Kappa Sushi operator reports first quarterly operating loss in four years

Kappa Create, the operator of Kappa Sushi, reported an operating loss of 707 million yen for the first quarter of fiscal year 2026. This marks the company's first quarterly operating deficit in four years.

Revenue for the period fell 2.4% year-on-year to 17.751 billion yen. The company is struggling to keep pace with competitors in the conveyor belt sushi industry. Monthly data indicates a continuous decline, with existing store sales and customer numbers falling below previous year levels for 14 consecutive months since December 2024.