Tsui Wah: A brand refresh to expand internationally
After a few challenging years, Tsui Wah is reinventing itself and rationalizing its store network. While the initial steps were difficult, the outlook for the business is brightening.
After a few challenging years, Tsui Wah is reinventing itself and rationalizing its store network. While the initial steps were difficult, the outlook for the business is brightening over the past year as its brands gain receptivity from the younger clientele. From a Mong Kok store in 1967, the portfolio now consists of over 70 stores under several brands such as Tsui Wah, Homurice, and Ging Sun Ho King of Bun.
For a food business with roots in Hong Kong, Tsui Wah is able to hone its business model and replicate the economics in other top cities in the region. Having set its sights on the overseas market, the company now has to contend with unifying its branding and capture the momentum from their new-to-market campaigns.
Beyond its foothold in Hong Kong, the business currently has presence in Mainland China, Macau and Singapore. In addition, management has also indicated its openness to pursuing opportunities in other gateway cities in Southeast Asia.
At this juncture, Tsui Wah is likely focused on reallocating its resources and selectively reinvesting in the business. First and foremost, they are consolidating their Hong Kong presence to be more targeted. The general retail landscape in Hong Kong, including the food catering sector, has been affected by the trend of locals travelling to nearby lower-cost cities like Shenzhen to consume. Hong Kong’s inflation also meant that operating costs of restaurants have risen at the same time that revenue has been impacted.
To this end, store economics play a huge role and will lead to much-needed store network rationalization. It was announced that Tsui Wah restaurants will return to the Central area and Tsim Sha Tsui area, both of which are areas with high footfall and popular among tourists. Its outlet in Macau will also undergo relocation and renovation during this period, in the hope of resonating with their new target demographics.
Apart from the Tsui Wah brand, the company is also actively growing Ging Sun Ho King Of Bun. Having achieved some initial success in Hong Kong, it is now expanding with its first foray into familiar markets like Macau and Singapore.
Leveraging on its playbook of Tsui Wah maiden entry into Singapore via its strategic partnership with a local partner, Singapore is likely becoming a key market for the company to test its overseas ventures given the similar retail market dynamics between Hong Kong and Singapore. The first Ging Sun Ho King Of Bun outlet in Singapore was opened in a shopping mall in September 2024, markings its first international outlet to complement its Hong Kong’s presence of around a dozen stores.
The company is looking towards a turnaround in their fortune after a tough number of years mired by operating losses. Committed to riding the retail recovery, Tsui Wah is likely to reposition itself as a popular casual dining choice for consumers and seek higher growth in overseas markets. Early signs of this success can be seen from their financial results and the company is certainly hoping to further drive this brand momentum forward.
