Corporate Profile of Cafe de Coral Holdings Limited
Cafe de Coral Group is the largest Chinese Fast Food restaurant group in the world with 182 outlets in Hong Kong, 74 in Canada, 119 in United States and 2 in Poland. Among a total of over 380 outlets, 115 outlets are operated under the brand name of “Cafe de Coral”, whereas 195 outlets are under the brand of “Manchu Wok”. Specialty restaurants include “Spaghetti House”, “Bravo le Cafe”, “Ah Yee Leng Tong”, “Super Super Congee and Noodles” and “Noodles Plus”, as well as the institutional catering business under the trade name of “Asia Pacific Catering”.
As the market leader in the Hong Kong fast-food industry and the largest National Brand for Chinese quick service restaurant in Canada, the annual turnover of the Group now stands at HK billion, generating an annual profit of HK0 million in Year 2000 with a growth of over 72% in the past 5 years.
The principle business of the Group is the development and operation of self-service restaurants with the distinctive trade name, “Cafe de Coral”. In addition, the Group has also diversified into full-service specialty restaurant operations and Asia Pacific Catering business. Acquisition of a Chinese soup-cum-specialty-dish restaurant chain, “Ah Yee Leng Tong”, in 1990 and a mid range Italian restaurant chain, “The Spaghetti House”, in 1991, enable the Group to achieve a more diverse earning base through the wider market exposure.
The recent development of “Bravo le Cafe” restaurant and “Super Congee and Noodles” restaurant concepts in 1997 and 1999 respectively further strengthen the Group’s leading market presence in the dining-out industry in Hong Kong. Since September 1999, the commencement of the school lunch box catering business under the brand name of “Luncheon Star” has also proven successful.
The Group currently operates about 180 restaurant units in Hong Kong and Guangdong province under its direct management. The Group has about 18% of the market share in the fast food sector and is a market leader in this field. The Group has also attained 4% market share of the total HK$ 57 billion dining-out industry in Hong Kong.
The 120,000 sq.ft. food processing plant is housed all under one roof within the Group’s self-owned 12 storey headquarters in Hong Kong, which has its own cold and dry storages, food processing lines, quality control laboratory, uniform laundry, and distribution fleet. Food processing comprises bulk breaking, standardized seasoning and standardized portioning at pre-set specifications, volume requirements and quality standards.
The commencement of production at the food processing plant in Guangzhou city, China marked another important step forward for the Group in the year of 1995. The centralization of Group’s China material sourcing, food production and distribution facilities confer synergistic benefits the Group. (floor plan and layout of the above)
The acquisition of Scanfoods in 1997 and the acquisition of Denny’s Bakery in Year 2000 led the Group towards downstream integrated expansion into the food manufacturing and distribution business in the Greater China region. Aside from having an efficient sales network in Hong Kong and China, Scanfoods also owns a 40,000 sq. ft production base in Dongguan city, China with advanced imported machineries and technology from overseas.
At present, Scanfoods processes and distributes ham products to over 1,000 institutional customers in Hong Kong and China. It is one of the leading processed ham suppliers in Hong Kong with about 20% market share of the domestic processed ham market.
With regards to public listing, the year 1986 marked a milestone in the Group’s history as the Group went public and obtained an official listing for its shares on The Stock Exchange of Hong Kong Limited in July 1986, which was the first of its kind at the time of the listing.
For the past 30 years, Cafe de Coral has received numerous awards for its management excellence from the local and international institutions, which included the most coveted award of the Asian Management Award for Marketing Management and the Asian Management Award for General Management by Asian Institute of Management in 1992 & 1993, named Asian’s Best in 1997, Top Ten Best by AsiaMoney in 1998.
In the year of 1999, the Chairman of Cafe de Coral has personally been awarded the prestigious Stars of Asia Award by Business Week. In addition, we have been selected as the Service Category Leader – Catering by Hong Kong Retail Management Association, and the Good People Management Award by Labor Department of HKSAR Government.
Three times in a row, Cafe de Coral have been selected as World’s 300 Best Small Capitalization Companies by Forbes Global and The International Chinese Enterprises 500 by The International Chinese Newsweekly respectively in 1998, 1999 and 2000. And Cafe de Coral have also been chosen as Powerhouse Hall of Fame – Best Practice Companies by Hong Kong Productivity Council consecutively in 1999 and 2000.
Corporate Motto & Mission
The trade name “Cafe de Coral” () originates from the Chinese ideal of family togetherness, forming a three-word logo through which the shareholders, the customers and the staff are “happy together”, through “Cafe de Coral.”
“A HUNDRED POINTS OF EXCELLENCE”
The corporate motto “A Hundred Points of Excellence” (100) reflects to their commitment to strive for excellence, as they make strategic business moves in a rapidly changing world. And that is, if something is worth striving, it’s worth striving for the best.
Looking back on 30 years of continuous sales and profit growth, the history of Cafe de Coral reflects a successful story whose character exemplifies what is unique about Hong Kong.
As an undisputable market leader in the fast food and dining-out industry, Cafe de Coral has always prided itself on its product innovation and marketing excellence with uncompromised standard to quality, unconditional service to our customers, and undivided commitment to excellence.
The Group is principally engaged in the operation of fast food, institutional catering, specialty restaurants and food manufacturing business in Hong Kong and Southern China. Today, with the dedicated support of 6,000 employees, the Group operates the fast food and restaurant business under the various household brands of “Cafe de Coral “, “The Spaghetti House “, “Ah Yee Leng Tong “, and “Bravo le Cafe ” as well as processing and distributing branded ham products in the Greater China region.
Their commitment to the food business is attested by the Group mission statement:
“To establish Cafe de Coral Holdings as a distinguished corporation in the food and hospitality industry in the Asia Pacific region, maintaining a publicly recognized leadership position in the mass-market, quick service restaurant chain business, with vertical and horizontal diversification towards the food services, food processing and distribution, catering and hospitality sectors in the international arena, will into the 21st Century.”
Highlights of the Issues in Cafe de Coral Holdings with Respect to their Business Development for the Year 2003
· The sudden outbreak of SARS has taken a heavy toll on our hospital and student catering business but did not deter the Group from delivering a stable sales performance of approximately HK.3 billion for this half year.
· In addition to the consistent interim dividend, the Board of directors also recommended to double the dividend payment with a special dividend of 6.4 cents per share to mark the Group’s 35th Anniversary celebration.
· The acquisition of Oliver’s Super Sandwiches restaurant chain further solidifies the Group’s business position in the Hong Kong quick service restaurant industry.
· The acquisition of a 50% stake in New Asia Dabao, the largest Chinese quick service restaurant network in Shanghai, has established a dominant foothold for the Group in the PRC market.
· We are honored that the Group was awarded the “2003 Best Employers in Hong Kong” while our Group’s Chairman was also personally awarded the “Directors of the Year Award”.
Joining hands with all our shareholders in saluting the heroic performance and undaunted spirit of our 8,500 employees during the SARS outbreak.
Credit:ivythesis.typepad.com
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