Sushi Restaurants in the US Industry Market Research Report from IBISWorld has been updated for 2014
New York, NY (PRWEB) January 06, 2015 -- The following information about the Sushi Restaurants industry has been updated to reflect 2014 estimates. Operators are currently serving up a fresh round of growth following a recession-induced decline. The industry, which is highly fragmented and consists mainly of small, owner-operator establishments, is doing well despite the high competition it faces from other retailers serving sushi and the range of ethnic restaurants and American food-service establishments that are also in direct competition. Sushi establishments have grown in popularity as a result of increased consumer health consciousness and rising disposable incomes. The Sushi Restaurants industry has also been boosted by the expanding palates of American consumers who are increasingly seeking out more diverse ethnic cuisines, especially in urban areas. As such, IBISWorld expects overall industry revenue to grow at an annualized rate of 2.5% over the five years to 2014. In 2014, as the economy continues its recovery, the industry is expected to grow 0.6% to $2.1 billion (data has changed since last 2013 update).
According to IBISWorld Industry Analyst Andy Brennan, “Rising seafood prices hindered industry profitably over the past five years.” As the primary ingredient of sushi, representing 27.0% of the average operator's revenue, fish and seafood are major costs for sushi restaurants. Sushi restaurants sought to salvage margins by reducing employee head counts. Consequently, wage growth was relatively flat over the past five years. However, as demand increased after the recession, operators were able to raise prices and improve margins. The average industry profit margin, consequently, rose from 2.2% in 2009 to 7.2% in 2014 (data has changed since last 2013 update).
Over the five years to 2019, operating conditions are forecast to continue to improve. “As the unemployment rate drops and consumers slowly regain their disposable incomes, demand for sit-down restaurants is anticipated to increase,” says Brennan. In addition, although seafood prices are projected to continue rising, restaurant owners will increasingly be able to pass on these extra costs to more affluent consumers, thereby widening their margins. The return to higher profitability levels is forecast to entice more restaurateurs into the industry, which will increase competition. Despite the presence of a number of small sushi chains, the industry will remain highly fragmented. Overall, revenue is projected to increase at an annualized rate of 2.3% in the five years to 2019 to $2.3 billion (data has changed since last 2013 update).
For more information, visit IBISWorld’s Sushi Restaurants in the US industry report page.
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IBISWorld industry Report Key Topics
The Sushi Restaurants industry is composed of restaurants primarily engaged in providing sushi-style foodstuffs to patrons who order and are served while seated (i.e. waiter or waitress service) or use conveyor belt-style delivery systems and pay after eating. These establishments may provide this type of food service to patrons in combination with selling alcoholic and other beverages.
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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