In another sign of COVID-19 pandemic’s impact on the foodservice industry, Kura Sushi USA posted a significant sales loss in its fourth quarter, and a number of independent seafood restaurants across the U.S. are closing permanently.
Seattle, Washington-based Steelhead Diner, Blueacre Seafood, Orfeo, Zane, and Wylie’s Seattle Steakhouse will not reopen when indoor dining restrictions are lifted, Eater Seattle reported.
And new indoor dining restrictions in several U.S. states and cities are wreaking havoc on restaurants’ finances and causing some to close their doors for the winter months. Several Chicago, Illinois restaurants, including Longman & Eagle, Bellemore, Cira, GT Fish & Oyster, Elske, and Nico Osteria are closing for the winter, according to The Chicago Tribune.
Elsewhere, Irvine, California-based Kura Sushi USA, a subsidiary of Japan-based Kura Sushi, said its total sales dropped from USD 13.2 million (EUR 11 million) in the fourth quarter of 2019 to USD 5.5 million (EUR 4.6 million) for the fourth quarter of 2020. The restaurant chain’s operating loss was USD 6.8 million (EUR 5.7 million), compared to operating income of USD 1 million (EUR 844,000) in the fourth quarter of 2019.
However, the company began to reopen some of its restaurants in late May, and by the end of fiscal fourth quarter, it had opened 23 out of 25 of its restaurants, it said in a press release. Out of the 23 restaurants, 11 were largely operating on a takeout-only basis due to California’s indoor dining restrictions.
“While most of our restaurant operations were still hampered by varying COVID-19 restrictions during the quarter, especially in Los Angeles County, we were thrilled to see strong demand from our guests when we have been able to offer our complete Kura Experience,” Kura Sushi President and CEO Hajime Uba said.
In fact, the company recently opened a restaurant in Fort Lee, New Jersey, “where sales in our dining room is trending at 50 to 60 percent of our pre-pandemic average unit volume, in spite of New Jersey’s 25 percent seating capacity limitation,” Uba said.
“With strong pent-up demand and solid financial footing, we are excited about the long-term growth opportunities of our business and will remain prudent as we navigate through this challenging environment,” Uba said.
In Europe, another sushi chain – Copenhagen, Denmark-based Karma Sushi and Vaca – recently filed for bankruptcy, Finans reported. Karma Sushi and Vaca will continue operating its 11 restaurants as usual, lawyer Gert Nissen told Finans.
“There are two goals. One is, of course, to ensure that creditors get the least possible losses; the other is that there is a chance that we can save 300 jobs,” Nissen said.
Photo courtesy of Kura Sushi
