After enduring losses for two years, Xiabuxiabu Catering Management China Holdings Co., Ltd., a fast food chain, has finally turned its performance around.
The company’s H1 forecast reveals anticipated revenue of around 2.8 billion yuan (US$400 million) up by a third. In contrast to the loss of 278 million yuan lost during H1 last year, the company expects to post a net profit of at least 2 million yuan.
The turnaround is attributed to pandemic recovery and like other chains such as Haidilao (hotpot), downsizing. The key to Xiabuxiabu's rebound has been store closures.
Xiabuxiabu's struggles brought losses of over 600 million yuan in the past two years. Amid the industry’s broad recovery, the company's 32 percent revenue growth surpasses is better than average.
