujita, this was a revelation.

Inspired, he launched Fujita Shoten in 1950 at age 24, while still a student. Specializing in imported luxury goods like Longchamp and Christian Dior handbags, his company thrived. With strict import regulations limiting competition, demand for high-end foreign products soared—marking the beginning of Fujita & Co.

How Den Fujita Brought McDonald's to Japan

In 1971, Fujita & Co. entered the fast-food industry. Fujita first tasted McDonald’s in 1967 and was impressed by its efficiency and popularity. Three years later, Steven Barnes, chairman of McDonald’s International, visited Tokyo to find a local partner. After meeting with several major firms, he chose Fujita for his open-mindedness and full commitment.

Fujita agreed to the venture on two conditions:

1. A 50:50 partnership with McDonald’s Japan.

2. Autonomy in decision-making—they would accept advice from the U.S. but not take direct orders.

Initially, McDonald’s planned to open drive-thru locations in suburban areas, but Fujita disagreed with this strategy. The first store was set to launch in Chigasaki, but he later convinced McDonald’s to pivot. Instead, in July 1971, Japan’s first McDonald's opened inside Mitsukoshi Ginza department store.

Fujita made key cultural adaptations:

• He removed American symbols, such as the Stars and Stripes, to avoid evoking wartime memories.

• He negotiated a reduced royalty fee—paying only 2% instead of the standard 5%, arguing that a higher fee would prevent profitability.

Ray Kroc accepted these conditions, and McDonald’s Japan was born—thriving under Fujita’s leadership.

Fujita’s Business Rules

1. Talk to Taxi Drivers

Fujita always chatted with taxi drivers, seeing them as an invaluable source of business intelligence. Since taxis carried a variety of professionals, drivers often overheard insider information about companies and market trends. Fujita used these insights to stay ahead of competitors.

2. Always Take Notes

Fujita was a meticulous note-taker, a habit he developed after meeting the Jewish sergeant who introduced him to finance. He recorded everything he saw and heard, believing that detailed notes were key to success.

His approach to observation and adaptability helped McDonald's Japan flourish, proving that understanding local culture and consumer behavior is crucial in business.

Was Den Fujita Fired by McDonald’s?

Den Fujita, the man who built McDonald’s Japan into a massive success, was eventually fired by McDonald’s headquarters in the U.S.

The reason? Rising wages.

In the 1990s, Japan faced a deflationary recession, but McDonald’s Japan continued to grow due to a strong yen and deregulation, which made it cheaper to import ingredients from the U.S. Despite this success, Fujita believed that attracting top talent required raising wages—a move that angered McDonald’s corporate leadership in the U.S. Eventually, this led to his removal.

His successor, Eiko Harada, previously served as president of Apple Japan and chairman of Benesse Holdings. His transition from Apple to McDonald’s was famously described as a move “from Mac to Mac.” However, under Harada’s leadership, McDonald’s Japan prioritized profits over quality, following a cost-cutting strategy that resulted in higher operating profits but declining service and food standards.

Fujita’s Controversial Statements

Den Fujita was known for his bold and often provocative opinions. He said one time in an interview:

“The Japanese are hardworking but weak, small, and pale. I thought we had to strengthen ourselves. That’s when I thought of beef.”

“In business, the only justice is winning. There is no clean or dirty money. In a capitalist society, all ways of making money are acceptable.”

His books, like his business strategies, were wildly successful but controversial. Titles like Atama no warui yatsu wa son o suru (Why Dummies Lose Money) and Using Super-Commonsense in Your Money-Making Strategies reflected his obsession with wealth. His first book, The Jewish Way of Doing Business (1972), sold over one million copies, in which he controversially suggested that the Japanese should learn from Jewish business strategies. Though accused of antisemitism, Fujita defended himself, insisting his views were meant as praise rather than insult.

Despite these controversies, Fujita remained a business icon in Japan. He was globally recognized, appearing on Late Night with David Letterman in 1985, and in 1986, he was honored with the Blue Ribbon Award from Emperor Hirohito for his contributions to business.

A Different Perspective on Den Fujita’s Leadership

While Den Fujita’s leadership style and business philosophy have been widely discussed, those who worked closely with him remember things somewhat differently. One of those individuals is Nakazono, an early McDonald’s Japan employee who witnessed Fujita’s management firsthand.

“To make money, you have to make people work,” Nakazono recalls. However, Fujita believed that financial compensation alone wasn’t enough—he emphasized a sense of duty, compassion, and family support as key motivators.

One example of this was McDonald’s Japan’s March bonus, which Fujita introduced in addition to the standard July and December bonuses. Unlike traditional corporate bonuses, this extra payout wasn’t just for employees—it was also given to their wives.

“The idea was that if wives received a bonus, they would encourage their husbands to work harder,” Nakazono explains.

Beyond monetary incentives, Fujita took an even more personal approach to employee motivation. He arranged for florists to send birthday flowers to employees’ wives.

“These weren’t ordinary bouquets,” Nakazono notes. “They were flowerpot arrangements that lasted for about a year. Every time a wife saw the flowers, she would be reminded of her husband’s work and encourage him to do his best. Mr. Fujita kept his employees motivated by considering their families.”

Nakazono left McDonald’s Japan in 1990, marking the end of an era of unprecedented growth for the company. During his tenure (1973–1990), McDonald’s Japan experienced its most rapid expansion, achieving several milestones:

• 1977: The launch of Japan’s first drive-through restaurant.

• 1987: The introduction of the popular “sankyū set” meals (a play on “thank you” and the number 39, as they cost ¥390), making the phrase a household term in Japan.

• 1990: With the opening of a McDonald’s in Yamagata, the chain officially covered all 47 prefectures in Japan.

References:

• Alchemy. "A Big Mac Fortune: How Den Fujita Built McDonald's Japan." Substack. Link

• Tokyo Weekender. "Den Fujita: Japan’s McDonald's Man in the Spotlight." Link

• Fujita Shouten. Official Website. Link

• Shikigaku Souken. "The Business Philosophy of Den Fujita." Link

• SS Food Labo. "Notable Business Quotes: Den Fujita." Link