Sakaye S. Kinoshita, 67, coowner of the Mikado Restaurant and Grocery in Washington, died Wednesday at Sibley Memorial Hospital after a heart attack.

Mr. Kinoshita, popularly known as Sam, started in the grocery business after moving here in 1949. He owned several Washington corner grocery stores.

In 1965, with his partner Tokuki Iwai, he opened the Mikado Japanese grocery at 4709 Wisconsin Ave. NW and began operating the Mikado Restaurant next door in 1972.

Mr Kinoshita was born in San Francisco, and grew up in Tottori, Japan. He returned to California as a teenager.

In 1942, he and his family, including his first wife, Masaka Masako, their three children and his wife's father, spent three years in an internment camp in california. Before their release in 1945, a son was born to Mr. Kinoshita and his wife, who died in 1966.

The family then moved to New Jersey, where Mr. Kinoshita worked in a frozen food plant before moving to the Washington area.

Mr. Kinoshita, who lived in Silver Spring, was a member of the Japanese-American and the Washington Grocers associations.

Survivors include his wife, Toshiko of the home; two daughters, Reiko Kozuma, of Costa Mesa, Calif., and Sumie Kinoshita, of Laurel; two sons, Richard Kazuo, of Arlington, and George Kinoshita, of Rockville; a half brother Tomio, and a half-sister, Toshiko Makino, both of Tokyo, and five grandchildren. CAPTION: Picture, SAKAYE S. KINOSHITA