Quick-service restaurant chain Hop Hing Group Holdings expects an increase of “not less than 50 per cent” in its consolidated profit for the six months ended June 30 compared to the same period last year.
The group runs the Dairy Queen and Yoshinoya franchises in China. As of December 31, there were 303 Yoshinoya and 142 Dairy Queen stores, and 10 others.
This was despite the business environment remaining challenging, says the group in announcing its interim results.
Factors impacting on the catering industry in China last year included a sluggish economy, changed consumption patterns brought about by the influence of the internet, and “severe” competition in the mid-price and low-end markets, says the group.
To meet the challenge, Hop Hing implemented modified business strategies, among other efforts, which place greater emphasis on the online delivery, as well as building smaller outlets.