TSXV: JK OTCQB: JKHCF FRA: 68Z
The Company is Investing in Several Core Aspects of its Teck Stack Including the JKOS Platform, LPOS System, Franchise Model, Mobile Food Ordering Application, Supply Chain Integration, Sigma Tool and JK University Repository
VANCOUVER, BC, Aug. 8, 2022 /CNW/ - Just Kitchen Holdings Corp. ("JustKitchen" or the "Company") (TSXV: JK) (OTCQB: JKHCF) (FRA: 68Z), a technology-focused and enabled operator of ghost kitchens specializing in the development of delivery-only food brands, is pleased to announce that it has embarked on a technology-driven initiative to optimize operations to set a stronger stage for future growth. Led by senior management, the initiative also includes projects to further leverage the Company's strengths as well as shore up areas of improvement.
The Company's management team has deemed it strategically important to continue investing in its JKOS platform, lightweight point-of-sale ("LPOS") system, franchise model and the JustKitchen mobile food ordering application (the "JK App"), as outlined in more detail below:
As the heart of JustKitchen's technology stack, JKOS is an open-ended Application Programming Interface ("API") platform that enables internal and external services to be linked. JKOS gives the Company the ability to connect a new sales channel to a B2B web order as well as for a customer to place an order that is linked directly to JustKitchen's LPOS and accounting system, thereby not requiring a third party or extra manual labour to administer the billing function;
The LPOS is designed for cloud kitchen operations in a global format and JustKitchen is aiming to replace all of its current POS systems with LPOS. It integrates with key food delivery providers and acts as a platform to sync menu items, prices and promotions. The LPOS also connects with the Company's third-party sales channels to deliver information to each JustKitchen location and sync with other systems such as its Enterprise Resource Planning ("ERP") system and others. The investment in LPOS is expected to lead to a reduction in total point-of-sale costs as well as possibly streamlining income, improving customer experiences and decreasing errors in the ordering process;
The Company's franchise system was designed to create a smooth process for franchisees from beginning to end. Prior to onboarding, franchisees are able to utilize the Company's data science analysis tool to learn which cuisines and brands are the best fit for their location. This system better automates the franchise sales system, so franchisees can onboard faster and start their new business sooner; and
The JK App was developed to reduce the Company's dependence on third party delivery service providers. It uniquely allows customers to order different cuisines in one transaction. Operating its own JK App gives the Company the advantage of saving on delivery commissions from third-party food delivery providers, the ability to obtain customer information for marketing re-targeting, and the ability to provide better promotions or discounts directly back to customers without sacrificing margin.
In addition, and to help achieve many of the Company's margin-improvement and cost-reduction goals, JustKitchen is also focusing on its supply chain integration, Sigma data analysis tool and JK University repository. These tools are expected to aid in optimizing the efficiency and effectiveness of the Company's production, marketing, selling and other daily functions, as follows:
The Company's focus on supply chain integration is intended to create a customized store ordering, receiving and inventory management system for counterparties, to link all key elements including ERP, LPOS, Sigma and 4PL operators. Stronger supply chain management is expected to provide JustKitchen with better visibility for demand forecasting and stock turnaround. This can allow the Company to improve strategic purchases, decrease waste and automate workflow processes to reduce labour costs and better track accounting and finance information;
The Sigma data analysis tool gathers and stores information that exists within the Company. It contains different data sets and can be accessed by qualified staff members. It also helps JustKitchen create reports, generate comparisons and provide real-time results from stores and the supply chain. Ultimately, Sigma enables the Company to gain better insight into its successes and areas of improvement; and
JK University is an online learning and development repository that can be used globally by the Company's employees and franchisees. It provides a consistent experience for onboarding at headquarters or ghost kitchen locations. For example, notifications and updates regarding policies, SOPs and recipes can be sent to select staff members. JK University also reduces the amount of time and labour required to conduct training as people can train according to their schedules and access the platform anywhere, anytime. The Company is looking to expand the platform's content and add materials, to improve staff efficiency and develop well-rounded staff for long-term employment.
"As part of management's previously announced cost reduction efforts and optimization-based initiative, it is a good time to add new technologies as well as make improvements to our current proprietary stack. Technology, such as our JKOS platform, is a key success factor for JustKitchen and we are keen to continue investing in it as a primary differentiating factor for the Company," said Jason Chen, Co-Founder and Chief Executive Officer of JustKitchen.
JustKitchen is primarily a technology-focused and enabled operator of ghost kitchens specializing in the development and marketing of proprietary and franchised delivery-only food brands for customers. The Company currently operates in Taiwan, Singapore and Hong Kong with plans to expand operations to other Asian countries. JustKitchen uniquely utilizes a hub-and-spoke operating model, which features advanced food preparation taking place at larger hub kitchens and final meal preparation taking place at smaller spoke kitchens located in areas with higher population densities. The Company combines this operating model with online and mobile application-based food ordering fulfilled by third-party delivery companies, to minimize capital investments and operating expenses and reach more customers in underserved markets. The Company's other business, JustMarket, is an e-commerce grocery delivery platform that allows customers to purchase groceries for delivery or add select 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 management's discussion and analysis, 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.
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "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 the Company's comments regarding the expectation for the technological tools to aid in optimizing the efficiency and effectiveness of the Company's production, marketing, selling and other daily functions; and the investment in LPOS will lead to a reduction in total point-of-sale costs as well as possibly streamlining income, improving customer experiences and decreasing errors in the ordering process. 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 news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks, including those risk factors identified in the Company's prospectus dated March 26, 2021, and 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 statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
SOURCE Just Kitchen Holdings Corp.
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