Fast-food operator Fairwood pursuing ‘aggressive expansion’
Hong Kong fast-food operator Fairwood Holdings has continued an “aggressive expansion strategy” in the last year, opening 11 new fast-food sites with more under evaluation.
That help boost group sales by 10.1 per cent during the past year, to HK$2.84 billion.
Gross profit margin fell from 15.5 per cent to 14.3 per cent, leaving profit attributable to shareholders at $216.1 million, up 5.3 per cent.
Dennis Lo, Fairwood’s executive chairman, said the company is working to deliver “total dining experiences that exceed customers’ expectations”.
“Taking into account today’s health trends, we have focused on providing “feel good” products and services. This is underscored by the launch of low-sodium menus in line with the World Health Organization’s recommendation of consuming slightly less than one level teaspoon of salt per day – a first in the industry. At the same time, we are very glad that the ‘Feel Good Movement’ has resulted in encouraging comments from patrons and outstanding business performance over the past few years”.
Other initiatives, such as having staff deliver meals to customers’ tables, have proved popular, as has the new generation orange-themed dining interior introduced last year and now implemented in 20 outlets.
Lo says Fairwood has taken measures to ensure customers enjoy the highest-quality cuisine, developing customer-centric menus, upholding food- and service-quality standards, increasing store efficiency and employing global sourcing.
“During the year, the group maintained encouraging financial results with same-store sales increasing year-on-year by approximately 3 per cent, reflecting healthy and sustainable organic growth.”
Mainland China alignment
He said by aligning the group’s Mainland China business with Hong Kong’s “Feel Good Movement”, the business has been able to achieve same-store sales growth of 13 per cent.
“This encouraging growth was attributable to the group’s ability to select strategic locations in the residential districts of Guangzhou and Shenzhen, as well as a decision to capitalise on the strong demand for food delivery by forging ties with two of the largest food delivery service providers in the country. At the same time, the group has aligned local operations with their Hong Kong counterpart, including standards for food quality and service. The group remains cautiously optimistic about its business prospects and will expand our presence correspondingly.”
Lo said that during the coming year, the company will seek to further bolster its core business, placing particular focus on expanding its presence in Hong Kong.