Kura Sushi USA, Inc. (‘Kura Sushi’) is a technology-enabled Japanese restaurant concept that provides guests with a distinctive dining experience by serving authentic Japanese cuisine through an engaging revolving sushi service model, which the company refers to as the ‘Kura Experience’. The company is a subsidiary of Kura Sushi, Inc.
The company encourages healthy lifestyles by serving freshly prepared Japanese cuisine using high-quality ingredients that are free from artificial seasonings, sw...
Kura Sushi USA, Inc. (‘Kura Sushi’) is a technology-enabled Japanese restaurant concept that provides guests with a distinctive dining experience by serving authentic Japanese cuisine through an engaging revolving sushi service model, which the company refers to as the ‘Kura Experience’. The company is a subsidiary of Kura Sushi, Inc.
The company encourages healthy lifestyles by serving freshly prepared Japanese cuisine using high-quality ingredients that are free from artificial seasonings, sweeteners, colorings, and preservatives. The company intends to make quality Japanese cuisine accessible to its guests across the United States through affordable prices and an inviting atmosphere.
Kura Sushi operates various restaurants across twenty states and Washington, DC. The company’s restaurants are primarily located in high-activity areas, such as retail centers, shopping malls, lifestyle centers, and entertainment centers.
Growth Strategies
The company’s growth strategies are to pursue new restaurant development; deliver consistent comparable restaurant sales growth; continue to scale the company’s business operations; and continue to pursue targeted local marketing efforts and plan to increase the company’s investment in advertising.
Site Development and Expansion
Site Selection Process
The company considers site selection and real estate development to be critical to its success. The company invests in a 3rd party data analytics tool that directs the company to trade areas and sites that will give the company the best chance at success, and more importantly, will identify potential demographic characteristics that could result in underperformance. With this data and local market knowledge, the company identifies pre- approved targeted trade areas. The company’s national broker team receives potential site locations within the aforementioned targeted trade area from networks of local brokers, which are then reviewed by the company’s restaurant development and senior management teams. This review includes multiple site visits, key deal terms, analyses of the estimated profitability and cash-on-cash returns of proposed properties.
Expansion Strategy
The company has a two-pronged expansion strategy by opening new restaurants in both new and existing markets. This expansion is crucial to executing the company’s growth strategy and building awareness of Kura Sushi as a national Japanese casual dining brand.
Restaurant Design
The company’s in-house development team handles restaurant design in conjunction with outsourced vendor relationships. The company’s restaurant size averages approximately 3,400 square feet. Seating in the company’s restaurants is consisted of a combination of booths and counter seats, with an average seating capacity of approximately 110 guests.
The company oversees and coordinates engagement with its preferred general contractors for the restaurant construction process.
Marketing and Advertising
The company uses a variety of marketing and advertising channels to build brand awareness, attract new guests, increase dining frequency, support new restaurant openings, and promote Kura Sushi as an authentic Japanese restaurant with high-quality cuisine and a distinctive dining experience. The company’s primary advertising channels include digital, social media, traditional media, and print. The company’s Bikkura-Pon promotional programs, which include the licensing of other popular brands from time-to-time, are an additional form of marketing that differentiates the Kura brand.
The company maintains a strong social media presence allowing the company to communicate regularly with guests, inform guests of new offerings, and conduct promotions.
The company focuses advertising efforts on new menu offerings to broaden its appeal to guests and drive traffic. The company periodically updates its offerings with new menu items based on the company’s consumer testing results. The company promotes these new menu additions through various social media platforms, the company’s website and in-restaurant signage.
The company offers guests its monthly limited-time offer promotions which feature premium, seasonal, and limited-availability ingredients. Most premium items are priced the same as standard menu items, thereby offering significant value to the company’s guests.
The company also maintains a loyalty program while focusing on member growth and high engagement. This program allows the company to build relationships with the company’s guests while increasing brand loyalty.
In addition to the company’s national marketing initiatives, the company implements regional and local store marketing efforts tailored to the specific demographics and preferences of each community the company serves. These localized campaigns help the company better connect with its guests on a more personal level and drive traffic to individual locations.
Furthermore, the company is committed to utilizing meaningful cause marketing strategies where possible. By partnering with local charities and community organizations, the company intends to give back to the communities that support it, enhance the company’s brand reputation, and foster a sense of goodwill among the company’s guests.
Suppliers
In fiscal year 2024, the company sourced through the following two major Japanese-related distributors: JFC International Inc. (‘JFC’), a subsidiary of Kikkoman Corporation, and Mutual Trading Co., Inc. (‘Mutual’). The company’s spend with JFC accounted for 55% of total food and beverage costs for fiscal year 2024. The company’s purchases from Mutual were 34% of the company’s total food and beverage cost for fiscal year 2024. The company’s relationships with both JFC and Mutual have been in place since 2009. The company also sources from other distributors. In fiscal year 2025, the company expects its two major suppliers to be JFC and Mutual.
Government Regulation and Environmental Matters
The company is required to comply with the accessibility standards mandated by the U.S. Americans with Disabilities Act, which generally prohibits discrimination in accommodation or employment based on disability.
Further, the company is subject to the U.S. Fair Labor Standards Act, the U.S. Immigration Reform and Control Act of 1986, the Occupational Safety and Health Act, and various other federal and state laws governing similar matters, including minimum wages, overtime, workplace safety and other working conditions.
Intellectual Property and Trademarks
Kura Japan owns several patents, trademarks and service marks registered or pending with the U.S. Patent and Trademark Office (‘PTO’), including but not limited to Food Management System (Patent No.: US 9,193,535 B2), Food Plate Carrier (Patent No.: US 8,550,229 B2), ‘Kura Sushi’ (Trademark Reg. No 5,460,596) and ‘Kura Revolving Sushi Bar’ (Trademark Reg. No. 5,557,000), and ‘Mr. Fresh’ (Trademark App. Ser. No. 98/042,118). The first of the patents is set to expire in August 2032. In addition, the company has registered the Internet domain name www.kurasushi.com, which points to the company’s website.
The company licenses certain intellectual property critical to its business from Kura Japan, including but not limited to, the trademarks ‘Kura Sushi,’ ‘Mr. Fresh’ and ‘Kura Revolving Sushi Bar,’ and patents for a food management system and Mr. Fresh dome.
History
The company was founded in 2008. It was incorporated in 2017. The company was formerly known as Kula Sushi USA, Inc. and changed its name to Kura Sushi USA, Inc. in October 2017.