Mos Burger Taiwan, a cooperative venture between Japan-based Mos Food Services Inc and Taiwan's Teco Electric & Machinery Co (
"We plan to have 66 Mos Burger outlets [in Taiwan] this year and to reach 100 stores next year," said Theodore Huang (
Well-known for rice burgers -- which sandwiches a patty of meat between two rice cakes -- Mos Burger currently runs 51 stores around Taiwan and reported NT$550 million in sales last year, of which rice burgers account for some 20 percent of total sales.
With a personal enthusiasm for food, Huang introduced the Japanese brand to Taiwan in 1991 and formed an alliance in which Teco owns a 65 percent stake.
"Originally, I just tried to find some food suppliers for Teco's company cafeteria, then later I decided to officially introduce Mos Burger to Taiwan, since it is really nice," Huang said.
The company has allocated over NT$100 million for expansion plans and is targeting NT$700 million in sales this year, according to Amin Yuan (
One market watcher said the company's plan is on the right track, saying now may be a good time for expansion.
"With many landlords cutting rents in the wake of the SARS outbreak, the cost of setting up new stores is relatively low recently," said Shirley Huang (黃淑麗), secretary general of the Taiwan Chain Stores and Franchise Association.
In addition, since many money-losing restaurants were forced to shut down because of the impact of SARS, it is easier to find good locations, she said.
Rent accounts for 10 to 15 percent of each Mos Burger store's operational costs, Yuan said.
However, the market size for Mos Burger may be limited.
"The average prices of Mos Burger products are higher [than many other fast foods]," Shirley Huang said.
Therefore, Mos Burger stores can be sustained only in metropolitan areas where working people can afford their meals, she added.
More than 85 percent, or 44 out of the 51 stores Mos Burger currently has, are located in the Greater Taipei area. Some 70 percent of Mos Burger customers are female, drawn in by low-fat meals in a homey atmosphere.
But a slow economy and market saturation is undermining the local fast-food market.
"Over these two years, most chain stores have slowed down their expansion plans," Shirley Huang said.
Last November, McDonald's Taiwan closed 15 unprofitable stores and laid off 390 employees. The fast-food giant still has 349 stores in operation.
"Rather than increasing store numbers, this year we are focusing on upgrading customer brand loyalty," said Shalom Chen (
McDonald's is slated to launch a global campaign in next month to create a new brand image.
"This will be a very different move," Chen said.
McDonald's Taiwan reported NT$13 billion in sales in 2001, with last year's sales being described as flat.
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