Food Innovators Holdings is a corporate group that operates real estate subleasing and restaurant businesses in Asia, including Japan, Singapore and Malaysia.
1. What is the business of Food Innovators Holdings (FIH) about and what are some of your key business segments?
FIH is a one-stop solution provider for quality traditional Japanese and Japanese-inspired European cuisine restaurants.
The group operates two complementary business segments:
Restaurant leasing and subleasing business: The group leases restaurant premises from landlords and subleases them to restaurant tenants.
Food retail business: The group establishes, operates and manages restaurants and provides F&B business consulting.
As of June 2, the group manages 223 subleased properties in Japan. In addition, the group registered 30 restaurants in its brand portfolio, comprising 15 restaurants in Japan, nine restaurants in Singapore and six outlets in Malaysia.
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2. What competitive advantages distinguish FIH from other players?
We are a one-stop restaurant management and consulting solution: The group’s complementary businesses and additional ancillary services help it reap synergistic benefits and drive sustainable growth.
We have strong working relationships with tenants help the group pinpoint strategic locations, resulting in consistently high occupancies of over 99%.
Our ability to expand Japanese brands to the overseas market and identify promising candidates has enabled the group to expand Japanese brands overseas successfully.
We provide full end-to-end suite of consulting services ranging from leasing spaces to restaurant operation services for new ventures by leveraging the group’s extensive network of contacts.
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We provide optimal site and location selection for restaurants and subleased properties enhance our subleased properties’ presence, utilisation and attractiveness.
We innovate fresh dining experience and interesting food concepts: Strong in-house product development team closely monitors market trends and customer preferences.
We have an experienced and dedicated management team with over 10 years of F&B industry experience.
3. Apart from Singapore and Malaysia, is FIH considering expansion to other markets?
The group aims to deepen its foothold in Asia Pacific. We are exploring opportunities in high-growth potential markets such as Australia and Vietnam. Notably, we have partnered with a prospective franchisee in Australia. We are establishing a local subsidiary, laying the groundwork for future restaurant openings and positioning the group for long-term value creation in the region.
4. Can you share more about how FIH’s business segments of restaurant leasing, subleasing and food retail complement each other?
Leveraging the leasing and subleasing business, the group gains valuable market insights that support the expansion of its restaurant operations and help identify quality Japanese brands with growth potential in overseas markets.
Meanwhile, operating its own restaurants enhances the group’s credibility with property owners, who recognise our operational expertise and offer favourable rental rates. This lowers costs for the group’s own restaurant operations and enables the group to provide competitive sublease rates to acquire and retain subleasing customers.
5. Given the large number of players and low entry barriers in the F&B industry, how does FIH ensure it remains competitive?
The group benefits from the low entry barriers in the F&B industry, which drives sustainable leasing demand for its restaurant leasing and subleasing business. At the same time, it differentiates its restaurant operations by maintaining high Japanese hospitality standards and focusing on staff training, sustaining customer loyalty while enabling the group to strategically adjust pricing in response to market dynamics to ensure profitability.
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Furthermore, the group meticulously selects business partners for overseas expansions, aiming to collaborate with restaurants with a strong track record of 20–30 years of successful operations. The group is also exploring ways to incorporate elements of Japanese culture beyond just food, such as anime, into our offerings. With the group’s deep roots in the Singapore market, we can deliver authentic Japanese cuisine and hospitality while catering to local dining preferences.
Backed by effective business partner engagement and social media marketing, the group continues to grow its loyal customer base across brands like Kadohachi, Mikoto, Ushi Club, Hitsuji Club, Yatagarasu and Yomo.
6. What are some notable developments investors can look forward to?
The group aims to grow its sublease portfolio to strengthen stable and recurring revenue streams while scaling the food retail business to drive top-line growth. This includes the following initiatives:
Ongoing expansion of the sublease portfolio through organic property acquisition and collaboration with the Mynavi Restaurant Business Fund.
Strategic growth of the restaurant portfolio, focusing on Malaysia and Japan.
Expansion of anime-themed restaurant concepts, such as the Moomin brand, alongside efforts to acquire additional anime licensing rights.
Expansion of sublease properties in Japan and Singapore.
7. Please share more about the real estate outlook in Japan, Malaysia and Singapore and how this affects the business?
Property rental rates have risen significantly, particularly in commercial facilities. In response, the group selectively opens restaurants only in locations with high traffic to ensure sufficient customer flow, including in commercial facilities to absorb rising rents.
The group’s strong site selection and rent negotiation capabilities have earned the trust of landlords, and we will continue to follow this disciplined approach.
8. Being part of the F&B industry, what ESG or sustainability initiatives is the group planning to take?
The group plans to continue partnering with producers in Japan and globally to educate children and provide them with knowledge about crop production and cooking methods.
The group can reduce waste and emissions generated from its restaurant operations by actively maximising the use of existing restaurant spaces and store equipment.
9. Why should investors take a closer look at FIH?
The group has a unique and complementary business model, with stable and recurring income generated from the restaurant leasing and subleasing segment that ensures stability and resilience while scaling revenue from the food retail business, which drives long-term growth.
We also have an attractive dividend policy, with a guaranteed 20% dividend payout ratio for the next two years, offering strong shareholder returns.
FIH also has strategic exposure to anime-themed concepts to capitalise on the growing popularity of anime culture to diversify the restaurant portfolio and capture new customer groups.
Our board of directors and management team have deep industry expertise to support strategic execution and sustainable growth.
10. What is FIH’s value proposition to its shareholders and potential investors? What do you think investors have overlooked?
FIH is more than just a Japanese restaurant operator. The group is committed to curating and scaling quality traditional Japanese and Japanese-inspired European cuisine restaurants across Asia.
By leveraging the group’s expertise in selecting high-potential business partners, its established network and deep knowledge of Southeast Asian markets, the group helps Japanese operators quickly adapt to overseas operations and tailor dining experiences to local preferences, significantly enhancing the success rate of international expansion.
The 44% revenue increase in the Malaysian market in FY2025 is a strong testament to our capabilities in expanding Japanese restaurant brands overseas.
10 in 10 – 10 Questions in 10 Minutes with SGX-listed companies
Designed to be a short read, 10 in 10 provides insights into SGX-listed companies through 10 Q&As with management. Through these Q&As, management will discuss current business objectives, key revenue drivers and the industry landscape. Expect to find wide-ranging topics that go beyond usual company financials.
This report contains factual commentary from the company’s management and is based on publicly announced information. For more, visit sgx.com/research. For more company information, visit www.fih.sg.
Raphael Lim is an associate director of research and FinLit at the SGX Group
