Key Facts
• Kurazushi announced closure of all 3 mainland China stores by end of 2025.
• First store in Shanghai closed on June 30, 2023; remaining 2 to close by year-end.
• Competitors Hamazushi (96 stores) and Sushiro (91 stores) entered China earlier.
• Kurazushi struggled with low brand recognition and customer acquisition.
• 80% of ingredients were initially sourced locally, now fully China-sourced.
• Japan’s seafood import ban by China in August 2023 impacted operations.
• Economic downturn and real estate slump in China further reduced customer traffic.
• Kurazushi initially aimed for 100 stores in 10 years but delayed plans due to COVID-19.
• Hamazushi entered China in 2014, Sushiro in 2021, both with stronger local presence.
• Kurazushi plans to reassess its strategy and maintain its local subsidiary.
Summary
Kurazushi, a major Japanese conveyor belt sushi chain, will close all three of its mainland China stores by the end of 2025, citing challenges such as low brand recognition, economic downturn, and the impact of China’s ban on Japanese seafood imports. Despite sourcing all ingredients locally, the chain struggled to attract customers in a competitive market dominated by earlier entrants Hamazushi and Sushiro. Kurazushi initially planned to open 100 stores in 10 years but faced delays due to the COVID-19 pandemic. While competitors have established stronger footholds in regions like Hong Kong and inland China, Kurazushi focused on Shanghai, where it faced difficulties. The company plans to reassess its strategy and maintain its local subsidiary for potential future operations.
