¶ … Excutive Summary Popularizing Sakae Foods

Singapore is a multicultural society where many types of cuisines are available, such as Islamic-Halal, Indian, Chinese, Western, vegetarian and low-calorie meals. In order to attract and retain customers, Sakae will have to develop unique brands and menus that are available nowhere else. In order to be competitive, it will also have to provide a wide variety of foods at reasonable prices to appeal to various demographic groups. Each product has a life cycle of introduction, growth, maturity and decline, which is why the menu will have to be changed every two months, so that customers will not become bored with the same items. New foods will constantly be introduced during each decline phase.

RAW MATERIALS AND SUPPLIERS

Sakae uses only the best quality sushi from highly-rated suppliers and has had relationships with the same ones throughout its 20-year history. Its competent and experienced chefs perform their own tests to maintain quality, and they serve test meals with evaluations and recommendations from customers. To keep its preparation methods secret, the company has also acquired its own suppliers.

FRANCHISES

With franchising, a company can keep down its equity costs and debt risks by selling licenses to semi-independent operators, who commit to maintaining the same levels of quality and service when they sign their contracts. This permits a company to expand with minimal risks and liabilities, and Sakae now has outlets in Singapore, Vietnam, Thailand, the Philippines, Malaysia, China and Indonesia.

ADVERTISING AND PROMOTION

To appeal to middle class consumers, Sakae has created its own website,...

In one daily special, sashimi and Japanese cheesecake are offered at $2.10 instead of the normal $3.90 at certain times of the day. It also offers buffet meals at its stores in Scape and Park Mall at low prices, and many a la carte items like sashimi, maki, mini donburi, mini udon, gunkan, sushi and tempura. After 9:30 PM, all take-out meals are half price. All of its branches have their own websites for Halal food, heishushi, novella, sake sushi, and sake teppanyanki, where consumers can find their favorite meals, talk with experienced chefs and plan meals, parties and other events. Sake also uses Facebook for new sales, products and promotions, and this is updated frequently. To maintain customer loyalty, it offers a Sakae Card with discounts and special offers, as well as a Sakae Junior Club for younger customers. Sakae's green frog logo is a familiar and popular sight, and is always used in advertising and promotional campaigns.
REVENUE AND EXPENSES

Sakae's revenue for the first half of 2011 was $43.1 million, down 2.8% from the first half of 2010. This decrease was caused by the fall in demand for Japanese food after the tsunami and nuclear accident in Japan, although it was offset by increased revenues from Malaysia. Operating income increased 81% to $1.4 million because of the lease of the Group's headquarters, while operating expenses increased 8.6% because of higher rent and personnel costs. Profits were $1.3 million, down 35.5% from the first half of 2010.

The Group's revenue in 2010 was $90.7 million, an increase of 2.1% over the $88.8 million in 2009. Gross revenue increased 1.9%, and expenses 3.3% or $1.2 million because of depreciation…