Akasakatei, one of China's Teppanyaki, barbecue and Japanese-cuisine restaurant, announced that it has completed a round of financing to raise US $10 million for its planned expansion in the country, the food chain said.

Akasakatei, a Shanghai-based food company, said plans to launch 15 to 20 restaurants in China by the end of this year after securing the US $10 million financing from private equity firm ClearVue Partners. The overall aim of the company is to have 40 stores in China in 2014.

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Akasakatei founder and CEO You Zhongwang revealed that the expansion of restaurant is so timely considering that there is a strong increasing demand in China for Japanese food, including teppanyaki and barbecue.

ClearVue Managing Partner Harry Hui said Akasakatei can bank on its strong profile and identity, two of the many factors that Chinese consumers are looking for when it comes to quality food and innovative dining experiences.

Akasakatei already owns 25 restaurants in Shanghai, Beijing, Ningbo, Nanjing and other major Chinese cities. It also owns the soon-to-launch restaurant brand ShiYuan.

A recent report showed that Japanese food is among the top five cuisines preferred by Chinese consumers. China's restaurant industry is expected to grow to around four trillion yuan, or about US $64 billion next year.

Experts and analysts, however, warned that restaurant expansion in China could become challenging due to the ongoing campaign against excessive spending launched by the Chinese government to curb corruption and lavish spending by its officials.

In a previous report, stakeholders in China's catering industry said business growth slowed since the implementation of the frugality late last year. High end retail outlets have also suffered from losses due to the campaign.