Japan Foods Holding Ltd

[RBM]

Disappointing FY results. Almost S$ 8 Mln loss, no Dividend and firm indications that Management is struggling to keep costs under control. I suggest rationalisation of outlets (and Brands) must be materially more ruthless than the mere tinkering we have seen hitherto. Thankfully JFH remains debt free but I have to wonder if Management has the mindset to make the difficult decisions… and follow thru.

Vested

[weijian]

Hi RBM,

I think Japan Foods is facing head winds on both its topline and bottom line. First on topline, mass market Jap restaurants faces strong competition from Don Don Donki's very value-for-quality offerings. Anecdotally, even since I tried Don Don Donki's ready to eat food, I have not stepped into a Jap restaurant. There is slightly more than 10 Don Don Donkis throughout Singapore and they are located mostly at shopping malls, geographically very similar to many mass market Jap restaurants as well. As for bottomline, the entry of many PRC food concepts is bringing a lot of "rental support" for landlords. As such, there may be a propensity for the mall owners to up their rent than keep it constant. If many of these PRC food concepts are backed by strong sponsors back in Mainland China, it is a no brainer who can last longer. For example, if the parent has a few thousand outlets in China, 5 outlets in Spore losing money is probably peanuts.

[RBM]

Hello again Weijian, Appreciate your post. Can’t disagree with its contents. But my concern with JFH’s Management is how much of JFH’s problems are of their own making. I challenge how much Management focus is directed towards rationalisation, cost cutting and prioritisation rather than rolling out new brands and expanding. Proof-Point: Today I read of yet another new JFH brand being rolled out at Woodleigh Mall, to much fanfare. Thats not what JFH and its Shareholders need right now. Its time for cutting costs & consolidating. The current focus is misplaced IMO.

Vested. Best to you Weijian.

[RBM]

I see the reason for Japan Foods’ trading halt has now been disclosed: Lead Independent Director Mdm Tan is under investigation by the CAD regarding a matter that apparently has nothing to do with Japan Foods’ business & activities.

I’m a tad surprised Mdm Tan remains a Director, not even standing aside temporarily while CAD’s investigation proceeds. While I subscribe to the principle of “innocent until proven guilty”, I suggest it does little for Japan Foods’ standing & reputation that she remains on the Board. Yes, she’s relinquished a committee leadership role but she remains a NED. Japan Foods faces key ongoing challenges without this development, restoring shareholder confidence among the most pressing of those challenges.

Vested

[CY09]

From a peak of 84 outlets, Japan Foods Holding (JPFH) has reduced its network to 59 stores as of May 2026 as part of ongoing cost rationalisation.

Current store mix:

10 Ajisen Ramen
10 Yakiniku Shokudo (halal)
7 Tokyo Shokudo (halal)
1 Milan Shokudo (halal)
3 Konjiki Hototogisu
28 outlets across other concepts — including 12 “XXX 99” halal formats, which appear to be rebranded/refurbished versions of Milan and Tokyo Shokudo

On the ground, however, the repositioning raises concerns. I’ve personally tried Steak 99 at Paya Lebar Quarter and Tampines — the beef quality was underwhelming. A similar experience at Yakiniku Shokudo suggests the cuts are not competitive with Yakinku Like

At current price points, the value proposition does not hold up. The only clear differentiator across several of these concepts is halal certification — but that alone is not a sustainable moat if product quality lags.

To current shareholders reading this. I have questions:

1) Which brands should be further streamlined or exited entirely for JPFH to return to profitability?
A number of the weaker performers appear to be internally developed concepts, raising the question of whether JPFH has the capability to scale beyond its traditional franchise model.

2) With keisuke group operating at similar price points but offering stronger product differentiation, what strategic moves are needed to prevent Ajisen from sliding into irrelevance?

[CY09]

More stores has been closed. It is down to 51 stores as of end May 2026. Milan Shokudo has been entirely closed.

Current store mix:

10 Ajisen Ramen
10 Yakiniku Shokudo (halal)
6 Tokyo Shokudo (halal)
3 Konjiki Hototogisu
22 outlets across other concepts — including even more 13 “XXX 99” halal formats, which appear to be rebranded/refurbished versions of its failed Halal Jap food concepts

Interestingly, new reviews in the XXX 99 format reveals JFH is holding promotional incentives to encourage customer to give positive reviews by giving free custard pudding

To me, it seems JFH is trying to avoid financial penalties on early termination of mall leases and is rebranding the concepts to the "XXX 99" store. I

[LionFlyer]

Interestingly, new reviews in the XXX 99 format reveals JFH is holding promotional incentives to encourage customer to give positive reviews by giving free custard pudding

The Milan Shokudo at TB was replaced with Steak 99.

[CY09]

https://links.sgx.com/FileOpen/JFH%20-%2...eID=890382

Full FY is out. 2H results, after impairments, compared to 1H, 2H saw a reduction of 1 million in losses. Revenue declined in line with the reduction of store/ Overall, JPFH is still bleeding money due to the presence of too many unprofitable concepts, it has started taking short term loans to ease cashflow

In my opnion, store rationalisation has to continue with the Tokyo Shoukoudo to be cut (interestingly within this week, 2 stores were closed, so its down to 5.) I have gone to Tampines Mall Tokyo S, it was empty even during lunch hours, while the Steak 99 at TM saw much better crowds

In page 33, the group has said it strives towards achieving profitability, but here's the catch; let's say JPFH is down to 30+ stalls, can it garner its past heyday of $5 million profits? That's a big ask considering they sell food at the $15-$20 per person range and lease rental and manpower expenses goes for about 20 mil each when the base has 58-60 stores.

Much work has to be done to turn around this company

[CY09]

https://links.sgx.com/FileOpen/JFH%20FY2...eID=896762

JFH has reponded to pre-AGM questions. What's interesting to know is a few more downsizing is going to occur with unprofitable stores

Second, store rental is the biggest cost component, even when wages include top mgmt pay such as CEO's annual 400k pay package. Renting stores in Singapore is a very expensive business

As for the question on Milan Shukodu, I can't gleam out what lessons has the company learnt from its failure of trying out a halal budget concept.

Steak 99 seems to be doing well

As of 19 July, on website, JFH has further closed stores and is down to 48 shops. I do foresee that more stalls will be closed down to 30+ which coincides with its profitable days

[¯|_(ツ)_/¯]

Japan [email protected]

Today announced +ve profit guidance on its 6 months results, mainly due to streamlining down to 46 stores and with stronger focus....better customer traction.

(Link to SGX)

Gratitude ❤️