"Bought Stocks and Got Sushi Along" Trending Sushi Stocks These Days [Nichiyoubi Nichibunka]

Shareholder Benefit Policy of Conveyor Belt Sushi Chain Kurasushi
A System Granting Meal Vouchers and Points When You Buy Stocks
Stock Price Surges Following Announcement of 'Meal Vouchers for Shareholders'

Do you like sushi? These days, if you visit conveyor belt sushi restaurants in department stores or shopping malls, you'll find an overwhelming number of waiting customers due to their immense popularity. Not long ago, I shared a story about wasabi used in sushi, and this week, I have an interesting news piece related to conveyor belt sushi to share with you again.

Why Does Japan Use So Much Wasabi?

The news is about a Japanese conveyor belt sushi chain that has attracted attention by offering dining vouchers based on the number of shares held. It's a fun idea where buying sushi stocks actually gets you sushi. Today, I'll tell you about sushi stocks and Japan's unique shareholder benefit system.

Exterior view of Kura Sushi store. Kura Sushi.

On the 19th of last month, the Japanese conveyor belt sushi chain Kurasushi officially announced that it would resume its shareholder benefit program. Shareholders listed in the shareholder registry as of the end of April each year will receive dining vouchers proportional to the number of shares they hold. Starting with those holding 100 to 199 shares of this stock priced around 3,000 yen (29,300 KRW) per share, they will receive a 2,500 yen (24,400 KRW) dining voucher, with the amount increasing gradually. Those holding 200 to 399 shares get 5,000 yen (48,800 KRW), 400 to 999 shares receive 10,000 yen (97,600 KRW), and shareholders with 1,000 or more shares will be given a 20,000 yen (195,300 KRW) dining voucher. The vouchers will be sent out in early July based on the April 30th record date. In other words, if you buy sushi stocks, sushi literally comes with it.

This is thanks to Japan's shareholder benefit system, which allows shareholders to receive company products or service vouchers upon purchasing shares. These benefits are provided separately from dividends. About 40% of listed companies in Japan adopt this system. Looking at sushi stocks alone, not only Kurasushi but also another sushi chain, Kizuna Sushi, offers dining vouchers to shareholders. The famous Japanese caf? chain Doutor distributes a 'shareholder benefit card' every May that can be used to redeem points. The curry chain Coco Ichibanya also provides dining vouchers. Companies owning hotels offer sauna or gym usage tickets, among other benefits. Additionally, various companies such as telecommunications firm NTT, Rakuten, and Aeon Mall implement this system. Some even offer limited-edition products exclusively for shareholders or provide extra benefits to long-term shareholders, attracting individual investors in diverse ways.

This system was initiated to attract individual investors. Recently, as the Japanese stock market has recovered and overseas investors have turned their attention to Japanese stocks, many companies have abolished these benefits. Since overseas investors rarely use dining vouchers, shareholder benefit policies naturally became unnecessary. Originally, Kurasushi provided discount coupons instead of dining vouchers, but considering overseas investors, they declared in December last year that they would abolish the benefit policy to fairly return profits. However, Kurasushi's stock price fell and failed to rebound. Considering overseas investors led to Japanese retail investors turning their backs first.

Because of this, Kurasushi changed its policy within two months and introduced a more aggressive shareholder benefit policy. Although Japan is known to have relatively fewer people investing in stocks compared to Korea, the government created a new NISA (Nippon Individual Savings Account) system, similar to Korea's ISA system, to encourage individual stock investment. As the number of individual investors increases, more companies are gradually strengthening shareholder benefits to attract domestic retail investors.

The day after Kurasushi announced it would provide dining vouchers, on the 20th, its stock price rose 19.30% compared to the previous day after the market opened, triggering an intraday upper limit VI (volatility interruption). This was because individual investors started buying heavily. The Nihon Keizai Shimbun (Nikkei) quoted analysts warning that sales and other fundamentals are not very good, so indiscriminate buying should be approached with caution. However, this sushi incident surely sent a clear message: 'Never underestimate retail investors again.'