We have been in the F&B and food service management industry in Singapore for 16 years since 2002. Over this period, we have expanded our footprint in Singapore from initially operating and managing two food courts and one coffee shop to operating and/or managing a total of 47 food courts and 14 coffee shops in Singapore as at the date of this Prospectus. We believe that we are one of the most established and largest operators and managers of food courts and coffee shops in Singapore.
We operate and manage our food courts and coffee shops under various brand names and concepts, the main ones being our Koufu food courts, Cookhouse food courts and Happy Hawkers coffee shops. The F&B menu offerings at each of these outlets are tailored to suit the demographics and profile of customers at each location. Our food courts and coffee shops are mainly located at accessible neighbourhood areas with sizeable catchment, such as near residential areas, public transport hubs, departmental stores, cinemas, supermarkets and tertiary educational institutions.
We believe we have a strong brand awareness and reputation for serving quality food at affordable prices and connecting with our customers through efficient and friendly services, which enable us to maintain our competitive edge in the F&B industry. In particular, our presence in tertiary educational institutions such as in Nanyang Technological University of Singapore, Singapore Polytechnic and the Institute of Technical Education College Central, enables us to build brand equity amongst the younger population with whom we wish to cultivate a long-term relationship.
With the foundation built from managing food courts and coffee shops in the heartland areas, we have successfully broadened our network of food courts within commercial malls in Singapore and Macau. Following the positive reception of our Rasapura Masters food court in Marina Bay Sands in Singapore, we further expanded into Macau with the establishment of a Koufu food court in Sands Cotai Central in 2012.
In addition to operating and managing food courts and coffee shops, we also have self-operated F&B stalls offering drinks, fruits, desserts and dim sum within our food courts and coffee shops. We have further expanded and diversified our F&B retail business through various self-operated F&B stalls, F&B kiosks, QSRs and full-service restaurants serving a variety of cuisines in Singapore and Macau. These include our Grove and Elemen restaurants offering a modern interpretation of meatless cuisine, as well as our 1983 A Taste of Nanyang self-operated F&B stalls and 1983 Coffee & Toast QSRs offering local cuisine.
Our outlet & mall management business segment and F&B retail business segment are complementary and synergistic as we are able to strategically operate our self-operated F&B stalls within our food courts and coffee shops. Depending on the space availability, location and tenant mix, we may also carve out space within our food courts to operate our QSRs. Competition to secure F&B stalls in well-located food courts and coffee shops is high and the ability to have our self-operated F&B stalls and QSRs at these choice locations allows us to further tap into the large catchment offered by such locations. Similarly, our ability to self-operate certain F&B stalls allow us to function as the anchor tenant at each of our food courts and coffee shops, a role which is particularly beneficial at new locations.
Our ability to develop, market and operate our own F&B stalls and F&B Outlets enables us to offer different types of cuisine and dining experiences at various price points to our customers with varying tastes, preferences, budgets and occasions. Having recognised a gap in the market for modern interpretation of meatless cuisine, we started our first full-service restaurant under our Elemen brand in 2015. In 2017, we expanded the range of our F&B retail business segment by establishing a F&B kiosk under our R&B Tea brand, and later expanded our presence by establishing both F&B kiosks and QSRs under our Supertea brand. We continuously keep abreast of the changing trends in the F&B industry and increase our F&B menu offerings to maintain our relevance in this industry and to diversify our revenue base.
A majority of our revenue is derived from our operation and management of food courts and coffee shops, and our F&B retail sales at our self-operated F&B stalls at these outlets, which focus on competitively-priced dining options and is supported by the local food consumption habits in Singapore. As such, we believe that our business is resilient through economic cycles.
We receive a steady income stream from the operation and management of our food courts and coffee shops. In general, the stall operators of our food courts are charged the higher of a fixed monthly fee or a variable monthly fee pegged to gross turnover of the F&B stall, and the stall operators of our coffee shops are charged a fixed monthly fee. We typically offer the stall operators a licence to operate their F&B stalls for a period of two to three years, which largely mirrors the lease tenure accorded to us by our respective landlords. Based on the total number of F&B stalls in the food courts and coffee shops that we operate and/or manage, we have achieved an average occupancy rate of more than 93.0% at the end of each of the last three financial years during the Period Under Review.
Our fees and other charges are either deducted twice a month from the sales proceeds of the F&B stalls which we collect on behalf of the stall operators of our food courts or collected from the stall operators of our coffee shops on a daily basis. Our F&B retail sales are made on cash terms. Accordingly, our business is cash-generative in nature and has a strong operating cash flow with a healthy balance sheet.
We constantly source for prospective stall operators to add to our existing pool of food court and coffee shop stall operators. We conduct food tasting sessions after identifying and shortlisting potential stall operators, to ensure that the quality of the food is of an acceptable standard. Our extensive knowledge and experience in the operation and management of food courts and coffee shops enable us to provide an ideal mix of F&B menu offerings in our food courts and coffee shops, which we believe appeals to our customers.
With our proven track record and reputation, we have attracted many quality stall operators over the years. We treat the stall operators as our business partners by working closely with them to promote their F&B stalls and provide feedback and assistance in various areas such as managing food quality, service improvement and monitoring and improving their sales and margins. As a result, many stall operators have grown together with our Group, expanding to multiple F&B stalls across our network of food courts and coffee shops. Forging such a mutually supportive and synergistic relationship contributes to the sustainability of our food courts and coffee shops. As at the Latest Practicable Date, we have 29 stall operators who have been with our Group for at least five years, operating more than 130 F&B stalls across our network of food courts and coffee shops.
We are involved in various aspects of the supply chain – from the production of certain F&B products at our central kitchens and the retail sale at our F&B Outlets and self-operated F&B stalls, to the operation and management of our food courts and coffee shops. Our end-to-end business model generates cost savings and allows us to have better control over the entire process.
Furthermore, we utilise various IT software to meet the business requirements of our Group. For example, we utilise the POS software to track the daily sales and collection across all our food courts, and generate daily reports for inventory management and accounting purposes.
We also have a separate software portal which allows each of our various F&B Outlets and self-operated F&B stalls to create purchase orders which are placed directly with our central kitchens or suppliers, with our central procurement team coordinating and checking the pricing and quantity of such orders. The use of such IT software streamlines our operations and improves the speed, accuracy and efficiency of our business.
We believe the size of our business provides us with economies of scale in our operations through, among others, direct sourcing and aggregation of purchasing power, generating value for our F&B Outlets and self-operated F&B stalls, as well as our customers and third party stall operators in our food courts and coffee shops.
We are a keen adopter of technology and have embarked on various projects which are in line with the Singapore government's emphasis on improving productivity through innovation. Our efforts in improving productivity have been recognised as we were awarded the Singapore Productivity Award (Excellence in F&B sector) by the Singapore Business Federation in 2016. Such efforts are also targeted at improving overall consumer experience. In particular, under a pilot tender system facilitated by SPRING Singapore and the HDB to encourage operators to innovate and transform coffee shops from traditional formats into more efficient ones, we designated our Happy Hawkers coffee shop at Block 872C Tampines Street 86 as our first productive coffee shop, which features our self-ordering and payment kiosks and smart tray return robots. The self-ordering and payment kiosks, which are also being used at our Koufu food court at Fusionopolis, comprises an electronic menu and is integrated with the POS system to provide faster customer response and service so as to improve operational efficiency.
Our smart tray return robots were exclusively developed with a robotics solutions vendor and as at the Latest Practicable Date, we have deployed more than 45 smart tray return robots at 16 of our food courts and coffee shops. We have also implemented a Radio Frequency Identification Device tray return system, which is integrated with the centralised dishwashing area and self-payment kiosks at our Jurong West Hawker Centre. These initiatives reduce our manpower requirements and promote the general cleanliness of our premises.
We have implemented mobile ordering applications at our Koufu food courts at 100 AM and Novena Square 2, and our Cookhouse food courts at White Sands, Waterway Point and JEM, as well as our Happy Hawkers coffee shop at Block 872C Tampines Street 86. We intend to implement the mobile ordering applications at most of our F&B Outlets in the future. In addition, we are also the first food court manager in Singapore to collaborate with the Network for Electronic Transfers Singapore (NETS) to introduce cashless payment for the F&B stalls via the unified payment terminals, which supports a comprehensive range of payment modes on one single terminal. We plan to introduce approximately 700 unified payment terminals across most of the F&B stalls in our food courts by 2018.
We believe that these projects, among others, have led to an improvement in operational efficiency and productivity. In addition, we have also implemented several employee training and development programmes in order to encourage our employees to strive towards achieving operational excellence and more importantly, productivity improvement.
Our Group is led by our founding shareholder, Executive Chairman and Chief Executive Officer, Mr. Pang Lim, who has more than 27 years of experience in the F&B and food service management industry, and is responsible for the overall management and operations of our Group. He is assisted by our founding shareholder and Executive Director, Mdm. Ng Hoon Tien, who also has more than 15 years of experience in the F&B and food service management industry, and is responsible for the oversight of the operations of our Group. Mr. Pang Lim and Mdm. Ng Hoon Tien are supported by our senior management team which comprises our Chief Financial Officer, Ms. Chua Sher Lin, who has been with our Group for more than 13 years, our Chief Development Officer, Mr. David Yang, who has more than 20 years of experience in the F&B industry, and our Chief Operating Officer, Mr. Choo Teck Chuan, who is experienced in managing large-scale operations and business development.
Together with the support from an experienced and dedicated team of managers, our Group's profit after tax has grown from approximately S$20.6 million in FY2015 to approximately S$26.8 million in FY2017, representing a CAGR of 14.1% over the last three financial years. Our Group has also received numerous accolades and awards over the years, including the Singapore Promising Brand Award, Superbrands Award, Enterprise 50 Award, Singapore Emerging 1000 Companies Ranked by Sales Turnover Award and Singapore Productivity Award.
We believe we are well-positioned to leverage on the experience and dedication of our management team to expand our core capabilities, network base and geographic reach and ensure the continuing success of our Group.