1. The Price Crunch at Home
Japan is grappling with a sharp surge in rice prices. As of 2025, rice inflation has escalated sharply—nearly doubling compared to the same period last year . Such a steep rise has strained both consumers and businesses alike, with households feeling the pinch and restaurants particularly squeezed by rising costs .
2. Sushiro’s Overseas Expansion as a Strategic Hedge
In response, Sushiro—the country’s leading conveyor-belt sushi chain—has turned to its growing international operations for relief. The chain is expanding rapidly overseas, planning to raise its number of restaurants abroad to 320 by 2026, up from 182 in 2024 .
Notably, overseas outlets already contribute disproportionately to profits—generating nearly 50% of operating profit, while accounting for just 30% of overall revenue . This underscores the higher margins and resilience of its international arm.
3. Financial Momentum and Efficiencies
This overseas push is paying off. In August 2025, Food & Life Companies (Sushiro’s parent entity) raised its full-year profit forecast, underpinned by a strong 68% jump in operating profit for the first nine months, largely fueled by international performance .
Moreover, investor confidence is soaring: Sushiro’s stock has risen around 155% this year, making it the best-performing consumer stock on Tokyo’s Topix index .
4. Operational Edge: Tech and Cost Advantage
Sushiro is combining global expansion with technological sophistication. AInvest notes that the company leverages:
- Lower-cost rice sourced abroad—U.S. rice, for instance, costs up to 145% less than in Japan.
- A modular, cloud-based IT infrastructure (AWS-powered), allowing rapid, centralized rollout and demand management internationally .
Such operational agility facilitates opening 50–60 new restaurants annually overseas, outpacing domestic growth substantially .
5. Long-Term Outlook: Diversification & Sustainability
By aligning growth with geographic diversification, Sushiro has turned domestic cost volatility into a strategic advantage. The company expects foreign markets to contribute 35% of total revenue by FY2026 . With tourism driving both inbound demand in Japan and international interest, the momentum is two-way.
Goldman Sachs has endorsed this model, highlighting Sushiro’s high operational efficiency and procurement scale as key competitive levers .
6. At a Glance: Key Metrics
| Metric | Value / Insight |
| Rice Price Inflation (Japan) | Nearly double compared to a year ago |
| Overseas Restaurants (Target by 2026) | 320 (up from 182) |
| Overseas Profit Contribution | ~50% of operating profit, yet only 30% of revenue |
| Operating Profit Increase (9 months) | +68% |
| Stock Performance (Topix) | Up 155% this year |
| Technology and Cost Advantage | Uses cheaper foreign rice; AWS-based infrastructure |
| Revenue Share from Foreign Markets | Projected 35% by FY2026 |
7. Conclusion
In a landscape of soaring domestic costs, Sushiro’s aggressive international strategy, supported by tech and supply-chain efficiency, has proven to be a robust buffer. The chain’s ability to absorb price shocks, avoid passing them onto price-sensitive consumers, and continue delivering growth reflects a keen strategic play—from rice fields to global dining tables.
