Summary of Key Points
After the pandemic, the sushi category has once again become a hot trend in the domestic food industry. Japanese-style brands such as Sushi郎 and Binsu Shi have gained immense popularity due to their high cost-performance ratio and online operations, boosting overall interest in the genre. The market has differentiated into three tiers: "high-end Japanese restaurants priced around 100 yuan," "mid-range, improved local brands," and "affordable takeaway options under 35 yuan." However, rapid expansion has brought out concerns about food safety, and entering lower-tier markets poses challenges due to the difficulty of establishing consumer habits. Overall, sushi represents a business with a clear target audience and stable profit margins, though the window of opportunity is gradually narrowing.
Why Has Sushi Suddenly Become Popular Again?
Sushi isn't a new concept, but its recent resurgence can be attributed to three main factors:
1. Improved Cost-Performance Ratio: For just 100 yuan, you can enjoy high-quality food. Nowadays, restaurants compete on being both affordable and tasty. Brands like Sushi郎 and Binsu Shi offer dishes priced between 10-20 yuan, providing a good value for money compared to traditional Japanese cuisine. This wave of sushi focuses on quality at an affordable price—using fresh ingredients and transparent preparation methods that appeal to consumers looking to get the best deal for their money.
2. Changing Consumer Preferences: People are more concerned about food safety after the pandemic. Sushi restaurants with open kitchens and clear procedures give customers peace of mind, and the aesthetic appeal of the dishes makes them perfect for sharing on social media. Sushi郎 has effectively utilized platforms like REDnote to build a large following (3.15 million followers) and engage with customers through interactive activities, driving foot traffic both online and offline.
3. Less Competition in the Market: Compared to highly competitive categories like hot pot and bubble tea, the sushi market is still relatively untapped. Franchisees see plenty of potential opportunities, which is why brands like Sushi郎 (with 144 stores and plans to expand to 190 by 2026) and Binsu Shi (with 205 stores, recently accelerating expansion in Beijing) are expanding rapidly.
The Three Tiers of the Sushi Market
The sushi market is now divided into three distinct segments:
1. High-End Japanese Restaurants (around 100 yuan per meal): Brands like Sushi郎 and Binsu Shi operate primarily in upscale shopping malls in first-tier cities, leveraging mature supply chains, standardized operations, and brand recognition to lead the trend. However, they face challenges in expanding into lower-tier markets due to limited consumer purchasing power and awareness.
2. Mid-Range Brands (60-70 yuan per meal): These brands either aim for improvement or differentiation. For example, some offer "Super Stores" with advanced ordering systems and delivery services, while others, like Wenzhou's Wutian Shushi, target family customers with interactive elements like egg-tumbling machines that increase repeat purchases.
3. Affordable Takeaway Options (under 35 yuan): Brands like Nduo Shushi (with over 2,000 stores) and Heiyan Xiong Shushi focus on takeaway services, maintaining a low average order price while attracting frequent customers. They are also upgrading their operations, such as using automated rice ball machines to improve efficiency and seeking to enter more shopping malls.
Food Safety Concerns
Rapid expansion has raised food safety issues. In 2026, Sushi郎's Beijing stores were criticized for issues with tuna and other ingredients, highlighting the need for better supply chain management and store operations. Some brands are reducing the variety of raw ingredients and focusing on fully cooked dishes to reduce safety risks and minimize reliance on cold-chain logistics.
Entering Lower-Tier Markets
Entering lower-tier cities is a challenge, as consumers' habits around raw food vary significantly between regions (higher acceptance in coastal areas like Zhejiang and Fujian). Brands like Heiyan Xiong Shushi are cautious, starting with pilot stores in provincial capitals to test local demand before expanding.
Is Sushi a Sustainable Business?
Sushi offers several advantages: high profit margins (over 50%), limited competition in shopping malls, and strong customer loyalty. However, the opportunity window is narrowing as leading Japanese brands accelerate their expansion, and local brands are also entering the market. This makes it suitable for those willing to invest in a long-term strategy with operational expertise. While there is potential for quick profits, success requires careful selection of market segments and risk management.
In summary, the surge in popularity of sushi is not a short-lived phenomenon, but achieving success requires focusing on the right market segment and managing risks carefully.