Restaurant chain Exki wants an international breakthrough, but those ambitions have a negative effect on its results. Despite turnover growth, net losses grew in the past fiscal year.
Only profit in Belgium
Exki turnover grew 3.8 % in the past fiscal year, up to 57.9 million euro, but it also suffered a 608,000 euro net loss, up from a 459,000 net loss last year. “That is largely because of our to American restaurants, both of which have now been closed”, CEO Frederic Rouvez told De Tijd.
The chain had major plans for the United States, targeting fifty stores, but those plans were scrapped in the summer. The American consumer felt Exki was too expensive. The chain has managed to enter several European countries, like France, Italy, Luxembourg and the Netherlands, but only Belgium currently generates a profit. Exki does expect improvement in France however. “We have not turned a profit in France because of our investments, but we forecast profit soon”, Rouvez said.
Altered product range
Europe often struggle with the chain’s high prices as well, which is why Exki often has to create an altered product range, but that takes time. In order to limit its risks, it now often seeks out a local partner abroad. One such example is in the Netherlands and it will do similarly when it heads to Germany.
“It was a mistake to tackle the United States on our own. When we ever head back – and I’m not excluding the possibility – we will work with a local partner.”
