Revenue grows for Fairwood Holdings
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Revenue grew 6.8 per cent for fast-food company Fairwood Holdings in its six months to the end of September.
Fairwood’s positive result coincides with a strong performance from rival corporate restaurateur Cafe de Coral reported earlier this week.
Fairwood’s interim results show revenue reaching HK$1.257 billion (US$162 million) compared with HK$1.176 billion for the corresponding period last year. Profit attributable to equity shareholders increased by 1.8 per cent to HK$103.8 million.
Executive chairman Dennis Lo says the company has focussed on “elevating every aspect of the customer experience” while maintaining a happy culture for its staff members.
“All of these have been the key in fuelling our satisfactory organic growth and driving the dynamism of our brand.”
He says the Hong Kong restaurant business performed exceptionally, with revenue growing by 8.7 per cent. In response to customer support, the group opened seven more stores in Hong Kong during the review period.
The group has also enhanced its signature products, launched new and seasonal dishes, and offered table service for dinner in all stores. “The service has set a new standard for the fast-food industry, and has been very well-received by the public,” says Lo.
There are also plans to expand its specialty restaurant segment, including a second branch of its new Japanese-Western restaurant ASAP.
“elevating every aspect of the customer experience”
Automation expanded
To manage costs and improve efficiency the group has engaged in global sourcing, menu and production planning, and flexible work scheduling. It has also expanded the automation of its central food-processing plant.
Despite a challenging business environment, profitability was maintained in China, with a store opening in Guangzhou during the first half. Expansion will be focussed on the residential districts of Guangzhou and Shenzhen.
“Connecting to senior citizens has always been an integral part of our corporate culture,” says Lo. “To show our appreciation toward senior citizens for their past contribution to society, we have issued more than 50,000 discount cards since 2014 as part of our Care for Seniors program, together with many other initiatives.”
To address the needs of senior citizens as well as the physically challenged, Fairwood has created stores that address their needs by offering priority seating, stick hooks, handrails in toilets and non-glare menu boards.
“Aside from treating customers well, Fairwood believes it is equally important to foster a happy work environment,” says Lo. The group has established focus groups to collect staff members’ opinions and feedback, and offered customer-centric training programs, advancement opportunities and team-building activities. “Such efforts have contributed toward achieving higher staff retention across all levels.”
At the end of September, the group had 128 stores in Hong Kong, including 121 fast-food outlets and seven specialty restaurants, plus 10 stores in China.
Questions & Answers
Q.What initiatives did Fairwood Holdings implement to improve customer experience and drive growth?
What initiatives did Fairwood Holdings implement to improve customer experience and drive growth?
The group enhanced signature products, launched new dishes, and offered dinner table service in all stores. They also opened seven new stores in Hong Kong and expanded their specialty restaurant segment, including a new Japanese-Western restaurant.
Q.How did Fairwood Holdings manage costs and improve efficiency during the review period?
How did Fairwood Holdings manage costs and improve efficiency during the review period?
They engaged in global sourcing, menu and production planning, and flexible work scheduling. The company also expanded the automation of its central food-processing plant to improve operational efficiency.
Q.Where does Fairwood Holdings plan to expand its operations in mainland China?
Where does Fairwood Holdings plan to expand its operations in mainland China?
Expansion will be focused on the residential districts of Guangzhou and Shenzhen. The company opened one store in Guangzhou during the first half of the reporting period.
Q.What measures has Fairwood Holdings taken to support its staff members?
What measures has Fairwood Holdings taken to support its staff members?
The group established focus groups for staff feedback, offered customer-centric training, provided advancement opportunities, and organised team-building activities. These efforts aim to achieve higher staff retention across all levels.
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