Sakae Sushi Analysis

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  • Topic: Sushi, Japanese cuisine, Sashimi
  • Pages : 5 (1493 words )
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  • Published : May 27, 2012
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a.Background
Sakae Sushi is a conveyor belt sushi restaurant chain started by Apex-Pal International Ltd more commonly known now as Sakae Holdings. Sakae Holdings has also started other similar restaurants like Hei Sushi, The Pasta Shop. Sakae Sushi offers a wide variety of Authentic Japanese dishes such as sushi, sashimi, soba, udon, tempura and many more served on either ala-carte the conveyor belt. b.Current Operations

From only a small outlet down at Raffles Place, it has grown to 32 outlets now all around Singapore in which 15 are in suburban areas which makes it the current market leader for conveyor belt sushi businesses. Besides business in Singapore, Sakae Sushi has also expanded in regional countries with 7 outlets in Malaysia, 1 in Thailand, 6 in China, 3 in Phillipines and 4 in Indonesia. All it’s outlets in Singapore are fully managed by Sakae Holdings while it’s overseas outlets are managed by the franchisees. c.Core Competencies

Sakae Sushi’s core competency is it’s price. Plates of sushi are going at only SGD$2 where 3 of such plates could make up a meal. This differs them from other Japanese Restaurants as Japanese food are considered as exquisite and only for the wealthy. Selling it at a cheap price would definitely gain itself a competitive advantage over other competitors.

Another Core competency that Sakae Sushi possesses is it’s constant innovation. Sakae Sushi updates its menu once every 9 months to bring in new flavors for consumers to explore. It also has a special menu which differs from outlet to outlet. These special menus are updated every 2 months. d.Business model

Replicability
Sakae Sushi has already established over 30 outlets in Singapore, thus it is no longer as replicable as before as most high human traffic areas already have Sakae Sushi outlets. However, there are still places which are available such as heartland areas, for example, the recently launched Jcube.

Apart from expanding in Singapore, Sakae Sushi, being an international company can choose to expand regionally. There is still a lot of room for expansion overseas and thus, this makes Sakae Sushi to an extent replicable. Controllability

Sakae Sushi maintains minimum requirements for its franchisees such that only people who are deemed capable by Sakae Sushi will be allowed to franchise an outlet. Requirements such as prior experience with handling F&B businesses and good working knowledge of the investment regulations, business requirements and culture in whichever city the franchised outlet is going to be in.

Sakae Sushi only allows franchises to overseas markets as all of Sakae Sushi’s franchises in Singapore are managed by Sakae Holdings. In this way, Sakae Sushi can make use of the locals in other countries, for example Thais in Thailand to do business for them as they are used to the culture and how people do business there.

Other methods of controlling are the use of the same rice rolling machines to make the sushi and also, having the same supplier of sashimi so that customers can enjoy the indistinguishable high quality of sushi is whichever outlet they go to. Sustainability

Sakae Sushi, being easily available both in terms of location and price would have an easy time sustaining business whether in good or bad economic times. In good times, the better off among the middle class with upgrade and dine more often at Sakae Sushi, in bad times, the bottom tier in the upper class will downgrade and visit Sakae Sushi more often. Hence, by theory, Sakae Sushi will always have business and hence, this makes it sustainable.

Marketability

2.Products & Services
a.Target Market
Sakae Sushi targets at the middle class masses. According to Douglas Foo, the CEO of Sakae holdings, this will ensure that Sakae Sushi will always be in business no matter rain or shine.

b.Unique Selling Proposition
Mr Foo has been to Hong Kong and Japan to take a look and learn the tricks on...
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