Cafe de Coral warns of 30pc slump in profit

June Chen

Hong Kong fast food chain Cafe de Coral (0341) yesterday warned that its interim profit for the six months ended September is expected to fall by up to 30 percent compared to HK$200.6 million last year, amid a weakened economy and increased outbound spending behavior.

The company said it has also taken action to arrest the downturn in business.

In Hong Kong, it focused on value offers, menu mix, hero product promotions as well as membership loyalty strategies and creating demand, which partially off-set sales decline, the company said.

It also enhanced manpower productivity and work efficiency with digitalization and process simplification, it added.

In the mainland, the company emphasized value-for-money through quick menu adjustments, well-received promotional offers and brand campaigns that enabled it to maintain stable performance and profit margins during the difficult period.

In other news, Jollibee Foods Corporation, a Filipino chain of fast-food service companies, said its wholly owned subsidiary, Jollibee Worldwide signed an agreement with Titan Dining for the transfer of ownership and management of the Tim Ho Wan business.

The agreement will transfer 8 percent shares of Tim Ho Wan Holdings to Jollibee Worldwide for around HK$118 million.

Given that the company already held 92 percent of shares of the dim sum restaurant chain, Jollibee Worldwide will own 100 percent of Tim Ho Wan.

Back in 2010, Tim Ho Wan earned its own one Michelin star and was once called the most affordable Michelin-starred restaurant in the world.