From ramen to S$9.90 steaks: Japan Foods cuts a third of outlets but serves up profit with Steak 99

Singapore-listed Japan Foods returned to profit after slashing a third of its outlets in the city-state and pivoting to halal dining concepts and budget-friendly meals. The company, known for Japanese cuisine brands like Ajisen Ramen and Yakiniku Shokudo, now has 46 restaurants, down from 68 a year ago. The focus on halal dining, particularly Steak 99, has proven successful, generating S$9.5 million in revenue for the first half of the year, accounting for nearly a third of total sales.

Despite a 18 per cent drop in revenue to S$30.2 million, Japan Foods posted a net profit of S$234,000 for the six months ended Sep 30, compared to a loss of S$3.3 million the previous year. Steak 99, featuring steaks from S$9.90 and free-flow sides, contributed significantly to this growth. The company will continue to monitor the performance of its new halal brands and adjust its strategy accordingly.

Japan Foods expects the food and beverage industry in Singapore to remain challenging in 2027 due to rising costs, manpower shortages, and fierce competition. The company declared an interim dividend of S$0.0013 per share, payable on Dec 15, bringing its market capitalization to just over S$17 million.