Date
23 July 2017
Tsui Wah chairman Lee Yuen-hong (center) says a price increase is necessary to enable the restaurant chain to maintain food quality. Photo: HKEJ
Tsui Wah chairman Lee Yuen-hong (center) says a price increase is necessary to enable the restaurant chain to maintain food quality. Photo: HKEJ

Tsui Wah seeks expansion despite rising rental costs

Hong Kong restaurant chain Tsui Wah Holdings Ltd. (01314.HK) is planning to expand to achieve economies of scale despite mounting rental costs.

The group will speed up plans to open new restaurants in the next two years, according to the Hong Kong Economic Journal.

That pace will go up to 12-15 new outlets a year from 10.

Tsui Wah is aiming for 80 restaurants in the Greater China region by 2017 compared with 51 at present.

It launched 10 new stores in Hong Kong and mainland China in the year to March.

Rent costs and related expenses rose 32.7 percent during the period, mainly from increased lease and rental costs.

Meanwhile, it is raising menu prices to offset rising costs.

The increase is between 1 percent and 3 percent.

A cup of hot milk tea now costs HK$21 (US$1.29), up 10 percent.

Chairman Lee Yuen-hong said the price hike is necessary to enable Tsui Wah to maintain its food quality.

Translation by Vey Wong

[Chinese version中文版]

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Hong Kong Economic Journal

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