$15m re-branding exercise produces 10pc rise in store sales
A re-branding campaign by Fairwood Holdings appears to be paying off. After eight years of dropping turnover and poor profits, Hong Kong's second-largest fast-food chain is drawing customers back to its 93 restaurants.
In November, Fairwood revamped its menus and store interiors, spruced up its staff uniforms and adopted a new logo.
The $15 million programme has already had an effect: same-store sales rose by more than 10 per cent in December and January, according to research house Cazenove.
'We believe much of this is due to the campaign, as Cafe de Coral sales have increased by only the low single digits,' analyst Kenneth Ma said.
Fairwood chairman Dennis Lo Hoi-yeung said: 'Our investment has started to show results, with same-store sales achieving an encouraging performance.'
But the make-over campaign is not finished. Fairwood has been building its war chest, raising $55 million from the disposal of retail premises in Mongkok.
