It’s capturing China’s palate faster than expected.
It seems like the giant red dragon’s tastebuds are catching on to Jumbo’s chilli crab recipe faster than analysts anticipated as a report suggested a faster turnaround for new China outlets.
According to analysts from Maybank Kim Eng, Raffles City Shanghai’s start-up costs could be lower than expected, and IFC mall could break even sooner, as it will open in time for Chinese New Year.
Meanwhile, analysts are so upbeat about Jumbo’s China business that they are suggesting the possibility of Chinese contributions equalling Singapore’s.
“Jumbo is tapping growing Chinese wealth and hunger for new dining concepts. It has three outlets in Shanghai and believes the market can easily support 10. Assuming SGD10m revenue per outlet pa, China could eventually be a SGD100m market for Jumbo, equalling Singapore’s current contribution, with better margins to boot,” Maybank Kim Eng said.
Additionally, Maybank says there remains room for growth in Jumbo’s Singapore business.
“Jumbo may introduce an innovative lunch menu featuring its signature dishes to increase daytime business. Right now, most of its business is at night. It hopes that its new menu would attract more corporate clients during the day. In addition, we believe there is an opportunity to add space at its Riverside outlet by taking over adjacent space,” Maybank Kim Eng said.
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