Dishing it up
Tsui Wah Holdings Ltd said in a statement that for the year ended March 31, 2015, the company opened 10 new restaurants in total across Hong Kong and the mainland, as compared to nine in the year ended March 31, 2014.
The four new restaurants it opened in Hong Kong include branches in Tuen Mun, Causeway Bay and Tsim Sha Tsui.
On the mainland, the company has opened four new restaurants in Shanghai (Hongkou district and Pudong New Area) and one each in Jianghan district of Wuhan and Nanshan district of Shenzhen.
Lee Yuen-hong, chairman of Tsui Wah Holdings, told China Daily that his target is to operate over 80 restaurants before 2017.
Aside from Hong Kong, Tsui Wah plans to open more restaurants in southern and eastern mainland provinces.
According to local news reports, Tsui Wah plans to invest around HK$100 million to open 15 new restaurants in Hong Kong and on the mainland this year.
For the year ended March 31, 2015, the company recorded a profit attributable to owners of the company of HK$157.41 million, an increase of 0.9 percent from the HK$156 million it recorded in the same period a year ago.
Company revenue increased by 22.2 percent from HK$1.47 billion a year ago to HK$1.8 billion.
The increase was mainly attributable to the strong growth in restaurant sales due to the quality food offered, the opening of new branches and introduction of new items to the company menu from time to time, Tsui Wah said in a statement.
Revenue generated during the period in Hong Kong was HK$1.2 billion, a rise of 14.6 percent from a year ago, while revenue generated on the mainland was HK$ 522.2 million, representing year-on-year growth of 46.9 percent.
The company’s staff costs increased by 22.3 percent from a year ago to HK$483.3 million, the increase attributable to the general increase in labor costs in the food and catering sector in recent years and staff recruitment for the newly opened restaurants.
As of now, the Tsui Wah group employs about 4,000 people, according to Lee.
For the year ended March 31, 2015, the company’s property rentals and related expenses rose to HK$278.5 million, an increase of HK$68.7 million, or 32.7 percent, from HK$209.8 million the previous financial year.
The uptick was primarily due to new restaurant premises leased during the year, and increase in rent during lease renewal.
In order to realize better control of property rentals and related expenses, the company has entered into long- term rental agreements with its landlords so as to maintain rentals at a reasonable level.
Lee Yuen-hong says the Tsui Wah Restaurant chain tasted success with its very first branch in Shanghai because the company put a lot of thought into ways to draw mainland diners instead of blindly replicating the Hong Kong model.