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14-05-2014, 09:22 AM
Why are they going into cafe? Isn't the ingredient business a much better business?
(13-05-2014, 07:53 PM)CY09 Wrote: Old town and Owl café are not café similar to starbucks.
The former two are more like eateries, while starbucks main stay are coffee and cakes.
In my opinion, supergroup has to secure good venue for their owl café. OCK Curry Times has been successful at this where their outlets are placed at areas where there are high lunch crowd traffic during the weekdays. Super is going to have a tough time competing in this new segment, in my view. The opening of republic plaza is a good move but how it will affect Super's profitability is anybody's guess. Will see their future Q results to gauge.
Not too optimistic of Super's Growth prospect in the near term for now. Its current valuation of 22x PE is factoring in very optimistic growth prospects for a FMCG company. Personally, think Market has overvalued it.
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