Texchem investing RM10mil to set up new outlets

Texchem Resources chairman Fumihiko Konishi

GEORGE TOWN: Texchem Resources Bhd will invest RM10mil this year to set up new Sushi King outlets that include kiosks.

“We plan to open 20 kiosks that include satellite outlets serving takeaway dishes.

“The target is to open the kiosks and satellite outlets at petrol stations, hospitals, and supermarkets.

“We recently opened the first Sushi King kiosk at a petrol station in Subang Jaya, and customers have accepted it,” Texchem group executive chairman Tan Sri Fumihiko Konishi said in a statement.

He said this expansion strategy catered to the increasing demand by consumers for takeaway and optimised the current infrastructure the group had established so far, which included an extensive network of kitchen facilities and a membership database to drive sales.

Texchem Sushi King

“Moving forward, the strategy is to open additional outlets that feature different concepts such as Sushi King kiosk and Sushi King satellite outlets that serve takeaway sushi.

“The benefits of these new concept outlets are that they require much lower capital expenditure and shorter time to launch.

“As these outlets will be strategically located at new locations with high footfall, we can target a larger customer base while leveraging on Sushi King’s existing kitchen facilities in the nearby restaurants.

“This will drive incremental revenue without incurring high investment costs,” he added.

Konishi said the group would be selective in opening new restaurant outlets and prudent in deploying its resources.

“Given the economic recovery, internal streamlining of operations and introduction of new concept outlets, we are confident that our restaurant division will perform well this year.

“Our strategy is to drive sales at each outlet by having active seasonal promotions, continuous menu innovation, and enhancing loyalty via membership programmes,” he said.On the corporate front, Texchem has completed the acquisition of an additional 28% equity interest in Sushi King Group for a total cash consideration of RM102.2mil, increasing its stake to 98.35% from 70.35%.

The group now controls the strategic direction and decision of the Sushi King Group’s business.

Texchem strengthened its net cash position to RM95.4mil as of Dec 31, 2021, in contrast to the balance of RM79.0mil in 2020.

“We scaled back on our capital expenditure plan and invested RM10.9mil in financial year 2021 against RM17.9mil in financial year 2020,” he said.