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Sushi Restaurants in the US Industry Market Research Report Has Been Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Sep 19, 2013, 18:00 ET

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The industry is doing well despite the high levels of competition from other retailers.

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Los Angeles, CA (PRWEB) September 19, 2013 -- The Sushi Restaurants industry is 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. Although sushi establishments were hindered by a downturn of 3.1% in 2009 during the recession, they have grown in popularity as a result of increased consumer health consciousness and rising disposable incomes. The 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 1.6% over the five years to 2013. In 2013, as the economy continues its recovery, the industry is expected to grow 3.1% to $2.0 billion.

According to IBISWorld Industry Analyst Andy Brennan, “Rising seafood prices hindered industry profitably over the past five years, as the primary ingredients of sushi, such as fish and seafood, are major costs for sushi restaurants.” Sushi restaurants sought to salvage margins when demand fell 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.

Over the five years to 2018, 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. The Sushi Restaurants industry has a low level of market share concentration. Despite the presence of a number of small sushi chains, the industry will remain highly fragmented.

For more information, visit IBISWorld’s Sushi Restaurants in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The 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.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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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