Expansion has helped restaurant group Fulum Group Holdings grow its revenue during the past fiscal year by 9.7 per cent to HK$2.7733 billion (US$357.4 million).
Its Fulum Concept restaurant revenue ballooned by 58.8 per cent to HK$273.1 million.
However, “high-magnitude” costs including rent, labour, food, ingredients and utilities whittled away profit attributable to shareholders by 36.7 per cent to HK$101.4 million. Profit was also hit by China’s economic downturn and “significant” drops in consumer sentiment and tourist numbers.
During the year, the group continued its aggressive expansion strategy by establishing more restaurants and diversifying restaurant themes. It developed more restaurants under the Fulum Concept, including MeokBang Korean BBQ & Bar, Mount Hallasan BBQ (Korean Jeju cuisine) and Winter Yutango Restaurant (specialising in grilled fish). This concept responds to the limited availability of prime restaurant spaces and attracts more young customers, says the group.
Specialising in wedding banquets, Royal One was launched under the Fulum main brand, and the flagship Sportful Garden restaurant was opened in iSquare, in Tsim Sha Tsui.
Fulum says it is still confident in the long-term prospects of the catering market.
During the year, 15 restaurants were opened in Hong Kong, bringing its total to 74.

China expansion
For mainland China, the group opened two more Fulum Palace restaurants, in Zhuhai and Fuzhou, adding to its first outlet which opened in Guangzhou last year. The restaurants are all in residential areas to provide mass catering services to meet the demand for Chinese cuisine and wedding venues.

Back in Hong Kong, a customer loyalty membership program was launched in June, being tested in Sportful Garden restaurants. It has about 19,700 members.
During the ensuing year, the group plans to open four Fulum, one Sportful Garden and seven Fulum Concept restaurants, with a focus on the MeokBang Korean BBQ & Bar brand.
With more commercial property on the market in Hong Kong, the group says it has more alternatives for opening restaurants in favourable locations at lower rental rates.
As well as its self-owned brands, the group introduces foreign brands into Hong Kong by way of franchise.
For the mainland, the group’s future growth strategy will be based in Guangdong province and gradually developed in the major cities. Two more Fulum Palace restaurants are planned for China.
“We will continue to adhere to the spirit of ‘The Rationale of Three Excellences — Excellent Environment, Excellent Supply, Excellent Service’ in order to provide the public with better dining experiences,” says chairman/CEO Yeung Wai.
Fulum Group launched in Tai Kok Tsui with Fulum Hotpot Restaurant in 1992. It now has 20 brands and 80 restaurants offering a variety of cuisines, along with more than 5000 full-time employees.