Mr Onion (天蔥國際), which operates two steak and pasta restaurant chains, yesterday said it is seeking to invest in domestic peers.
The company operates the mid-range Mr Onion (天蔥牛排) brand, with set meals priced at about NT$500, and the upscale Grand Mr Onion (天蔥經典牛排), with prices set at about NT$800.
“We plan to seek suitable investment targets from the domestic restaurant sector through stake acquisitions and cross-shareholdings,” Mr Onion chief strategy officer Chang Kuo-chiang (張國強) told an investors’ conference in Taipei.
“Leveraging our expertise in the sector, we hope to help our partners improve their profitability through resource integration,” Chang said.
However, the company is not necessarily looking to influence the management of its partners, and is not seeking to acquire controlling stakes of more than 50 percent, he said.
Since opening its store in Taipei’s Tianmu (天母) area in 1991, the company’s operation has grown to 32 stores, with most of them in Taiwan and one in Shanghai, China.
Chang said that the company is focusing on improving store sales and profit margins, as opposed to increasing its number of stores or brands.
“The risks of launching and marketing new brands, whether through licensing or in-house development, are immense, therefore we prefer partnerships,” Chang said.
He said that the company has inked a partnership agreement with Australia-based chain restaurant group Taste of Shanghai to introduce a number of Chinese cuisine brands into Taiwan.
In addition, the company is to extend its existing brands with a “premium” sub-brand, targeting the fine-dining market, and an “express” sub-brand for busy shopping center food courts, Chang said.
In the first three quarters of the year, Mr Onion reported net income of NT$34.14 million (US$1.04 million), or NT$2.35 per share, with revenue of NT$684 million.
Last year, the company recorded net profit of NT$85 million and NT$876 million in sales.
The company said rising expenses on wages and equipment, as well as provision requirements for an initial public offering (IPO) have affected its earnings performance this year.
Mr Onion plans to debut its shares on the over-the-counter bourse on Dec. 24 to tap local capital markets. Its shares have been listed on the Taipei Exchange’s (TPEx) Emerging Stock Board since Dec. 27 last year.
The company plans to issue 1.45 million new common shares for its upcoming IPO, with its underwriting price set at NT$65 per share. Its share capital is to increase to 15.98 million shares in total, the company said.
Last month, Mr Onion shares traded at an average price of NT$83.71, with turnover averaging 399,515 shares.
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