Chicken Claypot House, a chain of restaurants best known for their hotpot and claypot dishes as well as being listed on the Nasdaq, is now a tech company.
The Penang-based hotpot chain has announced that it has signed a three-year sales and service agreement with several strategic clients, which remain confidential due to an NDA between the parties. The contract is understood to be worth USD50 million across the three year term, or roughly RM203.95 million.
Under this agreement, Chicken Claypot House, also known as CCHH, will provide maintenance services solutions to the unnamed clients supporting data centre infrastructure projects across Malaysia. The deal sees CCHH providing technical and operational support too, which includes computing capacity allocation, deployment coordination, technical consultation and operational advisory services for data centre facilities, with a view to expand to other countries according to their client’s rollout plan.
“We are pleased to enter into this three-year strategic agreement, which we believe represents a significant step in CCHH’s evolution as a diversified Nasdaq-listed company.
The US$50 million contract value provides a strong foundation for our entry into the technology infrastructure services chain,” – Goh Kok E, CCHH Chief Executive Officer
If you’re worried that this means the end of your favourite chicken claypot chain, then fret not. Chicken Claypot House is calling this the ‘dual engine growth model’; while their restaurant franchise continues to provide stable cash flow, CCHH is looking to leverage its industry relationships and supply chain resources to enter the data centre support and maintenance industry.
According to Goh, the data centre contract will not change their core Chicken Claypot and restaurant franchise business, instead providing an additional growth pathway, with the goal of diversifying their revenue to improve long term growth potential and create sustainable value for shareholders.
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