Ippudo Catering plans new Japanese restaurant
> If this latest concept works, we can see a lot of export potential into other markets, says director
KUALA LUMPUR: Ippudo Catering Sdn Bhd, the joint venture (JV) company that operates Japanese ramen chain Ippudo in Malaysia, plans to open a new brand of Japanese restaurant by the second quarter of this year.
Its regional director Ng Yin Ching ( pix) told SunBiz there is a market for the “new concept” eatery that it is working on and that it would like to test it here.
“It’s a new concept. If this concept works, we see a lot of export potential into other markets, even to existing markets like Thailand and Indonesia. We’re trying to tie up with some of the key suppliers and locations that will suit what we have in mind,” she said in an interview recently, without disclosing further details.
The company remains upbeat on its Ippudo ramen restaurant and plans to open one to two more Ippudo outlets this year in Malaysia. It usually spends RM2 million to RM3 million per outlet depending on size, location and concept.
There are currently three Ippudo outlets in Kuala Lumpur, which are located in Pavilion (its first outlet opened in 2013), The Gardens Mall and Bangsar Shopping Centre.
“Our plan was (to open) five stores in Malaysia in five years but we’re faster than the original plan. Our initial plan was to open one outlet a year but within one year we had three stores because the locations were available.
“It all boils down to market readiness as well. This year with GST (Goods and Services Tax) coming into effect we’re also more cautious with how the market will be. It’s also about (choosing) the right location at the right time,” said Ng.
Ippudo opened its doors in 1985 in Japan’s ramen capital of Hakata and became an instant success. It is widely known for its innovative take on the traditional ramen dish.
Ippudo was founded by Shigemi Kawahara, the founder and president of Chikaranomoto Holdings Co Ltd, Ippudo’s parent company that runs ramen restaurants and bakeries in Japan. Today, there are over 70 Ippudo restaurants in Japan, and over 40 internationally.
Ippudo Catering is a 50:50 JV company between Chikaranamoto Holdings and Calibre Wealth Management Sdn Bhd, a private investment company related to the Tan Chong family. For now, Calibre only has Ippudo under its portfolio.
“We’re a JV because they (the Japanese) find it easier to control the brand, its quality and what’s served. With a licence or a typical franchise, it is sometimes hard to control what your franchisees do in each country so the JV partnership actually works better. For key decisions, we have to make jointly,” said Ng, adding that there is no plan to grow Ippudo via a franchise model.
Ippudo Catering also operates the Ippudo ramen chain in Indonesia and Thailand under subsidiaries PT Ippudo Catering Indonesia and Ippudo Thailand Limited respectively. It opened its first Ippudo outlet in Thailand in August 2014, and its first in Indonesia a month later.
“We’re always looking for good locations. If we can find good locations, we hope to open two to three in each country, excluding Malaysia, in 2015,” said Ng.
Expansion is mostly funded via internal resources and bank loans.
“If we want to expand, definitely we need more funds. Each store is profitable so it is helping to fund expansion. We hope to break even for all stores in less than two years.”
Ng said Ippudo is a slight premium chain catering to the non-Muslim market, targeting young professionals and trendsetters. It differentiates itself in terms of the quality of the food, service and ambience.
It was reported that Cool Japan Fund, financed mostly by Japan’s government, will inject ¥700 million (RM21.6 million) into the Fukuoka-based Chikaranomoto Holdings to set up premium outlets in Europe and the United States.