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Sushi Franchise & Business Opportunities

Sushi Restaurant Industry

General Industry

This industry consists of restaurants that serve sushi-style foodstuffs to customers, which is either served by waitstaff or on a conveyor belt delivery system to customers. Although most sushi restaurants promote indoor dining for the full experience, there are sushi restaurants that offer takeout options, which has become ever more popular with the pandemic. Sushi restaurants typically also serve lighter Japanese/Asian dishes on the side to complement the sushi, mainly in the form of soups. There are no dominant companies in this market that own a share of more than 5%, but some notable companies include Benihana and Sushi Nozawa.

Food & Beverage Industry Trends

Like most other industries, the food service industry took a considerable hit with the pandemic. However, some food service businesses that relied primarily on technology to serve clients encountered a boost in revenue, especially food delivery apps like DoorDash. Nevertheless, food services is expected to make a comeback as COVID-19 cases subside and more people become comfortable with eating out in restaurants again. Fast food chains prevailed surprisingly well despite the shutdown, reflecting their continued dominance in the food services industry.

Key Industry Numbers

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Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.

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Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.

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SBA Loan Success Ratio

For every 8 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted. 

*SBA Loan Data from 2010-2019

*Non-Franchise Businesses taken into account: 44,851

Sushi Industry Trends

A general increase in seafood consumption and growing per capita disposable income led to significant growth in this industry — it was projected that from 2015-2020, the sushi industry would grow at an annualized rate of 1.1%, making it a $20 billion industry. Despite drops in revenue due to the pandemic, especially since dine-in options were limited and most restaurants were forced to convert to take-out options, the sushi industry is expected to make a strong comeback as the food’s popularity with older people and residents of landlocked areas is expected to increase. Most sushi restaurants are located in metropolitan areas, and as urbanization continues, sushi restaurant operators can expect to have an even larger source of potential customers.

Food & Beverage Franchising Trends

Convenience stores are becoming a force in food service footprint. Convenience store franchises have been increasing their food offerings in recent years. Featured convenient stores such as 7-Eleven has over 8600 stores in the United States.

Another major trend in fast food franchises is slimming down the menu. For instance, McDonald’s menu has ballooned by 70% over the years, leading to a slowdown in service is affecting customer satisfaction. The solution has been to cut down the menu to re-energize sales.

How much can a Food & Beverage franchise cost?

Through our online platform Vetted Biz, we have reviewed over 2,900 businesses and franchises. Currently, almost 25% of the businesses on our platform are food and beverage franchises.  Of the food and beverage concepts we have reviewed, total investment amounts can start as low as $3,000 for smaller kiosk concepts all the way up to $6,732,615 for a full-service restaurant. Many factors will affect the investment amount, including but not limited to heavy-duty equipment like grills, or where the food and beverage concept needs to be located. In our research, the average royalty fee takes up 5.3% of gross revenue, and the average marketing fee is 2.3% of the gross revenue.  From 2016 to 2018, an average of 2.78% of franchise units ceased operations for reasons other than terminations or non-renewals. Moreover, of the 100 franchises we reviewed, there are approximately 3100 franchise units projected to open next year.

Average Food & Beverage Franchise Industry Percentage Fees

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Royalty Fee
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Marketing Fee

Standard Food & Beverage Franchise Industry Investment

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This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 523 franchise concept investment breakdowns in order to calculate this figure.

SBA Franchise Loan Data

0 %
Paid-in-Full Rate

The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.

0 %
Charged Off Rate

The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.

0 :1
SBA Loan Success Ratio

For every 9 SBA franchise loans fully paid including interest, 1 SBA franchise loan was unable to be paid back, or defaulted. 

*SBA Franchise Loan Data from 2010-2019

*Franchise Businesses taken into account: 15,203

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