In a recently released financial report filed to the Singaporean stock exchange, restaurant operator Jumbo Group, which owns restaurants across Asia, including over 20 outlets of Jumbo Seafood, announced its revenue fell 10.6 percent year over year in the six months to the end of March 2025.
The company attributed the drop in the first half of its 2025 fiscal year to higher raw material prices, as well as consumer anxiety caused by global trade disruptions.
Jumbo’s revenues from its Singaporean outlets fell 1.1 percent year over year in the period to SGD 84.4 million (USD 65.5 million, EUR 57.5 million). Revenues from Jumbo’s Chinese outlets fell 2.5 percent year over year to SGD 9.6 million (USD 7.5 million, EUR 6.5 million) from “weak consumer confidence and cautious spending” in the country.
Jumbo’s Chinese operations have been struggling for a while, but its domestic Singaporean operations had been performing positively until this year’s downturn.
“In Singapore, the group’s performance reflects heightened competition within the local food and beverage sector but was cushioned by the growth in tourism,” Jumbo said in its financial report. “Although tourism has recovered significantly from pandemic lows, recent trends indicate a moderation in visitor arrivals and tourist spending. Against this backdrop, Jumbo continues to strengthen its market position by aligning with evolving consumer preferences and enhancing its value proposition within Singapore’s competitive dining landscape.”
With the Singaporean economy in general in danger of a technical recession due to tariff concerns, Jumbo may have to hold off on further expansion plans it had both for Singapore and the wider Southeast Asian region.
“Barring any unforeseen circumstances, the group maintains a cautious outlook over the next 12 months and remains committed [to] sustainable growth,” Jumbo said.
Other competitors in the Asian restaurant industry have also had to employ more cautious strategies when it comes to growth.
Jiumaojiu International Holdings, which operates the quick-service Tai Er fish soup restaurant chain, laid out ambitious plans in early 2024 for expansion both within China and abroad.
Just a few months later, the restaurant operator curtailed those plans and announced a more modest approach toward expansion in similar fashion to Jumbo.
“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,” Jiumaojiu said last year.
