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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.

  • % Arabica launches into the UK market with the opening of two London stores

    % Arabica launches into the UK market with the opening of two London stores

     Lifestyle-orientated Japanese specialty coffee brand % Arabica is delighted to announce its launch into the UK, with two London outposts officially opening on 1st November 2019. % Arabica will open its flagship store in popular East London hotspot Broadway Market and Covent Garden will see its sister site situated on King Street. Covent Garden is currently in its soft launch phase.

    % Arabica is a brand recognized globally thanks to its distinctive % logo (reminiscent of coffee cherries on the branch of a coffee plant), inimitable store aesthetic and most importantly the brand’s high-quality specialty coffee menu, all brewed on state of the art equipment. The brand’s international acclaim is a testament to founder Kenneth Shoji’s four core values:

    • #Seetheworldthroughcoffee – The notion of Kenbun (which loosely translated means ‘to see and to hear’ in Japanese) led founder Kenneth Shoji to create this brand motto. The company aims to open stores in amazing destinations globally so that young baristas can see the world, set personal goals and one day challenge the world with their own ideas. Twice a year, % Arabica invite baristas from around the world together for a program of events in different cities to give them an opportunity to travel, explore and learn more about coffee and its global reach.
    • Timelessness – % Arabica remains true to its brand identity of offering the best beans, the best service and the best state of the art equipment and it does not need to follow or adapt to fads and trends. Kenneth believes ‘something good does not have to change’ so the drinks menu is simple and minimal. Japan is famed for having many 100-year-old companies and remaining true to % Arabica core values it will bring sustainable long term stability to the company, customers and supply chain.
    • Identity – Aesthetically % Arabica spaces showcase the highest attention to detail; a minimal yet purposeful design and all original features, down to even the light switches, door handles, and amplifiers. Each store places wood-clad custom Slayer machines at centre stage, complemented by bespoke seating, mirrors and flooring. Unique to the London stores is the addition of original Smeed Dean Yellow brickwork, a nod to the traditional craftsmanship of the local community as % Arabica always aspires to achieve; celebrating the identity of every country in which new stores open.
    • Japanese sense of beauty – 
% Arabica celebrates its Japanese roots by highlighting the culture’s hardworking, simplistic and functional ideologies. Baristas are encouraged to work with Teinei (being mindful of your surroundings) and not wasting a single movement or moment in their workflow. Every cup of coffee served must be made to the best of their abilities to showcase the quality of components in the cup and of the dedication of every member of the global team that played their part in bringing % Arabica to London in 2019.

    % Arabica offers a concise coffee menu placing the greatest emphasis on solely offering the world’s best beans. Customers are invited to choose between the % Arabica blend (espresso blend combining Brazilian and Ethiopian beans selected for their unique characteristics) or a rotating Single Origin offering. The London menu offers Espresso based coffees (espresso, espresso macchiato, Americano, caffe latte, caffe mocha and the brand’s unique Spanish latte) and drip based beverages by Chemex.

    Leading the way in the “New Wave Coffee” movement, % Arabica produces and roasts its own coffee and the Broadway Market flagship will house its own roasting machine allowing for customers to co-create their own blend in accordance to their distinct taste profile. % Arabica is renowned for its high-performance Slayer Espresso machines which have been customized and built by hand in the USA along with offering a traditional pure Chemex serve for worldwide coffee connoisseurs. Each barista is trained in the brand’s popular Latte Art designs.

    % Arabica was founded by Kenneth Shoji, who became enthralled with the emerging coffee culture whilst studying at UCLA in the early 90’s; Starbucks exploded on to the scene and brought it with a new appreciation of experimental serves and changed the way in which we consume caffeine. Kenneth progressed to training as a barista before taking it one step further and buying a coffee farm in Hawaii. His passion led him to launch a green bean trading company and become a distributor for the technologically advanced Slayer espresso machines, Marco Uber Boiler, and Chemex in Asian markets. Realising his dream to open an international brand, % Arabica was born. To this day, Kenneth remains the creative mastermind and personally selects all of the locations, designs the stores with his preferred partners and visits coffee origins to select all of the coffee beans.  Through an exclusive partnership with Latorre & Dutch, they are planning to set up washing stations in coffee origins such as Ethiopia, Uganda, Colombia, and Indonesia.

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  • Hong Kong’s Social Place makes Singapore debut

    Hong Kong’s Social Place makes Singapore debut

    Hong Kong contemporary Chinese restaurant chain Social Place has launched its first outlet in Singapore at Forum The Shopping Mall.

    The brand’s first outlet in Southeast Asia is a joint venture among three F&B businesses from Hong Kong, Singapore and Indonesia – Tang Palace, Palm Beach Seafood and Gaia Culinary Concepts.

    The restaurant’s chefs put a modern spin on traditional dishes, presenting a selection of Chinese favorites and imaginative creations.

    “Social Place is unique in its ability to offer diners refreshing encounters with Chinese cuisine while preserving its all-important heritage and history,” said Gaia Culinary Concepts representative Cindy Karim. “We are excited to bring a taste of modern Hong Kong, and the creative energy of its kitchens to our customers in Singapore.”

    Social Place presents a contemporary interior with hints of old Hong Kong. The setting is characterized by marble-topped tables, elegant gold, and blue-grey features, as well as vintage patterned flooring – elements that embody the restaurant’s fusion of tradition and modernity.

    The Singapore outlet is also the first to boast a glossy feature wall made out of mahjong tiles.

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  • Bubble-tea chain The Whale debuts in Singapore

    Bubble-tea chain The Whale debuts in Singapore

    Bubble tea chain The Whale has opened its first outlet in Singapore.

    The Nanjing-based brand opened the first franchise in the territory in a basement takeaway kiosk at Lot One Mall in Choa Chu Kang. It is known for its unusual blends, including the Brown Sugar Avocado and Volcanic Sapphire Whale drinks.

    The brand’s marketing and business development manager Clement Low revealed a broad-ranging expansion strategy for The Whale, telling local media outlet 8 Days that the company plans to expand across Singapore.

    “We are currently looking for space where we can have dine-in seats,” said Low.

    The Whale will open its second outlet at City Square Mall, Farrer Park within a fortnight, and a third at Chinatown’s China Square Central next month. A fourth outlet will launch at Rivervale Mall in Sengkang towards the end of the year.

    The Whale’s Singapore partner also operates Thai eatery chain Gu Thai Noodle Cafe.

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  • Jollibee is expanding in the UK with more outlets

    Jollibee is expanding in the UK with more outlets

    Filipino fast-food chain Jollibee is set to open its second UK restaurant, in Liverpool.

    Bee World UK, part of the Jollibee Foods Corporation, has already submitted a plan to transform a Lush store on Whitechapel into its flagship restaurant in the northwest England city. The expansion comes after the successful opening of its first UK restaurant in London’s Earl’s Court last year. The opening is set to create 70 jobs, according to the planning application.

    Jollibee’s head of international business for Europe, Dennis Flores, said last year that the company plans to continue expansion by opening 25 restaurants and creating 1,500 jobs across the UK by 2023. He also said that they expect the brand to appeal not only to the Filipinos living and working in the UK but to the locals as well.

    Further expansion will see the fast-food chain launch in new cities including Manchester and Birmingham, said Flores.

    Jollibee, known for its Chicken Joy fried chicken and Jolly spaghetti, has a network of more than 1,300 restaurants in the Philippines, making it a dominant leader in the industry. Internationally, it has more than 200 branches spanning across countries including the US, Canada, Vietnam, Singapore, Saudi Arabia, Qatar, Italy, Bahrain, Singapore, and the UAE.

    Its parent company, Jollibee Foods Corporation, also owns brands including Chowking, Greenwich, Red Ribbon, Mang Inasal, Yonghe King, Hong Zhuang Yuan and Smashburger. It also owns 60 percent of the SuperFoods Group which operates Highland Coffee and Pho24 brands in Vietnam. It recently entered into an agreement to operate Panda Express in the Philippines and to buy the Coffee Bean & Tea Leaf business globally.

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  • Peet’s Coffee opens 60’s-inspired Shanghai pop-up store

    Peet’s Coffee opens 60’s-inspired Shanghai pop-up store

    US coffee chain Peet’s Coffee has launched a pop-up cafe in Shanghai, inspired by the design of its heritage store in California.

    The Peet’s Coffee pop up offers a wide selection of coffees and experiences, including personalized t-shirts, tote bags with distinctive patterns influenced from the 1960s period. A photo booth was installed inside the store for the customer to take photos and print out or share on social media.

    “This Peet’s Coffee pop-up experience showcases the power of experiences in transporting audiences to a different time and place, and bringing the origins of the brand to life,” said Matalie Ackerman, executive VP of design agency Jack Morton Greater China.

    Peet’s Coffee also offers live music performed by buskers outside the pop-up store to add to the retro vibe.

    To explain the message behind the brand’s legacy approach, marketing director of Peet’s Coffee China Elaine Liu said: “When Alfred Peet opened his first coffee bar in Berkeley, California in 1966, he established our long-standing commitment to roasting the highest-quality coffee and Peet’s continues to stay true to that in China.”

    Peet’s Coffee is planning to expand into other cities in China in the future.

  • Nespresso launches farm-to-table sustainability initiative

    Nespresso launches farm-to-table sustainability initiative

    Capsule coffee brand Nespresso is inviting business partners to join an exclusive farm-to-table culinary experience designed by Chef Vicky Cheng, owner and executive chef of Michelin-starred Vea Restaurant and Lounge in Hong Kong.

    To further encourage the public to participate in the Nespresso’s sustainability initiatives, Cheng will extend the unique farm-to-table experience to the acclaimed restaurant with a special gift. From November 11 to December 14, diners will receive a complimentary jar of rosella jam, made with rosella grown using recycled coffee grounds at the Nespresso Farm.

    As the chief ambassador of Nespresso Hong Kong, Cheng will be creating a one-of-a-kind luncheon using fresh vegetables harvested straight from the Nespresso Farm.

    Guests will not only indulge in the gourmet-coffee pairing menu but will also see how used coffee grounds from recycled Nespresso capsules are repurposed as compost and given new life.

    “As chef ambassador of Nespresso, I have had the opportunity to travel to the brand’s headquarters and even to the coffee farms in Colombia,” said Cheng. “From these experiences, I have witnessed the brand’s deep commitment to quality, craftsmanship, and sustainability, which are shared values that I believe are key to delivering the ultimate experiences to customers … It is a delight to be able to craft this Nespresso farm-to-table menu and cook using top quality, fresh ingredients grown from repurposed coffee grounds; I hope this inspires people to join the sustainability journey.”

    Nespresso capsules are fully recyclable, from the aluminum capsules to the coffee grounds within them. The brand’s current local capsule recycling rate is running at 24 percent. Club members can drop off their used capsules at any Nespresso Boutique or use the Recycling@Home service – a doorstep collection system where used capsules are picked up when a new order is delivered.

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  • Contaminated water forces seven Vietnamese Starbucks stores to close

    Contaminated water forces seven Vietnamese Starbucks stores to close

    Coffee chain Starbucks has temporarily closed seven outlets in Hanoi, Vietnam as the city copes with serious oil contamination of its water supply.

    According to a customer service staff member, the Starbucks Hanoi stores are closed in areas where water comes from the Da River, including Cau Giay, Ha Dong and Nam Tu Liem districts. The coffee chain has not confirmed a reopening date.

    The contamination traces back to a truck seen dumping used oil into a mountain creek in Phu Minh Commune, Hoa Binh Province last week which has led to contaminated tap water for about 1 million Hanoi residents.

    While Starbucks is not alone in closing stores, other major coffee chains and eateries in the contaminated areas have arranged alternative sources of water and remain open.

    Local news media report that tap water has now passed safety tests, but Hanoi officials advise consumers against drinking or cooking with it.

    Meanwhile, there are widespread reports of bottled water prices soaring in the city as people rush to buy safe water. While tap water in Vietnam is not considered safe to drink it is generally acceptable to use it for cooking.

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  • Burger King APAC opens 3,000th restaurant

    Burger King APAC opens 3,000th restaurant

    The Burger King Asia-Pacific network has reached a milestone, the 3000th restaurant which just opened in Shanghai.

    The new restaurant in China is a joint venture owned by Burger King, TFI TAB Food Investments and Cartesian Capital.

    “We have served the Asia-Pacific market for more than 40 years, and have grown rapidly in the region recently, doubling our restaurant count in just the past five years,” said Sami Siddiqui, president at Burger King Asia-Pacific. “We look forward to many more openings to come as we grow the brand in our fastest-growing region of the world.”

    Burger King has opened more than 1500 restaurants in the region within the last five years, helped by strong franchisee partnerships in major markets, including China, India and South Korea.

  • Starbucks closes seven Hanoi stores over contaminated water

    Starbucks closes seven Hanoi stores over contaminated water

    Coffee shop giant Starbucks has temporarily closed seven stores in Hanoi’s southwestern districts over the ongoing oil contamination crisis.

    A customer service agent said Friday that the closed stores are located in Cau Giay, Ha Dong and Nam Tu Liem districts, all of which use water that comes from the Da River in Hoa Binh Province. No reopening date has been set.

    Other major coffee chains in the southwestern districts of Hanoi have remained open, with their managers saying, without elaborating, that they are getting clean water from a supplier.

    Like Starbucks, many restaurants and eateries in Hanoi are struggling to get clean water.

    Nghia, owner of a pho noodle stall in Hoang Mai District, said that he has spent hundreds of thousands of dong (VND100,000 = $4.3) on bottled water this week because the tap water smelled bad and could not be used for cooking.

    A buffalo-meat restaurant chain with outlets in affected areas mobilizes staff to work till midnight Wednesday to stock bottled water.

    In some areas, bottled water prices have increased 2-3 times due to high demand. The Vietnam Directorate of Market Surveillance has asked Hanoi authorities to stop merchants from overpricing bottled water.

    On Tuesday last week, a 2.5-ton truck was seen dumping used oil into a mountain creek in Phu Minh Commune, Hoa Binh Province. The oil spread and contaminated the tap water for about one million Hanoi residents.

    Tests of the smelly water by authorities later found that the level of styrene, an organic compound that is classified as “probably” carcinogenic, was 1.3-3.6 times higher than normal.

    On Thursday, Hanoi officials said the tap water samples collected Monday this year passed safety tests, but continued to advise against drinking or cooking with it.

  • Indian debut for Make-your-own Magnum retail concept

    Indian debut for Make-your-own Magnum retail concept

    Magnum has launched its first two pop-up stores in India, offering customers Make Your Own Magnum experience.

    The stores have opened at Phoenix Market City malls in Mumbai and Chennai.

    Like consumers before them in Bangkok Kuala Lumpur and many other cities across Asia-Pacific, customers now can design and assemble their own ice creams with their favorite flavors and toppings.

    “The concept has been an international hit and as we approach the festive season here, we saw so better way to make our loyalists dive into pure indulgence by creating their own delectable version,” said Himanshu Kanwar, head of Ice-creams India.

    The customized Magnum store will feature Make Your Own Magnum campaign until late November.

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  • Vietnam considers more pork imports as prices surge

    Vietnam considers more pork imports as prices surge

    The government has asked the agriculture ministry to look into increasing pork imports as supply plunges and prices reach 3-year high.

    The order, signed by Deputy Prime Minister Vuong Dinh Hue, seeks to stabilize pork prices, which have been surging since earlier this month and are now at a 3-year high of VND60,000-70,000 ($2.6-3) per kilogram.

    Experts have also expressed concerns that the recent price surge follows increasing exports to China. In January-August the country exported $449 million worth of meat, up 3.6 percent year-on-year from 2018, mostly because of the rise in pork exports to China.

    Domestic supply has been falling since the African swine fever broke out in February and spread to all localities. Almost 5 million pigs have been culled because of the virus, the Ministry of Agriculture and Rural Development estimated.

    In January-September, pig stock in the country dropped 19 percent year-on-year, while pork supply fell 9 percent, according to the General Statistics Office.

    Vietnam, the world’s fifth-largest pork producer last year, is at risk of a 500,000-ton shortage of pork, or 20 percent of total demand, between July and next February, according to global market research firm Ipsos Business Consulting.

    In the first seven months, Vietnam imported $22.1 million worth of pork, 4.3 times that of the same period last year, according to the Ministry of Agriculture and Rural Development. Major import markets were Brazil, the U.S. and Poland.

    About 70 percent of all meat consumed last year in Vietnam was pork, according to the ministry.

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  • David Jones opens first food store in Melbourne

    David Jones opens first food store in Melbourne

    David Jones has opened its first standalone food store in Melbourne in a bid to lock down Australia’s gourmet grocery market and take share off the country’s leading supermarkets, Coles and Woolworths, by offering fresher and, it argues, tastier prepared food.

    The 425sqm store, located on the ground level of Capitol Grand, a high-end residential and retail development on Chapel Street in South Yarra, stocks a large range of prepared meals, including a newly launched vegan range, alongside meat, eggs, dairy, fresh produce and other groceries and pantry staples, such as pasta, olive oil, tea and biscuits.

    Roughly 60 per cent of items in the store are private label, most of which were developed exclusively for David Jones by Inspired Foods, the Australian arm of Interfood, South Africa’s leading food supplier.

    According to Pieter de Wet, David Jones’ managing director of food, this partnership gives the retailer a competitive edge in Australia’s $110 billion grocery market, which increasingly is shifting towards fresh and prepared food.

    “Because of the long distances and supply chain issues in Australia, when [supermarkets] go into fresh, and I’m talking particularly about convenience and fresh meals, shelf life becomes a big issue,” de Wet told Inside Retail Australia.

    “You’ll find products deemed fresh have a shelf-life of 30 days, and then there’s no flavour, quality goes out the window.”

    In comparison, most of David Jones’ prepared meals have a shelf life of four to five days, he said. This is because Inspire Foods has developed different processes to prepare food without preservatives.

    “The IP we created over decades of working with our suppliers is what delivers those products, and over time, that’s what we see as a big opportunity that will differentiate us,” he said.

    De Wet declined to say how many standalone food stores David Jones will open, but said the retailer aims to be the only national player in Australia’s underdeveloped gourmet grocery market.

    “If you look at other markets, there are one or two retailers occupying the top end of the market,” he said, pointing to M&S and Waitrose in the UK and Whole Foods in the US.

    “In Australia, it’s a little bit different. It’s almost occupied by food service. You’ve got a couple independents, but nobody is doing it at scale and cohesively. There’s an opportunity there,” he said.

    Gary Mortimer, an associate professor at Queensland University of Technology’s business school, agrees that the top end of the market is “ripe for exploitation”.

    “Such a strategy has proved successful in cushioning several international supermarkets from increased price discounting,” he said.

    But it is not without risks. Woolworths closed down its gourmet grocer business Thomas Dux in 2017, and Brisbane-based Mercado slipped into voluntary administration in May.

    “The key challenge is volume and selecting the right locations,” Mortimer said.

    The store in South Yarra marks David Jones’ third food format since it announced its $100 million food strategy in 2017.

    The retailer over the past two years has opened food halls in its department stores in Sydney, Melbourne, Adelaide and Perth, where customers can dine on sushi and oysters and purchase gourmet food products between shopping for clothes and homewares, and in August, it announced a partnership with BP to offer fresh food and prepared meals in its service stations.

    The new store occupies a middle territory between these two formats. In addition to its grocery offer, it also features an in-house espresso bar and a pop-up shop from The Plant Society, where customers can buy freshly cut flowers, potted plants and accessories.

    Going forward, de Wet said the retailer will expand its food offer primarily through its partnership with BP and standalone stores like the one in South Yarra, rather than food halls.

    “BP have got a massive network, the opportunity there is very big. If you look at M&S, they’ve got 400 BP stores in their network, there’s a real opportunity there for us,” he said.

    “How big this could become over time…time will tell.”

    David Jones is set to open its second store in New Zealand next month at Westfield’s newly opened Newmarket shopping centre. The location will reportedly include a food offer.

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  • KFC New Zealand drives Restaurant Brands’ sales

    KFC New Zealand drives Restaurant Brands’ sales

    Restaurant Brands total group sales grew 2.7 percent over during the first half of FY20, though net profit fell 2 per cent due to the adoption of a new leasing standard.

    Total group sales, which include KFC, Pizza Hut and Carl’s Jr. in New Zealand, as well as KFC operations in Australia, and Taco Bell and Pizza Hut in Hawaii, grew to $442.6 million – an increase of $11.6 million on the prior year.

    Net profit fell to $20 million, 2 percent lower than the $20.4 million seen during 1H19, due to the adoption of NZ IFRS 16, which knocked net profit down $2.9 million as a result of lease depreciation costs.

    The bulk of the sales improvement came from KFC’s New Zealand operations, which saw sales up 7.9 per cent to $193.5 million.

    Same-store sales grew 5.7 percent, while EBITDA totaled $41.8 million, driven by a further roll-out of the business’ delivery operations, as well as successful product promotions and the opening of three new stores.

    Pizza Hut saw a more difficult half, with total sales down 10.5 percent to $18.3 million despite the expansion of the chain’s store network. Same-store sales also fell 4.4 percent due to competitive pressure, the impact of launching new stores, as well as the appearance of new food delivery companies in the New Zealand market.

    Restaurant Brands also confirmed it would be opening its first New Zealand Taco Bell at LynnMall Shopping Centre in Auckland next month.

    “Initial planning and setup is well underway to bring this exciting new brand to the New Zealand market with the first new store in Auckland targeted to open in November,” the company said in a release.

    Restaurant Brands chief executive Russel Creedy said the group would launch up to 25 Taco Bells across New Zealand in the next five years.

    The group’s Australian results were adversely affected by a stronger New Zealand dollar, with KFC Australia seeing 4.2 percent total sales growth to $99.5 million. Restaurant Brands is also planning to open two Taco Bell stores in New South Wales, Australia in the calendar year.

    “The overall business continues to deliver solid results across all geographic markets and this strong performance is expected to continue in the second half of the year,” the group said.

    The directors believe that, not including further impact of NZ IFRS 16, Restaurant Brands will deliver an NPAT at least 10 per cent higher than FY19 – having previously stated they are expecting a net profit of $45 million for the FY20 period.

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  • Japanese gluten-free cafe Kobeya opens in the UAE

    Japanese gluten-free cafe Kobeya opens in the UAE

    The first Japanese and Far Eastern gluten-free cafe Kobeya has opened its doors at the Wasl Vita Mall, Dubai.

    The cafe concept is inspired by the founder’s difficulties in finding gluten-free options in restaurants for her gluten-intolerant son.

    “Kobeya is my inspiration to create that option in the UAE. Our focus is on promoting healthy eating habits by serving only an all ingredient gluten-free menu with more than 50 vegetarian, vegan, non-vegetarian and lactose-free varieties that include salads, burgers, healthy meals and desserts,” said Leiko H, a founding member of Kobeya.

    The Kobeya menu features a selection of gluten-free food including exclusive Japanese Kobe beef burger and Vietnamese spring rolls. The cafe also offers cooking classes on creating gluten-free lunch boxes for kids with products from Japan, Thailand, the Far East, and Europe.

    Leiko said: “My experiences in many Asian countries have given me the vision to offer unique gluten-free dishes created by an expert team of nutritionists at Kobeya. We get to know our suppliers by visiting farms and talking with farmers. We show our dedication to our customers by choosing carefully only high-quality five-star products and ingredients”.

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  • RFG recapitalisation plan balloons to $190m

    RFG recapitalisation plan balloons to $190m

    Just days after the beleaguered Donut King, Gloria Jeans and Michel’s Patisserie franchisor announced a $160m capital raising initiative, Retail Food Group (RFG) has doubled down on their plans.

    Initially aiming to raise $150m from a fully underwritten institutional placement to repay the company’s crippling debt, RFG has now raised that figure to $170m, adding a further 200 million ordinary shares to the fold at a price of $0.10.

    Additionally, the brand has also upsized its share purchase plan from $10m to $20m.

    RFG executive chairman Peter George said the recapitalization plan had gathered significant support from investors and the wider community.

    “We are delighted with the support received for the Placement, and welcome a number of highly credentialed and supportive institutional investors to the shareholder register,” he said.

    “The recapitalization is transformational for the RFG business and will allow the RFG team to continue to harness the underlying value of the franchise network and enhance franchisee profitability.”

    RFG capital raising increase

    The now $190m RFG recapitalization plan forms part of a wider strategy to reduce the company’s mountain of debt.

    It comes after two successive years of dwindling profit, culminating in a $150m FY19 loss and bringing the net debt to $260m.

    “Following completion of the offer and debt restructure, RFG will have a sustainable go-forward debt facility, and a liquidity buffer to provide stability whilst management implements various performance improvement initiatives,” the company said.

    “The company considers the Debt Restructure and equity raising to be the best outcome available to the company and shareholders, delivering a strengthen the balance sheet and an opportunity for stabilization and business improvement.”

    Soliton Capital proposal

    Previous reports had indicated that RFG had received a $160m recapitalization proposal from Soliton Capital Partners, granting the firm limited exclusivity, however, the company on Tuesday confirmed no offer had been reached.

    “The company engaged in extensive discussions with Soliton Capital Partners during the exclusivity period,” RFG said.

    “However, the exclusivity period has now expired, and the company has not received any binding proposal from Soliton Capital Partners at this time.”

    Debt restructuring

    Tuesday’s announcement also brought further operational initiatives into the frame, with RFG revealing how it plans to achieve a previously announced $30m gross margin generation into the franchisee network.

    Specifically, the company plans on passing on significant savings to franchisees in connection with rental arrangements, fit-out and refurbishment costs, as well as greatly reducing the cost of goods. This includes a 15 to 20 per cent reduction in wholesale coffee pricing, which kicked off on July 1 this year.

    According to the franchisor, the initiative delivered an 18 percent increase in average coffee volumes ordered per store in July when compared to the prior months, and a 10 percent increase compared to July 2018.

    At present, RFG is still clinging to Friday’s FY20 underlying EBITDA guidance projection of between $42.0 and $46.0m.

    “Whereas retail continues to represent a challenging sector, RFG is beginning to observe the positive impacts of the business improvement measures being implemented by the company,” RFG said.

    The company will be hoping to see those positive impacts flow on, particularly in light of the share price slump that hit once the trading suspension was lifted early on Tuesday.

    Shares hit an all-time low of 12.5c following Friday’s initial recapitalization announcement, before regaining to 15c by around 11am.