August 21, 2025

ABF Fund Backs Chefs in Bid for Independence

Investment fund ABF is creating a new model for Japan’s restaurant industry by funding chefs who want to operate their own establishments. Founded in 2020, the fund has raised over 4 billion yen so far. Typically, ABF provides about 30% of a restaurant’s startup capital through a management company established for each project, while the rest is secured through bank loans. After about three years—once operations are stable—the fund recovers its investment when the chef completes a management buyout (MBO).

For ABF, chefs are seen as “products”—assets similar to golden eggs with the potential for high returns. In reality, few chefs without a managerial background can secure bank loans on their own. By taking on part of the financial risk, the fund provides crucial support ranging from property purchases to business planning.

The trend of investment funds supporting independent restaurants is gradually growing across the country. Japan, long recognized as a culinary leader, faces increasing competition from countries like France and Italy. However, behind the prestige, the industry is dealing with a quiet crisis.

Tokyo remains a global leader in Michelin-starred restaurants, but the total is expected to drop by nearly 30% from its 2012 peak of 247 by 2025. Meanwhile, the number of licensed chefs has decreased 40% over the last decade, reaching just 24,000 in 2023. The migration of talent to overseas markets offering higher salaries has sped up this decline.

Unless addressed, Japan’s restaurant sector could face a structural decline caused by a shrinking successor pool, demographic pressures, and tough working conditions. “Japan’s restaurant industry is on a steady decline,” warns ABF Chief Executive Atsushi Kumahara. “Capital can serve as a companion—and a catalyst for change.”