Core Insights - The article discusses how Japanese restaurant chains like Sushi郎 and 滨寿司 have successfully attracted customers in a challenging domestic dining environment, characterized by declining consumer spending and increased competition [1][3][11] - These chains have created a unique dining experience that combines quality food with entertainment, leading to long wait times and high customer demand [4][10][11] Industry Overview - The overall dining industry in China is facing difficulties, with profits in the accommodation and dining sector in Beijing dropping by 67% year-on-year in the first half of the year [1] - Major chains like 海底捞 and 九毛九 are struggling to maintain performance despite efforts to control average spending per customer [1][3] Company Performance - FOOD&LIFE, the parent company of Sushi郎, reported an 18.3% year-on-year revenue increase to 313.15 billion yen and a 68.4% rise in operating profit to 29.2 billion yen for the nine months from October 2024 to June 2025 [3] - The international business of Sushi郎 saw a 41.2% revenue increase to 93.1 billion yen, with profits soaring by 118.9% to 11.117 billion yen [3] - The stock price of FOOD&LIFE has increased 2.6 times since the end of 2024, with its market capitalization surpassing 1 trillion yen [3] Consumer Behavior - Despite the average spending per customer being relatively high (120 yuan for Sushi郎, 82 yuan for 滨寿司, and 77 yuan for 肉肉大米), consumers are willing to wait for hours to dine at these establishments [4][11] - The dining experience at these restaurants emphasizes entertainment and engagement, such as interactive ordering systems and in-store activities like prize draws [10][11] Operational Efficiency - Japanese restaurant chains have adapted to market conditions by implementing cost-saving measures and operational efficiencies, such as self-service options and simplified menus [18][19] - Sushi郎 utilizes a smart conveyor system and self-service for condiments, significantly reducing labor costs while enhancing customer experience [18] - The design of 肉肉大米's restaurants maximizes space efficiency and customer turnover, allowing for high table turnover rates and reduced rental costs [20][22] Market Positioning - Sushi郎 and 滨寿司 fill a market gap for mid-range sushi options in China, appealing to consumers seeking quality without the high prices of premium sushi restaurants [11][12] - The chains have successfully attracted family customers by offering balanced meals and addressing food safety concerns, which enhances repeat business [10][11]