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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.

  • Kyoto Ichinoden chooses Hong Kong

    Kyoto Ichinoden chooses Hong Kong

    Japanese restaurant chain Kyoto Ichinoden has opened its first overseas restaurant in Hong Kong.

    The launch celebrates the brand’s 100th anniversary while also tapping into the city’s unique role in the region and its close ties with the Mainland market for future expansion.

    Kyoto Ichinoden’s debut local restaurant has opened at Ocean Terminal, Harbour City, in Tsim Sha Tsui. It serves traditional Japanese cuisine including Kyoto kaiseki (multi-course dinner) and traditional Kyoto dish saikyozuke (seasonal meat or fish fillet pickled in Saikyo miso).

    “Hong Kong is a vibrant city situated in the heart of the region,” said Kyoto Ichinoden HK president Jumpei Tanaka.

    “Strategically, Hong Kong is our first choice for expansion because of its geographical and economic advantages. Moreover, there is a strong passion for Japanese food, so this gives Japanese restaurants a very good head start to set up a presence here. The city is also very strong in terms of logistics and transportation, ensuring efficient supplies of fresh ingredients – essential for the operation of high-grade Japanese restaurants like ours.

    “We expect that soon we may reach out to the Mainland market and other places in East Asia from Hong Kong, given that the city is close to the Mainland market and a major business hub in Asia.

    “As the Greater Bay Area (Guangdong-Hong Kong-Macao Greater Bay Area) has become an important development and that Hong Kong plays a key role within it, having a first overseas base in Hong Kong will also help our brand build solid customer confidence and spread quickly to the Greater Bay Area in the near future.”

    InvestHK helped Kyoto Inchinoden launch in Hong Kong.

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  • McDonald’s Malaysia Opens 20 More Restaurants

    McDonald’s Malaysia Opens 20 More Restaurants

    McDonald’s Malaysia will launch 20 new McDonald’s Drive-Thru restaurants before the end of the year.

    “Drive-Thru window sales have contributed almost 50 per cent of total sales at 167 restaurants,” said regional MD and local operating partner Azmir Jaafar. “On top of this, we’ve seen an average 10 per cent year-on-year growth in drive-thru sales in the first quarter of 2019.”

    McDonald’s Malaysia opened its first Drive-Thru in Titiwangsa in 1988. The franchise now plans to include a drive-through facility in nearly three quarters of its restaurants by 2021, anticipating a 10–15 per cent increase in vehicle count.

    A Drive-Thru Weekend Challenge held from April 26–28 saw 473,860 cars stopping at a McDonald’s Drive-Thru nationwide for a meal, earning the franchise a spot in the Malaysia Book of Records.

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  • Texas Chicken Indonesia opens New Restaurant in Bandung

    Texas Chicken Indonesia opens New Restaurant in Bandung

    A Texas Chicken Indonesia franchisee will be among the first in the world to display the brand’s new look and feel.

    The company’s new ‘Blaze’ concept will make its debut in central Bandung, in a popular town-square style area known as Alun Alun Bandung. Quick Service Restaurant, an affiliate of the Texas Chicken franchisee in Malaysia, Envictus International Holdings Limited (EIH), will be the official franchisee for the new restaurant.

    “This has been an exciting opportunity to introduce a new audience to an ever-evolving brand like Texas Chicken which is known and respected for its quality and superior guest experience,” said Quick Service Restaurant’s country head Daniel Harris Ishak.

    The new Texas Chicken in Bandung is part of a much larger franchise development deal that will bring 80 Texas Chicken restaurants to Indonesia over the next 10 years – mainly in Jakarta, West Java, Banten, Lampung, South Sumatra, and Bengkulu provinces.

    The 150-seat restaurant, located on the first floor of The Kings Shopping Centre, will be the first in Indonesia to feature the new logo, new store design, and the latest international menu.

    “QSR is an extension of one of our most proven franchisees – which made them an excellent choice for piloting this new design,” said Texas Chicken’s executive VP of international business Tony Moralejo.

    “We look forward to bringing our quality food and authentic flavours to our guests in ways that are fresh and engaging.”

  • Pizza Hut Malaysia Plans More Store Openings

    Pizza Hut Malaysia Plans More Store Openings

    The 400th Pizza Hut Malaysia store has opened at Central I-City Shah Alam.

    To celebrate the landmark moment in the franchise’s history, Pizza Hut is giving 4000 pizzas to diners, as well as an additional 400 pizzas to 10 local charities. It was also selling its personal-sized pizzas for just RM4 (around US$1) at the end of last month.

    A statement by COO Loi Liang Tok revealed that the brand intends to open its 408th store by the end of the year, with new locations in Sabah, Sarawak, Perak and Penang. The brand is also rolling out an upgraded serving system in its fast casual delco stores, equipped with faster food preparation equipment and some self-service features.

    “The expansion of offerings through our new store format and the enhancements of our existing stores enable us to up our ante in staying relevant and help us to serve our community better,”

    QSR Brands MD Dato’ Seri Mohamed Azahari Mohamed Kamilw, “while offering vibrant dining experiences and staying delightful.”

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  • Tricker’s Tokyo Opens British footwear brand’s first Store

    Tricker’s Tokyo Opens British footwear brand’s first Store

    British footwear brand Tricker’s has opened its first shop outside the UK, choosing Japan.

    Tricker’s Tokyo store opened last Thursday, an exact replica of its London Jermyn Street shop.

    “Japan has been our biggest export market for more than 30 years,” read a notice on the brand’s Twitter account. “This is a bold development for a small business such as ours.”

    The opening celebrates the heritage brand’s 190th anniversary. It is known for its quality heavy brogue shoes and boots, and counts Prince Charles among its patrons.

  • Chinese KFC restaurants struggles as chicken prices Increases

    Chinese KFC restaurants struggles as chicken prices Increases

    Chinese KFC restaurants have begun serving parts of chickens not used before in response to rising costs.

    According to Yum China CEO Joey Wat, the KFC brand introduced new chicken cuts in the first quarter from “a part of the chicken that we somehow have not used in the last 30-some years”. The cut is a portion between the wing and the breast.

    The elevated poultry costs are largely attributed to a spin-off effect from the impact of African Swine Fever on the pork market as well as the current trade war with the US.

    The costs have seen KFC’s operating margin reduced to 18.7 per cent from the previous 20.6 per cent, despite a rise in same-store sales of 5 per cent. KFC has faced commodity inflation of 5 per cent in the first quarter, according to the company’s earnings call.

    “We expect poultry inflation to weigh on margins for the rest of the year,” said Yum China CFO Jacky Lo.

    Wat stated that the chain may be turning to new technology to save its declining margins in the hope that such technology can provide “another way to cut out chicken.”

    The brand may also introduce “some sort of ingredient” other than chicken “that probably has not been used before.”

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  • Blue Bottle Coffee Taking Off in Seoul

    Blue Bottle Coffee Taking Off in Seoul

    The first South Korean cafe for Blue Bottle Coffee has launched today.

    The brand’s 14,000sqft headquarters in Seoul includes a roastery and training lab, which is open for public tours, classes, and tastings. Blue Bottle will open a second cafe in Seoul later in the second quarter and has plans for more by the end of the year.

    South Korea is the second international market for the company, which opened its first Tokyo cafe in 2015, inspired by the hospitality of traditional Japanese kissaten (coffee house) culture.

    “Every time we visit Korea, we are deeply honored by the enthusiasm and love for our brand,” said Blue Bottle Coffee CEO Bryan Meehan. “Our Instagram account has more followers in Seoul than any other city in the world. South Korean guests have travelled thousands of miles to meet us in the US and Japan. Finally, we are bringing Blue Bottle to our loyal Korean guests.”

    The industrial, red-brick building that Blue Bottle Korea has launched in is located in the Seongsu neighbourhood, often referred to as the “Brooklyn” of Seoul. The space, designed by Jo Nagasaka of Schemata Architects, displays the brand’s signature emphasis on natural light and warm minimalist design.

    Featuring an open atrium with glass separating the first and second floors, the building offers a transparent view from street level into Blue Bottle’s roastery. Guests may descend a staircase into the intimate below-ground cafe featuring classic walnut chairs and tables.

    Seongsu is situated next to the idyllic Seoul Forest, an urban green space frequented by families of all generations.

    Blue Bottle sees huge potential for growth in the Korean coffee market, which is quickly emerging as an international destination for specialty coffee. Koreans consume more than 25 billion cups of coffee per year, and more than half of the world’s Q-graders – coffee specialists licensed to purchase premium green coffee beans – live in South Korea.

    With more than 18,000 coffee shops already trading in Seoul alone, Blue Bottle Coffee has entered a highly competitive market. It intends to differentiate itself by quality and sustainable practices, bringing expressive blends and rare single origins sourced through direct trade to the country.

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  • Chatime facing allegations of Employee Underpayment

    Chatime facing allegations of Employee Underpayment

    Bubble tea chain Chatime is the subject of the latest underpayment scandal, after an in-depth report alleged rampant underpayment in both corporate-owned stores and the franchisee network stretching back to 2009.

    Employees of the Taiwanese company’s Australian subsidiary – Infinite Plus – are owed more than $10 million, according to the report. Many of the underpaid workers are foreign students on visas from China and Taiwan, who were too afraid to complain to authorities, the report said.

    A spokesperson for the Fair Work Ombudsman (FWO) told it has a current investigation relating to Infinite Plus, so could not comment further on the matter at this stage.

    The report comes after a parliamentary inquiry earlier this year called for a total overhaul of the franchise sector, after a series of underpayment scandals at 7-Eleven, Retail Food Group, Domino’s Pizza Enterprises Ltd and other franchise businesses.

    Chatime had not previously been insinuated in the underpayment scandals, but according to the report, the bubble tea business had in fact received a formal complaint from the Fair Work Ombudsman (FWO) in 2018, after an audit of its corporate-owned stores from August to December 2016 revealed 150 workers had been underpaid.

    Chatime was told to back-pay workers an estimated $113,494 in NSW and $62,975 in Victoria, the report stated, but was not further penalised by the FWO. The Ombudsman also chose not to make the finding public.

    Earlier this month, however, the regulator commenced legal action against a Chatime franchisee in Sydney, which it alleged underpaid 17 workers more than $46,000. A Chatime insider told, “It’s pretty standard picking on the little guys, not the big guys”.

    The spokesperson for the FWO told it is examining the rapid establishment and expansion of overseas franchise businesses.

    “These businesses often implement operating models and workplace practices associated with their countries of origin,” the spokesperson said.

    “In combination with employing migrant workers, who may be unaware of their rights, there is significant potential for non-compliance. We are proactively auditing several emerging franchisees in the fast food, restaurant and café sector to check compliance of their business models with Australia’s workplace laws.”

    The spokesperson said recent litigations commenced against PappaRich and Chatime franchisee outlet operators are the result of this activity.

    The spokesperson also confirmed that the FWO investigated Bakery Venture, a business that Infinite Plus’s key shareholders – Charlley Zhao and Iris Qian – were involved directors of and key shareholders, last year.

    The Ombudsman secured $350,000 in back-pay for employees and former employees of Bakery Venture, trading as Dough Collective, but further enforcement options were limited, since the company went into liquidation during the investigation.

    We asked Chatime for comment, but had not received a reply by the time of publication.

  • New Zealand Food Basket launches Tmall Store

    New Zealand Food Basket launches Tmall Store

    Some of New Zealand’s most popular food and beverage brands now have direct access to Chinese customers through a new flagship on the online marketplace, Tmall.

    The online flagship, which opened last week, is the result of a joint venture between Tmall Fresh and New Zealand Food Basket Ltd, a consortium of 18 food and beverage brands.

    “It will significantly improve our reach and shorten the supply chain in a way that each brand couldn’t achieve alone,” Nicola O’Rourke, chairperson of the consortium, said.

    Nine brands were available for sale at launch – Babich, Vogel’s, Rockit, Future Cuisine, Pāmu, Zealong, Fiordland Lobster and Oha Honey – while the remaining nine brands are set to begin selling on the marketplace in June.

    They include Zespri, Sanford, Lewis Road Creamery, Kāpiti, Sealord, Alliance, Shott Beverages, Wild Catch and Cherri.

    Tmall is owned and operated by Alibaba, China’s biggest e-commerce company, with nearly 700 million monthly active users.

    The flagship store is expected to boost awareness of the brands in a market where demand for New Zealand products is high, but it can be difficult for even big companies to get cut-through.

    “Together, we want to help these brands deepen their engagement with the Chinese consumer, so shoppers in China can gain a greater appreciation of the premium high-quality products that New Zealand offers,” Maggie Zhou, Alibaba’s managing director for Australia and New Zealand, said at the signing ceremony in Shanghai last week.

    According to New Zealand’s official data agency, Stats NZ, in 2018, China was the country’s single-biggest export market, accounting for around one in every five dollars of sales of goods and services.

    At $16.6 billion, New Zealand’s export to China for the year ended September 30, 2018, was $2.6 billion more than Australia and nearly double the sales to the US.

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  • Pazzion footwear launches cafe concept

    Pazzion footwear launches cafe concept

    Footwear retailer Pazzion has unveiled a cafe concept at Jewel Changi.

    Located next to the Pazzion boutique, the 45-seat Pazzion Cafe is designed in monochromatic tones of black and white, peppered with grey and gold, and vintage-style pendant lights.

    A feature wall with an inset shelving unit displays vintage-looking props, including a typewriter, telephone and metal globe, making the cafe an Instagram-worthy spot.

    More seating is arranged outside, overlooking the Rain Vortex.

    “Pazzion cafe provides our customers with a much-needed cosy spot to rest their feet while enjoying our specially curated menu and a cup of coffee,” said Tom Ng, Pazzion’s founder.

    Established in 2002, Pazzion has stores in Brunei, Cambodia, China, Indonesia, Japan, Malaysia, Thailand and Vietnam.

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  • Fast-food chain Jollibee Plans China Rollout

    Fast-food chain Jollibee Plans China Rollout

    Filipino fast food chain Jollibee may open its first location in China within the next five years.

    The firm already has a presence in the territory, where it operates the Dunkin’ Donuts franchise. It also operates eight stores in Hong Kong.

    JFC president and CEO Ernesto Tanmantiong told that the firm is currently looking for a location where there is a high Filipino population, with a view to attracting the local market afterwards.

    “We build the base and slowly cross over to the mainstream market, which is the local market,” said Tanmantiong. “We have done that successfully in Hong Kong and in Singapore.”

    The firm took legal action against a copycat restaurant in China, JoyRulBee, earlier this year.

    Jollibee will open its first store in Rome and Spain shortly while exploring other markets.

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  • Starbucks sales surge despite China Growth

    Starbucks sales surge despite China Growth

    Starbucks sales growth has surpassed expectations with a glowing earnings report released yesterday that revealed strong performance in cafes across the US and China.

    “We are especially pleased with our comparable-store sales growth in our two lead markets, the US and China,” said Starbucks CEO Kevin Johnson, “where we are also continuing to drive strong new store development with industry-leading returns.”

    The firm reported a second-quarter net income of US$663.2 million, up from $660.1 million for the same period last year.

    “While much of the beverage comp-sales growth was driven by ticket, close to half of the ticket growth was from beverage mix and match,” said company CFO Pat Grismer, “demonstrating that our higher margin premium offerings resonated with customers and customers bought more beverages per transaction.”

    The release of Starbucks’ Cloud Macchiato last month, with promotional support from singer Ariana Grande, contributed to the results with “the second-most viral Starbucks campaign ever” according to Johnson. The success accords with the firm’s strategy to build on the cold-drinks business while focussing less on limited-time offerings and Frappucinos.

    The popularity of the chain’s cold drinks, along with improvements in store, saw US sales grow 4 per cent in stores opened for at least one year.

    Same store year-on-year sales grew 3 per cent in China, where the firm is facing a serious challenge from motivated competitor Luckin Coffee. “This performance is especially noteworthy when you consider the intensity of competition from discounting in China, as well as our aggressive pace of new store development,” said Johnson.

    Transactions have decreased by 1 per cent in China, most likely as a result of increased competition, which has recently forced Starbucks to introduce a fast-delivery service in partnership with Alibaba. The firm has also seen significant growth in its loyalty program, Starbucks Rewards.

    Starbucks surpassed 30,000 outlets worldwide in the second quarter, with 94 per cent of new openings occurring outside the US. A further 2100 new stores are planned for launch before the end of the current fiscal year, nearly 600 of those in China.

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  • China’s Luckin Coffee Looking at The USA

    China’s Luckin Coffee Looking at The USA

    China’s Luckin Coffee has filed for a US IPO seeking to raise up to US$800 million.

    For the time being, the IPO is officially indicated by a $100 million placeholder figure, however knowledgeable sources have disclosed the actual amount sought may be more than $500 million and up to $800 million, with the company’s valuation estimated at $4–5 billion, far higher than has been reflected in previous statements.

    Within the last few weeks the company secured a further $150 million in equity funding, ahead of the IPO.

    If the public listing is successful, it will make the Beijing-based cafe chain the largest US IPO by a Chinese company so far this year.

    China’s Luckin Coffee has undergone “expansion on steroids” in an effort to displace Starbucks as the biggest operator in the nation. This year, the firm plans to more than double its current network of 2370 stores, despite still operating at a loss following the ambitious growth spurt.

    Luckin’s net loss to shareholders was $475.4 million last year against a total revenue of $125.27 million. However the firm insists the future is bright – a prospectus released by China’s Luckin Coffee suggests that coffee consumption in China will rise to 15.5 billion cups by 2023 compared with the 8.7 billion cups consumed last year.

    “The big question for the brand long term is if, when it rolls back discounts, enough customers stick around,” said Shanghai-based principal at China Market Research Group Ben Cavender. “But the company has completely rewritten the rules for the coffee business in China and has impacted Starbucks as well as a host of smaller players.”

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  • Vive Cake Boutique Welcomes Mother’s Day with Artisan Cakes

    Vive Cake Boutique Welcomes Mother’s Day with Artisan Cakes

    In celebration of Mother’s Day, celebrity-loved Vive Cake Boutique welcomes the special day with an exclusive collaboration with Israel’s premium Body Care brand Sabon, to create a special cake to join two whimsical cakes true to Founder Vivien Lau’s aesthetic creation.

    “Mother’s Day is one of the most important occasions for my team and I to honour and celebrate,” shares Ms Vivien Lau, Founder of Vive Cake Boutique. “Inspired by the strength, patience, grace, and beauty of women all around the world, we have created a line of exquisite treats to be gifted and shared with mothers all over Hong Kong.”

    Inspired by Sabon’s Green Rose collection, ‘Supermom’ (HK$680, 1lb), the cake is tiered cake dressed with a green and pink buttercream frosting signifying appreciation of the beloved mothers and elegance of women. A bouquet of roses and daisies sit atop the cake, further fine tuning its perfection. Apart from its stunning aesthetic, this delicious cake is heaven-sent for chocolate lovers as it is made with chocolate sponge cake with chocolate mousse and raspberry agar. Customers who purchase this cake will get a free Sabon Signature Green Rose Silky Body Milk sample and an invitation to join the Soap Delicatessen workshop to DIY your own soap at a discounted price of HK$600 for 2 people (originally HK$800). Those who complete the workshop will receive an additional HK$50 shopping discount upon a HK$300 purchase.

    Let the special woman in one’s life know there is no one like her with the all-new ‘Mother Like No Other’ (HK$880, 1lb), a multi-tiered pastel pink cake, adorned with flower-shaped marzipan and edible gold leafs. The cake topped with a bouquet of fresh eustoma, Kenya roses and lilies, on which the message ‘mother like no other’ float, in golden letters. Coming in three flavour favourites, including  vanilla sponge cake with white chocolate mousse, passion fruit mousse, and passion fruit jam; chocolate sponge cake, chocolate mousse, and raspberry agar; and red velvet butter cake with cream cheese, this cake is sure to satisfy the special women in one’s life.

    For those who would like to thank their mothers for all the wonderful things they have done for them, but don’t quite know how to say it, VIVE’s ‘Voted Best Mom’ (HK$580, 1lb; HK$400, 0.5lbs) shares the message for you. The vanilla sponge cake with white chocolate mousse, passion fruit mousse, and passion fruit jam, gets a new look with lavender cream, a colour which signifies love and trust.

    The special Mother’s Day cakes are available from 29 April to 31 May. To capture the convivial occasion of appreciation and sharing, a special promotional period will be introduced from 29 April to 5 May, where guests are invited to enjoy a special limited time offer of a 20% discount, applicable in both Central and Harbour City pop-up stores. Orders must be placed three days in advance.

    Vive Cake Boutique has proved a roaring success story since being launched with online orders in 2014 by founder and creative director Vivien Lau, who discovered her passion and talent by chance, making her first cake for a friend’s birthday.

    Her signature ‘handmade with love’, cupcakes, macarons, cookies, confectioneries and tailor-made cakes for weddings and special occasions, are all made from scratch with less sugar and finest ingredients sourced from all over the world.

    VIVE’s widespread acclaim includes Time Out’s listing among the “crème de la crème of Hong Kong’s bespoke dessert makers” – with a massive celebrity and socialite following including Aaron Kwok, Charlene Choi, Gillian Chung, Niki Chow, Sharon Chan, Miki Yeung, Ella Koon, Myolie Wu and more.

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  • Naked Wines about to sell all UK stores

    Naked Wines about to sell all UK stores

    Majestic Wine is reportedly looking to sell its entire UK retail portfolio to focus on its international e-commerce business, Naked Wines.

    Bankers at Rothschild have been contacting private equity firms to buy the British bricks-and-mortar business, which includes around 200 stores, on behalf of the retailer, according to Sky News.

    Majestic Wine acquired Naked Wines in 2015, and appointed the e-commerce company’s founder, South African entrepreneur Rowan Gormley, as CEO of the entire company. Naked Wines now operates in Australia, the UK and the US.

    Gormley told investors last month that Majestic would present a transformation plan in June, which would include growing the Naked Wines business by releasing capital in Majestic. The brands were to be combined into a single management team under the banner of Naked Wines plc.

    “It is clear Naked Wines has the potential for strong sustainable growth and a transformed Majestic business does have the potential to be a long-term winner,” Gormley said at the time.

    “But we risk not maximising the potential of Naked if we try to do both.”

    Gormley said the business would minimise job losses by migrating employees at the closed stores to the revised Naked brand.

    A spokesperson for Majestic told the combination of migrating existing customers to the Naked brand, selling assets and closing stores would lead to the business becoming an “out-and-out growth business”.

    According to Majestic, almost 45 per cent of its business now takes place online, and 20 per cent internationally, providing further growth opportunities should further focus be centered on these areas.

    The spokesperson said that “while a total sale of Majestic Retail continues to be a potential option, it would be wholly unwise to pursue a single-track process and materially limit the potential value that can be realised to drive growth.”

    Naked Wines Australia has been contacted for comment.