The Limited Times

Now you can see non-English news...

Café de Coral announced a price increase! CEO Luo Cheng: The increase in operating costs is inevitable

2022-11-28T09:57:06.362Z


Café de Coral (0341) announced its interim results today. The management stated that due to the continuous epidemic and rising operating costs, the outlook for the catering industry is still challenging.


Café de Coral (0341) announced its interim results today. The management stated that due to the continuous epidemic and rising operating costs, the outlook for the catering industry is still challenging. "In the past", but in order to cope with the pressure of rising costs, it is inevitable to increase the price.


CEO Rod Cheng said at the performance press conference that the group's operating costs, such as ingredients, electricity, transportation, and human resources, are under upward pressure. It is inevitable that prices will be increased to offset the increase in costs. The average increase is expected to reach 1 yuan.

However, he also pointed out that there will be no one-size-fits-all price increase, and the acceptance of the public must be considered. Through the introduction of new products, new menus, membership promotion programs, etc., the menu prices will be divided into three levels: high, medium, and low, ranging from 30 yuan to 60 yuan. To attract different sources of customers and increase per capita consumption; it will also streamline processes, improve efficiency, and reduce the loss rate of food materials, etc., to reduce the pressure of price increases and control the level of gross profit margins.

Performance is expected to improve significantly in the first half of next year

He reiterated that he will not do nothing, but only increase the price to solve it.

The current per capita consumption exceeds 40 yuan.

The group earned more than 100 million yuan in the first half of the year, but if the government subsidies are deducted, the net profit has dropped by more than ten percent year-on-year.

He pointed out that the fifth wave of the epidemic is different from the fourth wave. After the fourth wave of the epidemic is over, the government relaxes the epidemic prevention measures, and citizens have retaliatory consumption, while the fifth wave does not.

However, Luo believes that the consumption atmosphere in the second half of the year will not be good, the stock market will fluctuate greatly, and the economic outlook will be weak. Business is still sluggish. Coupled with the impact of the World Cup, although the government has relaxed the operating hours of the catering industry, it has not played a leading role. Casual catering has been greatly affected.

He estimates that the performance will not improve significantly until the first or even the second quarter of next year at the earliest.

In terms of rent, he pointed out that landlords generally expect the relaxation of epidemic prevention measures and the business environment will improve. If they renew their long-term leases, the landlords expect the rent to increase. On the contrary, if they are willing to renew their short-term leases, there is room for downward adjustment.

The group has opened 14 new stores in Shangwei, and there are still 3 stores under preparation. In the face of manpower shortage and other circumstances, the pace of store opening will be cautious.

CEO Rod Cheng (right) said at the performance press conference that the group's operating costs, such as food materials, electricity, transportation, and human resources, are under upward pressure, and it is inevitable that prices will be increased to offset the increase in costs. The average increase is expected to reach 1 yuan .

(Photo by Xu Shihao)

Guangzhou business affected by lockdown measures

In the mainland, recently affected by the epidemic in Guangzhou, only takeaways are available, accounting for about 1/5 of the group’s branches in the mainland. Therefore, the business in the mainland has been affected to a certain extent. Referring to Hong Kong, we will adjust the menu and focus on takeaways to reduce operating expenses.

He also pointed out that in the first half of the year, 13 branches will be opened in the mainland, and 8 more will be opened in the second half of the year. He is optimistic about the prospects of the Greater Bay Area, but under the influence of the epidemic, the opening time of some branches will be postponed.

Café de Coral's mid-term profit rose by more than 30% to 108 million and revenue remained flat on Double 11 | Café de Coral's 2-person meal 1.1 discount and side stove $7.4 pneumonia funding

Source: hk1

All news articles on 2022-11-28

You may like

News/Politics 2024-02-06T15:42:15.324Z
News/Politics 2024-02-21T16:16:31.105Z

Trends 24h

News/Politics 2024-03-28T06:04:53.137Z

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.