In the final days of 2025, Sushiro undoubtedly became the year's most sensational dining brand. On December 31, a netizen in Beijing posted about queuing for 3,000 tables with friends at the Sushiro store in Xidan Joy City, waiting from 5:30 PM until 11:00 PM to finally eat.
This was not just a temporary spectacle; Sushiro has consistently drawn long queues. From the 3,000-table line on New Year's Eve to the massive crowds whenever a new city's first store opens, the frenzy is persistent. As early as August 21, 2024, when Sushiro opened its "first Beijing store" in Xidan Joy City, the queue reached 1,500 tables, with estimated wait times exceeding 10 hours by midday.
In recent years, Sushiro has gained popularity in the Chinese market with its affordable products like 8-yuan caramel foie gras and 15-yuan raw salmon, earning it the nickname "the Luckin Coffee of Japanese cuisine" and making it a social media hotspot for young people.
"Sushiro is the hottest restaurant brand in the last two years, growing rapidly due to its affordable prices," noted Zhu Ruishi, Director of Victory Bird Consulting, who described Sushiro as a phenomenal brand in the dining industry. The key to Sushiro's success can be summed up in one phrase: super value for money.
Other budget sushi brands like Hamazushi and Kinshō Sushi are also expanding aggressively. In stark contrast, the well-known Japanese sushi brand KURA Sushi has been frequently closing stores and exiting the mainland Chinese market. Despite previously announcing plans to open 100 stores in mainland China within a decade, KURA Sushi only managed to open three stores in Shanghai since its debut in June 2023.
This stark difference raises questions: Why has the budget conveyor belt sushi market in China diverged so sharply? What factors determine success or failure?
In June 2025, KURA Sushi announced via its subsidiary, Asia Sushi Chain Co., Ltd., that it would gradually close all its Shanghai stores, signaling its exit from the mainland market.
On December 6, 2025, Sushiro opened two flagship stores in Shanghai on the same day. By 10:00 AM, all queue numbers were already issued by noon. Some customers reported receiving a number in the 500s at 10:00 AM and not eating until 4:00 PM that evening.
Earlier, when the Hangzhou store opened in April 2025, reservations were fully booked until June on its opening day, with dedicated directional signs even set up at subway exits. Behind these exaggerated queues, interviewed consumers attributed the phenomenon to factors like novelty, emotional value, affordability, and herd mentality.
"The food is decent and the prices are reasonable, but it's not worth waiting 3–5 hours," said one customer who waited two hours. "There's definitely some herd mentality at play. The interactive games, ordering system, and serving style of conveyor belt sushi also offer a fresh experience compared to other restaurants."
Public information shows that Sushiro’s signature foie gras sushi costs only 8 yuan, with other popular items like 5-yuan corn gunkanmaki. Sushiro’s popularity is clearly reflected in its financial reports. According to the latest semi-annual report from its parent company, FOOD & LIFE Companies, released in May 2025, net sales in overseas markets, including mainland China, reached 58.807 billion yen, a 41.5% year-on-year increase, with profits surging 98.7% to 6.371 billion yen.
Sushiro plans to increase its store count in Greater China to 157–161 in the 2025 fiscal year and further expand to 190–193 stores in the 2026 fiscal year.
Sushiro is not the only brand thriving in China; Hamazushi is also making significant strides. "Suddenly, Hamazushi stores are popping up in multiple commercial areas, or new store preparations are visible," said Xiao Lin, a loyal customer in Shanghai. "Previously, I had to take a 30-minute subway ride to eat there and never had to queue. Now, three stores have appeared near my home, and even on weekday evenings, there are lines."
Media reports indicate that as of the third quarter ending December 31, 2024, Hamazushi increased its store count in mainland China from 62 to 87 compared to the same period the previous year.
The rapid expansion of budget sushi stores is undoubtedly driven by value for money. On Dianping, Sushiro’s average per-person spending is under 100 yuan. Many consumers also share additional discount activities and self-made "budget meal deals" on social media.
Industry insiders point out that, influenced by the overall economic environment, consumer willingness, actual spending power, and confidence have become more rational. The AlixPartners 2026 Global Consumer Outlook report notes that a significant number of consumers are reevaluating the value of dining out, with 31% globally feeling that restaurant meals do not offer corresponding value. Net willingness to spend on dining out has declined by approximately 21 percentage points.
KURA Sushi’s peak moment in China was in 2023 when it announced its 100-store plan. However, since opening its first mainland store in June 2023, it only launched three outlets in Shanghai.
In June 2025, KURA Sushi announced via its subsidiary that, after considering international economic changes and assessing future development, it decided to gradually cease operations of all Shanghai stores, stating this would not significantly impact its finances. This move marked its exit from mainland China.
According to Asia Sushi Chain’s fiscal 2024 report (ending September 2024), its net profit after tax was 108 million yuan, a sharp 49% decrease from the previous year. The company explicitly attributed the decline to poor performance in the mainland China market.
A Chinese individual working in Japan explained, "KURA Sushi is everywhere in Japan, ranking as the third-largest conveyor belt sushi chain. Sushiro is first, and Hamazushi is second. In Japan, the differences are minimal; people generally eat at whichever is closest."
So why such a contrasting situation in China? Zhu Ruishi pointed out that KURA Sushi’s rocky start in China was partly due to replicating the Japanese model pixel-by-pixel without adapting to local market conditions. Its prices were relatively higher, and its product variety was insufficient, leading to operational difficulties.
Earlier reports highlighted that KURA Sushi’s per-plate prices in Shanghai were more than double those in Japan. Shortly after opening, in August 2023, the brand launched promotions reducing prices to 10 yuan per plate, and in October 2024, it further lowered prices to 8 yuan per plate.
Chinese food industry analyst Zhu Danpeng analyzed that KURA Sushi’s major issues in China likely stemmed from a misaligned market positioning. Whether online or through travel, many Chinese consumers clearly perceived the brand as practicing double standards, which they were unwilling to accept. If consumers widely perceive a brand as "profiteering," it severely damages its foundation.
According to Asia Sushi Chain’s financial reports, its Shanghai subsidiary incurred losses of 29.17 million yuan in 2023, which expanded to 37.83 million yuan in 2024, and another 14.9 million yuan in the first quarter of 2025, accumulating total losses of 81.9 million yuan.
However, a KURA Sushi representative stated that the company would continue monitoring economic conditions and the business environment to make careful decisions regarding future plans in the mainland market. President Kunihiko Tanaka also expressed hopes to continue learning and potentially reopen stores in mainland China in the future.
A young consumer who had visited several times recently admitted, "Lately, I’ve queued multiple times for Sushiro and Hamazushi. I don’t usually eat sushi that much; it’s somewhat influenced by social media. Reports about long queues also amplify the sense of hype and scarcity."
Today’s young Chinese consumers have diverse choices and demands, with more comprehensive consumption理念. Their willingness to try new things brings consumption红利 to various categories.
Can the budget sushi craze sustain? Currently, Sushiro’s排队潮 is fueled by factors like流量, scalpers, and novelty. But when the hype fades, how can it avoid KURA Sushi’s fate?
Zhu Ruishi emphasized that beyond affordability, Sushiro offers a richer product range, including Chinese dishes, providing more choices for consumers.
In terms of "menu localization," Sushiro significantly reduced the proportion of raw fish and increased cooked items. Reports indicate that in Japan, sashimi constitutes about 40% of Sushiro’s menu, while in China, it’s only around 20%. In contrast, KURA Sushi’s menu retains over 25% raw fish, nearly identical to its Japanese menu.
Zhu Danpeng further noted that the intensifying competition in China’s dining industry reflects an overall elevation in competitive standards. This upgrade is largely driven by consumers pushing the industry forward. While consumers previously might have been satisfied with "having something to eat," increased overseas travel and exposure to global cuisines have led them to compare and contrast, such as noticing differences between domestic and authentic French or Italian food. This places higher demands on foreign dining categories and brands.
"As a massive global consumer market, no company willingly exits China unless forced to," admitted a consulting professional. "However, the complexity and fierce competition in the Chinese market are challenging for many foreign firms, leading to recent sell-offs. Partnering with local players is one potential solution."
Despite rising competition, the红利 of the entire Chinese market remains substantial. According to National Bureau of Statistics data, China’s餐饮 revenue in 2024 reached 5.5718 trillion yuan, a 5.3% year-on-year increase, outpacing the growth rate of total retail sales of consumer goods, demonstrating the resilience and vitality of the餐饮 market.
Zhu Danpeng highlighted that最关键 factors include: first, the completeness of the industrial chain and maturity of the supply chain; second, stability in product quality, as many餐饮 failures stem from inconsistency. Simultaneously, food safety is a top priority for domestic consumers, with even stricter requirements for categories like Japanese cuisine and sushi.
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