Japanese restaurant chain builds presence in the United States: Conditions for successful expansion into a huge market through localization

Kura Sushi USA opened its first location in Irvine in 2009 and has expanded to approximately 100 locations across the United States over the past 17 years. Following the early failure of its expansion into Century City, the company shifted to a strategy centered on suburban lifestyle centers. It has repeatedly refined its site selection, store design and menu development to suit local markets by observing local income levels and customer traffic patterns within shopping centers.

Organizationally, the company has built a hybrid model that combines Japanese-style discipline with local management expertise. During the COVID-19 pandemic, it increased its hiring of local personnel and introduced share-based compensation, accelerating growth as it shifted from operations led by individual locations to localization across the organization. The company’s own site selection in suburban areas and flexible layouts have supported stable profitability at each location.

Menu development reflects local customer preferences. The company has adopted names and ingredient combinations that clearly convey spiciness and texture, and some products have driven higher sales. At the same time, ingredients that are unfamiliar and poorly aligned with local tastes are less likely to be accepted, making it important to incorporate elements from both the local market and Japan in a balanced manner.

The long-term goal after reaching 100 locations is to expand to approximately 300 locations by opening about 20 stores annually. The company is currently strengthening its growth platform through its NASDAQ listing and partnerships with local business partners, making it an example of the adaptability and scalability of a Japanese-origin restaurant brand in the local market.