Restaurant chain operator Wowprime Corp (王品集團) aims to have its cafe chain Famonn Coffee (曼咖啡) break even this year in expectation that its average customer spending will grow at least 20 percent after a revamp in store renovation and menus.
Wowprime — which operated 15 restaurant chains and 430 outlets in Taiwan and China as of the end of last month — plans to focus on improving the business model of its cafe brand this year, instead of store expansion.
Famonn Coffee, which currently has nine outlets across the nation, has faced some challenges in brand positioning since its launch in 2011, making it difficult to expand rapidly to reach economies of scale.
The chain yesterday unveiled its new business model and menu, targeting a transformation into an “all-day brunch” restaurant with average customer spending at NT$300 (US$9.45), compared with the range of between NT$220 and NT$250 previously.
After spending more than NT$10 million on store renovations, Famonn Coffee has started trial operation of its new store model and menu in its outlet on Taipei’s Guangfu N Road.
“Over the next three to six months, the company might further renovate other existing outlets to the new style,” Famonn Coffee director Patrick Chen (陳斯重) told a media briefing.
Under the rising pace of average customer spending, Wowprime might see Famonn Coffee’s total revenue reach NT$200 million this year from NT$130 million last year, said Chen, who used to be general manager of the century-old French bakery chain Paul’s operations in Taiwan.
According to the new business model, Famonn Coffee aims to raise its total outlets to 18 in three years, with department stores and shopping centers the preferred locations for expansion, Chen added.
Wowprime had consolidated sales of NT$1.38 billion last month, down 6.18 percent from the same period last year, an indication that food safety issues were still negatively affecting the company’s business, a company statement said.
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