I live near the SF location and the biggest issues seem outside of their control: tax/import costs making things way more expensive than I know they would be in Japan plus spiky demand for the prepared food limiting the quality/quantity they can offer.
The main issue that's actually on them is the authentic Japanese aisle width which doesn't work at all for the size or manners of Americans.
I shop at the Sawtelle LA location regularly. They always have premium beef and fish cuts. Especially toro grade tuna. Demand isn't very spiky here. Every time I go there's a lot of people. They have Japanese Wagyu and most of the aisles are Japanese sourced. It's just that it's quite small.