Wowprime Corp (王品) last week reported that its net income for the first half of this year rose 61.4 percent annually, due mainly to its multi-brand strategy, although sales fell 3.2 percent over the period.
The restaurant chain operator’s net income for the January-to-June period reached NT$267.4 million (US$8.85 million), with earnings per share increasing from NT$2.15 a year earlier to NT$3.47, the company said on Thursday.
Sales over the period totaled NT$7.88 billion, with revenue from Taiwan-based outlets falling 6.5 percent to NT$4.51 billion and sales from Chinese outlets rising 1.5 percent to NT$3.37 billion, the company said.
The firm attributed the decline in revenue to fewer stores in Taiwan, saying that it has been working on a restructuring plan since 2015 to ensure profitability.
Wowprime, which operates 20 restaurant chains, led by Wang Steak (王品台塑牛排) and Tasty (西堤), this year launched three new brands to attract younger customers: CooK BEEF (酷必), Ma Lao Da (麻佬大) and Zha Beef (乍牛), after closing 28 stores in Taiwan last year.
Company chairman Park Chen (陳正輝) aims to change the firm’s focus from high-priced restaurants to mid-range eateries.
The CooK BEEF brand features fusion cuisine with affordable prices, while Ma Lao Da offers spicy luwei (滷味), a popular Taiwanese street food made of meat and vegetables boiled in a broth.
Customer expenditure at Ma Lao Da is expected to be no more than NT$200 per person, the lowest among the firm’s brands, Wowprime said, adding that the new brand marks its efforts to step into Taiwan’s takeaway market.
Same-store sales in Ma Lao Da are likely to reach between NT$1.6 million and NT$1.8 million per month, Wowprime said.
The company said it plans to launch another brand in Taiwan by the end of this year.
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