Japan Foods shut a third of its S'pore outlets—and went from a S$3.3M loss to a profit

Japan Foods has returned to profit after closing nearly a third of its Singapore outlets and shifting its focus to halal dining concepts and affordable meals, The Business Times reported.

The Singapore-listed group operates Japanese-cuisine brands, including Ajisen Ramen and Yakiniku Shokudo—and has been in the red since 2023.

Japan Foods had 46 restaurants as of Sept 30, down from 68 a year earlier. Besides shuttering poorly performing outlets, the group converted some restaurants to newer concepts, including its proprietary halal Steak 99 brand. Launched in Oct 2025, Steak 99 has grown to 14 outlets.

As a result, Japan Foods posted a net profit of S$234,000 for the six months ended Sept 30, a turnaround from a loss of S$3.3 million a year earlier. However, revenue still fell 18% to S$30.2 million as its restaurant network shrank.

Japan Foods told The Straits Times that its halal concepts have shown encouraging performance and growth potential.

“Halal dining also allows us to cater to a broader customer base, including both Muslim and non-Muslim diners, providing opportunities to reach a wider market,” it said, adding that it would continue investing in both halal and non-halal brands.

Steak 99 generated S$9.5 million in revenue in the first half, making up nearly a third of group sales. The brand serves steaks from S$9.90, with free-flow sides.

Some of its outlets took over sites previously occupied by Ajisen Ramen, including those at Plaza Singapura, Bedok Mall and Tampines Mall, alongside brand-new openings.

In a similar vein, Japan Foods has launched more brands under its “99” series: Wagyu Steak 99, Shabu Suki 99 and Yaki Zakana 99. Each offers a S$9.90 value menu item aimed at cost-conscious diners.

Japan Foods said it will monitor how the newer brands perform and how customers respond, to decide its next steps.

When asked how it chooses which outlets to close and whether more closures are coming, the company said it regularly reviews individual restaurants and brands to assess their long-term viability. This includes discontinuing poorly performing brands and, where appropriate, ending leases early.

The changes have reshaped Japan Foods’ restaurant portfolio as it cut costs. Ajisen Ramen had eight outlets as at Sept 30, down from 12 a year ago, while Tokyo Shokudo’s network shrank from 14 to two.

The company expects the pace of closures to slow in the financial year ending Mar 31, 2027, as it focuses on improving efficiency and the performance of its remaining outlets.

Other brands, including Menya Musashi and Osaka Ohsho, no longer have outlets in the group’s network.

Selling and distribution expenses fell 27.8% to S$22.3 million, reflecting lower manpower costs, utilities and depreciation of leased assets. Administrative expenses declined 22.4% to S$1.4 million, while other operating expenses nearly halved to S$747,000.

Despite the return to profit, Japan Foods expects Singapore’s food and beverage industry to stay challenging in 2027, citing rising operating costs, persistent manpower shortages and intense competition from local and foreign operators.

It also expects diners to remain price-sensitive as economic uncertainty and global trade and geopolitical tensions weigh on sentiment.

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