Last updated on December 25, 2025
TOKYO: Sushiro, Japan’s largest conveyor-belt sushi chain, is doubling down on overseas expansion to counter the impact of rising rice prices in its domestic market.
The company, owned by Food & Life Companies, plans to grow its international presence to 320 restaurants by 2026, with most of the new outlets opening in Asia and one in the United States.
Overseas operations have become an increasingly vital profit driver, generating nearly half of operating profit despite accounting for only 30% of total revenue.
Investors Reward Growth Strategy
Amid this expansion push, Sushiro has raised its full-year profit forecast but stopped short of implementing across-the-board price hikes to offset higher rice costs. Instead, it is relying on tighter cost management and operational efficiencies to sustain margins.
The market has responded strongly. Sushiro’s shares have surged 155% this year, making it the best-performing consumer stock on Tokyo’s Topix index.
Goldman Sachs recently initiated coverage on Food & Life Companies with a Buy rating and a JPY9,500 price target, citing the chain’s automation-driven efficiency and economies of scale from group-wide procurement. These competitive advantages, the bank noted, are expected to support continued sales and profit growth.
Asian Demand Fuels Expansion
Sushiro’s growth strategy is particularly focused on Asia, where consumer appetite for Japanese cuisine continues to rise. By expanding abroad, the chain not only hedges against domestic cost pressures but also positions itself to capture demand in rapidly growing markets.
With rice inflation weighing heavily on Japan’s foodservice industry, Sushiro’s overseas expansion is seen as a forward-looking strategy to diversify revenue streams and build long-term resilience.
