[Record Profits, Yet a Wave of Store Closures?] The Real Reason Saizeriya Is Reducing Its Store Count in Central Tokyo

Conclusion: The Reason for Saizeriya’s Store Closures Is “Soaring Rent” Combined with a “No Price Hikes” Management Philosophy

In recent years, Saizeriya has continued to set new records for both sales and profits.
Despite this, news of a series of store closures in central Tokyo has become a hot topic.
The reason is clear: it lies in Saizeriya’s unwavering management philosophy of “We’d rather not open a new store than raise prices.”
When rents in city centers skyrocket and a store becomes unprofitable, Saizeriya withdraws—even if it’s a popular location. This is Saizeriya’s strategy.

Is Saizeriya Really Doing So Well? Its Astonishing Growth in Numbers

Sales Have More Than Doubled in Five Years

• 2022: 69.2 billion yen
• 2026: Over 140 billion yen (half-year)

While Saizeriya has a reputation for being “a long-standing favorite,” the numbers show that it has actually experienced rapid growth over the past five years.

Generating Profits Even with a Cost of Goods Sold Ratio Exceeding 40%

It is generally said that an ideal cost of goods sold ratio for restaurants is between 30% and 35%.

However, Saizeriya…

• 2024: 41.3%
• 2026: 42.7%

…which is a high level. The fact that they can still turn a profit is due to rigorous cost management and bulk purchasing.

The Reason Closures Continue: Downtown Rent Has Exceeded the “Break-Even Point”

Significant rent hikes have been cited as the reason for closures such as the Ebisu Station East Exit location.
The rent proposed by the landlord was “nearly double.”
Under these circumstances, it is impossible to turn a profit while maintaining low prices.
Saizeriya has a standard of keeping rent costs within 10–15% of gross profit.
For properties that exceed this standard, the company decides to close the location—even if it is a popular restaurant.

Why They Don’t Raise Prices: Price Increases “Hide Waste”

Saizeriya’s management philosophy is highly unique.

Raising prices “hides waste.”

Raising prices because costs have gone up.
This is a strategy adopted by many restaurants, but Saizeriya rejects it.
Their philosophy is that raising prices leads to “a lack of effort to identify waste that should be eliminated.”
That is why they adopt a strategy of cutting items from the menu rather than raising prices.
In fact, when chicken prices skyrocketed, they temporarily suspended sales of their popular “Diavola-style Chicken” dish.

Closing Downtown Locations Is “Optimization,” Not “Withdrawal”

Looking only at the term “wave of store closures,” you might get the impression that Saizeriya is in a difficult situation, but in reality, the opposite is true—the number of new store openings is increasing.

Over the six-month period in 2026,

• New stores opened: 79
• Stores closed: 29

As you can see, the number of new store openings far outweighs the number of closures.
In other words, while the company is streamlining unprofitable stores in the city center, it is accelerating store openings in regional areas and the suburbs.

Saizeriya’s Strength: An Unmatched “Low Price × High Quality” Model

The reason Saizeriya is so popular is clear.

• Milan-style Doria: 300 yen
• Wine: 100 yen
• Pizza and pasta are also around one coin
• Served quickly thanks to a central kitchen system
• High-quality flavors

To maintain this “low price × high quality” model, closing downtown stores where rent has skyrocketed is a rational decision.

Key Takeaways for Small and Medium-Sized Enterprises

Small and medium-sized enterprises should create “value that makes customers choose them even after a price increase.”
A strategy of not raising prices, like Saizeriya’s, is only possible for large corporations that can purchase in bulk.
For small and medium-sized enterprises, it is instead crucial to create value that makes customers choose them even after a price increase.

Summary: The Truth Behind Saizeriya’s Wave of Store Closures

• Sales are at an all-time high
• Depreciation rates are high, but profits are stable
• Soaring rents in the city center make operations unprofitable
• Choosing to “withdraw” due to a philosophy of not raising prices
• The number of new store openings is actually increasing
• Store closures are not due to deteriorating business performance but rather “strategic optimization”

Saizeriya is a rare company that practices rigorous cost management based on a firm commitment to “not raising prices.”
The closure of its downtown locations is not negative news; rather, it can be seen as a strategic decision to maintain low prices.