The quarterly monetary outcomes of Japan’s main sushi chains present a rebound in gross sales after Japanese prefectures lifted COVID-related restrictions on eating places’ working hours and alcohol gross sales, which have been initially imposed in October 2021.
Nonetheless, earnings suffered at Japan’s main sushi chains as they competed to entice clients again into their outlets with particular offers and promotions.
All the high sushi manufacturers are of the informal kaiten-zushi (rotary/conveyor belt sushi) sort, although some are trying to move away from this low-margin model. By each gross sales and variety of outlets the highest chain is Akindo Sushiro, adopted by Kura Company, Hamazushi, Kappa Zushi, and Genki Zushi.
Sushiro, primarily based in Suita Metropolis, Osaka Prefecture, is a subsidiary of Meals and Life Corporations, which additionally owns different Japanese restaurant and sushi manufacturers. The title was modified from Sushiro International Holdings Co. in April 2021. Sushiro accounts for 626 of its father or mother’s 961 retailers. The fiscal 12 months of the father or mother firm runs by September, so its most-recent report is its Q1 2022 outcomes, which report on its exercise by December 2021.
After Japan’s lifting of its state of emergency, Sushiro lowered its JPY 110 (USD 0.91 to 0.82) dishes to JPY 99 (EUR 0.91 to 0.75) and supplied half-price mugs of beer. The chain has additionally tailored to the pandemic by providing supply service at extra of its retailers and opening new take-out solely outlets. The strikes have attracted clients again, however lowered the corporate’s earnings; Gross sales at home Sushiro outlets rose 3.5 % from the identical interval within the earlier 12 months, however its revenue fell by 34 %. Its father or mother firm’s revenue dropped 17.3 %, to JPY 3.4 billion (USD 27.7 million, EUR 25.2 million).
Kura-zushi, primarily based in Osaka, closed its first quarter on the finish of January. The corporate elevated gross sales by 19.5 %, butits working revenue fell 22.4 % in comparison with the identical interval of 2020. Nonetheless, revenue attributable to the homeowners of its father or mother firm jumped 190.4 % from Q1 2020, bouncing again from a contraction of 38.6 % year-over-year.
As a pandemic measure, the chain has applied a web based reservation system to keep away from congestion in its ready areas, in addition to a touchless cost system, and it has begun overlaying the dishes on its conveyor belts. The corporate continued to aggressively open new outlets through the pandemic with a view to place itself to compete post-COVID. Kura-zushi has run a number of promotions to draw extra clients, with its present particular providing that includes fish from Ehime Prefecture.
Hamazushi Co., a subsidiary of Tokyo-based Zensho Holdings, operates the Hama-zushi chain. The father or mother firm additionally operates the favored Sukiya beef bowl chain, in addition to some lesser-known manufacturers. Its fiscal 12 months runs by the top of March, so its most up-to-date report is for its third quarter ending 31 December. Not like different chains, it elevated each gross sales (by 10 %) and revenue (by 35 %). Its father or mother firm’s earnings swung again into the black after a loss a 12 months prior. Identical-store gross sales for Hamazushi have been up 5.4 %, which it primarily attributed to the lifting of the state of emergency. The chain is opening new shops and rising take-out choices.
Kappa-zushi, owned by Kanagawa-based father or mother Kappa Create Co., was the biggest conveyor-belt sushi firm in Japan till 2010, however subsequently misplaced floor. In its Q3 2022 report, gross sales elevated by 5 %, versus a 16 % decline in the identical quarter of the earlier 12 months. The corporate posted an working lack of JPY 2.2 billion (USD 17.9 million, EUR 16.3 million), worse than the identical interval final 12 months, during which the loss was JPY 1.6 billion (USD 12.9 million, EUR 11.8 million). Its father or mother firm had JPY 28 million (USD 229,000, EUR 208,000) in revenue within the quarter, however that determine was optimistic after a loss in the identical interval of the earlier 12 months. The corporate is making an attempt to ditch the conveyor belt mannequin to concentrate on higher-priced counter-service sushi eating places.
Genki Sushi, primarily based in Utsunomiya Metropolis, Tochigi Prefecture, issued a cumulative report for the primary three quarters of its FY2022 ending 31 March. It had a revenue of JPY 325 million (USD 2.6 million, EUR 2.4 million), reaching 60.2 % of its full-year forecast. Final 12 months, the corporate posted a lack of JPY 420 million (USD 3.4 million, EUR 3.13 million).
The corporate benefited from authorities subsidies for eating places that noticed early closing occasions and restrictions on alcohol gross sales as an anti-COVID-19 measure. The corporate goals to function 200 shops in Japan and 250 abroad, with an emphasis on increasing its non-conveyor-belt store mannequin.
Picture by Chris Loew/SeafoodSource
