News Press Releases

JustKitchen Opens New Ghost Kitchens and Secures More Locations in Hong Kong

November 1, 2022

TSXV: JK OTCQB: JKHCF FRA: 68Z

The Company has also Hired Foodpanda's Former Head of Kitchens & Concepts, Ryan Ching, to be the Managing Director of its Business in the Region

VANCOUVER, BC, Nov. 1, 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, announces the opening of multiple new ghost kitchen locations in Hong Kong (the "New Locations"). The New Locations include two stalls in the 10-stall Yuen Long shared commercial kitchen facility (the "Facility") and a site within an office tower in Kwun Tong. JustKitchen has also hired Ryan Ching, the former Head of Kitchens & Concepts at Foodpanda, to be the Managing Director of its business in Hong Kong.

Each stall at the Facility is initially offering three food brands: one stall is focused on the Body Fit, Formosa Chang, and BIT Beef Noodle menus, while the other is offering Mr. Beast, Little Mario's Pizza and Inluck Taiwanese cuisine. Allocating certain brands and menus to certain stalls enables JustKitchen to be operate more efficiently and in a specialized manner.

Situated in the North-Western part of New Territories Hong Kong, Yuen Long is one of the fastest growing areas of the country, with a current population of over 500,000 people.1 Yuen Long is commonly recognized within the top five delivery zones by order volumes on demand-side delivery platforms in Hong Kong.

JustKitchen also opened an additional location in the Kwun Tong area within the Citi Tower building in mid-July. This ghost kitchen has a high proportion of pick-up business and is strategically located to serve the growing office catchment area as part of the Hong Kong government's CBD 2.0 Plan. The Company is also excited to add a newly licensed brand to its portfolio – the local Vietnamese favourite, Bánh Mì Kitchen ("BMK"). The Kwun Tong location offers BMK alongside established consumer favourites, Bodyfit and MrBeast

Other Kitchens

In addition to the New Locations, JustKitchen has secured a lease and a license for delivery for a fully equipped commercial kitchen ("Hub") in Chai Wan in Hong Kong. At approximately 3,000 square feet, the Hub will be able to support existing and future ghost kitchen locations and also serve as a spoke for the Company in Hong Kong moving forward. The first line of in-house production commenced in late May with all product lines completing this transaction in August. The Hub has been able to achieve food cost reductions to under 30% of net sales and is on track to reach 25% by the end of the calendar year. A spoke situated within the Hub is expected to become operational in early October.

In mid-August, the Company also commenced operations of a pop-up kitchen in Quarry Bay situated within Swire Properties' Taikoo Place office precinct. The commitment of the pop-up kitchen extends up to the end of 2022 with an option to lease in 2023. Bodyfit, MrBeast and BMK are the brands currently offered with plans to rotate and promote new brands on a regular basis.

Managing Director, Hong Kong

To assist with all the growth in Hong Kong, the Company recently hired Ryan Ching as its Managing Director for the region. He is an experienced product and operations leader with a passion for the integration and collaboration of technology; product and design; strategy development; business model innovation; and customer-centric promotion in a diverse global marketplace.

Mr. Ching has 15 years of experience and is also skilled in customer experience design, digital transformation, business planning as well as product optimization across digital, physical and financial products around the world. Mr. Ching has a Bachelor of Commerce and Accounting from the University of Melbourne and an MBA from Melbourne Business School. JustKitchen's management team welcomes Mr. Ching to the Company.

Management Commentary

"We are excited to be expanding our footprint with more ghost kitchens in Hong Kong. It is a growing market for JustKitchen and we have learned a tremendous amount from our existing locations about the region and the consumers there," said Jason Chen, Co-Founder and Chief Executive Officer of JustKitchen.

"Adding Ryan to the JustKitchen team is also exciting as his knowledge and experience in the app-driven foodservice sector in Hong Kong is expected to be quite valuable. We are looking forward to working with him to continue growing the Company and offering our customers innovative food experiences," added Mr. Chen.

ABOUT JUSTKITCHEN

Just Kitchen Holdings Corp. (the "Company" or "Just Kitchen") is primarily an operator of ghost kitchens specializing in the development and marketing of proprietary and franchised delivery-only food brands for customers and businesses. The Company currently operates in Taiwan, Hong Kong, the Philippines and Malaysia. It has also signed an agreement that will allow JustKitchen to sell several of its proprietary food brands in Japan and it has also signed a brand swap agreement in India. Where appropriate, JustKitchen 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 via its proprietary mobile food ordering app and other third-party ordering apps. Delivery is fulfilled by third-party 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.

FORWARD-LOOKING STATEMENTS

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 each of the New Locations being planned to initially offer multiple food brands; that allocating certain brands and menus to certain stalls will enable JustKitchen to be operate more efficiently and in a specialized manner; JustKitchen being part of bringing innovative food brands for delivery to Hong Kong's forward-thinking consumers; the new kitchen being able to support existing and future ghost kitchen locations and also serve as a spoke for the Company in Hong Kong moving forward; and Ryan Ching's experience in the app-driven foodservice sector in Hong Kong being expected to be quite valuable. 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.

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