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Food & Beverage

Japan's sushi operations scandal undermines industry reputation

Low-cost chains struggle to hold down prices against inflation and weak yen

Kappa Create announced the resignation of its president over allegations that he had illegally accessed sensitive business information of a rival company.  (Photo by Nikkei)

TOKYO -- Japan's humble conveyor-belt sushi industry ran into controversy this month after the arrest of a top executive, adding to the pressure on the low-price businesses caused by rising inflation and the weak yen.

The then-president of Kappa Create, the owner and operators of Japan's fourth largest sushi chain Kappa Sushi, was arrested by Tokyo police on suspicion of illegally obtaining operational data from a competitor, Hama Sushi, where he previously worked.

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