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Kimly and Tenderfresh enter joint venture to open halal coffeeshop
COFFEE shop operator Kimly is joining hands with Tenderfresh Fried & BBQ Chicken to open a halal-themed eatery in Clementi, the Catalist-listed company said in an exchange filing on Tuesday evening.
Under this collaboration, Kimly hold a 51 per cent stake and Tenderfresh, 49 per cent, in a joint-venture company called Kedai Kopi, Kimly said.
The coffee shop in Block 380 Clementi Avenue 5 #01-376, recently acquired by Kimly's subsidiary, will be branded Kedai Kopi. It will undergo enhancement work, and target to reopen for business around mid-December, said the filing.
This is Kimly's first foray into the halal food industry, and the company said it is an "opportune time" to capitalise on a market with a population that is 14 per cent Muslim, or about 789,000 people. This is because of the industry's rapid growth, Kimly said, noting that the number of halal certifications issued for premises and products in 2018 were double that from the decade before.
Kimly added that the joint venture with Tenderfresh, a well-established and major halal food operator, will enable the group to leverage Tenderfresh's competitive edge and wide network in Singapore's halal food market.
This will provide Kimly a "valuable strategic platform" for it to further expand its customer base and product offerings, it said.
Tenderfresh, founded in 1979, has grown from specialising in fried and roasted chicken to offering dishes from western and local cuisines. It now manages 18 brands and 64 outlets across Singapore and Myanmar.
The joint-venture company is not expected to have a material impact on earnings per share or net tangible assets per share of the group for the financial year ending Sept 30, 2021, Kimly said.
Kimly's shares closed flat at 27 Singapore cents on Tuesday.