[Company analysis] Sushiro Global Holdings Ltd. (スシローグローバルホールディングス)

「Sushiro Global Holdings Ltd. (スシローグローバルホールディングス)」is a leading company in the conveyor belt sushi industry, developing the "Sushiro" brand of conveyor belt sushi chain. In the past, they also owned a brand called "Osaka conveyor belt sushi, Akindo(大阪回転寿司・あきんど)", but now they are all unified into "Sushiro". The head office is located in Suita City, Osaka Prefecture and their chain stores are mainly in the Kinki, Chubu, and Kanto regions. The number of consolidated employees is approximately 2,220.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Sushiro Global Holdings Ltd.
Company name (Japanese)	スシローグローバルホールディングス
Date of establishment	Tuesday, March 31, 2015
Headquarters location	〒564-0063 大阪府吹田市江坂町1丁目22番2号
Capital	100
Consolidated sales	199,088
Consolidated operating profit	14,546
Consolidated total assets	136,349
Consolidated capital	47,367
Capital adequacy ratio	34.7%
Consolidated number of employees	2,220

 

 

 

2. Summary and Features

 
In June 1984,「Sushi Taro(すし太郎)」was established by the brothers Shimazu Yoshio(清水義雄). However, because the store name "Sushitaro" was the same with the the product name of「Nagatanien Co., Ltd.(永谷園)」, there was a possibility of being sued, so they changed the name to「Sushiro」. After that, as a result of opening conveyor belt sushi chain stores around Hyogo and Osaka prefectures, which features a flat price of 100 yen per dish, it now become the largest sushi chain company in Japan, with approximately 460 stores in Japan.

The characteristic of「Sushiro」is, they consider the freshness as a first priority. For sushi ingredients, they select ingredients considering its freshness. In the case of sea bream and sea bream, they conduct trimming in-house, in the order to maintain freshness. In addition, this company has strength in sales promotion. They conducts  discount campaigns more frequently than competitors, and this leads to higher sales.

However, the domestic competition in conveyor belt sushi industry is very harsh. The profit margin is quite low because competition by low price strategy is commonplace. Moreover,「Kura Sushi(くら寿司)」, which has second largest market share, organized a lineup of innovative side menus. And「Hamazushi(はま寿司)」, which has thrid largest market share, are recently increasing the number of stores.

As for the oversea expansion,「Sushiro」is relatively weak. As of September 2019, they are developing Korea (14 stores), Taiwan (9 stores), Hong Kong (1 store), Singapore (1 store). But this number is obviously smaller than oversea chain store of「Kura Sushi(くら寿司)」that is actively expanding in the United States, Taiwan. However, in the case of oversea store, they can expect higher unit price per customer than Japan domestic store. So, from now on「Kura Sushi」is also planning to expand oversea stores.

 

 

 

3. Major Business

 

■ Management of sushi restaurant

 

 

 

4. Financial information

 

※Unit is JPY million

 

		2016	2017	2018
Consolidated sales		156,402	174,883	199,088
Consolidated operating profit		9,204	11,718	14,546
Consolidated total assets		125,562	132,062	136,349
Consolidated net assets		31,800	40,835	47,367
	Management of sushi restaurant	156,402	174,883	199,088