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SINGAPORE: Soaring food prices have put a dent on Apex-Pal International's plans to expand in the United States.
The Singapore company behind the Sakae Sushi brand has been forced to consolidate to cope with rising costs due partly to the global surge in commodity prices.
The mainboard-listed firm posted a S$523,000 loss for the first half of this year. Last year, Apex-Pal posted a net profit of S$2.16 million for the first half.
Most recently, its efforts to open outlets in New York and the acquisition of Genki Sushi in Malaysia have put a strain on its resources.
Douglas Foo, chairman of Apex-Pal International, said: "The company is looking – in the next six months or so – to consolidate and grow from there."
As a result, Apex-Pal's expansion plans are on hold while it streamlines its current businesses.
While it is looking at improving efficiency across all its operations, the company's US business requires particular focus. A new operating style and culture, as well as flagging consumer confidence there have hampered growth.
"It's a new market in America – the style and the culture of the people are different. We are grappling with those areas, in terms of how to manage it and in terms of how our customers are taking to the brand," said Foo.
- CNA/so
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