Sushi Hub is seeking a $1 billion valuation by building on its popularity and rapid growth, although it faces growing competition in the crowded fast food sector. The chain recorded over $200 million in sushi sales last year and aims to nearly double its store numbers worldwide. It continues to turn away private equity offers to maintain complete control of its operations.
This expansion comes as Australian households face rising living costs and mortgage pressures. Many consumers are now opting for affordable fast food over expensive dining, especially healthier choices. Within this shift, Japanese-style restaurants like Sushi Hub are gaining popularity for their fresh and fast meals. Founded in 2006, the chain has grown from a small start-up into a national brand, with outlets across every state and territory. It plans to launch its 200th store by the end of this year.
Despite interest from private equity firms, Sushi Hub has rejected buyout offers in order to protect its distinct business approach. Around 55% of its outlets are franchised, but only to long-term staff. This ensures franchisees have a strong understanding of the company’s core values. Freshness is a key element - sushi is discarded if unsold after four hours. In addition, stores often waste up to 25% of ingredients during their first two years, a cost structure that may deter outside investors.
Last year, company-owned stores contributed around $92 million in revenue, with the remainder generated by franchisees. This demonstrates the chain’s balanced business model. Sushi Hub also differentiates itself by offering over 70 sushi varieties. In comparison, most competitors offer only about half that number. It is one of just two major players in the sector, along with Sushi Sushi, yet together they account for only 4% of the fast food market.
While rivals consider exits and valuations around $160 million, Sushi Hub is setting its sights much higher. The business is preparing to expand internationally, with plans for the New Zealand and US markets. A public listing remains a possibility, but management is prioritising sustainable growth. Its exclusive agreement with salmon supplier Tassal, which includes customised fillet delivery methods, highlights its ongoing commitment to quality during expansion.
Australia’s fast food market is projected to grow to nearly $30 billion, with healthier segments such as sushi and Mexican cuisine leading much of the rise. However, higher operating costs are creating challenges for larger chains like McDonald’s and Domino’s. Sushi Hub’s clear brand identity, internal franchise system and ambitious growth plans may give it a competitive advantage if it can expand quickly without compromising its focus on freshness.
