Sakae Sushi - Extending their reach to the world... McDonalds of Sushi

Yet another offensive move towards McDonalds of Sushi !
-----------------------------

Apex-Pal to expand outlets by 15% globally next year

It cites Vietnam, Mongolia, Hungary and Dubai as new markets for its brand
By LYNETTE KHOO

APEX-PAL International is staying on a fast-track expansion path despite an earlier blotched attempt to take over Thai Village this year, and now wants to grow its food and beverage network of 70 by 15 per cent next year both locally and overseas.

In an interview with BT, Apex-Pal chief executive Douglas Foo cited Vietnam, Mongolia, Dubai and Hungary as new markets where it hopes to introduce its Sakae Sushi brand to tap mid to high-end consumers. 'Last year, we opened an average of two outlets a month. Next year, we are looking at four, then eight and then subsequently about 16 (per month), so in five years' time, we hope to see that we are able to roll out a shop on a daily basis everywhere we go,' Mr Foo said, laying out his ambitious plans.

In Mongolia, Apex-Pal has signed a memorandum of understanding (MOU) with a local partner for a joint venture, while in Vietnam, it hopes to make a direct investment as the country's entry to the World Trade Organization will ease rules on foreign ownership. As for Dubai and Hungary, Apex-Pal is looking for potential merger and acquisition (M&A) targets and has spoken to a few establishments in each of the markets.

'We were looking at doing a quick M&A in Hungary, that's why we have spoken to two to three outlets there,' Mr Foo said. 'We were exploring the whole eastern Europe market as well as the EU market and we foresee that as we progress further, we need to find local partners because it's a market that we are not too familiar with.'

Apex-Pal's outlets are currently spread across Singapore, Indonesia, Thailand, China, Malaysia, the Philippines, Hong Kong and the United States. At the same time, it is looking to introduce its other brands to existing markets where it is already selling Sakae sushi.'In the next 12 months, we will be seeing more Sakae outlets being introduced locally and overseas - in the overseas markets that we are already operating in and the new overseas markets that we are looking at. We might bring Nouvelle food catering to existing markets that we are operating in,' he said.

To cater to consumers' fine-dining needs, the company is opening its Hibiki outlet at the Singapore Flyer to cater to the high-end segment and is keen to open another one or two outlets in the two integrated resorts that are due to open from 2009. Together with the opening of new outlets, Apex-Pal's headcount of about 1,200 locally and some 300 overseas would grow in proportion to the 15 per cent growth in outlets next year, Mr Foo said.

While these plans are set to bolster its earnings going forward, Apex-Pal's profit for this financial year could see a dent from increased overheads and substantial professional fees of a few million dollars incurred from its takeover bid for Thai Village.

For the first half of this year, Apex-Pal saw its net profit dipped 8.7 per cent from a year ago to $2.17 million as operating expenses and professional fees for the Thai Village deal shaved off the 26.2 per cent jump in revenue to $38.78 million.But strong fundamentals will likely take over going forward, as the company puts the unsuccessful takeover attempt behind it, Mr Foo said.

Apex-Pal has also not given up hopes to gain a quick access to the Chinese restaurant market through M&A, he added, as it remains in talks with some Chinese food players.