Sushi Chain Worth $82M Received $6M Federal Loan Meant for Small Businesses - Eater LA
"Kura Revolving Sushi Bar is a publicly traded company with 25 restaurants across the United States and a market value of $82 million as of April 21. Just this month, the company reported cash reserves of $24 million and no debt, according to a recent SEC filing. In addition, the chain obtained a $20 million loan from its Japanese parent company Kura Sushi, Inc., which has over 400 locations worldwide. The PPP was originally designed to help businesses with fewer than 500 employees pay their payroll, utilities, rent, and other expenses amid the ongoing coronavirus pandemic. Kura Revolving Sushi Bar, which has closed all of its U.S. locations due to the crisis, doesn’t disclose its total number of employees. In a transcript of a recent earnings call with investors, Kura said it would use its $5.98 million from the PPP to pay employees, though the company also furloughed some workers. Kura still qualifies as a small business because the PPP applies to companies that don’t hire more than 500 employees per location. Kura serves over 140 types of small prepared dishes and Japanese sushi on revolving belts. Diners typically order through tablets placed at each table and can reserve seats on its app. The chain has 11 locations in Southern California, including restaurants in Sawtelle, Japantown, Little Tokyo, Torrance, and Glendale that draw long waits during prime dining hours. Kura filed for an IPO in 2019 with plans to expand quickly across the United States; the planned expansion leaned on its technology and relatively low cost of operations. The company already has nine locations in Texas, as well as restaurants in Georgia, Washington State, Florida, and Michigan." - Matthew Kang
