Competition cramps Country Style
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Country Style Cooking Restaurant Chain, a quick service restaurant operator in China, says sales fell in the third quarter, despite the opening of 10 new outlets.
In the three months to September 30, the company expanded its network to 355 restaurants,a net 23 more than a year ago. The new openings included six under the brand name Mr Rice.
Country Style Cooking said it currently anticipates its revenue for the third quarter of 2015 to be about RMB388 million (US$61 million), compared to RMB409.1 million (US$64 million) in the same quarter of 2014.
“The lower-than-expected revenue was mainly due to the intensified competition, which also negatively impacted the company’s quarterly same store sales,” it said in a statement.
It plans to report its third quarter 2015 results in mid-November.
Country Style directly operates all of its restaurants under brands of CSC and Mr. Rice and is the largest quick service restaurant chain in Chongqing municipality, the home of Sichuan cuisine.
Questions & Answers
Q.What was the main reason cited for Country Style Cooking's lower-than-expected revenue in the third quarter?
What was the main reason cited for Country Style Cooking's lower-than-expected revenue in the third quarter?
The company stated that intensified competition was the primary cause for its revenue shortfall. This competition also had a negative impact on its quarterly same-store sales performance.
Q.How many new restaurants did Country Style Cooking open in the third quarter?
How many new restaurants did Country Style Cooking open in the third quarter?
In the third quarter, Country Style Cooking opened 10 new outlets. Six of these new locations were operating under their Mr Rice brand name.
Q.Did the total number of Country Style Cooking restaurants increase over the last year?
Did the total number of Country Style Cooking restaurants increase over the last year?
Yes, the company expanded its network to 355 restaurants by September 30. This represents a net increase of 23 more restaurants compared to a year ago.
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