Business has slowed for fast-casual restaurant company Ajisen China Holdings, which runs Ajisen Ramen outlets in Hong Kong and China.
Same-store sales in Hong Kong slipped 5.1 per cent in the quarter to March 31, compared with the same period last year.
Business also stalled in China, where a new tax regime took effect on May 1 affecting the way same-store sales growth is reported with business tax being replaced by VAT. This means business sales fell 8.1 per cent for the quarter, while the gross rate drop was 0.5 per cent, and the net rate (less VAT) fell 6.3 per cent.
A subsidiary of Favour Choice, Ajisen China has a network of nearly 700 restaurants.
