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.

  • PizzaExpress in takeover talks

    PizzaExpress in takeover talks

    A group of senior bondholders to PizzaExpress is in talks to potentially provide new funding in a deal that could see them take over much of the company from owners Hony Capital.

    Creditors including Cyrus Capital Partners, HIG Capital and Bain Capital Credit have proposed injecting cash into the casual-dining chain in exchange for taking control of its core UK and Irish business, according to people familiar with the matter.

    As part of the deal, Hony Capital may keep the Chinese arm, the people said, asking not to be identified because they’re not authorized to speak publicly. The terms of the proposal aren’t set and could change, they said.

    External spokespeople for PizzaExpress and Bain declined to comment. Representatives for Cyrus Capital and HIG didn’t return calls and emails from Bloomberg seeking comment. Officials at Hony didn’t respond to a request for comment outside business hours.

    After buying the company in 2014, Hony expanded its branch network into China at a time when Britain’s retail sector was starting to struggle amid changing consumer habits. PizzaExpress profits came under pressure and last year the company hired advisers to prepare for talks with creditors over its debt, which stands at around US$1.38 billion.

    Hony bought back some of PizzaExpress’ riskier bonds last year in an attempt to fend off a potential creditor takeover and keep control of the business. Since then, however, the Covid-19 crisis has disrupted its efforts to implement a financial overhaul.

    Early in May, PizzaExpress said it partly used credit lines provided by investment fund HPS to repay a revolving-credit facility and a super-senior loan from Hony Capital, and asked for bondholders’ consent to push back publication of its accounts.

    The possibility of creditors taking control of PizzaExpress was first reported by Britain’s Times newspaper.

  • Luckin Coffee names new chairman and CEO after founder ousted

    Luckin Coffee names new chairman and CEO after founder ousted

    Luckin Coffee has named Jinyi Guo as chairman and CEO as the Chinese chain tries to move past an accounting scandal that nearly brought it down.

    Guo, a director, and former acting CEO, replaces founder and former chairman Charles Zhengyao Lu, who was voted out by shareholders, the company said Monday in a statement. Yang Cha, Feng Liu, Jie Yang, and Ying Zeng were also appointed as independent directors, while David Hui Li, Erhai Liu, and Sean Shao left the board following an extraordinary general meeting July 5 and board meeting July 12.

    While shareholders voted to remove Lu and the other three directors, some investors cried foul because Lu had nominated two of the new members to the board, potentially giving him ongoing influence at the company, according to the Wall Street Journal.

    Lu has come under fire amid an accounting scandal that has already led to the firing of Luckin’s CEO and made its stock nearly worthless. Chinese and U.S. regulators have been investigating the company over fabricated transactions that inflated net sales by about US$300 million last year.

    The scandal has rocked the Xiamen-based company once considered among China’s brightest growth stories, sending the US-listed stock plunging 93 percent this year. The situation is also a black eye for China Inc as the US Congress moves closer to passing legislation that could bar Chinese companies from trading on US stock exchanges.

    In May, Luckin Coffee dismissed CEO Jenny Zhiya Qian, COO Jian Liu, and some employees who reported to them, after uncovering the scheme that funneled funds to the company from several third parties with links to the participants. The board said it fired the executives based on evidence showing their participation in the false transactions.

    Lu became a billionaire after his fast-growing Chinese chain went public in the US, but much of his wealth was wiped out by the plunge in Luckin’s stock. Lu last month resigned as chairman of Car Inc, China’s biggest rental-car fleet operator, as scrutiny increased over Luckin and the accounting scandal.

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  • Starbucks set to open its first bakery cafe in South Korea

    Starbucks set to open its first bakery cafe in South Korea

    Starbucks, marking its 21st year in South Korea with more than 1400 stores across the country, will open its first bakery cafe this month.

    Starbucks Korea, the local unit of the US coffee giant, plans to open a bakery in Yangpyeong County, Gyeonggi Province, overlooking the Namhan River. It will also feature a bar that serves the company’s tea brand Teavana.

    The company has been outsourcing the production of the baked goods it sells at its stores.

    The new store, however, will bake fresh bread on site with dough from Shinsegae Food, the food manufacturing arm of South Korean retail giant Shinsegae Group, which owns 50 percent of the South Korean Starbucks franchise through subsidiary E-mart

    The new initiative is seen as an attempt to achieve a new breakthrough in South Korea’s overcrowded coffee market.

    More than 70 percent of Starbucks sales come from drinks, with food accounting for about 20 percent of sales.

    Starbucks has been introducing new baked goods every one or two months to persuade customers to buy more bread or cakes and bakery sales have been growing by more than 20 percent annually.

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  • Starbucks India opens first drive-thru store

    Starbucks India opens first drive-thru store

    Starbucks India has opened its first drive-thru store in Singhpura, Zirakpur. Located in Dhillon Plaza, the store spans two floors, featuring large in-store seating and ceiling-to-floor windows, offering a large dine-in space as well

    At the drive-thru window, customers can order drinks from the same menu as in-store and pick up from their car.

    “The opening of our first drive-thru store showcases our commitment to evolving our brand and business in India to provide new and meaningful experiences to our customers,” said Navin Gurnaney, CEO at Tata Starbucks, the local franchisee of the North American cafe chain.

    Tata Starbucks operates 187 stores across India.

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  • Kraft Heinz and DKSH expand their strategic partnership to Malaysia

    Kraft Heinz and DKSH expand their strategic partnership to Malaysia

    DKSH Business Unit Consumer Goods, the leading partner for FMCG companies seeking to grow their business in Asia, is expanding its partnership with The Kraft Heinz Company, the fifth-largest food and beverage company in the world, to Malaysia.

    DKSH had a long-lasting relationship with Kraft Foods, dating back to 2001. Since Kraft Foods and Heinz joined forces, DKSH has been supporting the company in Singapore and Hong Kong, which are both key markets in the region.

    The expansion of the partnership to Malaysia is an example of DKSH’s track record and capabilities as pan-Asian services provider for multinational FMCG companies. The strategic decision of Kraft Heinz to appoint DKSH as partner in Malaysia aims at simplifying its operation in the region, by decreasing time spent on distributor management and by moving from a multi-distributor model to one service provider.

    DKSH will provide a full-service solution for Kraft Heinz to accelerate growth for household brands, such as Heinz, ABC, HP Sauce, Lea & Perrin’s and Wattie’s in Malaysia. DKSH’s approach to drive growth is fourfold: First, DKSH will be decreasing Kraft Heinz’s operational complexity in Malaysia, including East Malaysia. Second, it will also improve accessibility by closing distribution gaps in Modern Trade and expanding coverage in General Trade and Food Services. Third, the company will strongly focus on operational excellence and on raising on-shelf availability. Lastly, DKSH will enable effective analysis through data sharing and business intelligence.

    Joao Leitao, Managing Director, SEA, NWA, India and APAC Exports at Kraft Heinz, commented: “We believe the partnership with DKSH will simplify our operation and open new doors for us. Having one partner that provides a full-service solution in multiple markets in the region is a key strategic reason for us the expand our partnership to Malaysia.”

    Terry Seremetis, Global Head, Business Unit Consumer Goods at DKSH, commented: “We are excited to expand our relationship with a leading company like Kraft Heinz, as this is a testament to the strength of our growth platform and will further strengthen our position in the market. We are fully committed to driving the availability and visibility of globally renowned brands like Heinz and regional hero’s like ABC.”

  • KFC Thailand for sale

    KFC Thailand for sale

    A slice of KFC Thailand is being considered for sale by franchise owner Restaurants Development in a deal that could net $200 million.

    Sourcing people with knowledge of the matter, the firm is taking advice on a potential sale of the operation – which involves roughly 200 locations and 4000 staff. There is no certainty a sale will proceed and the source said discussions remained at an early stage with no formal bid yet tabled.

    Restaurants Development is backed by investors throughout Asia and operates KFC Thailand alongside Central Group (running 275 stores) and Thai Beverage – which purchased more than 240 KFC restaurants three years ago for roughly $361 million.

    Yum Restaurants International (Thailand) transformed itself into a 100-per-cent franchisor business in 2018 in an effort to yield optimal efficiency across the entire business operation.

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  • Starbucks and Undefeated launch collection in Asia

    Starbucks and Undefeated launch collection in Asia

    Coffee giant Starbucks and Undefeated, the streetwear brand, have teamed up to create a limited-edition collection of merchandise, launched in Asia this week.

    Inspired by street-style culture, the collection features nine items in bright neon green and black. Featured items include refillable bottles, an apron, a tote bag, cap, and a notebook.

    “The Starbucks x Undefeated collaboration offers customers more ways to share their passion for doing what they love, expressing their personal style, and reminding themselves to never give up,” the company said in a statement.

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  • 7-Eleven and Coca Cola launch Hong Kong concept store

    7-Eleven and Coca Cola launch Hong Kong concept store

    7-Eleven has teamed with carbonated beverage brand Coca Cola to open a new themed store in Hong Kong. Located at in Tsim Sha Tsui, the 7-Eleven x Coca Cola concept store is dressed in the distinctive Coke red. As well as the modern Coke livery, the counter features a banner with nostalgic advertising.

    The store features two fridges with Coca Cola’s glass-bottle-shaped doors, displaying a selection of the brand’s items and collectibles.

    “7-Eleven x Coca Cola themed store is a close collaboration with our suppliers leveraging on the brand strength and features to create a themed convenience store with impactful in-store decoration, interesting display, exclusive products, innovative food idea, good value offer to bring customers fun and convenience,” a spokesperson for 7-Eleven Hong Kong’s parent company Dairy Farm Group said.

    The store also features a ‘Hot Shot counter’ where customers can pause and eat snacks (and a Coke).

  • Moc Chau Milk wants to allow 100 percent foreign ownership

    Moc Chau Milk wants to allow 100 percent foreign ownership

    Moc Chau Milk, a subsidiary of Vietnam’s biggest dairy company Vinamilk, wants to increase its foreign ownership cap to 100 percent in order to raise funds.

    It seeks to do this by removing some business registries in which the government restricts 100 percent foreign ownership, such as wholesale trade of fertilizer and pesticides.

    A company statement said it is seeking shareholders’ approval for plans to raise funds for expansion. It plans to issue more shares to existing shareholders this year to raise 1.2 trillion ($52 million), which will be used to invest in a farm with a capacity of 4,000 cows, upgrade the existing farm and build a new factory.

    It is also eying a listing on Vietnam’s main bourse, the Ho Chi Minh City Stock Exchange, within nine months after it receives shareholders’ approval.

    Moc Chau Milk became a subsidiary of dairy giant Vinamilk in December last year. At that time, Vinamilk had more than half the nation’s dairy market share, and Moc Chau Milk had 9 percent.

    Mai Kieu Lieu, CEO of Vinamilk and chairwoman of Moc Chau Milk, had said earlier that Vinamilk has a strong distribution network in the south that will help Moc Chau Milk, which is based in the northern province of Son La, to expand nationwide.

    Vietnam’s dairy market value rose 8.9 percent to VND121 trillion ($5.2 billion) last year, according to market research firm Euromonitor.

  • QSR chain Pepper Lunch sold to J-Star

    QSR chain Pepper Lunch sold to J-Star

    Japanese restaurant operator Pepper Food Service is selling its profitable Pepper Lunch chain to J-Star investment fund for US$79 million.

    The sale is expected to provide a much-needed cash injection to the debt-ridden Pepper Food business in the hopes of restoring investor confidence in the firm, which also operates the struggling Ikinari Steak brand.

    Pepper Lunch, which serves sizzling platters of meat-based dishes with sauces, has expanded throughout Asia on a franchised basis, including in Vietnam, Singapore, and Thailand.

    The acquisition also includes the Pepper Lunch Diner, 92’s, Charcoal-Grilled Hamburger Steak Kuni, Tokyo 634 Berg, Musashi Hamburg, and CAB Steak restaurant brands. Collectively, the business operates 181 stores in Japan and 333 overseas.

    In a statement announcing the purchase, J-Star said the 26-year-old restaurant concept has a strong market position in food courts, where affordable prices and quick delivery are required, by combining customer satisfaction and high productivity, with a unique cooking system in which selected steak meat is cooked right in front of customers.

    “We will support the management team to establish a corporate foundation as an independent business, to accelerate domestic growth by leveraging its competitive advantage, as well as growth strategy through global expansion,” J-Star’s statement said.

    Meanwhile, Pepper Food is expected to use the funds to sustain the remaining business in the hope it can stabilize and return to profit. Ikinari Steak currently runs an operating margin of 3 percent, a fraction of the 14 percent of Pepper Lunch and the other businesses sold.

    Pepper Food is reportedly considering switching more of its owner-operated locations into franchises – although the appeal of the Inikari brand may be limited.

    J-Star is an independent and partner-owned Japanese alternative asset manager with $300 million of assets under management.

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  • Jakarta-based cafe chain Maxx Coffee launches in Singapore

    Jakarta-based cafe chain Maxx Coffee launches in Singapore

    Indonesian cafe chain Maxx Coffee has launched its first international outpost in Singapore as the first move towards expansion in Asia.

    Partnering with local operator Oue Restaurants, the new outlet opens today at Jem serving Indonesian single-origin coffee as well as a food selection and the brand’s signature beverages.

    “After 80 successful outlets in 23 cities across Indonesia, our goal remains consistent; to provide a social canvas fit for modern coffee lovers to create meaningful moments over great coffee,” said Oue Restaurant CEO Brian Riady.

    “With the burgeoning third-wave coffee culture in Indonesia and the rising global popularity of Indonesian coffee and coffee culture, Maxx Coffee is ripe for the picking.”

    “Maxx Coffee serves more than just a daily cuppa,” said PT Maxx Coffee Prima CEO Mehdi Zaidi. “Designed to cater to the modern coffee lover’s lifestyle, our outlets are a mix of co-working spaces that enable an exchange of ideas, booths to spark conversations and cosy corners for anyone who wants a quiet space to enjoy a book.”

    The new outlet’s interior features a light wood decor with an open espresso bar and food counter.

    The majority of Maxx Coffee’s specially sourced roasts are single-origin grade 1 Arabica coffee beans from Brazil Cerrado, Sumatera Lintong, Java Ciwidey, and Aceh Gayo.

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  • Maxim set to open 15 Shake Shacks in Southern China

    Maxim set to open 15 Shake Shacks in Southern China

    American fast-casual restaurant chain Shake Shack is planning to open at least 15 new venues in South China by 2030.

    The chain, working through local licensee Maxim’s Caterers, a company controlled by Hong Kong’s Dairy Farm Group, will open restaurants in cities including Shenzhen, Guangzhou, Fuzhou, and Xiamen, with a goal of 55 Shake Shacks nationwide by 2030.

    Maxim’s currently operates Shake Shacks in Shanghai and Hong Kong, with Beijing and Macau under development and due to open later this year.

    “We remain humbled by our fans in China and continue to be encouraged by the performance of our Chinese business through this recovery,” said Shake Shack chief global licensing officer Michael Kark.

    “It’s a great time to deepen our roots in this market.”

    “Maxim’s partnership with Shake Shack has taken the brand on an exciting journey to Hong Kong in 2018 and Shanghai in 2019, with Beijing and Macau on the horizon,” said Maxim’s Caterers chairman and MD Michael Wu.

    “We look forward to bringing our boundless hospitality to more guests across South China in 2021 with our new expansion plans.”

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  • Government to sell its shares in Vietnam’s largest brewer

    Government to sell its shares in Vietnam’s largest brewer

    The government plans to sell its 36 percent stake in the country’s largest brewer, Sabeco, this year. The Saigon Beer Alcohol Beverage Corp (Sabeco) is one of 139 enterprises in a new list in which the government’s stakes will be sold by sovereign fund State Capital Investment Corporation.

    The Ministry of Industry and Trade (MoIT) has been instructed to transfer the government’s stakes in these enterprises to the SCIC by August 31. The government had sold a 53.59 percent stake in Sabeco to ThaiBev for over $5 billion in 2017.

    The news puts paid to speculative claims made by some media outlets in early June that MoIT was seeking to reacquire Sabeco shares from ThaiBev due to “unexpected pandemic effects.”

    At the end of 2019 the maker of Saigon Beer had assets estimated at VND 26.96 trillion ($1.2 billion) and owner’s equity of VND20.07 trillion ($870 million).Sabeco recently scaled down its revenue target for this year by 37 percent to VND23.8 trillion ($1 billion) and post-tax profit target by 39 percent to VND3.2 trillion ($138 million), the lowest in six years.

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  • Taco Bell opens in Malaysia soon

    Taco Bell opens in Malaysia soon

    American food-food chain Taco Bell is set to launch in Malaysia at Tropicana Gardens Mall in Kota Damansara.

    The opening has yet to be officially announced, but hoardings have appeared on a retail space within the mall announcing its imminent opening.

    Taco Bell will be operated by QSR Brands, which holds the Malaysian license for KFC and Pizza Hut, which are both owned by Yum Brands.

    While Taco Bell had outlets in Singapore that were subsequently withdrawn just over a decade ago, the franchise has recently announced intentions to expand in the Asia-Pacific market, where it already has locations in Thailand and the Philippines.

    The brand has also revealed intentions to enter Indonesia, while Thai operator Siam Taco is said to be eyeing Cambodia, Laos, Myanmar and Vietnam.

  • Chinese tea brand Nayuki opening in Japan

    Chinese tea brand Nayuki opening in Japan

    Chinese fruit-based cheese tea brand Nayuki is making its debut in Japan, opening its first cafe in the Zero Gate shopping complex in Osaka.

    The new 200sqm store features a teahouse experience similar to the brand’s locations in its home market, incorporating special details to match modern Japanese culture.

    “As a brand dedicated to becoming the innovator and promoter of the tea culture, we wish to deliver an exceptional experience for the local residents, one that reflects our passion for creating unique tea-based drinks for tea lovers worldwide,“ said Nayuki founder Peng Xin.

    The new outlet serves a wide range of tea drinks made by tea baristas as well as low oil and sugar-content soft-euro bakes.

    Nayuki operates nearly 400 stores in China, ranging from 1200–11,000sqft in prime locations across the country and also has stores in Singapore.

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