Retail News CRM

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.

  • World’s first % Arabica drive-thru store piping up for its first serve

    World’s first % Arabica drive-thru store piping up for its first serve

    Japanese gourmet coffee chain % Arabica is to open its first drive-thru concept store, in Murouj, Kuwait.

    The Murouj cafe is the brand’s eighth in the country and it’s first in the world to have a drive-thru facility. The launch comes just a month after the opening of the % Arabica Kuwait store in Mangaf.

    Designed by Japanese architecture firm no.10 of Nomurakougeisha, the Kuwait Murouj cafe houses indoor plants and glass-house drinking spaces, creating a giant open space filled with natural light.

    Besides a drive-thru lane, the store also features an outdoor drinking area for customers.

    % Arabica is also planning to expand in Southeast Asian markets with Indonesia and Malaysia as their next destinations. The brand has revealed it will open its first outlet in Malaysia soon, in Kuala Lumpur.

  • Fatburger to buy Johnny Rockets

    Fatburger to buy Johnny Rockets

    Fatburger’s parent, Fat Brands, is to acquire the US restaurant chain Johnny Rockets. The acquisition, worth about US$25 million, is expected to be completed this September.

    Founded in 1986, Johnny Rockets is known for its 1950s diner-style decor, serving hamburgers, sandwiches, hand-spun shakes and malts. The restaurant chain operates more than 325 locations across more than 25 countries.

    “Similar to Fatburger, Johnny Rockets got its start in Los Angeles, and we couldn’t be more pleased to add another true staple in our home city to our portfolio,” said Andy Wiederhorn, president and CEO at Fat Brands. “This acquisition is a transformative event for Fat Brands in terms of scale and brand awareness. We see a lot of synergy with Johnny Rockets and our current restaurant concepts and we are eager to take the brand to new heights.”

    The acquisition of Johnny Rockets will increase the number of Fat Brands’ franchised and company-owned restaurants to more than 700 with annual system-wide sales exceeding US$700 million, according to the company.

    Fat Brands currently owns eight restaurant chains, including Fatburger, Buffalo’s Cafe, Hurricane Grill & Wings, Elevation Burger, and Bonanza Steakhouses, and franchises more than 375 units worldwide.

  • Tata Starbucks opens all-women stores

    Tata Starbucks opens all-women stores

    Tata Starbucks has opened two stores in India operated entirely by women as part of the firm’s efforts to address systemic inequities in opportunities for female workers within the country.

    The two female-staff-only stores are located in Delhi and Mumbai, and constitute a step forward in Tata Starbucks’ commitment to expanding the representation of women in the workforce. The program also includes initiatives to offer opportunities to women that take into account the responsibilities of motherhood. The firm offers 100-per-cent gender pay equity and aims to ensure women make up 40 percent of its total workforce by the end of 2022.

    Tata Starbucks says it will double the number of its female-led stores by the end of this year in the interests of empowering and supporting women leaders.

    “Tata Starbucks remains focused on creating and strengthening opportunities for women and fostering diversity across our organization,” said Tata Starbucks CEO Navin Gurnaney.

    “We are proud to open these all-women stores that will increase our commitment to diversity and inclusion in India and empower our female partners in new and meaningful ways.”

  • South Korean bakery franchise Tous Les Jours for sale

    South Korean bakery franchise Tous Les Jours for sale

    South Korean food and entertainment conglomerate CJ Group has announced it plans to sell its retail bakery franchise Tous Les Jours.

    CJ Group has chosen accounting firm Deloitte Anjin to manage the sale process and at the same time launched a review of options to boost the chain’s competitiveness.

    Tous Les Jours is South Korean’s second-largest bakery chain between its archrival, SPC Group-owned Paris Baguette. Both chains have expanded overseas into markets including Mainland China, Malaysia, and Vietnam, with Paris Baguette’s footprint spreading as far as the US and even its namesake city Paris.

    CJ Group has sent background documents about the business to private-equity companies located domestically and offshore to gauge interest in the business.

    Tous Les Jours operates about 13,000 stores across South Korea.

    Market analysts say that in looking to sell the chain, CJ Group’s CJ Foodville is looking to use the proceeds to expand its food-service business amid the Covid-19 crisis.

    Last year, CJ Foodville sold its coffee chain brand Twosome Place to a Hong Kong-based private-equity fund for US$168.8 million.

  • Vietnamese rice now more pricey than Thailand’s

    Vietnamese rice now more pricey than Thailand’s

    With the Thai baht weakening, Vietnamese rice is fetching 3 percent higher prices in global markets than varieties from Thailand.

    Vietnam’s 5-percent broken rice has been priced at $468-472 per ton since August 8, $15 more than its Thai rivals. The prices have risen by 6.8 percent since the beginning of this month.

    Vietnam was the third-largest rice exporter last year behind India and Thailand. In the first seven months of this year, it exported $1.9 billion worth of grains, up 10.9 percent year-on-year, with the Philippines being the top buyer, according to the Ministry of Agriculture and Rural Development.

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  • Starbucks unveils first unmanned self-serve outlet in Thailand’s

    Starbucks unveils first unmanned self-serve outlet in Thailand’s

    Starbucks Thailand has launched its first-ever self-service machine with full customizable capabilities and digitized payment options.

    Located inside Bangkok’s new AIS eSports studio at Samyan Mitrtown mall, the venue aims to serve a boost of caffeine for the gamers, serving beverages 24 hours a day.

    A cup of coffee from the machines is priced from US$1.93 (THB 60) which is less than the price at a staffed branch. The drink is fully customizable via a digital touch screen.

    In five easy steps, a consumer can select their drink, tailor it to their liking and scan the QR code to pay either through Rabbit Line Pay or using a general QR code payment through their native banking app.

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  • Pierre Herme opens its first Japanese store with Lagardere Travel Retail

    Pierre Herme opens its first Japanese store with Lagardere Travel Retail

    French pastry chef and chocolatier Pierre Herme has partnered with Lagardere Travel Retail to open the first of several food & beverage concept stores in Japan.

    Located in Tokyo Station, the store occupies a 105sqm area, and is branded ‘Made in Pierre Herme’. Besides food, the store offers a variety of products from different regions of Japan to support agriculture and promote local and ethical food production.

    These products include prepared and packaged food, specialty drinks, and a variety of branded gifts and items carrying Herme’s signature.

    Located in one of Japan’s busiest railway stations, the ‘Made in Pierre Herme’ flagship is expected to draw the attention of commuters, local and foreign visitors, and neighboring office workers alike.

    “We believe this is the beginning of a strong partnership and we expect this first step in Japan will create new opportunities for Lagardere and its partners in this exciting market which has attractive growth prospects,” said Eudes Fabre, CEO at Lagardere Travel Retail North Asia.

    The ‘Made in Pierre Herme’ concept store is the first of several openings planned jointly by the two companies, according to Lagardere Travel Retail.

    “Pierre Herme has been present in Japan for more than 20 years, and it is part of our mission to help French companies internationally recognised know-how to develop here,” said Richard Ledu, CEO at Pierre Herme Paris Japan.

    “There are significant synergies between Pierre Herme and Lagardere so this is a fantastic opportunity with further openings already planned.”

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  • Yum China eyes US$2 billion HK stock listing

    Yum China eyes US$2 billion HK stock listing

    Yum China – the operator of KFC, Pizza Hut, Taco Bell, and local restaurant chains – is reportedly preparing to list on the Hong Kong stock exchange as early as next month.

    The IPO, should it proceed, is likely to raise as much as US$2 billion, according to Bloomberg, which cited inside sources who asked not to be identified

    Approval for the listing will be sought from the territory’s stock exchange as early as this month.

    Yum China, controlled by its US namesake Yum! Brands, has been working with Goldman Sachs, China International Capital, Citigroup, UBS and CMB International to prepare for the listing.

    Last month, Yum China marked its 10,000-store milestone, opening a KFC in Bo’ao, Hainan province, and CEO Joey Wat said then that the Covid-19 pandemic will not impact this year’s store rollout plan.

    “With our innovation capabilities, strong digital strategy, and resilient business model, I believe we will emerge from this pandemic stronger than ever, and ready to capture the exciting long-term market opportunity in China,” she said.

    Yum China’s total sales fell 11 percent year on year to US$1.9 billion in the first quarter of this year, while net income fell 26 percent to $132 million.

    Michael Pearson, head of corporate equities at Oak Stone Limited, said the specifics of the deal such as timing and size have not yet been finalized and are likely to change in the coming weeks.

    “New York-listed Yum China is another company who join the growing wave of US-listed Chinese firms seeking a trading foothold in Hong Kong due to the deteriorating relations between the US and China,” added James Burnley, head of wealth management at Oak Stone.

    “Regulators in the US are threatening to restrict the access of Chinese companies to the American capital markets if they refuse to let authorities review their audits,” he said.

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  • New Tokyo Starbucks cafe features focus booth

    New Tokyo Starbucks cafe features focus booth

    Starbucks Japan has teamed with Think Lab to launch a store concept in Tokyo where customers can “focus”.

    The first floor is designed as a normal Starbucks’ cafe where customers can order by phone and pay via an app.

    Upstairs, on the second floor is a working area called Smart Lounge for solo visitors or group meetings. The space also provides projector, semi-private tables designed with teleconferences in mind.

    “The specially designed contactless hand-off counter provides customers with safe, familiar and convenient Starbucks experience while they connect virtually with colleagues or friends in the focus areas upstairs,” the company said in a statement.

    Starbucks’ customers can reserve a table or space via a Think Lab’s app.

    Think Lab describes itself as a creator of innovative, solo working spaces based on research into the science of concentration.

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  • Singapore competition starts regulating food-delivery services

    Singapore competition starts regulating food-delivery services

    Singapore’s competition regulator has effectively cleared the activities of food-delivery platforms and dark kitchens in the city-state after a 10-month probe.

    The investigation by the Competition and Consumer Commission of Singapore (CCCS) began on September 30 last year after concerns were raised that food-delivery services were refusing to work with dark kitchens operated by rivals. (Dark, or virtual, kitchens are where meals are prepared for delivery or takeaway with no seating for customers.)

    CCCS says that conduct has since ceased and while it will continue to monitor online food delivery and virtual kitchens, it has no cause for concern at this time.

    “CCCS notes that competition in the virtual-kitchen sector remains dynamic, with players entering and competing for market share,” the organization said in a statement posted online.

    Singapore’s online food-delivery industry is highly competitive with three main operators battling for market share:  Deliveroo, Foodpanda and GrabFood.

    Each has started providing virtual kitchens as an additional service to food & beverage operators. Meanwhile, Smart City Kitchens (SCK) competes with them to offer virtual kitchens to F&B companies but does not operate any online food-delivery service itself, leaving it reliant on Deliveroo, FoodPanda, and GrabFood to deliver the meals.

    The CCCS launched an investigation into the sector after reports the delivery services were refusing to work with companies using SCK’s virtual kitchens.

    “Following CCCS’s investigation, GrabFood and Deliveroo have started supplying their online food delivery services to F&B operators in SCK’s virtual kitchens which already have access to FoodPanda’s online food delivery service,” said the CCCS. “As a result, F&B operators using SCK’s virtual kitchens now have the choice of using multiple online food delivery providers to expand their consumer reach.

    “There is greater competition in the virtual kitchen sector, and consumers are also able to enjoy a greater choice of food ordered online. With greater competition, businesses are incentivized to innovate to cater more efficiently to the evolving needs and preferences of their customers.”

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  • Starbucks opens its largest store in South Korea

    Starbucks opens its largest store in South Korea

    Starbucks South Korea has opened its largest store yet, celebrating the brand’s 21st anniversary in the country.

    Located in Yangpyeong, Gyeonggido near the Namhan River, the store spans three floors and occupies a 1203sqm area and has a design unlike any other in the market.

    “The new store is a reflection of Starbucks commitment to offering more ways for customers in Korea to enjoy the Starbucks Experience,” the company said in a statement.

    The Yangpyeong store is also the first Starbucks in the country to feature a Reserve coffee bar, Teavana bar and drive-thru format together.

    The company said the store is “a new experience” for local customers, incorporating an interactive space and the convenience of the drive-thru. Starbucks is to invite local talent to perform on the store’s rooftop to celebrate the launch.

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  • Lawson unveils portable convenience stores in China

    Lawson unveils portable convenience stores in China

    Japanese convenience-store chain Lawson is launching a series of prefabricated stores in China.

    The brand will launch the service from this week, with the first outlet opening in Nanjing. Using the prefab structures will reduce construction costs by 40 percent and allow for flexible growth, the company says. Around 10 stores are expected to be operational by the end of the year.

    There are two varieties of Lawson’s prefab buildings, which were created in partnership with Panasonic. The stores have heat insulation to cut power costs and can be relocated to other areas if a location closes. The larger store layout is a little smaller than a regular 80sqm minimart, while the smaller is a kiosk suitable for transit stations.

    The stores may prove a viable counter to the rise of online shopping during the coronavirus era, owing to their ability to open in small areas that enjoy considerable foot traffic.

    Lawson, which operates 2700 outlets in China, has indicated plans to roll out prefab stores in Japan in the future as well.

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  • Sheng Siong Group boosts sales during virus lockdown

    Sheng Siong Group boosts sales during virus lockdown

    Singapore consumers’ migration from food halls to supermarkets during the Covid-19 pandemic has proven a windfall for grocery operator Sheng Siong Group.

    Sales for the June quarter surged 75.8 percent to US$304.3 million, gross profit margin improved from 27.4 percent to 28.1 percent and net profit soared 150.7 percent year on year to $33.6 million.

    While new stores accounted for 13.3 percent of the 75.8-per-cent increase in sales the vast majority of the balance came from same-store turnover.

    “This was mainly driven by the elevated demand arising from Covid-19, as consumers stocked up to hedge against the risks of disruption to the supply chain and the implementation of the “Circuit Breaker” restricting people’s movements and forbidding eating out, thereby benefiting retailers of fresh and uncooked food,” the company said in a statement.

    However, the company has warned the gradual easing of restrictions on Singaporeans’ movements it expects the elevated demand for goods fuelled by Covid-19 will ease.

    “Competition in the supermarket industry is expected to remain keen and challenging among the traditional brick-and-mortar operators and e-commerce platforms which seem to have gained better visibility because of the Circuit Breaker,” the company said. “Demand may be affected if post-Covid-19, economic recovery is slow or remains depressed.”

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  • Brewer Sabeco sees profits plummet

    Brewer Sabeco sees profits plummet

    Vietnam’s largest brewer Sabeco saw its H1 post-tax profit fall 31 percent year-on-year to VND1.93 trillion ($83 million) over Covid-19 pandemic impacts. Revenues fell 35 percent to VND12 trillion ($518 million), 89 percent of it from beer, and the rest from wine and other beverages.

    The company, owned by Thai beverage giant ThaiBev, said that the profit plunge came as Vietnam imposed social distancing measures and closed “non-essential” businesses to contain the novel coronavirus. Authorities ordered most businesses, including restaurants and bars, to close in March and April.

    Vietnam’s new regulations on drunk driving have also impacted on its business, Sabeco said. The country’s new regime of fines – up to VND8 million ($345) for DUI motorbike drivers and VND40 million ($1,730) for car drivers have kept drinkers away from restaurants and bars. Sabeco forecasts a post-tax profit fall of 37 percent this year to VND3.25 trillion.

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  • Yum China committed to fuel network growth despite Covid-19’s impact on profit

    Yum China committed to fuel network growth despite Covid-19’s impact on profit

    Not even a deadly pandemic is slowing Yum China’s rapid expansion program, with the company on track to open 850 stores this year.

    Yum China this month marked its 10,000-store milestone, opening a KFC in Bo’ao, Hainan province, and CEO Joey Wat says Covid-19 won’t impact this year’s store rollout plan.

    “With our innovation capabilities, strong digital strategy, and resilient business model, I believe we will emerge from this pandemic stronger than ever, and ready to capture the exciting long-term market opportunity in China.”

    Wat’s comments accompanied the release of second-quarter results showing Yum China sales recovered from the lockdown-hit first quarter. However, while 99 percent of stores had reopened by the end of June, sales and profit were “trending unevenly”. Sequential sales growth in April and May, was followed by softening revenues in June, impacted by reduced foot traffic at transportation and tourist locations.

    “These factors and the lingering effect of Covid-19 continue to impact operations in July,” the company said.

    Total sales fell 11 percent year on year to US$1.9 billion, or by 7 percent excluding the effect of exchange rates.

    Total system sales declined 4 percent year on year, falling 6 percent at KFC and 12 percent at Pizza Hut, while same-store sales fell by 11 percent: 10 percent at KFC and 12 percent at Pizza Hut.

    Yum China used digital channels to drive sales during the quarter as a means of adapting to a changing retail environment under the shadow of Covid-19. Delivery and takeaway sales grew strongly over the previous year and now account for more than half of all sales. Purchases by members of Yum China’s loyalty programs grew at a double-digit rate and now account for 60 percent of turnover. About 80 percent of orders were completed digitally.

    What is positive about the company’s prospects despite the pandemic concerns.

    “Our business model is resilient and adaptable. We quickly adjusted our operations and marketing campaigns to meet evolving consumer preferences and market limitations. Rapid innovation, our leading digital infrastructure, and our membership program supported product launches and value offers that were necessary to drive traffic. We protected margins through the flexible cost structure we have developed and optimized over the years. These, along with our other core capabilities such as supply chain and operations, make me confident in our ability to navigate the challenges ahead.”

    Yum Brands entered China in 1987 with a single KFC store in Beijing, later launching Pizza Hut and Taco Bell. The company also operates the East Dawning, Little Sheep, Huang Ji Huang and Coffii & Joy brands, with stores in more than 1400 cities and towns across Mainland China.