2 Key Insights Investors Should Know from Jumbo Group Ltd’s Chief Executive Officer

Jumbo Group Ltd (SGX: 42R) came public in late 2015. The homegrown company is best known for its flagship Jumbo Seafood brand of restaurants found in Singapore and other countries. But, there’s more – all told, Jumbo Group has over 20 restaurants and franchises in Japan, China, and Singapore.

In an article from International Enterprise (IE) Singapore, Jumbo Group’s chief executive, Ang Kiam Meng, shared some of his thoughts about the company. I had picked out two key insights from the article that may be useful for investors:

1. Making mistakes

Jumbo Group made its first international foray in 1995 when it opened a restaurant in Indonesia. However, it was not to be. Ang said:

“We failed. It was all due to our inexperience in opening branches. These were earlier years of training. The ‘school fees’ we had to pay.”

Here, Ang was candid about the failure of Jumbo Group in its first attempt to expand beyond Singapore. The failure may have left an impression on him and his colleagues as it took nearly 20 years before Jump Group decided to spread its wings overseas again. This time around, Jumbo Group decided to open a restaurant in Shanghai in 2013.

2. Once bitten, twice shy

Ang recounted the different approach Jumbo Group took when it opened its restaurant in China. He said:

“[In China] we took a very different approach.

You know, ‘Once bitten, twice shy,’ so we were extremely careful. When it comes to F&B, you have to be patient. If you rush into it, if you don’t do your homework well, it will all go down the drain in less than six months.”

In short, the Indonesia experience may have taught Jumbo Group to be more cautious on its approach for international markets. The homework appears to have paid off, as Jumbo Group has opened three restaurants in Shanghai so far. From the article, it looks like the company’s second attempt at international growth has fared much better than the first –  Jumbo Group’s Shanghai restaurants have been well received by critics and customers alike.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.