Cafe de Coral expects to report lower net profit for the six months ended September 30 due to a “severe and expected downturn” amid a weakened economy.
The restaurant chain forecasts net profit to decline not higher by 30 per cent from HK$200.6 million (US$25.8 million) in the year-ago period, due to the plunge in the restaurant business and a high-base effect following strong sales recovery when the pandemic-related restrictions were lifted.
In Hong Kong, the company focused on value offers, menu mix, hero product promotions, and membership loyalty strategies to create demand and help offset decline.
In Mainland China, the company implemented quick menu investments, promotional offers, and brand campaigns to keep a stable performance and profit margins.
“With the central government’s determined efforts to promote recovery of the economy, as well as our strong underlying business fundamentals and steady focus on constant internal improvement, the group is well positioned to return to growth as the market recovers,” said the company.
