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Category: Food

Retail News Asia is committed to providing both local and global retailers with the latest Food and Food & Beverage news throughout the Asian market. This on a daily base.

  • Domino’s Pizza China Celebrates Expansion Success with 1400th Store Milestone

    Domino’s Pizza China Celebrates Expansion Success with 1400th Store Milestone

    Domino’s Pizza China (DPC Dash) has successfully surpassed its 1400th store landmark as it steadily propels the progression of its network.

    DPC Dash is identified as the sole master franchisee for Domino’s Pizza in Mainland China, Hong Kong, and Macau. The company recently inaugurated its 1405th store in Sanya, located in the Hainan Province. This establishment not only denotes its entrance into the 72nd city within the Chinese Mainland but also aligns with its marker on the Hong Kong Stock Exchange (1405.HK).

    According to DPC Dash, this milestone symbolizes the triumph of its ‘go broader, go deeper’ expansion strategy for its store network and the robust customer demand for the pizza brand. This accomplishment comes after the company’s impressive performance the previous year, during which it added 307 new stores net and broadened its reach into 21 new cities.

    The company has stated that it will persist with further developing its 4D strategy, which includes ‘Development, Delicious Pizza at Value, Delivery, and Digital’. This approach aims to tap into China’s market consumption potential while ensuring continuous innovation and sustainable operations.

    Questions & Answers

    What is Domino’s Pizza China’s (DPC Dash) expansion strategy?
    – Domino’s Pizza China or DPC Dash follows a ‘go broader, go deeper’ expansion strategy. This method focuses on increasing the number of stores and expanding into new cities.

    What is the 4D strategy that Domino’s Pizza China (DPC Dash) is focusing on?
    – The company’s 4D strategy consists of ‘Development, Delicious Pizza at Value, Delivery, and Digital’. This approach aims to capitalize on the potential of China’s market consumption while maintaining continuous innovation and sustainable operations.

    What recent milestone has Domino’s Pizza China (DPC Dash) achieved?
    – The company recently surpassed its 1400-store milestone, with the opening of its 1405th store in Sanya, located in the Hainan Province. This accomplishment also marked its entrance into the 72nd city in the Chinese Mainland.

  • Subway Malaysia Apologizes After Unsettling Discovery of ‘Cockroach Legs’ in Customer’s Coffee

    Subway Malaysia Apologizes After Unsettling Discovery of ‘Cockroach Legs’ in Customer’s Coffee

    An unsettling incident unfolded at a Subway outlet in Malaysia, causing discomfort to a customer who allegedly found insect parts in her coffee cup. The incident further led to Subway issuing an apology and taking immediate actions to rectify the situation.

    A Disturbing Discovery

    The incident was first made known on a social media platform by a user named Fara Lee. Lee stated that the unpleasant incident occurred at the Subway outlet located in Mydin Mall Meru Raya, Ipoh, where a colleague of hers had bought the coffee. The colleague, upon feeling something odd in her throat, discovered what seemed to be cockroach legs in her coffee cup, after consuming half the drink.

    The shared images depicted what were believed to be insect legs stuck to the sides of the cup and floating in the half-drunk beverage. The post rapidly garnered attention, receiving more than 3,200 likes and over 420 comments.

    Subway’s Response

    Responding to the incident, Subway Malaysia issued an apology and assured the public that immediate proactive steps were taken. The fast-food chain temporarily closed the outlet in question to conduct a comprehensive inspection and thorough cleaning.

    In its commitment to maintaining high hygiene standards, Subway Malaysia further stated that it would enforce appropriate measures to prevent such an incident from recurring in the future.

    Earlier this week, Subway Malaysia shared images of the outlet’s coffee machine and premises undergoing a detailed cleaning process. The company stated that despite having regular hygiene protocols in place, a full deep clean of the outlet had been performed as an additional step of reassurance.

    Questions & Answers

    What did the customer find in her coffee cup?
     The customer allegedly found what appeared to be cockroach legs in her coffee cup.

    What actions did Subway Malaysia take in response to the incident?
     Subway Malaysia temporarily closed the outlet for a thorough inspection and cleaning. The company also conducted a deep clean of the outlet as an added reassurance measure.

    What preventive measures will Subway Malaysia apply to avoid such incidents in the future?
     Subway Malaysia has committed to maintaining high hygiene standards and will enforce appropriate measures to prevent such incidents from recurring in the future.

  • Vietnam’s Gold Rates Skyrocket as Global Bullion Hits Record $5,000 Per Ounce

    Vietnam’s Gold Rates Skyrocket as Global Bullion Hits Record $5,000 Per Ounce

    Gold prices in Vietnam experienced a significant boost on Monday as international bullion rates soared to a new record high of over US$5,000 per ounce. Saigon Jewelry Company’s gold bar price increased by 1.26% to VND176.5 million (US$6,735.35) per tael, a rate echoed by other sellers in the area.

    Local and Global Rates

    Within Vietnam, the price of bullion is now VND14 million per tael higher than the worldwide standard. This surge in price is not limited to bars of gold, as the cost of gold rings also saw an increase of 1.45% to VND175.5 million per tael. Just to clarify, a tael is a unit of weight, equivalent to 37.5 grams or 1.2 ounces.

    Global Gold Price Surge

    Internationally, gold has set a new record high. The escalation in the price of gold is attributed to investors seeking a ‘safe-haven’ asset in light of increasing political uncertainties around the globe. The spot gold price rose by 1.98% to $5,081.18 per ounce, after initially reaching $5,092.71. The precious metal has seen its value increase by over 17% this year alone. Similarly, U.S. gold futures for February delivery saw a 2.01% increase to $5,079.30 per ounce.

    Market analyst Fawad Razaqzada explains the recent trend in gold prices as typical ‘safe-haven’ behaviour. He suggests that underlying demands for secure investments continue to be present, as confidence in the dollar and bonds appear to be somewhat unsteady.

    Questions & Answers

    What caused the surge in gold prices?
    The increase in gold prices is primarily driven by investors seeking a ‘safe-haven’ asset due to the rise in geopolitical uncertainties.

    How much has the value of gold increased this year?
    The price of gold has risen by more than 17% this year.

    What is the current price of gold per tael in Vietnam?
    The price of gold per tael in Vietnam is currently VND176.5 million.

  • Celsius Energizes Aston Martin F1 Team with Global Multi-Year Partnership: A New Frontier in Formula 1 Sponsorships

    Celsius Energizes Aston Martin F1 Team with Global Multi-Year Partnership: A New Frontier in Formula 1 Sponsorships

    Celsius, a renowned energy drink brand, has embarked on a multiple-year worldwide affiliation with the Aston Martin Aramco Formula One team, becoming the team’s ‘official Global Energy Drink Partner’.

    Aligning with Global Expansion

    This deal coincides with Celsius’ ongoing global expansion into key markets including the United Kingdom, Australia, France, Canada, and the United States. The collaboration aims to enhance the visibility of the Celsius brand within the Formula 1 setting and its worldwide audience.

    As an integral part of this alliance, both parties will incorporate the ‘Live Fit Go’ campaign by Celsius that was initiated in 2025 and set to broaden its reach to further markets by 2026.

    Fitness-centric Collaborations and Events

    Geared towards wellness-focused consumers and the racing fraternity, the two entities are also slated to organize fitness-based activations along with joint events bearing their respective branding.

    Jefferson Slack, MDC of Aston Martin Aramco Formula One, commented on the partnership, positive that it would introduce new energy into their I/AM program and foster better connections among ambition, culture, and community. He added that they would pioneer this initiative with the inaugural jointly-hosted Run club in Melbourne and plan to design numerous creative activations throughout the season to animate this partnership and jointly foster a movement of positive energy.

    These occasions will include running sections that take inspiration from race tracks and city landmarks. Concurrently, Celsius products will be accessible within the Aston Martin Aramco garage and at selected fan locations during the season.

    Collaboration with a Passionate Fan Base

    Kyle Watson, CBO of Celsius Holdings, noted that the fervent fan base of Aston Martin Aramco lays the foundation for a symbiotic partnership, heralding an exciting new chapter for Celsius in the realm of Formula 1.

    Questions & Answers

    What is the main goal of the partnership between Celsius and Aston Martin Aramco Formula One team?
    The partnership aims to enhance the visibility of the Celsius brand within the Formula 1 setting and its global audience.

    What kind of events are planned under the partnership?
    The partnership plans to organize fitness-based activations and jointly-branded events, featuring running sections inspired by race tracks and city landmarks.

    Where will Celsius products be available during the season?
    Celsius products will be available within the Aston Martin Aramco garage and at selected fan locations during the season.

  • Unleash Your Inner Superhero: Marvel and Oreo Launch Limited-Edition ‘Stuf of Legends’ Cookies Nationwide

    Unleash Your Inner Superhero: Marvel and Oreo Launch Limited-Edition ‘Stuf of Legends’ Cookies Nationwide

    Marvel has joined forces with Oreo to introduce the ‘Legend Cookies’ series, set to hit retailers across the country on February 2.

    The Legendary Collaboration

    This exclusive collaboration, dubbed ‘Marvel Oreo Stuf of Legends’, features limited-edition cookie packs adorned with artwork by notable artist Todd Nauck. The unique cookies feature 32 different designs, each one representing characters from popular Marvel franchises including The Avengers, Spider-Man, X-Men, and The Fantastic Four.

    Matt Foley, the Vice President of Oreo, views this partnership as a significant cultural event that strengthens bonds with fans by creating shared moments of joy. According to him, “This collaboration elevates the iconic status of both brands by transforming fans from mere spectators into active participants. They are encouraged to engage in Super Hero-inspired play through the medium of Oreo cookies.”

    Unveiling the Cookie Collection

    As of now, three out of the four pack designs have been released. However, Oreo plans to incorporate elements of Marvel’s villainous characters as a narrative strategy to bridge the gap between these distribution phases, encouraging fans to complete the entire set.

    Liz Shortreed, Senior Vice President of Disney Consumer Products for the Americas and Global Softlines, believes that collaborating with Oreo enables them to infuse Marvel’s storytelling into everyday activities. As she explains, “This partnership transforms snack-time into an enjoyable fan experience, complete with iconic characters and engaging digital interactions.”

    The pre-sale for these limited-edition packs begins on January 26 on the snack company’s official website. The nationwide retail launch will then take place on February 2.

    Oreo’s Continued Innovations

    In the previous year, Mondelez International broadened its Oreo product line with the introduction of Oreo Zero Sugar and Oreo Double Stuf Zero Sugar in the United States, scheduled for release in January.

    Questions & Answers

    What is the ‘Marvel Oreo Stuf of Legends’ collection?
    This is a limited-edition cookie pack collection introduced by Oreo in collaboration with Marvel. It features cookies with 32 unique designs representing characters from various Marvel franchises.

    When will the limited-edition packs be available for pre-sale?
    The pre-sale of these packs starts on January 26 on the snack company’s official website.

    What are some recent additions to the Oreo product line?
    In the previous year, Oreo expanded its product line with the introduction of Oreo Zero Sugar and Oreo Double Stuf Zero Sugar in the United States.

  • Jollibee Group’s Remarkable Global Surge: Coffee Leads the Way and Chinese Cuisine Gains Momentum

    Jollibee Group’s Remarkable Global Surge: Coffee Leads the Way and Chinese Cuisine Gains Momentum

    The Jollibee Group has recorded impressive progress in its coffee, tea, and Chinese cuisine sectors, bolstered by an aggressive international expansion strategy, enhanced store operations, and unwavering commitment to the performance of its flagship brands.

    The Boom in Coffee and Tea

    The group’s coffee and tea division is at the forefront of this growth trajectory, with Compose Coffee and Highlands Coffee stepping up their store establishment rates and solidifying their market dominance.

    Compose Coffee, in South Korea, has grown beyond the 3000-store mark, setting up an additional 1000 outlets in less than a year and a half. The platform’s mobile application has garnered a cumulative user base of nearly 18 million, following a widely successful celebrity-led promotional campaign.

    Richard CW Shin, CEO of Jollibee Group International and Global Chief Financial and Risk Officer of Jollibee Group, lauded Compose Coffee’s exponential growth. He affirmed the brand’s ability to scale while retaining quality, value, and consumer affinity.

    Shin shared the group’s intent to extend the brand’s momentum to other global markets. He expressed optimism in Compose Coffee’s potential to generate long-term shareholder value, emphasizing the brand’s strategic role in driving Jollibee Group’s international growth.

    Highlands Coffee, based in Vietnam, has secured its position as the nation’s leading coffee brand by market share. With a burgeoning network of nearly 1000 outlets, Highlands Coffee serves in excess of 100 million customers each year.

    Chinese Cuisine on the Rise

    The group’s Chinese cuisine department also noted significant strides. Yonghe King, in particular, augmented its presence in China with the introduction of 35 new franchised stores recently. This move is part of a more efficient operational blueprint that supports the group’s drive for stable and sustainable market operations.

    Tim Ho Wan, post its acquisition, has shown promising indicators, with all its stores in Hong Kong reportedly regaining profitability within six months. The brand’s early performance in the US is also promising. The inauguration of Tim Ho Wan Irvine marked the brand’s debut as a company-operated store in the US under the Jollibee Group, with plans to reach 20 locations across North America by 2028.

    Questions & Answers

    What is behind the success of Compose Coffee in South Korea?
    Compose Coffee has successfully established over 3000 stores in South Korea, with an additional 1000 outlets set up in under 18 months. This growth is attributed to a strategic expansion plan and a celebrity-led promotional campaign that increased the user base of its app.

    How is Highlands Coffee performing in Vietnam?
    Highlands Coffee retains the top spot in Vietnam’s coffee market by share, with a network of nearly 1000 outlets and over 100 million customers served annually.

    What is the performance of the Chinese cuisine segment of the Jollibee Group?
    Significant progress has been recorded in the Chinese cuisine segment, with Yonghe King expanding its footprint in China through the addition of 35 new franchised stores. Tim Ho Wan has also seen positive traction post-acquisition, with all Hong Kong stores returning to profitability within six months.

  • US Fruits and Veggies Flood Vietnam Market: Imports Soar by 67%

    US Fruits and Veggies Flood Vietnam Market: Imports Soar by 67%

    Imports of U.S. fruits and vegetables to Vietnam have surged, showing a nearly 67% increase to US$900 million in 2025. This figure represents a tenfold increase from a decade ago and showcases the robust demand for U.S. produce in Vietnam. Among the top imports are cherries, apples, grapes, and oranges, as reported by Vietnam Customs.

    Disparity in Trade

    Despite the significant increase in imports from the U.S., Vietnamese exports to the U.S. have not shown the same growth. In 2025, the value of Vietnam’s fruit and vegetable exports to the U.S. was $546 million, a mere 1.49% share in a market dominated by suppliers from Mexico, Canada, and South American countries.

    Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, acknowledged the challenges of the U.S. market, noting its stringent technical standards and the geographical distance between the U.S. and Vietnam.

    Vietnam’s Position in the U.S. Market

    Vietnam currently ranks as the 13th largest fruit and vegetable supplier to the U.S., a position achieved through the concerted efforts of local businesses. There is potential for further growth in the U.S. market with the expanding list of fresh fruits allowed for export, including pomelo, mango, dragon fruit, longan, lychee, star apple, rambutan, and, most recently, coconut.

    Consumer trends in the U.S. are shifting towards exotic fruits, health-oriented products, and more processed items like frozen fruit, dried fruits, and juices. Vietnamese products like coconut, durian, and pomelo are becoming increasingly sought after in the U.S.

    Challenges to Exports

    Despite the potential for growth, Vietnamese exports face several hurdles. Starting from this month, the U.S. has tightened regulations on traceability and food safety, with a specific focus on pesticide residues. Inconsistent Vietnamese oversight of planting area codes and packaging facilities may lead to warnings or even temporary import suspensions by the U.S.

    The long distance between the two countries also incurs high logistics costs, making it challenging for Vietnamese fruits and vegetables to compete with suppliers closer to the U.S., such as those in Mexico, Peru, or Thailand.

    Changes in U.S. policies under the Trump administration have introduced unpredictability to trade defense measures designed to safeguard domestic agriculture. At the same time, green production, carbon emission, and social responsibility requirements in supply chains are gradually becoming mandatory, adding further pressure on exporters.

    Questions & Answers

    What are the top U.S. fruits imported by Vietnam?
    The top fruits imported by Vietnam from the U.S. are cherries, apples, grapes, and oranges.

    What are some of the challenges facing Vietnamese exports to the U.S.?
    Challenges include tightened U.S. regulations on traceability and food safety, high logistics costs due to geographical distance, and the increasing mandatory requirements related to green production, carbon emission, and social responsibility in supply chains.

    What potential does Vietnam have for growth in the U.S. market?
    There is significant potential for growth, especially as the list of fresh fruits permitted for export to the U.S. continues to expand. Moreover, with U.S. consumer trends shifting towards exotic fruits and health-oriented products, Vietnamese products like coconut, durian, and pomelo are gaining popularity.

  • Cherry Costs Tumble as Global Supply Skyrockets: A Bumper Year for Bargain Hunters

    Cherry Costs Tumble as Global Supply Skyrockets: A Bumper Year for Bargain Hunters

    The prices of cherries have experienced a significant drop of 50% as importers ramped up their supply in response to the previous year’s shortages. However, they soon discovered that demand had not notably increased. Importers from Australia, New Zealand, and the U.S. are now selling large cherries for approximately VND900,000 ($34.27) per kilogram, a sharp contrast from the VND2 million price tag from the previous year.

    Retailers Forced to Reduce Prices

    One fruit vendor in HCMC, known as Hoa, noted that U.S. cherries were in high demand last year, which led her to purchase more for this year. However, sales have not been as brisk as expected. She stated, “Supply has increased but demand has yet to match it, forcing sellers to reduce prices.”

    This noticeable drop in prices is also reflected in retail chains such as MM Mega Market and Go! Here, the cost of Australian cherries has dipped to VND250,000-400,000 per kilogram from VND500,000 last year, despite the fact that they were constantly sold out.

    Nguyen Thi Hang, another fruit vendor in HCMC, revealed that the market this year is highly competitive due to an influx in imports, particularly of cherries, apples, kiwifruits, and grapes.

    Vietnam’s Fruit and Vegetable Imports

    Last year, Vietnam imported fruits and vegetables worth $3 billion, which is an increase of 24% from 2024. Globally, the supply of cherries has also seen a general rise. For example, in Chile, the largest cherry exporter in the world, the cherry farming area is estimated to have grown by 4.6% to 80,000 hectares in the 2025-2026 season. Consequently, the production has also increased by 6.7% to 730,000 tonnes, as per the U.S. Department of Agriculture.

    This substantial growth in supply, at a time when demand in key markets has not significantly increased, has resulted in a decrease in prices in various locations, including Vietnam.

    Questions & Answers

    Why have cherry prices plunged by half this year?
    The prices have fallen due to an increase in supply after last year’s shortages. However, the demand has not matched the increased supply, forcing sellers to reduce their prices.

    How has this affected the retail chains?
    Retail chains such as MM Mega Market and Go! have also had to reduce their prices. For instance, the cost of Australian cherries has dipped to VND250,000-400,000 per kilogram from VND500,000 last year.

    What was the value of fruits and vegetables imported by Vietnam last year?
    Vietnam imported fruits and vegetables worth $3 billion last year, marking a 24% increase from 2024.

  • Celsius Debuts Sparkling Raspberry Peach: An Exclusive 7-Eleven Flavor Revolutionizing the Australian Beverage Scene

    Celsius Debuts Sparkling Raspberry Peach: An Exclusive 7-Eleven Flavor Revolutionizing the Australian Beverage Scene

    Celsius, a renowned US energy drink brand, is introducing a flavour that will be exclusively available at 7-Eleven stores across Australia. This beverage, Sparkling Raspberry Peach, will be presented via the brand’s first-ever pop-up at the popular convenience store chain.

    The Sparkling Raspberry Peach flavour offers a delightful mix of succulent peach and a touch of zesty raspberry. A representative for Celsius anticipates that this new beverage will be popular among Australian consumers and could potentially become the preferred non-alcoholic drink of choice. This prediction comes on the back of a recent study which reported that roughly 40% of drinkers are seeking to reduce their alcohol consumption, creating an opportunity for non-alcoholic beverages like Celsius to fill the gap.

    The Sparkling Raspberry Peach flavour is currently available at 7-Eleven stores across the nation at a suggested retail price of $4.

    To commemorate the launch, a pop-up event was organised featuring Australian DJ and producer, DJ Cyril. Entry tickets were priced at $7.11 each, with limited availability.

    Adam Jacka, the General Manager of Marketing at 7-Eleven Australia, stated that their stores have consistently been a go-to spot for Australians to kickstart their day. Whether it’s a comforting oat latte, a chilly iced coffee, or a refreshing energy boost like Celsius, they cater to all preferences. Expressing his excitement about the partnership with Celsius, he added that the morning rave event was unconventional yet fitting. According to him, it encapsulates the spirit of 7-Eleven in its local, fun, and community-oriented approach.

    Celsius has recently broadened its product offerings in Australia.

    Questions & Answers

    What is the new Celsius flavor that is launching in Australia?
    The new flavor is Sparkling Raspberry Peach, a blend of sweet peach and tangy raspberry.

    Where will this new Celsius flavour be available?
    The Sparkling Raspberry Peach flavor will be exclusively available at 7-Eleven stores across Australia.

    What was the special event organised to celebrate the launch of the new flavor?
    A pop-up event featuring Australian DJ and producer, DJ Cyril, was organised to celebrate the launch.

  • A2 Milk Shares Suffer as China’s Plummeting Birth Rate Impacts Infant Formula Sales

    A2 Milk Shares Suffer as China’s Plummeting Birth Rate Impacts Infant Formula Sales

    New Zealand-based A2 Milk Company has reported a drop in its share price due to the decline in Chinese birth rates, which has reached a record low.

    On the Australian Securities Exchange (ASX), A2 shares plunged by 11.2 percent upon closing on Monday, January 19, shortly after the distressing news was announced in China. In response to a price query on the ASX, the company stated that it wasn’t privy to any information related to its current situation that hasn’t been disclosed to the market. This information, if known by certain market participants, might potentially explain the recent trading dynamics of its securities.

    A2’s Trading Performance Explanation

    When asked to provide an additional reason for its recent trading performance, A2 pointed to an announcement made by the China National Bureau of Statistics on January 19. The announcement revealed that the number of newborns in China last year had decreased by 17 percent to 7.92 million.

    The infant milk formula, one of A2’s greatest sources of income, is exported to China. In the fiscal year 2025, it recorded a revenue of NZ$1.2 billion (A$1.04 billion) from infant formula sales in China and Asia.

    Questions & Answers

    What caused the drop in A2 Milk Company’s share price?
    The decline in Chinese birth rates, which have reached a record low, was reported as the cause for the fall in A2’s share price.

    What was the percentage decrease in A2’s share price?
    A2’s share price dropped by 11.2 percent on the Australian Securities Exchange.

    What is one of A2’s largest sources of income?
    One of A2’s largest revenue streams is its infant milk formula, which is exported to China.

  • Aussies Embrace Daily Luxury: Surge in Everyday Premium Ice Cream Indulgence Revealed

    Aussies Embrace Daily Luxury: Surge in Everyday Premium Ice Cream Indulgence Revealed

    Australia is witnessing a shift in the perception of premium ice cream, from being an occasional luxury to an everyday delight, according to recent research conducted by Haagen-Dazs.

    Ice Cream as an Everyday Indulgence

    The research found that nearly three out of every ten Australians, approximately 28 percent, now view premium ice cream as a regular indulgence. This trend is particularly noticeable in Victoria and New South Wales. Millennials and men are spearheading this increase, with 40 percent of Millennials and 33 percent of male respondents admitting to indulging in premium ice cream on a daily basis.

    Sacrificing Other Delights for Ice Cream

    Interestingly, the study reveals that four out of every ten Australians would rather forgo sweet beverages than give up ice cream, while three in ten would skip pastries and baked goods in favor of ice cream.

    Ice Cream and the Convenience Channel

    The study also emphasizes the growing importance of convenience stores as the preferred destination for consumers desiring quality, speed, and satisfaction from a single scoop of ice cream. Approximately 42 percent of respondents, predominantly those belonging to the Gen Z, Gen X, and Baby Boomers demographics, prefer to enjoy their ice cream in solitude.

    Changing Perceptions of Luxury

    Cavan Brady, the head of ice cream at Haagen-Dazs Australia, suggests that these findings denote a significant cultural shift in Australians’ understanding of luxury. He notes that consumers aren’t giving up on indulgence, but rather, they are reshaping it. He implies that the conventional ‘little treat’ has transformed into a pocket-sized form of self-care that people prioritize even in the face of tight budgets.

    Brady further explains that for retailers, this indicates that premium ice cream has evolved beyond being an optional treat. The rise of portion-controlled, single-serve, and impulse formats reflects the new pattern of daily indulgence, presenting an enticing growth opportunity for petrol and convenience stores.

    Questions & Answers

    What is the new perception of premium ice cream in Australia?
    Premium ice cream is being seen as an everyday delight rather than an occasional luxury in Australia.

    Who are mainly driving this increase in daily indulgence of premium ice cream?
    Millennials and men are primarily driving the daily indulgence in premium ice cream.

    What has the classic ‘little treat’ evolved into, according to Cavan Brady?
    According to Cavan Brady, the classic ‘little treat’ has evolved into a pocket-sized form of self-care that people prioritize, even when budgets are tight.

  • Everstone Capital Sells $57M Stake in Burger King’s India, Indonesia Franchisee, Ajanta Pharma Founders to Invest

    Everstone Capital Sells $57M Stake in Burger King’s India, Indonesia Franchisee, Ajanta Pharma Founders to Invest

    Private equity firm Everstone is set to sell its entire stake, amounting to 11.26 per cent, in Restaurant Brands Asia, a franchisee operating in India and Indonesia for fast-food giant Burger King. Those familiar with the matter have confirmed that the deal will be announced soon.

    Equity Stake Valuation

    Everstone Capital’s stake, held via its investment arm QSR Asia Pte Ltd, is presently valued at USD 57 million, based on Refinitiv data. Meanwhile, the market capitalisation of Restaurant Brands Asia stands at USD 437 million in Mumbai.

    New Strategic Investor

    As part of the agreement, a new strategic investor will be introduced to Restaurant Brands Asia. The identity of this investor remains confidential at this point.

    Despite repeated attempts, both Everstone and Restaurant Brands Asia have opted to not comment on the matter.

    Pharma Founders as Potential Investors

    The family office of the founding members of Ajanta Pharma, an Indian pharmaceutical company, is reportedly taking a keen interest in this deal. The family office, which also operates in the restaurant business, is projected to invest up to INR 8 billion (equivalent to USD 88 million) into the company.

    No comment could be obtained from the representatives of the family office either.

    Although it’s unclear what percentage of the company Ajanta would acquire, it’s speculated that they may become the majority stakeholder over time as other shareholders divest their stakes.

    In a recent communication with Indian stock exchanges, Restaurant Brands Asia announced upcoming board meeting plans to discuss and evaluate possible fundraising options, although no further information was provided.

    Questions & Answers

    What is the current stake of Everstone in Restaurant Brands Asia?
    Everstone presently holds an 11.26 per cent stake in Restaurant Brands Asia.

    Who is speculated to be the new strategic investor?
    The family office of the founders of Ajanta Pharma is speculated to be the new strategic investor.

    How much is the family office of Ajanta Pharma expected to invest?
    They are expected to invest up to INR 8 billion (USD 88 million) into the company.

  • McDonald’s Vietnam Amplifies Expansion Strategy: Aiming for 100 Stores in Three Years

    McDonald’s Vietnam Amplifies Expansion Strategy: Aiming for 100 Stores in Three Years

    McDonald’s Vietnam is reigniting its goal of expanding its presence in the country to 100 outlets within three years. This ambitious plan comes after the fast-food giant fell well short of its target, with only 35 locations in 2024 and 39 this current year.

    Revamping the Expansion Strategy

    The Director of Development at McDonald’s Vietnam, Dan Ta, revealed a number of strategies the company is considering to revamp its image, pricing, and expansion strategy. Emphasizing a shift towards a wider consumer base, he said, “Our brand is currently perceived as a premium establishment, but we want to be able to serve a wider range of customers.”

    Targeting Key Cities for Expansion

    McDonald’s is setting its sights on several key cities for growth, including Phu Quoc, Da Nang, Hue, Nha Trang, Da Lat, and Vung Tau, building on its existing presence in Hanoi and Ho Chi Minh. Phu Quoc, in particular, has emerged as a significant focus for expansion, given its new airline launch and the upcoming hosting of the Apec Summit next year.

    Challenges Ahead

    However, the road to McDonald’s expansion in Vietnam may be fraught with challenges. The popularity of local staples such as bánh mì, cheaper and deeply rooted in the eating habits of Vietnamese consumers, poses a significant challenge.

    Moreover, the competitive landscape of the Vietnamese fast-food market also presents a hurdle. According to recent data, some of the top fast-food chains in the country, include Lotteria, with 222 outlets, Jollibee, with 213 outlets, and KFC, with 172 outlets.

    Ralf Matthaes, CEO of IFM Research, located in Ho Chi Minh City, pointed out that McDonald’s Vietnam has not localized its offerings as deeply as some competitors. He stated, “Vietnamese people aren’t typically burger eaters. Essentially, a Big Mac is still a Big Mac – you can’t change that.”

    Questions & Answers

    What is McDonald’s Vietnam’s expansion goal?
    McDonald’s Vietnam aims to expand its presence in the country to 100 outlets within three years.

    What challenges does McDonald’s face in its expansion in Vietnam?
    McDonald’s faces challenges in its expansion in Vietnam due to the popularity of local staples such as bánh mì and a highly competitive fast-food market.

    What cities are targeted in McDonald’s Vietnam expansion plan?
    McDonald’s Vietnam is targeting expansion in several key cities, including Phu Quoc, Da Nang, Hue, Nha Trang, Da Lat, and Vung Tau, in addition to its existing presence in Hanoi and Ho Chi Minh.

  • Franchise Industry Jolted: Korean Supreme Court Orders Pizza Hut to Refund Billions Amid Unlawful Fee Controversy

    Franchise Industry Jolted: Korean Supreme Court Orders Pizza Hut to Refund Billions Amid Unlawful Fee Controversy

    The franchise industry in South Korea is preparing for potentially significant legal and financial repercussions following a recent Supreme Court of Korea mandate. The court has ordered Pizza Hut Korea to reimburse billions of won in illicitly charged fees to franchise owners. This verdict could potentially initiate a chain reaction of similar lawsuits across various sectors, including food, retail, and service chains.

    Reimbursement of ‘Margin Franchise Fees’

    Earlier this week, the court upheld previous rulings necessitating Pizza Hut to refund 21.5 billion won (approximately US$16 million), termed as “margin franchise fees”. These fees were amassed from 94 franchisees between 2016 and 2022.

    The controversial charges surrounded markups included in the prices of ingredients and supplies sold by the franchisor. The fees were declared unlawful because they were not explicitly agreed upon in the franchise contracts. This was in addition to separate royalties and advertising fees charged by Pizza Hut.

    Potential Implications of the Ruling

    Legal experts and industry officials have speculated that this ruling could have far-reaching effects. Around 20 brands, spanning major fried chicken, burger, and coffee chains, are presently facing lawsuits from franchisees demanding reimbursement of similar margin-based expenses. As store owners re-examine older contracts inked before the disclosure rules were strengthened, more cases are anticipated.

    The court discovered that Pizza Hut had been charging a fixed royalty of 6% of gross revenue in addition to advertising fees of around 5%. Moreover, the company was also making undisclosed profits on compulsory supplies. The franchise agreements did not explicitly authorize these margins, leading the court to conclude that the company had been unjustly enriched.

    Pizza Hut began disclosing margin rates in its information statements starting in 2020. However, the courts ruled that disclosure alone did not equate to consent. In the absence of clear disclosure for several years, judges accepted estimated rates derived from subsequent data. This was due to Pizza Hut’s failure to fully comply with the orders to produce documents.

    Concerns and Criticism

    Franchise operators have cautioned against universally applying the Pizza Hut precedent. Some have argued that different brands do not charge royalties or have varying contractual structures. Hence, the specific circumstances of each case should be evaluated independently.

    Moreover, South Korea had revised its franchise law in 2024 to mandate explicit disclosure of margin-based fees in contracts. This could potentially protect more recent agreements from challenges.

    Nevertheless, industry groups are apprehensive about a potential influx of retrospective claims targeting older contracts. Historically, many franchisors have relied on supply margins rather than transparent royalties for their profits. According to a government survey from last year, over 60% of franchisors either solely depended on margin fees or combined them with royalties.

    Critics argue that the ruling has brought to light the longstanding lack of transparency in the sector. Hwang Yong-sik, a business professor at Sejong University, has advocated for a gradual transition towards clearer, royalty-based models, which are more prevalent in the United States.

    At present, the verdict has increased uncertainty within South Korea’s franchise industry. Companies are assessing potential liabilities, and franchisees are contemplating whether the Pizza Hut verdict could provide a blueprint for recovering past payments.

    Questions & Answers

    What was the ruling of the Supreme Court of Korea in the Pizza Hut Korea case?
    The court ordered Pizza Hut Korea to reimburse billions of won in improperly charged ‘margin franchise fees’ to 94 franchisees, collected between 2016 and 2022.

    What are the potential implications of this ruling?
    The verdict could lead to similar lawsuits across various sectors, including food, retail, and service chains. Around 20 brands are currently facing similar lawsuits. More cases are expected as store owners reassess older contracts.

    What changes have been suggested for the franchise industry in South Korea?
    Some critics, including business professor Hwang Yong-sik, have called for a gradual shift towards clearer, royalty-based models. This would increase transparency in the franchise sector and align it more closely with practices common in the United States.

  • More Yogurt: Popular Chinese Beverage Chain Set to Debut in Singapore with Fresh-Made Treats

    More Yogurt: Popular Chinese Beverage Chain Set to Debut in Singapore with Fresh-Made Treats

    China-based yogurt chain, More Yogurt, is set to make its entrance into the Singaporean market. The addition of a new outlet, opening on January 30, marks the latest in a series of expansion efforts. The company, which boasts annual sales of over 21 million cups, has chosen Suntec City as the strategic location for its first Singaporean store.

    More Yogurt is known for its innovative take on yogurt, offering a range of beverages prepared fresh daily in-store. Each drink comprises naturally fermented yogurt cultures, paired with an assortment of fresh fruits and nuts.

    As part of its introductory activities in Singapore, More Yogurt will be presenting the first 100 cups of yogurt free of charge on the day of its grand opening. This generous gesture aims to attract and engage new customers, providing them with a taste of More Yogurt’s unique offerings.

    Questions & Answers

    What is the unique selling point of More Yogurt?
    More Yogurt differentiates itself by providing fresh-made yogurt drinks, which are prepared in-store daily using naturally fermented yogurt cultures and a variety of fresh fruits and nuts.

    When and where is More Yogurt’s new Singaporean outlet opening?
    The new outlet in Singapore is set to open on January 30 at Suntec City.

    What is the introductory offer from More Yogurt in Singapore?
    As part of their launch in Singapore, More Yogurt will be giving away the first 100 cups of yogurt for free on the opening day.