Belgian fast-food chain Exki will shut its outlet in the Kirchberg Shopping Center at the end of June, the group’s CEO Stan Monheim said on Monday.
The closure of the restaurant inside the shopping centre is due to the non-renewal of its lease by the Auchan group, Monheim said in a telephone interview with the Luxembourg Times.
Despite the challenges, he confirmed that the remaining Exki locations – in the Gare district, the old town, and Rue Edward Steichen – will remain open for the time being.
Monheim acknowledged that the company is navigating difficult times — not only in Luxembourg but also across its Belgian operations. Last week, L’Essentiel had reported that several layoffs were planned at the country’s stores in Luxembourg.
In November, Monheim had warned that the firm was “on the verge of bankruptcy”, although in January, the firm announced it had reached an agreement with its shareholders to raise €15 million.
“Exki was originally created to cater to career working women, serving them healthy food options Monday through Friday,” said Monheim. However, he noted that the Covid-19 pandemic drastically shifted customer needs, as employees transitioned to remote work.
As a result, Exki’s business model, which had been built around a steady in-office workforce, no longer met the demand for the brand’s offerings. “The shift to a home office work culture has contributed to a noticeable decline in sales,” Monheim said.
“We are thinking of adapting to the new needs of our clientele,” Monheim said. “One solution we are considering is renting smaller restaurant spaces going forward, around 120 square meters, instead of 400.”
Monheim also confirmed that Exki is undergoing a “strategic review” to assess which products are most popular and where they should focus their efforts in the future. “We are in a research phase right now. A final decision will be made in the next two weeks,” he said.