Japan’s sushi-train restaurant chains eye overseas expansion
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The companies said Friday that sushi restaurant chains Akindo Sushiro Co. and Genki Sushi Co. are in merger talks to speed up the expansion of their overseas business.
Akindo Sushiro operates Japan’s largest conveyor belt sushi chain with around 470 restaurants, most of them domestic. Genki Sushi, the No. 5 chain, runs more than half of its 300 or so restaurants abroad, including in the United States and China.
By teaming up, they hope to cut down on costs and pool their resources to open more restaurants across the growing Asian market, especially as Japan’s graying population puts a damper on domestic sales.
In preparation for the merger, Shinmei Co., the parent company of Genki Sushi and Japan’s largest rice wholesaler, plans to acquire a 32.72 percent stake in Sushiro Global Holdings Ltd., parent of Akindo Sushiro.
While the merger details are still being worked out, combining the two businesses would give the new company a significant lead in revenue over its closest rival, Kura Corp.
Questions & Answers
Q.What is the primary reason Akindo Sushiro Co. And Genki Sushi Co. Are considering a merger?
What is the primary reason Akindo Sushiro Co. And Genki Sushi Co. Are considering a merger?
The companies are in merger talks to accelerate the expansion of their overseas business. They aim to reduce costs and combine resources to open more restaurants, particularly in the growing Asian market.
Q.Which of the two merging companies currently has more international presence?
Which of the two merging companies currently has more international presence?
Genki Sushi runs more than half of its approximately 300 restaurants abroad, with locations in the United States and China. Akindo Sushiro operates around 470 restaurants, mostly within Japan.
Q.What strategic move is Shinmei Co. Making in preparation for the potential merger?
What strategic move is Shinmei Co. Making in preparation for the potential merger?
Shinmei Co., the parent company of Genki Sushi, intends to acquire a 32.72 percent stake in Sushiro Global Holdings Ltd., Akindo Sushiro's parent company. Shinmei is also Japan's largest rice wholesaler.
Q.How will a combined entity of Akindo Sushiro and Genki Sushi affect their market position?
How will a combined entity of Akindo Sushiro and Genki Sushi affect their market position?
Combining the two businesses would give the new company a significant lead in revenue over its closest rival, Kura Corp. This move aims to bolster their competitive stance in the market.