I extend my heartfelt condolences to the victims, and families of the victims, of this year’s typhoon-induced flooding, as well as 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, the Kaiten(conveyor belt) sushi store “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 FY2019 (the fiscal year ended September 30, 2019), we steadily increased our store count, and our existing-store revenue amounted to 107.4% of the previous year’s revenue. Such achievements enabled us to reinforce our position as the company with the highest revenue in the Kaiten sushi industry. Meanwhile, we boosted the pace of store openings for our casual sushi izakaya brand SUGIDAMA, and revenue were steady in both existing and new stores. In our overseas business, not only did we increase our store counts in South Korea and Taiwan, we also succeeded in opening stores in Hong Kong and Singapore. Consequently, we are making steady progress toward the targets set under the Medium-Term Management Plan (FY19–FY21) for extending our operations to at least five countries/regions, and we are achieving overseas revenue of JPY 20 billion and an overseas store count of 10% or more. As a result of such initiatives in Japan and overseas, we once more achieved the highest revenue and profits since our foundation.
I sincerely hope we can rely on your continued understanding and support.
- December 2019
Sushiro Global Holdings Ltd.
President & CEO
- Koichi Mizutome
Sushiro Group’s performance, the Medium-Term Management Plan (FY19–FY21), and overseas expansion.
Sushiro Group’s FY2019 performance and initiatives under current market conditions
One key point to make about the Group’s performance during FY2019 is that the revenue growth already underway in existing stores continued to be positive. Businesses in the dining services industry invariably struggle to find ways of increasing their revenue in existing stores beyond 100% of the previous year’s figure. In FY2019, however, our revenue in existing store were 107.4% of the previous year’s revenue — a fairly high figure for this industry. I believe this is evidence both that Sushiro itself has made gains in terms of its ability to compete, and that our customers appreciate the efforts we are making.
With regard to our casual sushi izakaya brand SUGIDAMA, we are continuing to open new stores against a backdrop of steady revenue. Partly because the stores themselves are not that big, there is scope for diversity in terms of their locations and so on. Initially we were targeting around 100 stores, but we now feel confident we can expand beyond this.
Medium-term Management Plan （FY19–FY21: from FY ended September 30, 2019 to FY ending September 30, 2021）: first year rewards
As I have mentioned, our domestic business is performing well. In our overseas business, we are also steadily increasing the number of stores in South Korea and Taiwan, where we had already established a presence. During FY2019, we were able to follow this up by opening one store each in Hong Kong and Singapore. As a result, we have succeeded in extending our operations to a total of four countries/regions. With robust revenue at both stores in Hong Kong and Singapore, I feel that our efforts have been rewarded, and I believe we can increase the number of stores further. We believe in the quality of the food we supply to our customers, and it is because markets in the localities where we have already opened stores have rewarded us by appreciating such food that we are now able to feel we can progress with expansion into other countries/territories. Of course, we are not satisfied only with the current four. There are still plenty of other localities that are waiting for the opening of Sushiro stores: I want to extend our operations to those places too. And I want us to progress on two fronts simultaneously by getting more out of existing markets as well as expanding into new markets.
Future growth strategy and message for shareholders
In October 2019 I became Chairman of Akindo Sushiro Co., Ltd. One reason for this was the allocation of my own personal resources. The domestic Sushiro business is our bedrock, and is therefore important, but keeping an eye on everything right down to the smallest detail requires investment of considerable resources. Given that the domestic Sushiro business is well underway and has now taken shape, I decided I would try leaving this business to the next generation. Meanwhile, I myself will focus on new endeavors, the overseas business, building supply chains in other countries, and on management and oversight that will allow us to target further expansion for the entire Group, such as M&As. Speaking of M&As, it would not be out of the question to conduct M&As targeting non-sushi dining service businesses, if we can expect good synergies with such businesses. Fundamentally, however, I expect sushi to continue to be our mainstay. We at Sushiro aspire to go much further still, as we aim for even greater growth； we hope that you, our shareholders, will continue to support us over the medium to long term.