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Taiwan’s JustKitchen pivots toward improving margins after rapid growth phase

Ghost kitchen operator looking to cut headquarters staff by around 20%

JustKitchen. (Taiwan News photo)

JustKitchen. (Taiwan News photo)

TAIPEI (Taiwan News) — Taiwanese ghost kitchen operator focusing on delivery-only brands JustKitchen (JK) announced on Tuesday (Aug. 3) it is shifting focus toward improving margins and lowering costs.

The company plans to look for more business-to-business opportunities with higher margins that include large companies with over 4,000 employees and little or no upfront capital expenditures followed by low operating costs. JK also wants to focus on its more profitable locations and consumer segments.

In response to rising inflation, JustKitchen also wants to lower the cost of goods sold relative to revenue by consolidating purchasing. Moving ahead, JK will also look to reduce labor costs.

Other cost-cutting measures the company identified include adjusting operating hours to eliminate unprofitable time windows, in addition to hiring more part-time staff for certain ghost kitchen locations. The company may also look to shut down some of its poorest performing locales.

JustKitchen is also planning to cut headquarters staff by around 20%, as well as renegotiate key occupancy contracts and other material agreements.

“In a short period of time, JustKitchen has grown rapidly and now has over 30 ghost kitchen locations in multiple countries. As such, it is a great time for us to assess the business that we have built in order to enhance our strengths, address our weaknesses and make improvements,” said Jason Chen (陳星豪), co-founder and CEO of JustKitchen.