A popular dish in both Singapore & Malaysia, the chili crab is one of the most iconic dish of the JUMBO Group! Read on this article to find out more about the listed co of the restaurant that serves the Singaporean Favorite Food!
Serving over 1.6 tons of crab and 6,800 diners daily, Jumbo (Catalist:42R) is an award-winning brand in Singapore. The iconic Jumbo Seafood is situated in East Coast Seafood Centre and Riverside Point among many other locations. It has presence in China and Japan too. It was listed in 2015 and this year, it was added to MSCI Global Micro Cap Singapore Index.
With an approx. SGD $398 million market capitalization, Jumbo Group Limited operates and manages a network of restaurants in Singapore and the People’s Republic of China. It operates over 22 outlets under the Jumbo Seafood, Ng Ah Sio Bak Kut Teh, YOSHIMARU ramen bar,JPOT Hotpot Singapore Style, Chui Huay Lim Teochew Cuisine, Singapore Seafood Republic, JUMBO Catering, and J Café – Singapore’s Local Delights brands. Jumbo Group is one of the 50 iconic attractions recommended by TripAdvisor for SG50.
Compared to other companies such as Breadtalk, Sakae Holdings, Japan Food, Jumbo commands an impressive 11.3% net profit margin (last twelve months). The secret behind it? Jumbo Food is considered as destination dining. The brand, Jumbo, able to rely on its reputation to draw consumer traffic. It does not rely on shopping malls, hence, it enjoys a lower rental expense.
Jumbo utilities technology heavily in two projects. First, the implementation of the Chope system allows users to make reservation online without requiring their staff to man the reservation phone list. The second project leverages on technology to assign customers to their tables and there is no need for their staff to do it manually. This frees up their manpower to do other tasks. These projects are advocated by Christina Khong, who is Jumbo’s Executive Director. She added, “The toughest part is getting people to join us. Once they are on board however, we can show them we really care for them and treat them as part of the big JUMBO family.”
Jumbo’s culture is takes the form of a family where almost each staff know each other by their names and staff are well-recognised by their efforts. To me, in order to make your customers happy, first, you need to let your employees feel good. As a testament of her efforts, Jumbo’s attribution rates within the group are 3.8% – below the average rate of 4.6% within the industry.
In Jumbo’s Chief Executive Officer Mr Ang words, “Only when they rest well and live well, then they can smile.” This was why Jumbo also created a hostel programme to provide better housing. It also offered cash bonuses, social activities to grow a steady pool of devoted workers over the years.
During seasonal and festive periods such as Chinese New Year, Jumbo enjoys good traffic and it is mostly fully occupied. In fact, I was told that Jumbo is a popular place for businessmen to bring their clients to taste Jumbo’s signature Chili Crab.
In March 2016, Jumbo won The Enterprise Award during Singapore Business Awards Ceremony for growing from a single seafood restaurant in 1987 to a household name with 17 restaurants across five distinct brands. Moving forward, Jumbo is gearing up their franchise strategy and speeding up their China expansion plan. Last week, Jumbo opened their 1,600 square feet Ah Sio Bak Kut Teh outlet at Resorts World Sentosa and added 150 seating capacity to their Jumbo Seafood (Riverside) outlet.
While the F&B industry might not be in a good shape, Jumbo seems to be buckling the trend. We will always go back to the slogan of price is what you pay, and value is what you get.
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*disclaimer: This article and its contents contain opinions and ideas of its author. It is not a recommendation to purchase or sell securities of any of the companies or investments herein discussed. The article is written with the understanding that its author is not engaged in rendering legal, accounting, investment or other professional services. If the participant requires expert financial or other assistance or legal advice, a Competent Professional should be consulted. The author will not guarantee the accuracy of the information contained in the article. The author has no vested interest in the above company.