Website Closers® presents a successful eCommerce Sales & Manufacturing Brand that has captured a niche market in the US and adapted over time to become a significant player in its vertical – Refrigerated Display Case Manufacturing & Sales for the Sushi Industry. The business began almost two decades ago, originally using traditional sales channels, and then opened an online store, where sales quickly began to grow.
The Sushi Market
The popularity of sushi in the United States has experienced a remarkable rise over the past few decades. While it was once a relatively unknown and exotic cuisine, it has become a prominent part of the American food culture. The journey of sushi’s ascent in the US can be traced back to the late 1960s and early 1970s, when it first gained a foothold on the West Coast.
Sushi’s initial popularity can be attributed to increased international travel and the growing interest in diverse culinary experiences. As Americans traveled to Japan and other Asian countries, they encountered sushi and developed a taste for its unique flavors and presentation. The opening of sushi bars and Japanese restaurants in major cities like Los Angeles and San Francisco further fueled its popularity.
The US sushi market took off in the 1980s and 1990s as it gained mainstream recognition. Americans began to appreciate its freshness, health benefits, and artistic presentation. As a result, sushi restaurants started to flourish across the country, expanding beyond coastal cities and into suburban areas. The availability of quality ingredients, improved transportation networks, and the globalization of the seafood industry also contributed to the growth of the cuisine.
Operations
Over the past two decades, this brand has captured growing market share as the industry has proliferated. The business has developed a stable customer base and highly repetitive buyers. Additionally, the company achieves substantial profit margins across all products and has witnessed steady year-over-year sales growth.
Materials are sourced domestically and in China and Taiwan, then assembled by the team in the US.
Typical customers are primarily sushi chefs or restaurant owners, usually of Asian descent and 35 or older. The Display Cases can be customized to any client’s preferences, resulting in an endless product array based on individual customer’s needs. The brand is an excellent choice for restaurants, which typically need displays made to size. The brand is government certified, which is easily transferable to a buyer, and the sale includes around $100,000 worth of inventory and a further $100,000 in assets.
The Average Order Value is $4,000. The products tend to last between 5 to 10 years before a new unit is purchased. An 80% repeat purchase rate is a testament to the quality and performance of the products, as well as the lower competitive nature of this product line.
Human Resources
The owner focuses primarily on administrative work and overseeing production as necessary, while seven staff members work in the following capacities:
- 1 Full-Time Sales Rep
- 1 Part-Time Office Assistant
- 5 Full-Time Production Employees
The business operates out of a 6500sf facility. Most of the team are tenured employees, and 4 of them have been with the company for over 10 years, so a buyer would inherit a seasoned team.
Scale
This business has grown organically, without any advertising, and achieved tremendous profitability. As a result, numerous scale opportunities are available to boost sales dramatically.
The most obvious way to boost sales right away is to implement a small amount of marketing in search, video and social marketplaces. Given the lower than normal competitive nature of this product line, the cost of ads are likely to be far lower as a ratio of Average Order Value. Social media platforms provide an excellent opportunity for the business to showcase its products and engage with its target audience. Engaging with users through comments, direct messages, and polls can help build brand awareness, foster relationships, and increase sales.
Additionally, adding new products is low-hanging fruit. Sushi Display Cases consistently bring in solid revenue, so adding additional complementary products that the brand can upsell, cross-sell, or sell to an entirely new customer base would heighten sales immediately. The average order value would increase, and the brand would appeal to a broader audience.
Another option is to boost revenue by increasing production and expand the selling network by introducing a second distribution center.
Implementing email marketing campaigns is a cost-effective method for the brand to nurture leads and retain existing customers. By building a subscriber list, they can send targeted emails offering exclusive promotions, new product updates, and industry insights.
Another enticing prospect is international expansion. The company can explore opportunities abroad to tap into new markets. A new owner can identify countries or regions with a growing demand for sushi or a lack of suppliers in their niche and establish partnerships with distributors or retailers in those areas.
Summary
Over time, sushi has become firmly entrenched in American food culture. It is no longer considered a niche cuisine but a ubiquitous dining option. Sushi has permeated the culinary landscape, appearing on menus in various establishments, from upscale sushi bars to casual fast-food chains. The sushi restaurant industry in the US has experienced substantial growth, catering to diverse consumer preferences, and a new owner who can capitalize on the industry’s growth will enjoy fruitful results.
