Japan’s sushi chains rebounded as COVID-19 restrictions lifted

Apr 02, 2022 | News On Japan

Apr 02, 2022 (seafoodsource.com) - The quarterly financial results of Japan’s major sushi chains show a rebound in sales after Japanese prefectures lifted COVID-related restrictions on restaurants' operating hours and alcohol sales, which were originally imposed in October 2021.

However, profits suffered at Japan's major sushi chains as they competed to entice customers back into their shops with special deals and promotions.

All of the top sushi brands are of the casual kaiten-zushi (rotary/conveyor belt sushi) type, though some are trying to move away from this low-margin model. By both sales and number of shops the top chain is Akindo Sushiro, followed by Kura Corporation, Hamazushi, Kappa Zushi, and Genki Zushi.

Sushiro, based in Suita City, Osaka Prefecture, is a subsidiary of Food and Life Companies, which also owns other Japanese restaurant and sushi brands. The name was changed from Sushiro Global Holdings Co. in April 2021. Sushiro accounts for 626 of its parent’s 961 outlets. The fiscal year of the parent company runs through September, so its most-recent report is its Q1 2022 results, which report on its activity through 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 offered half-price mugs of beer. The chain has also adapted to the pandemic by offering delivery service at more of its outlets and opening new take-out only shops. The moves have attracted customers back, but reduced the company’s profits; Sales at domestic Sushiro shops rose 3.5 percent from the same period in the previous year, but its profit fell by 34 percent. Its parent company's profit dropped 17.3 percent, to JPY 3.4 billion (USD 27.7 million, EUR 25.2 million).

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