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Japan Foods Holdings expands halal offerings

Samantha Chiew
Samantha Chiew • 3 min read
Japan Foods Holdings expands halal offerings
Japan Food Holdings continues to deliver new offerings with refreshing ideas and concepts. Photo: Samuel Isaac Chua/ The Edge Singapore
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Japanese cuisine, such as ramen, sushi and teppanyaki, is a favourite among Singaporeans. However, the lack of halal options means Muslim diners often miss out. Japan Foods Holding 5OI

(JFH) is addressing this by providing a wide range of halal Japanese dishes.

In a previous interview with The Edge Singapore, executive chairman Takahashi Kenichi, who is also known as the father of ramen in Singapore for bringing the popular Ajisen Ramen brand, said that creating a truly satisfying halal ramen is challenging, especially since the soup base is typically made with pork bones. During the pandemic, when several of the company’s outlets were closed or operating at reduced capacity, the group decided to research and develop halal ramen.

The group retained all its full-time staff throughout this period, with some redirected to work on Kenichi’s goal of launching a halal brand. Kenichi recalls: “We diverted some of our staff’s attention to creating halal versions. We finally succeeded and opened our first halal outlet in November 2020.”

JFH’s first halal brand is Tokyo Shokudo, a ramen chain with 13 outlets across the island as of June 30. The group also operates the halal-certified Kyoto Shokudo Cafe & Udon at VivoCity, offering matcha-infused items alongside udon and desserts. Altogether, the group manages nine halal-concept restaurant brands.

JFH CFO Kenneth Liew says the company repurposed one of its two central kitchens into a halal facility, which now serves over 40 halal restaurants. Expanding into the halal space has benefited JFH, as evident in its FY2024 results. Revenue grew by 10% y-o-y to $86.4 million, though the bottom line recorded a loss of $0.5 million due to significantly higher expenses from enlarged operations. The group plans to improve profitability through network optimisation, same-store performance and overall cost control.

The revenue growth for the period was driven by the continued growth of its halal-concept segment. In its 1QFY2025 update, revenue and net profit after tax grew 2.4% y-o-y to $21.8 million and 7.1% y-o-y to $226,000, respectively. This was mainly thanks to the expansion of its network of operating restaurants from 67 to 83 over the period. The increase is partially offset by lower revenue generated by certain existing outlets.

See also: The age of the tasting menu is coming to an end

The group anticipates a challenging business environment due to economic headwinds and ongoing issues in the food and beverage industry. These challenges include intense competition, a persistent manpower shortage and rising operational costs driven by inflationary pressures.

“Looking ahead, network expansion is likely to be at a more measured pace as we focus on improving profitability by driving the performance of individual restaurants while exercising financial prudence to manage our expenses. While we rejuvenate existing brands, we will continue to innovate and whet diners’ appetite by delivering new offerings with refreshing ideas and concepts,” says Kenichi in the group’s FY2024 results release.

 

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