I extend my heartfelt condolences to the victims and the families of the victims of this year’s earthquakes, flooding, and other natural disasters. I pray for your safety and the swift recovery of the affected areas.
Sushiro Group’s origins lie in the Tai Sushi restaurant that opened in Abeno Ward, Osaka City. We first established our current format, a conveyor belt sushi restaurant “Sushiro” in 1984, out of a desire to make it easy for as many people as possible to enjoy tasty sushi. This aspiration has been passed down since the time of our foundation to the entire Sushiro Group through our slogan “Tasty Sushi for All, Tasty Sushi for the Heart.” This mission has remained unchanged for Sushiro, and we believe it will remain unchanged in the future.
In our domestic business for the fiscal year ended September 2018, we served our customers fresh, enticing products and strengthened our digital strategy, taking measures such as improving the ease-of-use of our app. In doing so, we reinforced our position as the company with the highest sales in the conveyor belt sushi industry. In addition, our business development in sushi-related markets is performing favorably, with our new casual sushi izakaya brand SUGIDAMA entering its expansion phase. In our overseas business, we built the foundations for full-fledged global expansion, reinforcing our network of stores in South Korea and newly entering the Taiwanese market. Thanks to this, we achieved the highest revenue and profits since our foundation. Our performance also surpassed the targets set out in our current Mid-term Management Plan, which will end in the next fiscal year.
Based on these results, we announced a new Mid-term Management Plan that will see Sushiro Group aim to make great strides toward becoming a global sushi/Japanese dining service group with a revenue of JPY 1 trillion. Sushiro Group employees will come together as one to seek out a unique store model both domestically and internationally while placing importance on our relationship with the environment and local communities. We will continue to strive to make our corporate philosophy a reality.
- December 2018
Sushiro Global Holdings Ltd.
President & CEO
- Koichi Mizutome
We asked President & CEO Koichi Mizutome about Sushiro Group’s performance and the new Mid-term Management Plan.
Sushiro Group’s performance and initiatives.
In the fiscal year ended September 2018, Sushiro Group’s plan for new store openings has been progressing favorably, and we achieved results that significantly exceeded our initial forecasts for revenue and profits as business performance. We also achieved satisfactory results in our new expansion into the Taiwanese market and our initiatives toward our new casual sushi izakaya brand SUGIDAMA.
New Mid-term Management Plan (FY2019/9 – FY2021/9).
This fiscal year marked the third year of the Mid-term Management Plan, but we had already achieved the initial target by the time the second year ended. There were also aspects of the overseas expansion and new brands we are currently promoting that we did not touch upon in our performance figures. In future, we will need to proactively invest in our initiatives toward overseas expansion and new brands. I would like to firmly face toward the next three years and communicate with all our shareholders and investors based on this new plan.
When thinking of our plans for the future, there is a tendency to focus only on areas such as overseas expansion and new brands. However, it is said that the size of the sushi market is JPY 1.5 trillion in Japan alone. Sushiro Group has an approximately 10% share of this market, so there is no reason why we should feel there are limits on our domestic business. I would like to continue opening 30 new domestic Sushiro brand stores a year and aim to become the undisputed market leader.
After the positive performance of the first store of our new domestic casual izakaya brand SUGIDAMA in Nishinomiya-Kitaguchi, Hyogo Prefecture, we opened three more SUGIDAMA stores this fiscal year. In future, we will continue to strive to strengthen its organizational structure and improve its profitability as a highly profitable business model and push forward with more new store openings and franchising.
In our overseas business, I believe we have built a foundation for expansion with the 10 store openings in South Korea and two store openings in Taiwan as of the end of this fiscal year. In future, we will continue to open new stores, focusing on regions where we can expect a large market size and potential for growth, such as Southeast Asia and North America. We expect to invest approximately JPY 10 billion over the three years of the new Mid-term Management Plan, and we will aim to expand our overseas stores so that they make up 10%+ of our total number of domestic and overseas stores.
Three years from now, I believe you will be able to see our ability to grow our new brands, as well as brand recognition of Sushiro spreading throughout the world in line with our performance. Furthermore, the ultimate goal for our new Mid-term Management Plan is to aim for Sushiro to become a global dining brand and for the group to become global sushi/Japanese dining service group with a revenue of JPY 1 trillion that covers the conveyor belt sushi market and related markets.
Message for shareholders and investors
We will continue to enact sound management practices in future. As well as our business itself being sound, our management will be thoroughly honest, including with regard to our finances. Based on this sound and honest management, we will strive to reliably secure profitability and invest more toward our growth.
With this fiscal year being the first full year since we became a listed company, we plan to fulfil our initial promise of paying out dividends of JPY 85 for the full fiscal year ended September 2018. Last fiscal year, we paid out dividends of JPY 45.
In future, we will continue to increase our corporate value over the mid- to long-term while striking a balance between stable dividends and investing for growth. Sushiro Group will strive to be a group you can count on.