Upstarts: Having it Both Ways
Kabuki seeks to provide a comfortable experience for guests both new to and familiar with Japanese cuisine.
By Maya Norris, Managing Editor -- Chain Leader, 12/1/2006 12:00:00 AM
 A Kabuki restaurant averages 5,000 to 6,000 square feet with seating for 120 to 180 and costs about $1.2 to $1.5 million to open.  Fresh fish is delivered daily to restaurants for both traditional dishes such as sushi and sashimi as well fusion fare such as Chilean Sea Bass. |
Although Japanese food is popular in the United States, it’s still not as mainstream as Mexican and Chinese. So Kabuki Japanese Restaurant tries to cater to both aficionados and novices of Japanese cuisine with authentic and fusion fare in a casual setting.
When founder and CEO David Lee opened the first unit in Pasadena, Calif., in 1991, he set out to create “a Japanese restaurant that’s affordable and reasonable that everybody can enjoy,” he says. His original concept offered sophisticated yet affordable Japanese cuisine in a restaurant that featured traditional motifs such as bamboo, sliding screens and servers in kimonos. But because Japanese fare wasn’t as familiar then as it is now, Kabuki struggled in its early years. By 1992, the restaurant was losing $10,000 a month.
So in 1993, Lee slashed prices, expanded the menu to include appetizers and salads, and redesigned the restaurant to be more modern and casual.
Modern Japanese
Kabuki’s menu now offers 200 items, with 60 percent dedicated to traditional Japanese fare. Sushi makes up 40 percent of sales. The best sellers include tuna, $5.95; salmon, $4.95; yellowtail, $5.95; and shrimp tempura roll, $6.95, with crab and avocado.
Other popular dishes include the Spicy Tuna Salad, $7.95, with cucumber and daikon on spring mix, served with ponzu sauce and sesame oil; and the Chilean Sea Bass, $16.95, marinated in sake and soy sauce and served with sauteed asparagus drizzled with chile-sesame sauce.
The restaurants feature an open layout with arched windows, high ceilings, and a polished wood and granite sushi bar. Servers now wear black T-shirts and pants.
“We try to give customers a comfortable dining experience because…a lot of Japanese restaurants try to overdo it,” says Director of Marketing Young Kim. “And it just intimidates the customer.”
Growing Up
Kabuki has opened eight units in Southern California. It posted $30 million in systemwide sales in 2005 and expects to generate $32 million to $34 million in 2006.
Now Kabuki is focusing on expansion. Because its customer base ranges from families with young kids to young urban professionals, it prefers locations in lifestyle centers with a mix of residential and office buildings in the immediate area.
In 2007, Kabuki will open four or five units in Southern and Northern California and Arizona. Then it expects to open three or four units a year for the next five years in markets including Texas, Washington, D.C., and Nevada. It is also investigating sites in Fort Lauderdale, Fla.; Memphis, Tenn.; Seattle and San Francisco.
“All of our restaurants are self-financed. Of course, that prohibits us from opening 10 to 20 a year like other chains would. But it keeps us focused. It keeps us low debt,” Kim says. “And No. 2, we don’t feel like we need to be chasing anyone or feel like we’re being chased. We want to go at our own pace and do everything right.”
