The management of Specialty Restaurant highlighted that (1) underlying positive sentiments have not yet translated into higher discretionary spends – weekday demand and corporate spends still remain a challenge, and (2) while food inflation has tapered down, it has not yet reflected in higher GMs due to existing vendor contracts (generally 6-9 months); renegotiations are underway and new contracts are likely to be signed at lower prices.
Specialty Restaurant is focusing on two key areas of growth ahead – (1) focus on brand refresh in key formats, i.e. expansion of Mainland China Asia Kitchen (pan Asian cuisine) and conversion of Machaan/ Flame & Grill to Sigree Global Grill, which enjoy better churn rate, and (2) expansion of youth-focused formats like Café Mezzuna and Hoppipola.
