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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.

  • Demand overwhelms grocery-delivery services in Malaysia, Singapore

    Demand overwhelms grocery-delivery services in Malaysia, Singapore

    Online grocery-delivery services in Malaysia are facing overwhelming demand, with some firms forced to suspend or limit delivery operations.

    A 600-per-cent spike in orders recorded last month was fuelled by panic buying while stay-at-home orders remain in force throughout the territory.

    Jaya Grocer suspended online deliveries in response to the surging demand, while Tesco is still operating as usual but has requested customers who have pre-booked delivery slots to cancel orders if they expect not to be at home so as to free up resources for other buyers. Restrictions have been put in place allowing only three items per customer across every product line.

    Local hypermarket chain Mydin has asked customers to avoid panic buying due to delays in restocking supplies. It has placed restrictions on buying to ensure that all customers can make purchases.

    “This situation has stemmed from the sudden growth of demand, and hypermarkets and grocery stores were not prepared for this outage,” said Malaysia Retail Chain Association VP Datuk Liew Bin. “The delivery team could not complete their rounds, although some of them work from morning to night to deliver all the customers’ orders.”

    Liew added that many independent sellers and small farmers now have found their own way to sell their goods, with some trading directly with buyers via instant messenger apps such as Whatsapp and food ordering platform Oddle.

    The situation is similar in Singapore, where Lazada’s RedMart e-commerce grocery unit refused to accept new orders for a period earlier this month. The Singaporean public had been advised by the island’s government to purchase groceries online.

    Online grocery-delivery services “now have to deal with a new situation where demand for essential items outpaces operational capacities,” said Insignia Ventures founding managing partner Yinglan Tan. “Players that manage shorter supply chains may be more equipped to handle the stress.”

    Shoppers “have been buying four to 10 times more food staples, 3.5 to five times more paper products, and two to six times more personal care and household cleaning supplies,” said Lazada Singapore CEO James Chang.

    Since the temporary suspension of operations, RedMart has limited orders to 35 items, blocked customers from adding items once an order is placed, and has stated that orders exceeding 100 kg may be canceled.

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  • Luckin Coffee’s value crashes after it admits falsifying sales data

    Luckin Coffee’s value crashes after it admits falsifying sales data

    Chinese chain Luckin Coffee has admitted senior executives exaggerated sales to boost the company’s worth and reputation.

    In a stunning admission, the company has advised investors not to rely on financial statements for the nine months to September last year. Transactions totaling about 2.2 billion yuan (US$310 million), have been cited.

    COO Jian Liu and an unspecified number of other employees have been suspended while the company’s board investigates their misconduct.

    “Certain costs and expenses were also substantially inflated by fabricated transactions during this period,” Luckin said in a stock exchange filing.

    Shares in the company plunged by 81 percent yesterday after the company’s admission.

    Launched in January 2018, Luckin Coffee’s growth trajectory was so fast the company was valued at an astonishing US$2.2 billion within 12 months.

    The true extent of the misrepresentations remains unclear while a panel reviews financial records. However, in November, the company claimed sales were running at six-times the rate of the previous year.

    Prior to its listing in the US, the company secured investment from the Singapore Government sovereign wealth fund GIC and China International Capital Corp, among others. It raised US$778 million in early January and $645 million in a US IPO.

    Luckin Coffee has previously been touted as a serious threat to US chain Starbucks which currently dominates China’s fast-growing coffee cafe market.

    Luckin Coffee’s aggressive competitive strategy involves an IT-focused approach whereby customers purchase coffee via an app, with which they can then monitor brewing progress via live stream. It was counting on technology and a considerably lower price point to win market share from Starbucks.

    Luckin Coffee was planning to reach 10,000 locations by the end of next year, but analysts are now casting doubt on its ability to achieve that goal. At the end of last year it had 4500.

    “It will take several years for management to repair its credibility,” Keybanc Capital Markets analyst Eric Gonzalez said in a note to clients, reported by Bloomberg.

  • Central Food Hall employs robot in coronavirus fight

    Central Food Hall employs robot in coronavirus fight

    Thai supermarket Central Food Hall has begun using UV-C Disinfection Robots to sterilize stores in a move to combat coronavirus transmission.

    The firm is the first supermarket in the region to implement disinfection robots, certified by the WHO and CDC to sanitize areas around 360 degrees to destroy more than 99.99 percent of all pathogens within seconds.

    The robot is currently being deployed at Central Food Hall Central Chidlom while the store is closed. Plans are afoot to introduce robots at other Tops Market and Central Food Hall branches in the interests of employee and customer safety.

    UV-C light is considered to be without harmful side effects on the food and products in the store. The technology has been in use for more than three years in Thai hospitals, factories, companies, hotels, schools and other places that need effective disinfection.

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  • Dean & Deluca US heading towards bankruptcy

    Dean & Deluca US heading towards bankruptcy

    Thailand’s Pace Corporation has finally filed for the bankruptcy of its Dean & Deluca US business after all of its North American stores were shuttered last year.

    According to documents submitted with the filing, Dean & Deluca US has liabilities as high as US$500 million, and assets of just $50 million. But the company, which has declared it has only one employee now, says it has a plan to reconfigure the business and reopen stores under a new business model.

    In Asia, Dean & Deluca is opening cafe-centered retail spaces in urban locations including in Thailand, Japan and the Philippines, along with airport stores in partnership with Lagardere Travel Retail. When that partnership was struck in late 2018, the two companies planned 150 stores over five years. Cafes have subsequently opened in Hong Kong International Airport.  Airport stores in Bangkok trade significantly higher than those in city locations, Pace said at the time.

    However the new style Dean & Deluca retail model in Asia is vastly different from the US model, focused on coffee, smoothies, pizzas and light meals. It may be the model the company hopes to take to the US.

    The original Dean & Deluca US store opened in Soho in 1977, earning the nickname “museum of fine food”. It claimed to be the first retailer in the US to sell radicchio, balsamic vinegar and sun-dried tomatoes. But over time its exclusivity waned – as one food writer observed: “You can buy extra virgin olive oil on Amazon now”.

    The company’s website shows it has two stores operating in Hawaii, which may be franchised and unrelated to the parent company.

    Pace bought the company for US$140 million in 2014, including a network that at one point reached more than 30 stores in the US. By May 2018, however, the US network was down to just nine stores and by last July there were only four.

    The Chapter 11 bankruptcy petition filed in the New York court this week was signed by Pace Corporation CEO Sorapoj Techakraisri. Among liabilities listed in the filing were Pace, owed $250 million, a $45 million loan from Siam Commercial Bank, a $2 million US tax debt and $230,000 owed to Thailand’s finance ministry.

    Last month, Dean & Deluca opened a new store in Japan with a local franchise partner, (pictured above), and another in Bangkok.

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  • Gordon Ramsay closing three Hong Kong city restaurants

    Gordon Ramsay closing three Hong Kong city restaurants

    British celebrity chef and restaurateur Gordon Ramsay have quit Hong Kong, following the footsteps of compatriot Jamie Oliver last month.

    Three of his restaurants – Bread Street Kitchen & Bar, London House and Maze Grill – will shut today, April 1. These eateries are currently operated by his Hong Kong partner, Dining Concepts.

    However, an official statement about the closures did not refer to the status of his Hong Kong International Airport branch Gordon Ramsay Plane Food To Go, which opened last year in partnership with SSP Group.

    In the UK, Gordon Ramsay will close 16 of his outlets, but these are described as temporary closures relating to government lockdowns and have caused the suspension of more than 500 jobs.

    Hong Kong has introduced regulations requiring restaurants to place tables 1.5 meters apart and set a limit of four diners per table, with stringent enforcement. This week, Chinese restaurant operator Tao Heung shuttered 48 of its venues as a result of the new health-and-safety measures.

    In other news, American luxury jeweler Tiffany & Co has closed its 4000sqft store at 1881 Heritage in Tsim Sha Tsui permanently. With retail sales affected by last year’s social unrest and the advent of the pandemic this year, the company decided not to release its lease at the premium shopping destination. The retailer still has 11 stores remaining in the city.

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  • KFC Japan celebrates 50th anniversary

    KFC Japan celebrates 50th anniversary

    KFC Japan will celebrate its 50 anniversary this year.

    After its successful trial at the Osaka Expo in March 1970, KFC Japan was founded on July 4 in honor of Independence Day in the fast-food chain’s home country, the US.

    The first KFC Japan store was opened in the suburban location of Nagoya in November that year.

    Back then, the term “fried chicken” wasn’t widely used in Japan. However, KFC is now one of the country’s most popular fast-food chains, and has even become a tradition at Christmas.

    To celebrate the 50th anniversary, KFC Japan has designed a logo for the event and plans to roll out TV commercials and special menu items later in the year.

    “In the changing world, KFC Japan will continue to express appreciation by providing delicious taste through food,” the company said in a statement.

    “We will express our sincere thanks through our products, campaigns and activities during our 50th anniversary year and promise to continue to protect the ‘deliciousness that no one can imitate’.”

    Japan is the third-largest market for KFC after China and the US, with 306 outlets directly operated by the company in Greater Tokyo and 826 restaurants run by franchisees in regional areas.

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  • Tao Heung shuts 48 restaurants for a fortnight in coronavirus fight

    Tao Heung shuts 48 restaurants for a fortnight in coronavirus fight

    Chinese restaurant operator Tao Heung will shutter all 48 of its venues for more than a month following tightening restrictions on dining in Hong Kong.

    As the territory’s administration has now moved to limit the maximum number of diners per table to four – at tables spaced 1.5 meters apart – in an effort to curb the coronavirus outbreak, the group decided to close all of its restaurants through to April 10.

    “For everyone’s health and safety, from today, our restaurants will not serve anyone under mandatory quarantine,” read an announcement on the group’s Facebook page.

    Tao Heung’s venues mainly serve traditional Chinese delicacies. The business also operates venues in Mainland China.

    The group is one of several major F&B chains to respond to the official measures in the midst of the pandemic.

    Hong Kong’s total number of coronavirus cases has already passed the 500 mark, prompting more stringent social distancing measures on the part of the government, including a proposed ban on alcohol sales at Hong Kong’s licensed bars and clubs that has since been withdrawn after an outcry from the industry.

    Restaurants are now restricted to operating at half their capacities and must institute mandatory temperature checks and hand sanitization.

    Venues failing to comply with regulations will face maximum fines of HK$50,000 (US$6450) and six months in prison.

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  • Aori Ramen chain collapses, hit by coronavirus, scandal

    Aori Ramen chain collapses, hit by coronavirus, scandal

    Japanese ramen chain Aori Ramen has declared bankruptcy after suffering from coronavirus and the boycott on Japanese goods in South Korea.

    All Aori Ramen branches will be shut down, including those in Malaysia and China.

    According to Koreaboo, Aori F&B filed for bankruptcy with the Seoul Bankruptcy court with its debts exceeding the value of its assets.

    Aori F&B said after its founder Seungri was involved with the Burning Sun scandal, the company experienced major losses with sales plunging by more than 50 percent. Aori F&B then cut ties with the South Korean singer, hoping the restaurant would gain its customers back.

    The company also stated in a statement that the South Korean consumer boycott of Japanese goods also affected its business. With the subsequent coronavirus outbreak decimating restaurant patronage it is no longer able to pay its debts.

    The Seoul Bankruptcy Court’s decision has yet been made as the court wants to investigate further the Aori F&B’s ability to pay its debts.

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  • McDonald’s logo temporary changed to promote social distancing

    McDonald’s logo temporary changed to promote social distancing

    International fast-food chain McDonald’s logo has been altered in some global markets to emphasize the importance of social distancing during the coronavirus crisis.

    The popular restaurant chain is largely closed for dine-in business in certain hard-hit areas globally but remains open for delivery or takeout. Venues have been closed completely in the UK and Ireland, while only 5 percent of outlets in the US are now closing dining spaces.

    The new McDonald’s logo campaign was unveiled in Brazil, with the golden arches represented in the brand logo separated to remind patrons of the need to keep a distance from each other during the course of the pandemic. The campaign was soon taken up in India.

    “Our customers, employees and communities are counting on us now more than ever to provide them the meaningful support, delicious food and good-paying jobs,” said McDonald’s US president Joe Erlinger.

    A statement from the firm read: “Guidelines have been shared with franchisees and restaurant general managers to support crew in adhering to social distancing best practices while on the job. This includes, among other items, updating configuration of crew on shift and following contactless operations procedures, etc”.

    https://youtu.be/BFgW4S6zOQU

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  • Starbucks Korea expands social-distancing plan

    Starbucks Korea expands social-distancing plan

    Starbucks Korea will expand social-distancing measures across its branches nationwide from Thursday, after a successful trial at some stores in Daegu and North Gyeongsang Province.

    The company plans to ensure a safe distance between customers and employees is maintained when ordering by placing safety line stickers in front of checkout counters.

    Furthermore, for a limited time, customers will not be able to bring their own reusable mugs.

    When ordering drinks using individual multi-use cups, customers will still get benefits for being eco-friendly, such as discounts or points, by showing personal cups. However, customers will be provided the drink in a disposable cup. This strategy was introduced in the US a fortnight ago and has since been implemented in many markets across Asia.

    Meanwhile, Starbucks will also conduct campaigns such as asking people to wear masks when ordering, and to dispose of paper straws in trash cans.

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  • Starbucks Philippines shuts down all stores due to COVID-19

    Starbucks Philippines shuts down all stores due to COVID-19

    Following its temporary closure of stores in Luzon last week, Starbucks Philippines has now extended the shutdown to Visayas and Mindanao.

    In social media posts, the coffee chain said the health and well-being of its partners (employees) and customers remain top of mind and their highest priority.

    The complete closures means no delivery or takeaway services will be offered either.

    “Based on the guidance of local authorities and after much consideration, our stores in Visayas and Mindanao will also close. As such, all Starbucks stores in the Philippines will be temporarily closed”, Starbucks Philippines posted on its Facebook and Twitter account.

    The company said it looks forward to serving customers again as soon as possible, but as of now, it encourages everyone to stay indoors and stay safe and healthy.

    President Rodrigo Duterte declared the whole Luzon under “enhanced community quarantine” on March 16 and some other regions followed suit as the number of cases of coronavirus disease (COVID-19) continued to soar.

    Yesterday recorded the highest jump of COVID-19 in the Philippines with 82 confirmed patients in just a single day making it to 462 in total with 33 deaths while 18 have already recovered.

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  • Starbucks Japan launches Smart Lounge railway station concept

    Starbucks Japan launches Smart Lounge railway station concept

    Starbucks Japan has launched a new concept store in collaboration with railway operator JR East.

    The “Starbucks Coffee Takanawa Gateway Station” opened yesterday, introducing its Smart Lounge concept – a store space focused on business use. The store features numerous semi-private and single-seat seats to meet the needs of using a cafe for work purposes as well as a large table used for meetings with multiple people.

    Two fully-private booth-style share offices are provided within the store. Power outlets are available for all seats, and the store also operates a mobile battery sharing service. Wifi is available throughout the premises.

    The cafe also specializes in speedy cashless payment via Starbucks Card and Suica, among other e-payment platforms. Via a dedicated app, it allows customers to settle orders in advance and receive products smoothly at stores, designed to allow more effective use of time and reduction of waiting time at cash registers.

    “Starbucks has more than 1500 stores nationwide and connects with 800,000 customers a day,” said Starbucks Japan head of store development Kazuhiro Ishihara. “Each store has its own personality and expression that reflects the locality and needs of each individual.

    “At the Takanawa Gateway Station, we provide a smart and comfortable experience that suits its location and purpose, and integrates with people’s lives to create a future city that no one has yet seen. We aim to be a store and base that can be created with people.”

    Takanawa Gateway Station is situated in Shinagawa town, a new urban area under development that aims to be a new gateway to Tokyo.

    JR East aims to operate 30 shared office spaces by the end of the financial year.

  • Yum China reopens most stores, reports recovering footfall

    Yum China reopens most stores, reports recovering footfall

    Yum China says it is witnessing “early signs of recovery” in Mainland China as business gradually resumes and people return to work.

    However, the company, which operates KFC, Pizza Hut and Little Sheep chains, said in an update to shareholders that restaurant traffic remains “heavily impacted” as people continue to implement social-distancing measures.

    Store closures peaked in mid-February when about 35 percent of the company’s network was closed, the remainder offering only delivery and takeaway services. However, trade for those still trading significantly declined. Same-store sales for Yum China were down by between 40 percent and 50 percent year on year during the Chinese New Year holiday period.

    This week, about 95 percent of Yum China’s stores had reopened either fully or partially and about 15 percent of those continued to offer only takeaway or delivery services.

    In its update, Yum China said that while customer volumes were slowly building, they remained well down on pre-outbreak levels.

    “The pace of recovery varies by region and is slower during weekends as people avoid going out. In recent days, same-store sales were down approximately 20 percent. Sales performance fluctuates as the recovery is uneven, and the situation continues to evolve,” the company said.

    Yum China launched contactless delivery in late January, which proved popular and supported the delivery business during a period of lower dine-in traffic. “Delivery sales grew year over year, and its mix as a percentage of company sales approximately doubled.”

    Yum China also launched contactless pick-up and corporate catering services as highly sanitary options for consumers and corporate customers.

    Now that the coronavirus crisis appears to have passed its peak in Mainland China, the company is considering resuming its network expansion program. Currently paused – largely due to a shortage of construction workers and traffic restrictions – the company says it will “continue to monitor the situation and work with local authorities, resuming new store openings when conditions allow”.

    “Despite a challenging start to the year, Yum China is here for the long run, and will ensure that it remains well-positioned for the long-term growth opportunities in China.”

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  • SM, Jollibee roll out emergency packages for employees

    SM, Jollibee roll out emergency packages for employees

    As the community quarantine continues all over Luzon, Philippine conglomerate SM Group has committed to maintaining regular pay for all of its employees, without deductions from their vacation or sick leave entitlements.

    The company will also give a US$97.64 (Php5000) additional payment to security staff and janitors, who the company describes as front liners.

    Hans Sy, chairman of the executive committee of SM Prime said that in such trying times, “we are in uncharted territory”.

    “Let’s be one with each other, united in the spirit of service. Let’s be mindful of our front liners and help with their need to be alert so they can continue to do their best in working for the safety and health of our communities.”

    SM earlier said it would waive tenant rentals nationwide as well as support health workers fighting the spread of COVID-19 with $1.95 million (Php100 million) worth of protective equipment, testing kits and supplies.

    Meanwhile, Jollibee Foods Corp has announced a $19.52 million (Php1 billion) emergency-response package for employees affected by the quarantine.

    “In these times, we know how people are worried about their safety and how to take care of their families. We want to help lessen their worries and we are setting up this fund to be able to help them through this difficult time,” said JFC founder and chairman Tony Tan Caktiong.

    The employee package will be given to Jollibee Group’s offices, stores, commissaries, and logistics centres, including the senior citizens and PWDs assigned to stores under the joint employment program with local government.

    The same assistance will be provided to partner employers in stores and other locations.

    Jollibee employees are scheduled to receive their 13th-month pay by April 30. This is in response to President Rodrigo Duterte’s appeal to employers to pay the 13th month early, due to the coronavirus crisis.

    In addition, affected employees may convert the leave credits in advance and can also file for personal leave as necessary until the situation normalizes.

    Jollibee Foods is providing $1.95 million (Php100 million) worth of food to healthcare workers and personnel manning checkpoints around quarantined areas.

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  • Yum! Brands to take over The Habit Burger Grill chain

    Yum! Brands to take over The Habit Burger Grill chain

    Yum! Brands has bought California-based The Habit Burger Grill, adding its first fast-casual burger chain to its portfolio which already includes KFC, Pizza Hut and Taco Bell

    The company says it has bought all of The Habit Burger Grill’s issued and outstanding common shares in a deal worth US$375 million.

    “The Habit Burger Grill is a sweet spot within fast-casual because of its delicious California-inspired menu with premium ingredients at a QSR-like value, strong unit economics and tremendous untapped growth potential in the US and internationally,” said David Gibbs, CEO of Yum! Brands.

    As a subsidiary of Yum! Brands, The Habit Burger Grill will continue to be run as an independent brand, the company said in a statement.

    President and CEO of The Habit Burger Grill, Russell Bendel, said, being part of Yum! will take The Habit Burger Grill to the next level by leveraging Yum!’s global scale, resources, and franchising capabilities to strengthen and significantly grow our beloved brand for many years to come.”

    Founded in California in 1969, fast-casual restaurant concept The Habit Burger Grill operates about 300 restaurants across 13 states in the US.

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