JustKitchen implements margin improvement after rapid growth phase

TSXV: JK OTCQB: JKHCF FRA: 68Z

Company’s margin initiative includes streamlining operations, pursuing more B2B opportunities, lowering COGS, reducing redundancies and renegotiating key agreements when appropriate

VANCOUVER, BC, August 2, 2022 /CNW/ – Just Kitchen Holdings Corp. (“JustKitchen” or the “Company”) (TSXV: JK) (OTCQB: JKHCF) (FSE: 68Z), a technology-driven ghost kitchen operator specializing in building delivery-only food brands, is pleased to report that it has focused on improving margins and reducing costs (the “Margin Initiative“) to enhance business value. JustKitchen’s mission remains to provide high quality food, primarily on a delivery-only basis, as enabled through mobile applications, to a growing set of consumers across Asia.

The Company’s management has developed a plan to increase margins and reduce costs, the main aspects of which are highlighted below:

  • Further pursue business-to-business (“B2B“) opportunities with higher margins that include large companies with more than 4,000 employees, a captive audience, and little or no upfront capital expenditure followed by low operating costs;
  • Focus on higher margin regions and consumer segments;
  • Reduce the cost of goods sold relative to income by consolidating purchases while pricing food products according to regional inflation levels; and
  • Reduce labor costs as a percentage of total expenses.

Additional cost reduction opportunities have been identified by JustKitchen management including, but not limited to:

  • Reduce hours of operation to eliminate unprofitable time windows due to labor and other fixed costs;
  • Move to using more part-time staff in places where the knowledge of full-time employees has been successfully integrated into operations;
  • Maximize location-based profitability and potentially rationalize underperforming shadow kitchen locations;
  • Reduce headquarters staff by approximately 20%; and
  • Renegotiate major occupancy contracts and other significant agreements.

Management commentary

“In a short time, JustKitchen has grown rapidly and now has over 30 ghost kitchen locations in multiple countries. to improve our strengths, address our weaknesses and make improvements. This will help JustKitchen move forward with a stronger and more valuable core, so that it can continue to grow in the future,” said Jason Chenco-founder and managing director of JustKitchen.

ABOUT JUSTKITCHEN

JustKitchen is primarily a technology-driven and enabled ghost kitchen operator specializing in the development and marketing of proprietary and franchised food brands for delivery only to customers. The Company currently operates in Taiwan, Singapore and hong kong with plans to expand its operations to other Asian countries. JustKitchen uniquely utilizes a hub and spoke operating model, which includes advanced food preparation in larger central kitchens and final meal preparation in smaller spoke kitchens located in high-density areas. The company combines this operating model with online and mobile app-based food ordering performed by third-party delivery companies, to minimize capital investment and operating expenses and reach more customers on underserved markets. The company’s other business, JustMarket, is an online grocery delivery platform that allows customers to purchase groceries for delivery or add certain grocery items to meals ordered through JustKitchen. .

For more information about the company, please visit Investors.justkitchen.com. JustKitchen’s final prospectus, financial statements and MD&A, among other documents, are all available on the company’s profile page on SEDAR at www.sedar.com.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING STATEMENTS

This press release contains certain “forward-looking statements” within the meaning of such statements under applicable securities laws. Forward-looking statements are often characterized by words such as “expects”, “plans”, “continues”, “expects”, “projects”, “intends”, “believes”, “expects”, ” believes”, “may”, “will”, “potential”, “proposed”, “positioned” and other similar words, or statements that certain events or conditions “may” or “will” occur, including , but not limited to, Company comments regarding the plan to increase margins and reduce costs. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this press release. Forward-looking statements are based on the opinions and estimates of management as of the date they are made and are subject to various risks, including the risk factors identified in the Company’s prospectus dated March 26, 2021, and the uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. expressly requires.

SOURCEJust Kitchen Holdings Corp.

For further information: Just Kitchen Holdings Corp., Suite 1430, 800 West Pender Street, Vancouver, British Columbia, V6C 2V6; Nick Kuzyk, Investor Relations, Toll Free: 1-855-JST-KCHN (1-855-578-5246), Email: [email protected]