Kura Sushi to Exit Shanghai Market After Posting ¥1.5 Billion Loss Last Year
Asian chain Kura Sushi (2754) has announced during its board meeting that it will exit all operations in Shanghai, China, and aims to complete the withdrawal by the end of the year. The board's decision took into account changes in the international economy and future development, granting the chairman full authority to manage the exit process.
Kura Sushi holds a 100% stake in its Shanghai subsidiary through a wholly-owned subsidiary in Hong Kong, with minimal financial impact from the withdrawal. The company stated that it will continue to monitor and cautiously assess the Chinese market's economic and business environment. Since its establishment in 2014, Kura Sushi has expanded three locations in Shanghai in 2023 but failed to significantly grow its business.
According to financial reports, Kura Sushi’s tax loss in Shanghai reached ¥1.5 billion last year, reflecting a year-over-year increase of 29.69%.
