27th January 2023 – (Tokyo) When Tam Jai International Co. Limited which operates TamJai SamGor noodle shops in Hong Kong decided to open a new branch in Shinjuku, Japan last year and it attracted many new customers. However, shortly after 1 year, the group announced that the branch would be closed from 1st February to undergo renovation and it is expected to resume business at the end of February. Meanwhile, 20% discount coupons will be distributed to customers to dine at the other two branches in Tokyo from the 25th to the 31st of this month. The exact date of reopening will be announced in due course.
According to the group’s previous plan, it will open 25 restaurants in Tokyo, Japan by the end of March 2024. It is estimated that each new restaurant will cost an average of HK$5.9 million to renovate including rental deposit.
However, the group pointed out during the announcement of interim results at the end of September last year that it has slowed down the pace of business expansion in Japan, including delaying the expansion of the central kitchen and is working hard to improve to make the business profitable. The group pointed out that recruitment costs unexpectedly increased. The delayed opening of restaurants also caused capital expenditures and upfront spendings to be higher than expected. The revenue performance in Japan in the last half fiscal year was also hit by the COVID-19 epidemic in Tokyo. However, the group pointed out that it will maintain the pace of recruitment and marketing to increase brand awareness as it is still optimistic about Japan’s long-term market potential.