Kura Sushi USA Inc. is testing smaller markets for the Japanese revolving service model, entering Bakersfield, Calif., executives said Tuesday.
The Irvine, Calif.-based company, which released earnings Tuesday for the first quarter ended Nov. 30, opened in Bakersfield, with a population of just more than 413,000, in the period.
“Bakersfield is a critical test market for us as it presents an entry into a significantly smaller market than any of our previous openings,” Hajime Jimmy Uba, Kura Sushi’s CEO and president, said in a call with analysts. “Historically, our site selection has focused on the top 40 or 50 largest DMAs [designated market areas] in the U.S., and Bakersfield is around the top -- around the 120 largest.”
While Kura Sushi did not release sales figures for the Bakersfield unit, executives said the customer response gave them confidence.
“Its demonstrated success after opening has given us so much more confidence in pursuing smaller high-potential markets,” Uba said.
During the fiscal first quarter, the Kura Sushi USA opened six new restaurants in Beaverton, Ore.; Tacoma, Wash.; Rockville, Md.; Cherry Hill, N.J.; Bakersfield, Calif.; and Fishers, Ind.
Uba also said the concept will begin adding a reservation and self-seating system in February.
“This will be a very significant improvement to the guest experience as we currently do not offer reservations,” he said. “Today, guests can remotely check into restaurant waitlist but cannot choose a specific time. The reservation system is coupled with a self-seating system, and we believe the implementation of these systems will eliminate the need for dedicated host position as well as bolster shorter period sales.”
The concept is also nearing the rollout of updated table-side ordering panels along with a redesigned push-button Mr. Fresh 2.0, “which is much easier to use,” Uba said.
For the first quarter ended Nov. 30, Kura Sushi USA’s net loss was $1 million, or eight cents a share, compared to a net loss of $2 million, or 18 cents a share, the prior-year period. Sales were $64.5 million, compared to $51.5 million in the first quarter 2024.
Same-store sales increased 1.8% in the first quarter.
Kura Sushi USA, established in 2008, has 70 locations across 20 states and Washington, D.C. It is a subsidiary of Kura Sushi Inc., which has more than 650 restaurants.
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