Sushi Chain YO to Buy SnowFox
SnowFox operates sushi kiosks in large grocery and big box stores.
Jul 05, 2019
LONDON—YO, one of the largest sushi chains in the world, will merge with SnowFox, one of the largest sushi kiosk operators at U.S. supermarkets, the Wall Street Journal reports. SnowFox operates 700 sushi kiosks in Kroger, Sam’s Club, Walmart and other grocery stores, while YO runs 116 restaurants, mostly in the United Kingdom and the United States.
YO will acquire SnowFox for more than $100 million. Jim Kim, founder and owner of SnowFox, will become a board member of the new group and also have a minority stake in the company.
While not on the scale of some recent mergers, the acquisition highlights how quickly grocery and restaurant industry trends are changing to meet the demands of consumers. For example, more U.S. employees are eating at their desks, which has meant a slowing lunchtime crowd for restaurants. Online meal and meal-kit delivery services are also keeping people at home for the evening meal.
SnowFox has found a niche at large grocery chains, one that YO wants to take better advantage of as part of the consumer interest in fresher, healthier food. SnowFox and YO predict the U.S. grocery sushi market to be worth more than $1 billion yearly, with sales soaring at an annual rate of 13%. Currently, 36% of U.S. grocers sell frozen or fresh sushi, giving the segment lots of room to grow.
Global
