The Chinese locations of Singapore-based seafood restaurant chain Jumbo Seafood have continued to struggle financially, leading the company to shift plans for growth back to its domestic market of Southeast Asia.
According to the chain’s most recent financial results, which cover the full year ending 30 September 2024, Jumbo Seafood Group’s revenues from its mainland China operations fell by 27.6 percent year over year, dropping by SGD 7.2 million (USD 5.3 million, EUR 5.1 million) to SGD 18.9 million (USD 13.8 million, EUR 13.4 million).
Though Jumbo, which mainly caters to the more affluent sector of the consumer market, has struggled in China, the firm still reported record revenue of over SGD 190 million (USD 141 million, EUR 135 million) in the full-year period, compared to SGD 179 million (USD 132 million, EUR 127 million) reported in the same period in 2023.
“The increase was mainly due to the recovery in business, social events, and tourism from our Singapore operations,” the firm said in the report. “Revenue from our Singapore operations increased by SGD 18.7 million [USD 13.8, EUR 13.2 million] to SGD 167.1 million [USD 123.6 million, EUR 118.6 million] for the financial year ending 30 September 2024.”
Due to the positive sales in Singapore, Jumbo told investors it will “strengthen its focus on the domestic market” and suggested local demand and tourism were both “poised for sustained growth.”
Internationally, Jumbo plans to move forward more pointedly with its goal to expand into new markets across Southeast Asia, according to its earnings statement. The statement includes no mention of any plans to add more stores in China, potentially signaling a departure from the chain’s belief that China presented big opportunities for growth, which it maintained well into 2024.
Jumbo is not the only seafood chain that has had its growth stymied in China. Grilled fish chain Tai Er has curtailed plans for Chinese expansion as its profit dropped over 70 percent in the first half of 2024.
“In consideration of the changes in the external environment, looking ahead, the group will adopt a more prudent restaurant network expansion strategy and adjust its expansion target for 2024,” the chain said in October 2024.
