STRATEGIC

MANAGEMENT
Kura Sushi
USA Inc.
By Group F
 Group F

Our
team Vien Linh Khanh Uyen

My Tien

Van Dat Thanh Nga

1
 Table of Content

1. Company overview 7. Assessment of current strategic plan​

2. Industry segment insight 8. Assessment of current strategy execution
3. Company strategic plan actions ​
Business model canvas 9. Strategic issues​
Value chain 10. Proposed strategic plan​
Objectives 11. Proposed strategy execution action plan​
Strategy 12. Investment, costs, and risks associated
4. Company current strategy with the proposed strategic plan and
execution action strategy execution action plan​
5. Company recent performance 13. References
6. Evaluation of current IFE & EFE​ Appendix
 Company overview

Kura Sushi USA, Inc. was established in 2008 as a

subsidiary of Kura Sushi, Inc., a Japan-based revolving
sushi chain with over 550 restaurants and 40 years of
brand history. It is a technology-enabled Japanese
restaurant concept with 66 locations across 20 states
and Washington DC. It offers guests a distinctive
dining experience built on authentic Japanese cuisine
and an engaging revolving sushi service model

EXPLORE WHO IS KURA SUSHI USA?

HERE​
 Company overview
3 core components: Quality products, Customer service, Sustanability.

Mission “To encourage healthy lifestyles by serving freshly prepared authentic

Japanese cuisine using high-quality ingredients that are free from
artificial seasonings, sweeteners, colorings, and preservatives."

Vision To become a national Japanese restaurant brand, with a long-term total

restaurant potential in the United States of over 290 restaurant.

Core values DIVERSITY – EQUITY – INCLUSION - BELONGING

Organization Chart
Industry map
 Industry/segment insight
Fine
Dinin
g

Food Food Casu

indust al
servic
Dinin
ry e g

Food
Safet
y &
Quali
ty
 Industry/segment insight

350,000 1.6 200,000 0.4

1.45 0.23 0.24

180,000 0.2
1.4
300,000
0.06 0.15
160,000
0
1.2
250,000 -0.08
140,000
-0.2
1
0.91 120,000
200,000
-0.4
0.8 100,000

150,000 0.65 -0.6

80,000
0.6
-0.8
100,000 0.41 60,000
0.37 0.39
0.4
-1
40,000
50,000
-1.21
0.2 -1.2
20,000

0 0 0 -1.4
2021 2022 2023 2021 2022 2023

Total Revenue (Million USD) Gross Income Gross margin EPS Total Revenue (Million USD) Gross Income Gross margin EPS

Average Food Service Market Kura Sushi USA Inc.

Source from:
CURRENT STRATEGIC PLAN
Business Model

Value chain

Objective

Strategy
Objective: Align KRUS's strategy by
visually mapping out how they create, deliver,
BUSINESS MODEL
and capture value.

Value Customer Customer

Key Partners Key Activities Loyalty Program, Promotion
Site renting, building Propositions
Quality Consistency
Relationship
Interactive dining Segments
Sushi,
Kura Japan Purchase from Suppliers (gamification) Japanese Food Diners
Operation (Storing, Food Authentic Japanese Cultural connection
Community Building Young Professionals
JCF International Inc. Prepation, Serving, )
Customer payment Unique Socia media engagement Office workers
Customer delivering Corporate events
Customer service Fun High schoolers
Local estate broker/landlord.
Quick
Domestic/air transportation service
Key Resources Channels Employee, Team Dining
Provider/custom brokers. Convenience
Ingredient, utilities
Banks/Creditors/Visa/Master. Modern Family with Children
Labor Apps Mass Websit 3rd Apps
Safety mediae
Restaurant, Equipment
Menu innovation Health-conscious diners
Affordable price
IT support service provider.
Tools, Software, System, Platform
Business process service provider. Nutritional
Data management Socia Culinary Enthusiasts, Foodies
information Physical
Capital, License, Brand image transparency Media store

Cost Structure Sale revenue

Renting cost (7.1%) License fee (0.5%) GA expesnses (14.9%) Indoor Dining Translational support services and
Food and Beverage Cost
Other costs: utilities, repairs, maintenance, credit card fees, stock- (29.5%) market research service to Kura Japan
Pickup
based compensation expenses, other restaurant-level expenses
(14.56%) Delivery
 VALUE CHAIN
INPUTING FOOD PREPARATION SERVING

Oversea purchasing,
Domestic purchasing
Indoor dining
Food ingredients Pickup
(Fish, meat, Food
preparing Customers
rice ,vegetables,…)
g
xin Delivery orders
Designated suppliers

i
(Kura Japan + JCF +

Flavors M Sales
Automated
Wismettac,...)

Exclusive recipe
Testing food
Beverage Beverage safety Taking custompers'
(Alcohol & non Alcohol) preparing orders

ery
Packing materials

liv
De
Kitchen appliance Packing & Recording customers/
Equipments delivery ( third - payments
Robots party)
Site renting

PRE-PROCESSING, WAREHOUSING &

DISTRIBUTION TO STORES

Technology Accounting &

R&D Procurement Quality control HRM Sales & Marketing
management Finance
OBJECTIVES
Short- Long-term Pla
term
New Restaurant 290 Restaurant
Development
High standards
Operational Excellence Leverage technology

Financial Stability Leverage G&A expenses Strong financial results &

stability
Adaptability
Navigate macroeconomic shifts Position adaptability & resilience

Brand Awareness

Consistent Sales Growth At Least 20%

annual
 CURRENT STRATEGY

GEN
ERI • FOCUS LOW COST
C
STR
ATE
GY
INT • MARKET PENETRATION
ENS
IVE • MARKET DEVELOPMENT
GRO
WT
H
• DEFENSIVE
STR
ATE
• FAST FOLLOWER
GIC • VERTICAL INTEGRATION - backward
ACT
ION
S
CURRENT STRATEGY EXECUTION ACTION
Organization building actions
Hire and appoint experienced personnel
Staffing from the food service industry to the Board M
of Directors
Resources and Implement advanced technology
capabilities

Structuring the organization Functional Structure to optimize employee

productivity and expertise
M
Operation management
Invest in employee orientation programs and internal
Allocate sufficient
resources communications M
Ensure consistency Establish standard Operating Procedures (SOPs)

Promote the creation of a work Emphasizes standardized procedures by creating uniform

climate practices M
CURRENT STRATEGY EXECUTION ACTION

Cooperate Culture and Leadership

Focused on creating a clear vision for the low-cost

Exercise leadership strategy but maintaining affordability while
delivering high-quality sushi
M
Actively involving employees in identifying and
Cooperate Culture implementing cost-saving measures M
COMPANY RECENT PERFORMANCE
 INTERNAL FACTORS EVALUATION - IFE​

STRENGTHS WEAKNESSES
Interactive Materials (Gamification) Real Estate Locations
Management Information Systems to
predict a restaurant’s food Narrow Supplier Base
Technology and Systems Shared Services Agreement with Kura Japan
Food Intellectual Property License (31 Trademarks “Kura Sushi,” “Mr. Fresh” and
patents) “Kura Revolving Sushi Bar”
Quality Technology System (RFID readers,
robotic arms) Brand Equity/Reputation

Food Preparation Staff (Chef, Sushi Prep/Line

Plate Counting Management cook)
Customer Service Logistics Relationship
Menu Innovation Delivery Partners
1.89
 EXTERNAL FACTORS EVALUATION - EFE

OPORTUNITIES THREATS
Rising American Income Proposed US Imposed Tax Increase
Gen Z Social Media Shopping Trends Rising Raw Material Prices
Increased Consumer Spending on Dining Regulatory Changes
Out
Meal Customization High Competition in QSR Industry
Focus on Resilient and Local Supply Chains High Rate of New Entrants

Diverse Dining Options Shift Towards Healthier and Sustainable

Choices
Single-Use Products Demand Increased Price Sensitivity Among Consumers
Tech Integration for Enhanced Mutual Leverage in Supplier Relationships
Convenience
1.94
STRATEGIC ISSUES

​
Shared Services Narrow Supplier Proposed US imposed
Agreement with Base Tax Increase
Kura Japan (0.99) (0.99)
(0.84)

Increased Consumer
Rising Raw Food Intellectual
Spending on Dining Menu innovation Food Preparation
Material Prices property license
Out (0.80) Staff (Chef, Sushi
(0.81) (31 patents)
(0.70) Prep/Line cook
(0.72)
(0.78)
 CURRENT QSPM

Generic Intensive Strategic

Competitive Growth Actions

FOCUS LOW COST MARKET VERTICAL

PENETRATION 6.0 INTEGRATION - 4.7
4.4
backward
MARKET
6.7 5.5
DEVELOPMENT DEFENSIVE

FAST FOLLOWER 4.7

PROPOSED STRATEGIC PLAN
IE MATRIX

1.94 TOTAL IFE

QUESTION MARK
WINNER
Grow and build
WINNER
Grow and build
Hold and maintain
1.89 TOTAL EFE
LOSER

Harvest or
WINNER AVERAGE
Grow and build Hold and
fivest
maintain
Kura Sushi USA places in cell IX,
referred to as the "Loser"
position.
PROFIT PRODUCER LOSER LOSER
Hold and maintain Harvest or Harvest or
fivest fivest
PROPOSED STRATEGIC PLAN
SPACE MATRIX

3.0 INDUSTRY STRENGTH

CONSERVATI AGGRESSI -4.0 COMPETITIVE ADVANTAGE

VE VE
2.2 FINANCIAL STRENGHTS

-3.3 ENVIRONMENTAL STABILITY

DEFENSI COMPETITI
VE VE Kura Sushi USA (-1; -1.2)
DEFFENSIVE PROFILE
PROPOSED STRATEGIC PLAN
STRATEGY OPTIONS

PROPOSED Option 1 Option 2

Generic Competitive Strategy Focused Differentiation Broad Low Cost

Market Penetration Market Development

Intensive Growth
Market Development Product Development

Strategic alliance and partnership Horizontal Merger Strategy

Strategic Action 1. Diversify Suppliers Base M&A Strategy
2. Enhance Unique Dining Experience
3. Targeted Marketing
4. Partner with Premium Brands
 FUTURE vs. CURRENT QSPM

VERTICAL
MARKET MARKET FAST
FOCUS LOW INTERGRATUON DEFENSIVE
CURRENT PENETRATION DEVELOPMENT FOLLOWER
COST (4.4) – BACKWARD (5.5)
(6.0) (6.7) (4.7)
(4.7)

VERTICAL
FOCUS MARKET MARKET INTERGRATUON – DEFENSIVE FAST-FOLLOWER
OPTION 1 DIFFERENTIATION PENETRATION DEVELOPMENT BACKWARD (6.7) (6.9)
(6.6) (6.7) (6.8)
(6.7)

BROAD LOW MARKET PRODUCT HORIZONTAL

COST OFFENSIVE FIRST MOVER
OPTION 2 DEVELOPMENT DEVELOPMENT INTERGRATUON
(7.2) (7.2)
(6.1) (7.1) (7.0) (7.3)
PROPOSED STRATEGY EXECUTION PLAN

Department Action
Invest in research to develop fusion dishes that blend Kura Sushi’s
offerings with the acquired brand
R&D
Integrate customer data from both brands

Develop and implement a cultural integration plan

Appoint a Financial Manager skilled in cost-cutting and lean operations

Staffing to control expenditures

Centralize administrative and support functions (e.g., HR, finance,

marketing) to reduce overhead costs
PROPOSED STRATEGY EXECUTION PLAN

Department Action

Evaluate existing suppliers from both companies to streamline

procurement
Supply chain
Centralize distribution centers or optimize existing ones to
improve logistics efficiency and reduce transportation costs

Deploy an ERP system that integrates cost management and

tracks real-time operational data
Technology
Implement CXM tools to collect feedback and monitor customer
sentiment
PROPOSED STRATEGY EXECUTION PLAN
Department Action

Utilize the increased scale of operations to negotiate better terms

with suppliers and reduce per-unit costs
Operation
Management
Utilize the current locations of both companies to enhance
branding and customer network

Develop or enhance loyalty programs to incentivize repeat

purchases and increase customer retention
Promotion and
Advertising
Create themed promotions or events highlights new product
launches or seasonal items
 PROPOSED STRATEGY EXECUTION TIME
Q4/2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Develop fusion dishes
Data Integration
Culture Integration
Internal communication
Appoint CFO
Centralize support functions
Supplier Assessment
M&A Centralized Distribution
Centers
ERP system
CXM tools
Expand locations
Negotiate supplier
Loyalty Programs
Create themed promotions
RISK ASSESSMENT
1 2 3 4 5
Negligible Minor Moderate Major Catastrophic

5
Frequent
Total Investment Cost:
10,059 millions USD
High Capital
Food Safety
4 Expenditure
Likely Regulations
Pricing Sensitivity
Service Quality
Labor Costs

Cultural Differences Economic

Competition Fluctuations
3 Technology Supply Chain
Possible Brand Dilution
Integration Disruptions
Customer Consumer
Satisfaction Preferences
2
Unlikely

1
Rare
Thank you for
listening

Thank You
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APPENDIX
STRATEGIC GROUP MAP