No thanks to stores shutting down.
Japan Foods turned sour after its profits fell 19.9% from $1.3m to $1m, according to a KGI report.
Japan Foods’ revenue also dropped 3.8% from $16.8m to $16.2m.
Lower sales resulted from stores that closed due to lease expiry. These stores are mostly under Japan Foods’ non-core brands in Plaza Singapura.
However, its key brands Ajisen Ramen and Menya Musashi continued to grow revenue from new restaurant openings. One Menya Musashi outlet was added during the quarter.
Japan Foods also added a new restaurant brand to its menu, Shitamachi Tendon Akimitsu (Tendon), which was also located in Plaza Singapura.
KGI analyst Colin Tan commented, “The restaurant offers specialty tendon rice set that could complement menu offerings from other restaurant brands under Japan Foods, allowing a rejuvenation of menu for some of its 45 food outlets which could lead to sales improvement. Shitamachi Tendon has received positive reviews from food blogs and we can expect this newest addition to perform well ahead.”
The company expressed intent to grow in Thailand and Indonesian markets, although it has not given out a timeline yet to concretize its plans.
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