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.

  • Kimly buys six food outlet stores

    Kimly buys six food outlet stores

    Singaporean coffee shop operator Kimly has completed acquisitions of six food outlet properties for US$25.4 million.

    The acquisitions include two coffee shops, three industrial canteen units, and a restaurant. The firm is poised to acquire two further coffee shops pending approvals, which have been delayed by the coronavirus pandemic. Funding for the new properties was partially obtained via the issuance of 22 million new shares.

    Most of the acquired properties will progressively undergo asset enhancement initiatives such as layout improvements, an increase of seating capacity, and the introduction of new food concepts aimed at retaining current food stall operators, attracting new food stall tenants as well as better serving customers.

    “We continue to look for opportunities to acquire and operate more strategically located food outlets with the view of enhancing long-term shareholder value and the group’s profitability,” read a statement by directors of the group.

    “Moving ahead, we remain committed to our strategy to pursue long-term direct ownership in properties where the group operates and manages food outlets to further extend our presence across the heartlands of Singapore.”

    With the completion, Kimly’s total number of food outlets increases from 73 to 79, complemented by an additional four drink stalls and three food stalls. It has increased its number of food outlets and food stalls from 64 to 79 and from 121 to 137 respectively since its IPO.

  • Dairy Farm sells Wellcome Taiwan to Carrefour

    Dairy Farm sells Wellcome Taiwan to Carrefour

    Hong Kong-headquartered Dairy Farm is to sell its Wellcome Taiwan grocery retail business to Carrefour, with settlement later this year after regulatory approvals have been granted.  The deal – worth about €97 million – includes about 224 stores and warehouses, along with some property assets. Wellcome Taiwan’s turnover last year was approximately €390 million.

    The business currently has 199 Wellcome stores with an average sales area of 420sqm – and 25 Jasons, with an average sales area of 820 sqm. The Dairy Farm stores trading under the Wellcome banner will be converted to its Market format, and those trading under Jason’s brand will be converted to the Carrefour format.

    “Dairy Farm believes this change of ownership will set the business up for future growth and prosperity, building on Wellcome’s strong sales momentum over the past 12 months following the successful implementation of its price reinvestment campaign and increasing customer loyalty,” the Hong Kong company said in a statement.

    “This strengthened network represents greater opportunities for our team members as well as better service and value to our customers.”

    A spokesperson for Dairy Farm told Inside Retail Asia that the company was committed to its remaining major investment in Taiwan, Ikea.

    “Ikea Taiwan remains very much part of Dairy Farm’s portfolio. Through the Ikea brand, Dairy Farm is committed to delivering a unique home furnishing and Swedish food experience to our customers in Taiwan.”

    Meanwhile, the MD of Wellcome Taiwan, Laurent Piazza, says the sale is a testament to the hard work and determination of the Dairy Farm team to offer the best to its customers.

    “By bringing these businesses together, team members and customers will benefit from being served by a larger group that can use their combined strength and scale to improve quality, service, and price competition.

    “We have complete confidence in the future success of the business and believe, by bringing these businesses together, we have created a strong future for the team and a better shopping experience for our customers.”

    Carrefour currently operates 137 stores in Taiwan, including 69 under its Market banner. The group posted net sales of €1.968 billion last year and posted pre-tax earnings of €209 million.

  • BeChef plans 50-strong shared kitchen network across Japan

    BeChef plans 50-strong shared kitchen network across Japan

    BeChef has launched a shared kitchen in Kyoto, with plans to host 300 eateries across Japan within the next three years.

    The first BeChef + Kyoto-branded shared kitchen occupies a 50sqm area which features three separate kitchens. There is available space for up to six stores, which can work with different delivery services, including UberEats and Rakuten.

    The Kyoto shared kitchen also houses a dine-in space for customers.

    “For those involved in the restaurant business, I think opening a business independently is a big dream,” said Masafumi Tobe, representative director. “However, about 70 percent of restaurants close after three years of operation, and it is said that only about 10 percent of the stores are still open after 10 years.”

    According to BeChef, brands opening at the BeChef + Kyoto shared kitchen will not be charged fees to move in or out and restaurants affected by Covid-19 will be exempted from administrative fees.

    BeChef is to open more facilities in Fukuoka, Tokyo, and Osaka later this year. The company said that it aims to host 300 eateries in 50 facilities nationwide within three year

  • Teafolia closing down, Singapore’s latest victim of the virus outbreak

    Teafolia closing down, Singapore’s latest victim of the virus outbreak

    Singaporean bubble tea brand Teafolia has permanently ceased operations in the territory.

    A Facebook post announcing the closure cited the “current economic situation” as the reason for shuttering its outlets. The brand had traded in Singapore for the past three years.

    Teafolia temporarily closed two of its three outlets during Singapore’s circuit breaker period, a lockdown imposed to counter the spread of the coronavirus pandemic on the island. It permanently closed its Bedok Mall outlet for reasons of “economic circumstances” a fortnight ago.

    Teafolia was popular amongst locals for fruit teas, milk-based drinks, and slushies as well as bubble tea. Its website lists one store in Los Angeles, USA, although it remains unclear whether or not the brand’s sole international location remains in business.

  • Yum China Lifts Off Beyond Burger in KFC, Pizza Hut, Taco Bell

    Yum China Lifts Off Beyond Burger in KFC, Pizza Hut, Taco Bell

    Yum China has entered into a partnership with plant-based meat manufacturer Beyond Meat to trial a burger at selected KFC, Pizza Hut, and Taco Bell locations within the country.

    The agreement marks the introduction of Beyond Meat’s Beyond Burger in Mainland China.

    “We see great potential for the plant-based meat market in China,” said Yum China CEO Joey Wat. “This latest introduction … is expected to capture valuable consumer feedback across different regions in China. It will enable us to optimize flavors and processes and help assess the potential for larger-scale rollouts in the future.”

    Beyond Meat founder and CEO Ethan Brown said Chinese consumers are seeking out the nutritional and environmental benefits of plant-based meats.

    The burger will be available at five KFC locations in Beijing, Chengdu, Hangzhou and Shanghai. The Pizza Hut offering will launch at six Shanghai locations and will constitute part of the brand’s first-ever burger offering. Taco Bell will offer a taco made with the plant-based Beyond Burger patty at three stores in Shanghai.

    All Beyond Burger promotions will be sold as a three-day limited offer.

    The move follows Starbucks China launching a range of foods using plant-based meat alternatives, including two pasta dishes and a wrap featuring Beyond Meat and another dish using OmniPork.

  • Starbucks merchandise in high demand as fans miss in-store experience

    Starbucks merchandise in high demand as fans miss in-store experience

    Stuck in their homes, many US fans of Starbucks are apparently missing the experience of shopping or dining in a cafe – so they’re going online to pay huge premiums to buy the coffee brand’s merchandise.

    US high-end online reseller Poshmark has seen sales of Starbucks merchandise increase by more than 100 percent since the advent of the coronavirus pandemic.

    Buyers in search of Starbucks mugs, tumblers, earrings (yes, earrings), scarves, and almost anything bearing the famous siren logo have reportedly flooded sites such as Poshmark, hunting for bargains and rare collectibles.

    Poshmark CEO Manish Chandra suggested restrictions on movement brought on by the outbreak have triggered strong nostalgia for the coffee chain amongst patrons who regularly visit outlets. Starbucks is now the site’s top-trending brand.

    Starbucks merchandise is only available direct from its physical cafes after the company closed its online store three years ago, making it impossible for customers to browse new products in areas where lockdowns are in place.

    “People have been making their coffee at home and pouring it into their favorite Starbucks cups, or taking their Starbucks mugs to their Zoom meetings or now, virtual coffee meets,” Chandra told CNN.

    Starbucks has acknowledged the surge in demand for its merchandise on reseller sites but made no further comment.

  • Starbucks expands Teavana in Korea

    Starbucks expands Teavana in Korea

    Starbucks is expanding Teavana in South Korea. According to the Korea Herald, The number of Starbucks’ premium Reserve-branded coffee houses serving Teavana drinks has expanded from 13 to 52.

    The tea has grown in popularity within the territory since it was introduced in 2016, with Teavana sales growing 20 percent annually. One tea blend is now the chain’s third most frequently ordered beverage among younger customers, perhaps due to a heightened awareness of health consciousness in that demographic.

    During the first three months of this year, sales of green tea-based drinks rose 35 percent compared with the same period last year.

    Starbucks acquired US-based Teavana Holdings in December 2012, a “super-premium tea” product it said brought “exotic blends, great flavors, wellness and innovation” to customers globally. At that time it was a standalone retailer, however, Starbucks closed all of the stores and integrated the brand and its products into selected coffee stores.

  • Starbucks in Korea under fire for free-gift ‘wastage’

    Starbucks in Korea under fire for free-gift ‘wastage’

    A giveaway promotion from Starbucks in South Korea has drawn the ire of critics who allege consumers are buying coffee and dumping it to gain enough points for free goods. The promotion has become popular, critics say customers feel pressured to buy products in “excessive” volumes.

    Starbucks in South Korea is holding a promotional event from May 21 to July 22. If a customer buys 17 drinks, including seasonal drinks, they can get one of two small suitcases or a camping chair.

    Rival chain Hollys Coffee has also been running a promotion since May 12 that allows customers to purchase three products useful for camping, including parasols and chairs, at a 60-per-cent discount, if one spends more than 10,000 won (US$8.10) at the store.

    The problem is that some of these promotional products are exploding in popularity, and there is an abnormal craze, such as mass purchases of unwanted drinks to receive them.

    On social media sites, tips on how to buy 17 drinks at Starbucks for the lowest price (68,700 won) have been shared.

    Starbucks does not disclose the number of free gifts available at each store, but information about the stores is being posted online.

    Last Friday, a customer bought 300 cups of coffee at a time and returned home with only the small suitcases, as free gifts.

    The customer posted a memo titled “All Free” for the remaining 299 cups besides the one he or she took, but no one drank them, so all the coffee was reportedly discarded.

    In addition, some of the Starbucks suitcases are being sold for up to 200,000 won on online shopping malls and secondhand trading sites.

    “It is a thank-you event for customers who usually buy more than two cups a week, but we are in a difficult position as other customers report of the inconvenience,” a Starbucks in South Korea official said.

    “However, these gifts are being praised for their design and practicality.

    Hollys Coffee is also known to have many people lining up from dawn to buy its promotional items or going from store to store in search of a particular item.

    The craze is also attributed to the fact that both companies have released gifts aimed at “home camping.”

    Interest in domestic travel and camping has grown as the global Covid-19 crisis has made it virtually impossible to travel abroad during the summer vacation season.

    In particular, “home camping,” which can be enjoyed on verandas, porches or terraces at home, has also become popular as the number of people staying at home increases due to the coronavirus outbreak.

    According to Gmarket’s recent survey of sales during the period from April 22 to May 21, sales of tents for home use increased by 39 percent year-on-year, compared to growth of 49 percent for folding tables, and 48 percent for folding camping chairs.

    Some point out that the purpose of the promotional events, which were intended to convey a token of gratitude to loyal customers, is becoming blurred. Some are calling for measures such as limiting the quantity per person.

    “Unlike ordinary products, there is a problem where food and beverage be discarded if they are not consumed immediately,” a retail industry source said.

    “To prevent this phenomenon of throwing away money, Starbucks should be telling customers how many free gifts each store has prepared.”

  • Korean coffee chains weigh impact of Blue Bottle debut

    Korean coffee chains weigh impact of Blue Bottle debut

    A year has passed since South Korea’s first Blue Bottle Coffee shop opened in Seoul’s eastern Seongsu neighborhood – a trendy hangout spot where young artists and designers renovated existing buildings into art spaces, fine restaurants and cafes to woo customers.

    What impact has this American coffee franchise had on the coffee industry in South Korea?

    Blue Bottle Coffee now runs five shops, located in Seongsu-dong, Samcheong, Yeoksam, Apgujeong and Hannam.

    Among coffee industry analysts, opinions are mixed. Some believe that the newcomer’s focus on specialty coffee has contributed to the expansion of the high-end coffee market, while others say that the company’s influence has been minimal.

    The coffee industry believes that Blue Bottle contributed to the popularisation of specialty coffees, once popular only among coffee enthusiasts, arguing that the market expanded when Blue Bottle opened for business.

    “Blue Bottle made a significant contribution to starting a new era for the South Korean coffee market, spreading the culture of specialty coffee far and wide,” an industry source said.

    “The company will continue to attract more popular interest in specialty coffee.

    There are others, however, who believe that Blue Bottle’s influence in South Korea has been minimal.

    A limited number of vendors and its operational focus on Seoul has led Blue Bottle to be tied up regionally, and most of the customers are hard-core coffee enthusiasts who have limited influence in the popularisation of specialty coffee, they say.

    In addition, Blue Bottle’s shops don’t provide free wireless internet and other convenience facilities normally found in other coffee shops, breaking with tradition as South Koreans commonly visit coffee shops to meet with others.

    “Blue Bottle gained attention when the first shop opened. Now, it struggles to win the heart of South Korean customers,” another industry source said.

    “They should have entered the South Korean market with a better understanding of South Korean customers.”

  • Jollibee Foods vows to make the most of Covid-19 virus opportunities

    Jollibee Foods vows to make the most of Covid-19 virus opportunities

    Filipino restaurant operator Jollibee Foods is set to open 171 stores globally and renovate 96 outlets this year, aiming to capture prime locations made available in a weak economic climate brought on by the coronavirus pandemic.

    While that number of planned new stores is less than it predicted prior to the advent of Covid-19, the company still sees an opportunity to expand despite an extremely challenging start to the year globally.

    The firm will also spend US$137.9 million on a restructuring of its international business, which will include attention to non-performing stores, store network, supply chain facilities, and management and support group structure.

    Jollibee Foods will devote some resources to the establishment of new delivery and take-out services – including unmarked delivery outlets without dine-in facilities – in anticipation of a slow return to business-as-usual following the resolution of the pandemic.

    “2020 is an extremely challenging year for JFC as for most other businesses, but out of this transformation, we aim to emerge in 2021 as an even stronger business and organization,” said Jollibee chairman Tony Tan Caktiong.

    CFO Ysmael Baysa said the company expects its profit for 2020 will “not be good at all due to the overall economic environment. But like Caktiong, he put a positive spin on the crisis: “We are taking this opportunity to implement truly major changes in 2020 so that JFC will start 2021 in a much stronger position in terms of business model, operating efficiency, profitability and organization strength.

    “We will then resume strong and consistent profitable growth for the years ahead.”

    In January, Jollibee Foods reported a 14.4-per-cent drop in earnings after operating income fell by 25.1 percent.

    However a strong fourth quarter prevented a worse annual result, with operating income up 11.6 percent on a 23.2-per-cent boost on systemwide sales.

    “Practically all brands in the Philippines improved their same-store sales growth quarter on quarter, led by Jollibee, Red Ribbon, Greenwich and Burger King,” said a spokesperson then.

    Besides regional expansion across Vietnam, China and other Asian markets, the company is trying to restructure the troubled Coffee Bean business it bought last year and Smashburger, a year earlier. It is also looking to expand the Tim Ho Wan business in China and wants to open new restaurants under various banners in North America.

  • Taiwan’s Hung Rui Chen sandwich chain opening in Hong Kong

    Taiwan’s Hung Rui Chen sandwich chain opening in Hong Kong

    Local and tourist favorite sandwich maker Hung Rui Chen will be opening a flagship store in Hong Kong this August.

    Hung Rui Chen is a 73-year-old brand, known for its signature sandwiches and recognized as a national local delicacy for its soft bread and unique spread.

    After an incident of suspected food poisoning from counterfeit operators in Hong Kong and Taiwan, the real Hung Rui Chen company issued a statement on Facebook to clarify that its own brand will open its first official store in Hong Kong.

    The location has yet to be confirmed.

    Back in 2015, Hung Rui Chen sandwiches imported from Taiwan and sold in grocery stores and on the Groupon platform led to 46 Hongkongers contracting food poisoning. The brand was subsequently banned by the Centre for Food Safety.

  • Vegan food orders surge in Hong Kong in Covid-19’s virus

    Vegan food orders surge in Hong Kong in Covid-19’s virus

    Vegan food orders have experienced significant growth in Hong Kong as people are switching to what they perceive to be more healthy and sustainable food options.

    Hong Kong food-delivery service Deliveroo says vegan food orders surged 104 percent last year and order volume is up by a further 20 percent since January. The growth has reflected the increasing popularity of the vegetarian trend in Hong Kong which has led Deliveroo to partner with more restaurants offering sustainable menus.

    While the increase in vegan food orders is significant, Deliveroo also says its overall order volume grew 100 percent last year versus 2018 and has doubled during the first quarter of this year compared with the December 2019 quarter, so it is difficult to assess whether vegan food is taking sales away from meat-based meals.

    However, according to the company, the proportion of restaurants serving plant-based food has been growing in almost every district across the city to meet customers’ high demand. The number of Deliveroo’s partners offering vegan options has tripled in the past year, and more than doubled in the Central district.

    “There has never been a better time for healthy eating in Hong Kong, whether you’re a full-time vegan or a part-time plant-based food fan,” said Brian Lo, GM at Deliveroo Hong Kong. “The growth of vegan restaurant options and vegan order volume is truly staggering.”

    One of Deliveroo’s partners, the restaurant Treehouse, has reported 1226-per-cent growth in sales from October through March, with online orders increasing 125 percent and the number of new customers increasing by 113 percent.

    “We have expanded through Deliveroo and Editions in Wan Chai and Quarry Bay, and by doing so we have been able to create two more new virtual brands,” said Christian Mongendre, founder of Treehouse. “The first being, Origin by Treehouse, which has a Middle Eastern focus, and the newly-launched and very exciting vegetarian high-quality burgers brand, Burgers by Treehouse.”

    Besides facing the upcoming challenges of Covid-19 situation, Hong Kong people are now more aware of the benefits of a healthy living habit and healthy conscious dining will soon be a permanent choice for many families in the city.

  • The Coffee Academics releases Dalgona coffee

    The Coffee Academics releases Dalgona coffee

    Hong Kong specialty coffee chain The Coffee Academics has launched its own version of Dalgona coffee at its Thai flagship store in Bangkok.

    Dalgona coffee, which originated in South Korea, has become a viral craze on social media throughout Asia and sparked a leap in sales of instant coffee products which consumers use to make the beverage at home.

    Different from the original recipe – which uses only instant coffee, sugar and milk – The Coffee Academics has elevated the concept with house-blended espresso, oat milk and organic coconut sugar to create its own version.

    With Thai stores now reopened for dine-in service, guests can have the new coffee at The Coffee Academics’ stores or order it delivered via Wongnai or Lineman app.

    A Dalgona coffee costs THB240 (US$7.40) and will be available until June 30.

    We’ve reached out to The Coffee Academics in Hong Kong to see if there are plans to release the blend in other markets.

  • Malaysia’s Mygroser looks to expand as Covid-19 boosts sales

    Malaysia’s Mygroser looks to expand as Covid-19 boosts sales

    Malaysian digital grocer Mygroser is raising its first public funding round as it enhances its delivery capacities in the midst of the continuing coronavirus pandemic.

    The business is targeting profitability within 12 months followed by expansion within the territory. Funding is expected to be used to meet incoming customer demand as the brand extends its grocery delivery services in Malaysia’s US$20 billion grocery and supermarket space. The firm has continuously operated throughout the country’s Movement Control Order (MCO) period.

    “We have seen the demand for grocery delivery locally grow by over 1000 per cent during the first part of this year, and have seen our own revenues and number of deliveries made daily grow ten times during just the past two months,” said Mygroser CEO Stephen P Francis.

    “On the back of this, we are accelerating our expansion plans to better meet the demand for convenient, fresh and affordable produce, everyday essentials and groceries that we are seeing from our consumer and business customers.”

    Working through the MCO, the online-only grocery service has deployed various technology enhancements – as well as daily delivery slot increases – across its cloud-store powered premium grocery service model. Investments in machine learning-based supply chain management, new product offerings, an enhanced grocery list and new membership offerings are currently in planning stages as the firm targets regional coverage within three years.

  • Tencent to help Tim Hortons China roll out over 1,000 outlets

    Tencent to help Tim Hortons China roll out over 1,000 outlets

    Chinese social networking and gaming giant Tencent is partnering with Tim Hortons China to expand the Canadian coffee house’s rollout.

    Tencent announced the partnership on its Chinese social media accounts without disclosing any financial details.

    Tim Hortons China has traded since early last year and is expected to use the new funding to set up a WeChat app as well as opening new physical locations outward from its highest concentration of stores in Shanghai. The firm has set a general initial target of 1500 outlets in the territory.

    The firm may be taking a leaf out of Starbucks’ former arch-rival Luckin Coffee’s playbook in focusing on digital business. Luckin expanded swiftly in China using the strategy before becoming embroiled in a financial fraud scandal.