KUALA LUMPUR: Sushi King owner and operator Texchem Resources Bhd expects its restaurant division to benefit from Malaysia's economic recovery and opening of international borders this year.
Executive chairman Tan Sri Fumihiko Konishi said the Sushi King Group's operations had been leaner with a healthier cost structure and higher operational efficiency.
Konishi said this would translate into a positive impact on Texchem's financial performance as demand for dine-in at its existing restaurant outlets had rebounded after the easing of movement control order restrictions.
"Moreover, the opening of international borders will continue to spur demand as tourist arrivals in Malaysia will benefit the food and beverages (F&B) retail industry," he said in a statement.
Konishi said the company would focus on opening additional outlets that feature different concepts such as Sushi King kiosk and Sushi King satellite outlets that serve takeaway sushi.
As these outlets would be strategically located at new locations with high footfall, he said the company was able to target a larger customer base while leveraging on Sushi King's existing kitchen facilities in the nearby restaurants.
"The company's first Sushi King kiosk opened at a petrol station in Subang Jaya, Selangor has been well-accepted by customers.
"Texchem will replicate this model and identify new locations at other petrol stations, hospitals and supermarkets to open new Sushi King kiosks and satellite outlets," he said, adding that the new concept outlets required much lower capital expenditure and shorter time to launch.
Konishi said Texchem had allocated about RM10.0 million for new outlet openings in the current financial year 2022, including up to 20 kiosks.
In terms of opening new restaurant outlets, he said the company would be selective and prudent in the deployment of its resources.
"Our key focal point is on increasing the profitability at our restaurant division while at the same time maintaining its competitive edge and market presence.
"In view of the economic recovery, internal streamlining of operations and introduction of new concept outlets, we are confident that our restaurant division will perform well this year," he added.
On the corporate front, Texchem has completed the acquisition of an additional 28.00 per cent stake in Sushi King Group for RM102.2 million, increasing its stake to 98.35 per cent from 70.35 per cent.
The company now has control on the strategic direction and decision of the Sushi King business.