Japanese conveyor-belt sushi chain, Kura Sushi, has recently opened its first Mainland China location in Shanghai after delaying for more than two years due to the Covid-19 pandemic. 

The launch is part of its global expansion plan where it aims to increase its international location to 400, including 100 restaurants in Mainland China during the next decade. The first store will be followed by two more new locations next month and later this year. 

The launch came at a time when the domestic food service sector is set to expand by a value compound annual growth rate (CAGR) of 10 per cent over 2023–27, according to GlobalData. 

“Japanese food service operators are setting their sights on bluer oceans abroad, particularly larger overseas markets with high-spending crowds, such as China and the US, which offer more dollar revenue opportunities than Japan,” said Bobby Verghese, consumer analyst at GlobalData. 

“By expanding overseas, these operators can thereby accelerate their post-Covid-19 recovery and ensure long-term business continuity.”

The Japanese sushi chain operates 541 stores in its home market and 98 stores in the US and Taiwan. 

“While Japan is the larger market for sushi QSRs, the Chinese market is set to narrow the gap significantly in the coming years,” said Tim Hill, key account director at GlobalData Singapore.

“However, any fresh geopolitical conflicts between Japan and China can mar the performance of the Chinese outlets.”