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.

  • Hong Kong restaurants bounce back in final quarter of 2019

    Hong Kong restaurants bounce back in final quarter of 2019

    Hong Kong restaurants appear to have shrugged off the worst of the impact from the city’s social unrest in the final quarter of last year,

    According to food-delivery service Deliveroo’s second Restaurant Confidence Index, a quarterly survey of restaurant partners that details F&B trends in Hong Kong, eateries in the territory are seeing increased revenue turnover and profits, even as they continue to face a challenging business environment.

    During the final financial quarter of last year, 37 percent of restaurants saw an increase in revenue turnover quarter on quarter, when more than 71 percent of restaurants faced decreasing or unchanged turnover rates.

    However, only 20 percent of restaurant partners surveyed in the latest index saw an increase in profits due to the fact that many restaurant partners surveyed saw an increase in operations, ingredient and labor costs. One in three reported rising order-out revenue.

    On average, restaurants rank their satisfaction in overall business performance at 6.6 out of 10 for the fourth quarter of last year, a one-point jump from the average rating of 5.6 the previous three months.

    Many restaurants experienced year-on-year revenue decreases during the Christmas and New Year period, with 55 percent experiencing a holiday-period revenue fall from the previous year. The decrease in revenue was much more significant for dining in as compared to ordering out, with 61 percent of restaurants witnessing a decrease in dining in revenue as compared to 41 percent who said the same of delivery.

    Consumers appear to have spent less during the festive season this year as just 17 percent of restaurants increased their total turnover, however, 16 percent of restaurants did note an increase in delivery revenue during the period.

    “Last year was unique for Hong Kong‘s F&B industry, with restaurants facing a number of challenges in terms of operating costs, customer turnover and overall business environment,” said Deliveroo Hong Kong GM Brian Lo. “Still, it’s a positive sign that restaurants are more satisfied with their business performance as compared to the previous quarter.”

  • Yum China prepares to list in Hong Kong

    Yum China prepares to list in Hong Kong

    Pizza Hut and KFC restaurant operator Yum China is preparing for a second listing in Hong Kong.

    The US-listed firm is currently working on proceedings with China International Capital and Goldman Sachs to establish a footing closer to its base territory. The listing could take place as early as this year.

    Bloomberg revealed that the Hong Kong Stock Exchange is seeing a spike in inquiries about second listings from Chinese companies since Alibaba’s US$13 billion share sale two months ago.

    Yum China operates more than 8900 restaurants across the Chinese market and recently agreed to purchase a majority shareholding in simmer pot restaurant operator Huang Ji Huang.

    Meanwhile, shares in Chinese restaurant chain Jiumaojiu International soared by than 40 per cent when they debuted on the Hong Kong Stock Exchange yesterday. Jiumaojiu has 328 outlets trading under five brands in Mainland China, where it plans to focus its business for now, before expanding into Hong Kong, other Asian markets and North America in the longer term.

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  • Tom n Toms Hong Kong closing all stores

    Tom n Toms Hong Kong closing all stores

    Tom n Toms Hong Kong has shuttered all five of its stores after the South Korean coffee chain’s local franchise went into liquidation.

    Following news of its Myanmar expansion plans, the popular South Korean cafe eventually could not withstand the pressures on Hong Kong’s depressed retail market.

    Tom n Toms Hong Kong launched in 2016 and had outlets at Tuen Muen Town Plaza, Tsim Tsa Tsui’s The One, Causeway Bay’s Time Square, Nam Cheong’s V Walk and Tsuen Wan’s Citywalk shopping malls. The Nam Cheong’s V Walk branch had opened only in August last year.

    The Tuen Muen branch was the first to close, a notice posted on its door announcing its liquidation.

    After taking into consideration a debt if HKD10 million (US$1.3 million) debt and its current financial situation, the Tom n Tom Hong Kong board admitted the business was inoperable. A search for buyers had proven fruitless, so all proceeds from the sale of assets will be distributed to creditors.

    The company will hold a creditors meeting at the end of this month. Most affected employees have been paid off and advised to approach the Labour Department to claim the remaining payments in lieu of notice and holidays.

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  • Chinese fruit-vending machines driven by AI

    Chinese fruit-vending machines driven by AI

    AI-run fruit-vending machines are offering Chinese consumers a new way of buying fruit and vegetables.

    The machines, developed two years ago by Beijing Kuo’an Science and Technology, are providing an alternative channel for residents of China’s tier-one and tier-two cities, who traditionally rely on relatively distant large-scale supermarkets and community stores for fruit purchases.

    “Every unit of AI fruit vending machines has 24 smaller sections with different types of fruit or vegetables,” said Beijing Kuo’an Science and Technology chairman Guan Luanjun. “Every section has a built-in set of scales. When customers select their fruit, they can use WeChat or AliPay to scan the QR-code on the Chinese fruit-vending machines to open the relevant section. The section automatically slides out to present the customer with its content. The customer can select and take their fruit or vegetables, and then the section automatically calculates the weight that was removed. The customer can then pay for their fruit or vegetables with WeChat or Alipay.”

    The vending machines feature cameras on both sides, allowing them to monitor customers who operate them, minimising abuse of the service. In addition, WeChat and Alipay provide payment methods that both vendor and customer trust.

    “The main advantage of Convenient E-Fresh machines over traditional, large-scale supermarkets and community stores is the low cost,” said Guan, who adds that the model allows vendors to source fruit at low cost from wholesale markets. “In addition, our automated vending machines only occupy a small area, which means that we save on rent and labour cost in comparison with large-scale supermarkets and community stores that occupy large terrains and employ large numbers of people.”

    The firm currently operates 50 AI Chinese fruit-vending machines in Suzhou, and intends to expand operations across the entire Yangzi River Delta area within two years.

    “We hope to improve consumer knowledge and consumer recognition of the Convenient E-Fresh brand,” adds Guan. “And we plan to scale our operations within two years with AI vending machine units in 500–1000 districts. Furthermore, we are in negotiations with a number of domestic and overseas suppliers to make sure consumers have a broad choice of beautiful and delicious fruits for low prices. We sincerely hope that our efforts help to improve the entire supply chain.”

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  • Heineken Vietnam pays $39.7 mln in back taxes and fines

    Heineken Vietnam pays $39.7 mln in back taxes and fines

    Heineken Vietnam Brewery has paid VND917.2 billion ($39.7 million) in back taxes and fines for a 2018 transaction.

    Singapore-based Heineken Asia Pacific Pte. Ltd. had, at the end of 2018, struck a deal valued at over VND4.8 trillion ($207.7 million) with the Heineken Vietnam Brewery. Under the deal, the Singaporean firm transferred its entire stake in its Vietnamese subsidiary to the latter.

    The tax payable on the deal was VND823 billion ($35.6 million), but Heineken Asia Pacific claimed it was exempt from paying it under the double taxation agreement signed by the governments of Vietnam and Singapore.

    However, the General Department of Taxation ruled that the tax had to be paid because the real estate value in the deal was over 50 percent of the assets involved in the deal.

    The department confirmed that it has received in full the payment of back taxes and fines.

    Another major FDI corporation, Coca-Cola Vietnam, has been ordered to pay VND821.4 billion ($35.4 million) in back taxes and penalties stretching back over nine years.

    The company, which has been suspected of engaging in transfer pricing fraud to evade taxes, has paid VND471 billion ($20.4 million), or 57.3 percent of the amount, at the time of writing.

    Vietnam collected VND18.8 trillion ($813 million) last year in back taxes and fines, according to the General Department of Taxation.

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  • Starbucks Vietnam opens new concept outlet at Ecopark

    Starbucks Vietnam opens new concept outlet at Ecopark

    Starbucks Vietnam has opened a concept store at a new urban development called Ecopark in Hung Yen, near Hanoi, its 63rd store in the country.

    Located at the heart of Summer Park, Starbucks Ecopark features a mixture of rural and modern aesthetics, creating “a space that seeks a sense of harmony with its natural surroundings and the buildings bold structure,” the company said in a statement

    “Starbucks Ecopark is our first store opening for 2020, when we set our seventh anniversary of Starbucks Vietnam,” said Patricia Marques, GM of Starbucks Vietnam. “I believe it will be a great gathering place for family and friends.”

    Designed by local company Vietnambuilding and built by Ecotech, the new Starbucks cafe’s exterior features wooden louvers across the entire ceiling. Inside, further linear forms can be found in a low island serving counter which gives unobstructed views to an angled bar behind.

    Nguyen Duc Hiep, chief architect at Vietnambuilding, said the designers incorporated the exterior brick into space and used natural materials such as wood finishes to amplify the atmospheric mood.

    “Respecting the present landscape and green trees is our first thought when visiting the site,” he said.

    “It is also a challenge for us when we want to propose an impressive construction without interfering with the landscape or removing any tree in the garden.”

    Starbucks did not explain why it defines the new outlet as a concept store. however, it does appear to take the third-place concept into a more natural, landscaped garden environment not possible in a mall or high-street location.

  • Coca-Cola Vietnam fined for tax evasion

    Coca-Cola Vietnam fined for tax evasion

    Coca-Cola Vietnam has been ordered to pay VND821.4 billion ($35.4 million) in back taxes and penalties stretching back over nine years.

    Dang Ngoc Minh, deputy head of the General Department of Taxation, said 57.3 percent of the amount is the back tax, 35.2 percent is a penalty for delayed payment and the remaining 7.5 percent is a penalty for incorrect filing.

    “The company can request a review or file a lawsuit.”

    A Coca-Cola spokesperson said tax authorities had recently concluded an investigation of the 2007-15 business period, and found the company had made “minor errors” in describing its business operations which had led to a failure to file for taxes.

    Though it disagrees with some of the tax authorities’ conclusions, the company would nevertheless comply with the laws, he said.

    But an official from the Ho Chi Minh City Tax Department said Coca-Cola has only paid VND38.2 billion ($1.6 million) as of Thursday.

    Coca-Cola entered Vietnam in 1994, and broke even only in 2013 despite double-digit revenue growth, according to the department.

    Since the company reported accumulated losses of VND3.77 trillion ($162.5 million) as of 2011, it was exempt from corporate income tax.

    HCMC has named Coca-Cola among businesses it suspects of transfer pricing fraud to evade tax.

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  • First Grab Kitchen in Singapore opens

    First Grab Kitchen in Singapore opens

    Grab has launched its first Grab Kitchen in Singapore, which takes its cloud kitchen network in Southeast Asia to 50.

    Located at 63 Hillview Avenue, the shared kitchen is operated for 10 restaurants including PlayMade, Wolf Burgers and Thai Dynasty. Occupying a 6000sqft area, Grab Kitchen also has a dine-in area for small lunch groups.

    “Together with our merchant partners, we hope to bridge cuisine demand and supply gaps, complement and expand the variety of food options at different price points in the area,” said Dilip Roussenaly, head of GrabFood Singapore, at the opening of the Grab Kitchen in Singapore.

    As operations in cloud kitchens cost less than setting up physical outlets, the concept has become popular among food and beverage merchants.

    “Partnering with GrabFood has enabled us to have an expanded reach to more consumers while minimizing the hassle for them to travel to a location for food,” said Ian Lin, founder of Thai Dynasty.

    Grab’s food-delivery business has become a major pillar for growth as it expands beyond its taxi-hailing roots into other areas, including financial services. Grab’s food delivery business witnessed 5.2 times growth in gross merchandise value last year, and nearly tripled its number of active users.

    Rivals Deliveroo and Foodpanda already operate their own shared kitchen spaces, also known as ghost or cloud kitchens, in Singapore. The firm’s regional rival Go-Jek has also been testing cloud kitchens in Indonesia.

  • Singapore’s Voids Cafe takes up just 28sqm, carved out of a concrete block

    Singapore’s Voids Cafe takes up just 28sqm, carved out of a concrete block

    Singapore’s tiny Voids Cafe is carved out of a monolithic concrete block, reshaped to produce an operational space in just 28sqm.

    The design, by Studio SKLim’s and featured by online architectural magazine Designboom, was inspired by the “empty space in a coffee cup or matcha bowl” with negative spaces and circular geometries “consistently carried throughout the rest of the built form, carving out seating booths, countertops, display shelves, and overhanging canopies”.

    “In this condensed space, it was essential that we balanced the numerous kitchen inventory with the customer zones, utilizing every nook to add to that experience,” said a representative of the studio.

    The block features several working and customer zones, such as an experience corner, a takeaway counter, booths, and a counter for conducting workshops and making drinks.

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  • Hong Kong entrepreneur launches boutique wine concept Penticton at The Mills

    Hong Kong entrepreneur launches boutique wine concept Penticton at The Mills

    Bespoke wine seller Penticton is bringing little-known French vintages to Hong Kong.

    The business incorporates sulfite-free vintages and labels from female producers in its collection of curated bottles.

    “We are driven to discover the most intriguing expressions of what wine can be, and like to think that there is a story behind each bottle that we import,” said company head and Le Cordon Bleu-trained sommelier Olivia Lee in an interview with HKTDC’s online magazine Hong Kong Means Business.

    “By uncovering the secrets of lesser-known makers and female winemakers, we aim to shine a light on a new generation of innovative winemaking.”

    Penticton works with winemakers who “respect their role as custodians of nature” and focuses on Hong Kong as one of the world’s largest wine ports that remains heavily skewed towards more the well-known labels.

    The firm now attracts many customers to Tsuen Wan with special events such as tastings and plans to open further outlets in the New Territories area.

  • Vietnam to buy more American, European pork

    Vietnam to buy more American, European pork

    Fifty more pork producers in the U.S., France and Belgium will export to Vietnam where African swine fever has decimated pig herds.

    The Ministry of Industry and Trade said this is in addition to the more than 1,600 foreign pork exporters who had already been identified.

    This follows Deputy Prime Minister Vuong Dinh Hue’s call for importing 100,000 tonnes in the first quarter of this year to stabilize pork prices. Imported pork costs VND35,000 ($1.5) per kilogram, a fraction of domestic prices.

    In the Mekong Delta, prices have recently fallen by 20 percent to VND80,000 ($3.5), while in northern localities, they are down 10 percent to VND90,000 ($3.9).

    African swine fever, which is fatal to pigs but does not affect humans, broke out in February, causing pig numbers to fall by more than 25 percent between January and December last year, according to the Ministry of Agriculture and Rural Development.

    Pork output fell 14 percent to 3.29 million tonnes, it added. Imports more than doubled in January-November to 110,000 tonnes.

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  • Luckin Coffee ways into the vending-machines landscape

    Luckin Coffee ways into the vending-machines landscape

    China’s largest coffee chain Luckin Coffee is moving into the vending machines market.

    “It allows us to get closer to consumers and we are not restricted by the license approvals,” said Luckin founder and CEO Qian Zhiya of the new strategy. Luckin’s machines will serve freshly brewed drinks as well as food.

    The firm also launched a share placement and a convertible bond worth a combined US$821 million last week, according to a report.

    Proceeds will be used to open more stores and to invest further in sales and marketing.

    Luckin recently overtook Starbucks in terms of the number of outlets within the territory, operating more than 4500 stores. The firm focuses primarily on the coffee delivery and pickup business, and so stores are typically smaller in size than Starbucks locations and some are without seating.

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  • Longreach Group bought Japan’s Caffe Veloce

    Longreach Group bought Japan’s Caffe Veloce

    Asian private equity firm The Longreach Group has again acquired a Japanese coffee chain – this time the Caffe Veloce from Chat Noir Company.

    Without disclosing the amount of the transaction, The Longreach Group said it has agreed to buy Caffe Veloce, a year after buying Kohikan from UCC Foodservice Systems (UFS).

    The company said the acquisition reflects its core investment focus on acquiring and adding value to high potential companies in the specialty consumer business sector.

    “We will accelerate Chat Noir’s growth through the enhancement of a variety of menu items, new marketing campaigns and via new store expansion to regional markets in Japan,” it added.

    Chat Noir has 190 Caffe Veloce locations across Japan.

    Founded  in 2003, The Longreach Group has experience in the food and beverage industry and wholly owns Wendy’s First Kitchen. It also has minority ownership in McDonalds Japan.

  • Indian tea chain Chai Kings ready for expansion

    Indian tea chain Chai Kings ready for expansion

    Indian tea retailer Chai Kings has secured US$1 million in funding from a group of angel investors, including The Chennai Angels, Hyderabad Angels and TiE India Angels.

    The Chennai-based tea retail chain aims to launch 100 stores over the next five years and become the nationally preferred purveyor of chai teas. It is currently operating in 40 locations and delivers tea to customers’ doorsteps within Chennai.

    “We are very excited to partner with Chai Kings in the bridge round,” said The Chennai Angels’ lead investor in the round Piyush Bhandari. “We believe the company has a strong leadership team with immense potential to grow and expand across India. The new investment reiterates our commitment towards building a sustainable and scalable Indian QSR.”

    “We are happy with the success and progress of our brand in Chennai, and this funding round will help us expand into newer cities,” said Chai Kings CEO Jahabar Sadique. “We hope to enter Coimbatore, Bengaluru, and Hyderabad in this year, and get closer to our target of 100 stores in five years. Apart from expansions, the bulk of this funding will be utilized to strengthen our operations and supply chain management.”

  • American chain Gelato-go makes Asian debut in Hong Kong

    American chain Gelato-go makes Asian debut in Hong Kong

    US artisanal gelato brand Gelato-go has launched its first store in Asia at Tsim Sha Tsui in Hong Kong.

    Located at The Nate, Gelato-go Hong Kong features more than 20 flavors of gelato handcrafted daily for consumers.

    “We know Asian customers love sweet dessert and we have a huge variety of Italian dessert and gelato flavors,” said Alessandro Alvino, co-founder at Gelato-go. “Bringing it to Hong Kong is to share something from our country”.

    Beside its selection of fresh Italian ice cream and snow mousse flavors, it also offers different styles of desserts, sandwiches, and beverages, such as traditional Italian Cannoli ricotta cheese rolls, cream croissants and milkshakes.

    Founded in 2013 by three young Italians, Gelato-go is one of the fastest-growing chains in its category within the US market and operates 14 locations between Florida and California. Hong Kong is its first destination outside US.

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