Young people in China are going wild for the Japanese conveyor-belt sushi chain Sushiro. At some locations, the wait to get in is as long as five hours. Buoyed by its hit status in the Chinese market, shares of Food & Life, the Japanese restaurant company that operates Sushiro, have risen more than 20% so far this year.
Recently on Chinese social media, videos have been popping up one after another of customers stacking their empty plates into a tower after finishing a meal at Sushiro, the so-called "Sushiro Tower." According to Bloomberg, a video on Douyin, China's TikTok, showing more than 60 plates stacked received over 2 million likes. Some users are competing to prove their big appetites by stacking more than 80 plates.
Sushiro is known in Japan as an affordable conveyor-belt sushi brand, but in China it has established itself as a must-visit spot where people line up to eat. It opened its first store in Guangzhou in 2021, but the full-fledged craze began after entering Shanghai late last year. At opening, about 700 parties were waiting to get in, and some customers reportedly stood in line for more than 14 hours.
The heat has not cooled even after half a year. According to Chinese media, 200 to 500 parties line up every weekend at stores in major cities such as Guangzhou and Shenzhen. At popular locations, it is not uncommon to wait more than five hours. Some consumers even pay about 30 yuan (about 6,700 won) on secondhand transaction platforms to have someone hold their place in line, Bloomberg said.
Sushiro's success in China is translating into results. China has now grown into Sushiro's second-largest market after Japan. Parent company Food & Life operated 234 overseas stores last year, with a large share concentrated in the Greater China region, including China, Hong Kong and Taiwan. Food & Life plans to increase its overseas stores to more than 320 by the second half of this year and to open its first store in New York's Times Square within the year.
Investors' attention is also focused on the growth potential of the China business. In just the first half of the fiscal year, Food & Life achieved about 70% of its full-year operating profit target. Surging revenue from overseas operations played a major role. As a result, the company's share price has risen about 23% so far this year, far outpacing the rise of TOPIX, Japan's benchmark stock index.
Industry watchers cite price competitiveness as the background for Sushiro's success. In China, Sushiro's menu items range from 8 to 28 yuan (1,800 to 6,300 won). Even amid a property slump and sluggish domestic demand that have dampened consumer sentiment, the ability to enjoy Japanese-style sushi at a relatively low expense is drawing young customers, analysts say.