Loss-making fast food chain operator Fairwood Holdings is preparing to take on rival Cafe de Coral, which has enjoyed four consecutive years of net profit growth. To boost sales, Fairwood executive director Raymond Chan Chee-shing said the company planned to add six to eight new outlets in Hong Kong this year and two or three in Shenzhen. The firm would also renovate all existing stores in the next two years and enhance turnover by introducing new services such as home delivery, Mr Chan said. The company also plans to follow in Cafe de Coral Holding's footsteps by bringing more high-end food such as shark fin and snails on to its menu. '[With such measures] we aim to increase our average spending per customer to a level similar to Cafe de Coral's,' Mr Chan said. Fairwood's average spending per customer is HK$23.50 compared with Cafe de Coral's HK$25. Both Fairwood and Cafe de Coral were founded by members of local food and beverage specialists the Lo family. Fairwood is majority owned by Dennis Lo Hoi-yeung while the family of Sunny Lo Hoi-kwong controls Cafe de Coral. Despite such links, there has been a great difference in business performances recently. Cafe de Coral's net profit jumped 11.3 per cent to HK$280 million for the 12 months to March 31 - its fourth consecutive year of double-digit net profit growth - but Fairwood's net loss for the year widened more than seven times to HK$70.28 million. Commenting on the contrast, another Fairwood executive director Ng Chi-keung admitted that Cafe de Coral had several advantages. 'For example, Cafe de Coral has more self-owned properties for its outlets, which can help reduce rental expenses,' Mr Ng said. Of the 125 Cafe de Coral fast-food restaurants in Hong Kong, about 20 are on premises owned by the company. Of the 88 Fairwood outlets in Hong Kong, only two premises were self-owned, Mr Ng said. Rent accounted for about 20 per cent of Fairwood's operating costs. To control costs, Mr Chan said the company had already adopted global sourcing for food supplies and streamlined its production process. The decline of food prices in Hong Kong meant the company had to cut costs to maintain margins.