In the dual-pronged business model, it's got its fingers in both the delicious pie of restaurant operations and the world of real estate subleasing. • The subleasing business, accounting for 45% of FIH's revenue, involves leasing properties to restaurants on behalf of landlords. • FIH recently raised $3.1 million through its listing on the Singapore Exchange, which it plans to use for further expansion. |
In an article on the SGX website, Food Innovators Holdings’ chief executive officer Kubota Yasuaki shares his strategies to boost its complementary operations in restaurant leasing and subleasing, food retail and consulting.
| When Food Innovators Holdings (FIH) president and chief executive officer Kubota Yasuaki stood on the stage of the Singapore Exchange (SGX) last year and struck the gong to celebrate the firm’s public listing on the Catalist board, it was one of his proudest moments and signalled a new chapter in the Japanese food and beverage (F&B) group’s journey.
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With its Moomin-themed café in Karuizawa, Japan, bringing in the crowds, it is also pursuing collaborations with globally recognised anime brands to set up more of such themed eateries. “Our goal is to launch these anime-themed restaurants in international markets, to cater to anime fans worldwide.”
Yasuaki notes that each FIH arm complements the others. Insights from its leasing operations have enabled it to secure optimal locations at favourable rental rates for its restaurant business, and better understand market trends and changes in customers’ preferences to identify high-quality partners for overseas expansions, among other benefits.
As the firm looks to extend its reach in Singapore, Japan and Malaysia, and enter new markets, he is also relying on his tried-and-tested strategies to boost its odds. These include primary research to find out local taste profiles and check the attractiveness of potential locations. Where FIH is familiar with local regulations, taste preferences and business environments, it also advises its restaurant partners so they can quickly adapt to the market and succeed. 
Emerging from Covid-19 stronger than ever
For Yasuaki, leading FIH to greater heights as a listed company would be a second act to rival his first achievement: steering the firm through the depths of the Covid-19 pandemic. He took the reins as president and chief executive officer in July 2020, during the peak of the crisis, after serving as an external consultant in sales and management for less than a year.
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Stock price |
17 c |
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52-week range |
17-24.5 c |
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Market cap |
S$19 m |
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PE |
13.5 |
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Dividend yield |
-- |
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P/B |
4.9 |
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52-week change |
-15% |
When he joined FIH, his decades of experience (as a sales agent in real estate brokerages, senior management in restaurant subleasing firms, and representative director in F&B businesses and relevant consultancies) proved especially useful.
At the time, the Japanese government’s pandemic-related support targeted SMEs, small businesses, mid-sized companies with capital of less than 1 billion yen, as well as individual business owners and freelancers. It also included grants to reduce the burden of land and rent.
Hence, after determining that the global implementation of social distancing would prevent the demand for large-scale parties from recovering in the near future, FIH encouraged landlords to terminate leases and dissolve master lease agreements when tenants requested them. In addition, FIH utilised the above-mentioned grants to support rent collection, ensuring a structure for swift recovery.
Yasuaki recalls: "We cut FIH’s costs to the minimum necessary for survival while ensuring that we could recover quickly once conditions improved.”
“This strategic approach allowed us to avoid both property restoration obligations and the financial risk of prolonged vacancies. By aligning the terminal of master leases with sublease exits, we did not have to pay any penalties.”
To demonstrate strength and instil confidence in staff and shareholders, it proceeded with its SGX listing after a delay, and continued to open restaurants, even during the tough times of the pandemic, in December 2020, February 2021 and August 2021 respectively. “We believed such steady progress would position us well for the market’s eventual recovery,” Yasuaki says.
Always hungry to learn, he has also absorbed and built on insights from the pandemic. During the crisis, street-level stores under 100 square metres were the most resilient, with greater flexibility in adjusting operating hours and product offerings based on changing conditions. Now, FIH prioritises such properties in acquisitions, to ensure adaptability and long term sustainability.
A team ready for the future
As Yasuaki leads FIH in its new phase as a listed company, he is also focusing on its people. A role model is famous Japanese actor Takuya Kimura. “More than just an actor, he indirectly creates hundreds of jobs and supports many people. His strong sense of accountability and dedication to his work inspire me as a leader managing both a team and a brand.”
Before the pandemic, one of FIH’s bottlenecks was recruiting and training staff, a perennial problem for small- to mid-sized firms in Japan. With too few applicants and high turnover rates among new hires, it sometimes had to hire people without all the required skills and put them through extensive training, which increased costs and slowed productivity.
After addressing the recruitment issue by converting part-timers into full-time employees, hiring new graduates from culinary schools, and forming business alliances with recruitment agencies that specialise in the F&B sector, it is now setting its sights on training. “We are promoting the use of artificial intelligence and experimenting with training methods.”
The company is also tapping on digital tools to streamline operations, minimise recruitment risks, enhance customer’s dining experience by reducing waiting times, and improve operational efficiency.
| "A good idea is a good idea" Yasuaki emphasises that the firm’s fortunes depends on its stakeholders: “Our group’s growth will be shaped by everyone from our board members to staff to shareholders. "Furthermore, as chief executive, I oversee our overall strategy, planning and direction, but a good idea is a good idea. I will listen to and execute one no matter where it comes from in our company.” An episode during the pandemic confirmed his conviction that FIH has a capable and cohesive team in place, and the importance of people development. When he fell ill and had to step away from work for a week, his management team took over seamlessly. “Seeing them handle things so well made me extremely proud of them, and showed that we have built a team that will bring us more success in years to come.” |
About Food Innovator Holdings
Food Innovators Holdings is a corporate group that operates real estate and subleasing and restaurant businesses, primarily in Asia, including Japan, Singapore, and Malaysia.
At FIH Group, FIJ, its subsidiary in Japan, focuses on tenant management and subleasing to support store operations. They provide subleasing services as well as consulting services related to these operations.
In addition, FIH group provides unique expertise in restaurant operations and consulting services through Tomaatti in Japan, FIS in Singapore, and FIM in Malaysia.
As a one-stop solution provider, FIH Group is actively expanding its diverse business operations both in Japan and internationally, with a strong focus on subleasing, restaurant operations, and related consulting services.
The company’s website is www.fih.sg
About kopi-C: the Company brew
kopi-C is a regular column by SGX Research in collaboration with Beansprout (https://growbeansprout.com), a MAS-licensed investment advisory platform, that features C-level executives of leading companies listed on SGX. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.
