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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.

  • Are automated stores the future of retail in China?

    Are automated stores the future of retail in China?

    The world seems to now follow a path aiming at the removal of the human error factor through technology and automatization. From pilot-free aircraft to captain-less ships and self driving cars, this phenomenon is rapidly spreading.

    China in particular seems to be very keen on the technology.

    The online retailer JD.com has now opened over 20 JD.ID X-mart, an unmanned convenience store, in the country and plans on continuing its expansion both nationwide and internationally as it recently opened its first store in Indonesia. The store allows clients to shop without having to wait in line or pay in person as their credit card is automatically being charged for what they have chosen as they exit the location.

    Shanghai has also lately seen the opening of an automated store called X-24h. Visitors are asked to step on circular panels in front of capsule-style cases filled with bakery goods such as croissants and doughnuts. They can observe robots as they are freshly baking and packing the products. This brings a whole new experience to customers. Shanghai Geant Investment, the company behind the project, aims at bringing visual entertainment to its clients in the form of robots.

    Using artificial intelligence and mobile payments technology, visitors must scan a bar code for the case to open and leave as their phones are being automatically charged.

    China is the ideal region for these automated stores to thrive due to domestic labor force conditions. As the population in China is aging and people are fighting to escape low-end jobs, unmanned stores seem to be the solution. Moreover, Chinese consumers are open to new experiences and very fond of all technological solutions. They are more flexible and embrace new innovative options. Indeed, as of mid-2017, over 35% of all Chinese mobile phone users had often made mobile payments.

    However, the human touch lacks in those stores and technical glitches can quickly happen and hold them back.

    Some challenges still need to be overcome before technology fully takes over.

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  • Samjin makes debut in the Philippines market

    Samjin makes debut in the Philippines market

    South Korean fish cake brand Samjin has opened in the Philippines as part of a broader expansion plan for Asia.

    Its first store opened in Makati at the Ayala Malls Circuit, and is operated by South Korean entertainment and logistics company Wevenine.

    A spokesperson for the firm said: “We plan to market some 40 different kinds of fish cakes, including both semi-manufactured and completed products, using ingredients entirely from South Korea”.

    The brand has announced plans to follow up on the opening with four further branches in the territory by the year’s end, as well as establishing a presence in Indonesia.

    It has already opened in Singapore and is eyeing locations in China.

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  • M Bakery plans its debut in Southeast Asia

    M Bakery plans its debut in Southeast Asia

    New York’s Magnolia Bakery is opening its first Southeast Asia outlet this month, in the Philippines where it is branded M Bakery.

    Set to open on August 22 on the ground floor of One Bonifacio High Street Mall, M Bakery Philippines has an open kitchen that allows customers to watch as bakers make different cakes and cupcakes. The interior is full of pastel pink and teal, and hand-painted labels of baked goods.

    “We wanted to keep the same vintage feel of our flagship in New York’s West Village,” says Erick Larios, director of franchise operations for Magnolia Bakery.

    Founded in 1996 in New York City, Magnolia Bakery is best known for its signature Banana Pudding. The bakery has expanded around the US and internationally, before landing in Manila.

    “We love our sweets,” says Stewart Ong, managing partner of Phil Jacobe Ventures, which brought M Bakery to the Philippines. “We also have this very unique practice of pasalubong so I think M Bakery will be a good fit here.”

    The menu includes the classic Key Lime Pie, Banana Pudding, Vanilla Cupcake With Vanilla Buttercream, Ombre Ruffle cake.

  • In Ratio Shanghai, robot can create the perfect drink

    In Ratio Shanghai, robot can create the perfect drink

    A retail concept harnessing the power of technology to deliver personalised coffee and cocktails has opened in China.

    Ratio uses robots to craft personalised espresso coffee during the day and cocktails at night.

    Launched with a pop-up store at Shanghai’s K11 Art Mall, the concept is about to find a permanent home at Raffles City, People’s Square. Dozens more stores are in the pipeline at hotels and co-working spaces in Asia.

    “With Ratio, bespoke drinks and service, previously available only at high-end hotels and lounges are now accessible to everyone,” says co-founder and chairman of Chinese luxury retailer Mei.com,Thibault Villet, who is a cornerstone investor in Ratio.

    “The Ratio experience is a journey towards self-exploration and it and empowers individuals to live brilliantly.”

    At ratio, drinks are made to order, in the exact ratio customers prefer. For example, a 1.2 shot of espresso in a cappuccino, or an extra strong 120ml bourbon in an Old Fashioned cocktail.

    Ratio uses science to come up with the perfect blends.

    “An individual’s sensory capacity for bitter, sweet, and umami is determined by genetics,” explains founder Gavin Pathross. “The distribution of taste buds is also genetically programmed. That’s why no two taste palates are identical.”

    Using robotic technology and software, Ratio has developed a system that can put together ingredients according to the exact ratio that will satisfy individual tastes.

    Harnessing the accuracy and consistency of a cobot – that’s short for “collaborative robot” – each drink is prepared precisely to order and speed; a latte takes less than one minute.

    Using AI, Ratio stores customers’ orders, learns their preferences and even makes recommendations during future visits.

    Pathross promises humans will not be replaced, however. “Cobots are just better than humans in performing repetitive work. They’re great at executing orders, freeing up our team of Ratiologists, assembled from Asia’s best baristas and mixologists, so that they can do what they do best – provide personalised service and have great conversation with our guests.”

    The team of Ratiologists Pathross has assembled have a combined 50 years of food and beverage industry experience.

    “We’re literally raising the bar on beverage service,” says chief Ratiologist Steve Teo.

    “Our team will help guests discover their individual preferences and customise their own Ratio. We want you to be particular about your G&T and select precisely 20 ml of lime and 60 ml of gin, for example. Bartenders elsewhere will be too busy to have that kind of conversation. That’s why Ratio is unique.”

  • No cheers from World Cup for Vietnam’s top local brewers

    No cheers from World Cup for Vietnam’s top local brewers

    Sabeco and Habeco, Vietnam’s two largest brewers, reported dismal results in H1 despite some highly favorable factors.

    Generally, for fast-moving consumer goods, the first half of the year is usually good because demand skyrockets during Tet, the Lunar Year national holiday.

    This year the beer industry would have hoped to make a killing since the World Cup football tournament began on June 14.

    Yet the two brewers saw profits actually decline.

    Sabeco, as Saigon Beer Alcohol Beverage Corp. is called, saw pre-tax profit fall 4 percent year-on-year to VND3 trillion ($127 million) on sales of over VND17 trillion ($722 million), up over 8 percent. This was the first time its profits had declined since 2013.

    Its gross margin ratio, which compares gross profit to sales, fell to 23.8 percent from 27.4 percent in the same period last year.

    In July Sabeco’s new chairman, Koh Poh Tiong, told shareholders at its annual general meeting that net profits might fall by 19 percent this year due to increased costs, tax hikes and higher branding expenses.

    Habeco, or Hanoi Beer Alcohol and Beverage Joint Stock Corp., reported revenues of VND4.3 trillion ($183 million) and VND413 billion ($17.5 million) in pre-tax profit, almost unchanged from a year earlier and only 40 percent of its full-year target.

    But, unlike Sabeco, its marketing and advertising spending increased by 15.5 percent in the second quarter to VND167 billion ($7.1 million).

    The slowdown for the biggest brewer in the northern market started three years ago. Even as its rivals were growing steadily, Habeco saw annual sales stagnate at around VND10 trillion ($425 million).

    Its market share is showing signs of shrinking amid expansion by foreign rivals in the high-end segment, according to securities analysts.

    The stocks of both brewers are suffering due to their modest showing.

    On Friday 19 morning, Sabeco traded at VND208,000 ($8.8), 40 percent down from its peak late last year. Habeco has fallen by half to below than 83,000 dong ($3.5 each).

    According to a study on the Asia-Pacific beer market by Euromonitor, Vietnamese consumption is forecast to rise in the coming years despite the stagnation and even decline in China and some European countries.

    Last year Vietnam consumed over 4 billion liters, or 45 liters per capita, the local Beer, Alcohol and Beverage Association estimated.

    The country targets production of 4.1 billion liters in 2020 and 5.5 billion liters in 2035.

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  • Mao Shan Café China to open 200 more stores

    Mao Shan Café China to open 200 more stores

    The Mao Shan Cafe, a franchised food retail network with a menu centred on durian – plans to open 200 outlets across Mainland China by 2022.

    Mao Shan Cafes serve durian cakes, savouries, pastries, waffles, durian coffee and ice cream and other unique foods based on Malaysia’s Musang King strain of durians, targeting Chinese nationals who are passionate about the fruit.

    In China, where whole durians are harder to come by, sales of durian-flavoured products have skyrocketed in recent years. Duerian imports have surged from 40 tonnes in 2011 to 368 tonnes in 2016.

    A subsidiary of US private equity business The Funding Partners, Mao Shan Cafe also plans to collaborate with Chinese food delivery giants Meituan and Alibaba-owned Ele.me to further boost sales.

    This year, 10 stores are planned for the Guangdong region and the first 100 in the company’s franchised network are expected to be trading by 2020. Sometime before the 200 threshold is reached, The Funding Partners plans to spin the company off in a Mainland China float.

    The chain’s first flagship store opened last month, in a ceremony attended by celebrities including Hong Kong performing artist, Maria Cordero.

    The Funding Partners has interests in Malaysia’s durian growing and export industry and saw the retail network as a way of expanding exports further to the mainland.

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  • Hema Customers Can Track Farm-to-Shelf Food Journey

    Hema Customers Can Track Farm-to-Shelf Food Journey

    Seventeen Hema supermarkets in Shanghai have launched a food-provenance feature that tells customers about an item’s farm-to-shelf journey.

    The information includes verifications such as photos of the distributor’s business licenses and food-safety certificates complete with an official government seal.

    To access the function, in-store customers use the Hema mobile app to scan a food’s QR code, which brings up the provenance details. Because the information lives on the product page of each item, consumers shopping from home via app have access to it as well.

    Watch: Hema’s Food-Tracing System

    The New Retail-driven supermarket chain’s food-tracking system comes as Chinese consumers grow more sophisticated in their food choices and embrace a healthier lifestyle.  Hema is among the first grocery chains in China to offer such service. Since its implementation in January, more than 1700 items in nine categories – including meat, seafood, rice, tofu and soy products, fruits, vegetables, poultry and eggs, dairy and cooking oil – have been included in the system.

    That includes watermelon. For Hema customers who want to know more than the place of origin, the system can tell them when a particular batch of watermelons was harvested – and by which farming collective. They can also find out the exact date when the watermelons were delivered to the store to assess freshness.

    For products that need to be kept under a certain temperature, such as meat and fish, the system can even tell customers how cold it was inside the delivery truck. Hema said it plans to roll out the system to all of its 64 stores, in 13 cities, in China by year-end.

    Established in early 2016, Hema integrates online and offline shopping into one seamless experience for customers, allowing to shop with a few clicks on their phones. With its in-store fulfilment system, orders can be delivered in as little as 30 minutes to those who live within three kilometres of a Hema. The supermarket chain also has opened a “robot restaurant” at one of its stores, in Shanghai, as part of its continued push to create new consumer experiences.

    Hema’s food-tracking system is one of several key features Alibaba has introduced to ensure customers are getting high-quality products. In April, Alibaba teamed up with a consortium of four Australian and New Zealand companies to introduce a food-tracking system using blockchain.

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  • Baemin robot gets job at Pizza Hut

    Baemin robot gets job at Pizza Hut

    Another day, another Dilly – or so the saying probably goes in Baedal Minjok’s head office.

    The food-delivery app’s Dilly Plate robot has started serving up slices at a Pizza Hut restaurant in Mok-dong, western Seoul, according to both companies on Wednesday. Dilly Plate, the new serving robot, is not to be confused with plain old Dilly, the delivery robot that the company has been working on since last year.

    Dilly Plate is a self-driving robot specifically designed for restaurants. Having first started working at the Pizza Hut restaurant on Monday, it will assist human employees in serving pizza for two weeks until Aug. 19.

    Dilly Plate can safely carry up to 22 kilograms (48.5 pounds) at once – a limit that is unlikely to be tested in Pizza Hut – and lasts eight hours on a single charge. The robot uses a 3-D camera and sensors to control its movement. It automatically stops and avoids obstacles and people.

    A spokesman for Baedal Minjok, or Baemin, explained that Dilly Plate can move quickly, but in Pizza Hut, the speed has been limited to a human walking speed for the safety of both customers and pizzas.

    “The store will have people walking around, and there may be emergency situations like collisions if Dilly moves too fast,” he said.

    Dilly Plate was developed by Bear Robotics, a U.S. start-up co-founded last year by John Ha, a former Google engineer originally from Korea. In April, Baemin invested $2 million in the venture in exchange for convertible bonds.

    Dilly Plate is modeled after Penny, a robot that found employment at Ha’s restaurant in California.

    Dilly Plate will be the first server robot introduced in Korea. Before it could begin work in Pizza Hut’s Mok-dong restaurant, Baemin had to map out the store and install it in the robot’s software.

    “We’re looking forward to Dilly’s performance [and hoping it will] unburden human staff from having to carry pizzas,” said Cho Yoon-sang, a senior marketing executive at Pizza Hut Korea. “This way, human servers will be able to focus on providing quality service to our customers. We decided [to hire] Dilly with hopes of enhancing work efficiency and improving customer service.”

    Baemin is hoping that the two-week trial will give more actual data regarding Dilly Plate’s operation, with the goal of introducing the server robot at more restaurants in the future.

    “In terms of the technology, Dilly Plate is already available for mass production,” said a Baemin spokesman. “But mass production is expensive, and we need to know whether Dilly is truly marketable. So the trial is to see whether Dilly Plate offers a real-life benefit to restaurants and their staff.”

    Baemin has been investing in robots since last year, aiming to develop robots that deliver food to consumers’ doors. The original Dilly had its first successful test run at a food court in Cheonan, South Chungcheong, in May. The plan is to gradually expand original Dilly’s boundaries from indoors to outdoors until it is able to fully run on its own on the streets.

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  • Robots replace waiters in Alibaba diners

    Robots replace waiters in Alibaba diners

    Alibaba has launched a series of diners staffed by robotic waiters.

    The initiative is designed to offer a restaurant service with higher efficiency and lower overheads on staff.

    Alibaba product manager Cao Haitao, who brought the concept to fruition, said, “In Shanghai, a waiter costs up to 10,000 yuan (US$1465) per month. That’s hundreds of thousands in cost every year. And two shifts of people are needed. But we don’t need two shifts for robots and they are on duty every day.”

    The diners are linked to another Alibaba-backed semi-automated business concept, Hema supermarkets, in which goods are brought to customers on a conveyor track when ordered in-store via a mobile app. There are currently 57 Hema supermarkets throughout China, and all of these will eventually launch diners with robotic waiters.

    The serving robots are comparable in size to a microwave oven and navigate the restaurants on purpose-built tracks at table height.

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  • Starbucks to open Reserve store in Malaysia

    Starbucks to open Reserve store in Malaysia

    Starbucks Malaysia is about to open its first Reserve store.

    Local franchise holder Berjaya Food plans to expand its existing Berjaya Times Square Starbucks outlet into the new up-market format.

    The brand has entered into a sale and purchase agreement to secure an 829sqft space adjacent to the existing café for a reported RM12.43 million (US$3.05 million). The space was purchased by investment firm Deru Klasik for RM3.83 million in 2005. The purchase is expected to be completed by the end of this year.

    Berjaya Food said the Starbucks Malaysia Reserve store will provide customers with a personalised, hand-crafted coffee experience, adding that the property acquisition should enable the group to benefit from any future capital appreciation.

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  • Potato Corner opens in Singapore

    Potato Corner opens in Singapore

    Filipino fast food chain Potato Corner has launched at Somerset Mall in Singapore.

    Popularly known for its flavoured fries, the new takeaway stall on Orchard Road is the latest notch on the global belt of a franchise that has more than 1000 stores worldwide, with locations in large western cities including New York and Sydney, as well as Asian strongholds like Thailand, Cambodia and Indonesia.

    The chain has been operating since 1992, and this is its first foray into Singapore. Philippine Ambassador to Singapore Joseph Del Mar Yap, together with other embassy officials, were on hand to cut the ribbon at the launch event.

    The company has announced plans to open next in Vietnam.

  • McDonald’s China opens its 300th store

    McDonald’s China opens its 300th store

    McDonald’s China has opened 300 new stores during the last year, pressing ahead with an expansion strategy tied to deals with property developers.

    The company has signed contracts with Country Garden and Evergrande Group, giving it access to more locations in new retail centres.

    And the company has also invested in digital technology with more than 75 per cent of its stores now offering kiosk ordering and payment facilities for customers. Using touchscreens, customers can select their purchases and pay by electronic means before collecting their food from a counter.

    McDonald’s China is also eyeing further expansion into tier 3 and 4 cities. By 2020, about 45 per cent of its anticipated 4500 outlets will be lower-tier locations.

  • BrewDog to open brewpub in Itaewon Korea on Friday

    BrewDog to open brewpub in Itaewon Korea on Friday

    Scottish beer brand BrewDog will launch its first brewpub in Asia in Itaewon, central Seoul, this week.

    The 500-square-meter (5,381-square-foot) bar near Itaewon Station will be the brand’s second brewhouse in the world and first outside of the United Kingdom. The company runs pubs in more than 50 countries, but only two are brewpubs, which means they have brewing facilities and can produce fresh beer on the spot.

    “Global craft beer has been growing faster than ever in the last few years, and among other Asian countries, the expansion speed of Korea was very impressive,” said James Watt, BrewDog’s co-founder. “We have high expectations for the Itaewon branch to act as the center of our strategy to stretch out in Asia.”

    Alex Hwang, who will manage the Itaewon brewery, added that Korea was selected for its image as a trendsetter among Asian countries.

    The foreigner-friendly Itaewon district in central Seoul is a haven for other tap houses and craft beer pubs. The equipment at BrewDog’s bar will come from Rolec, a German company that specializes in brewing machinery.

    “Itaewon is Korea’s craft beer mecca, but because most of the stores were small, it was hard to find pubs with full-fledged brewing facilities,” said BrewDog’s Korea head Kim Tae-kyung.

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  • Japan’s pancake Chibo to plan Asian expansion

    Japan’s pancake Chibo to plan Asian expansion

    Japanese pancake-restaurant chain Chibo is expanding to new locations in Asia to attract previous visitors to Japan who may be familiar with their brand.

    Chibo serves an Osakan specialty pancake called okonomiyaki, a seasoned dish that contains vegetables, meat and seafood. Increasing numbers of tourists from neighbouring Asian countries have been visiting Osaka, according to data from the local prefectural government.

    The chain’s expansion began in May with a new location in Chinese Fuzhou. It plans to open in Taiwan and Vietnam in the coming months, hoping to reach 20 overseas venues opened by 2020.

    The company is also targeting Muslim tourists by adding halal dining options to their domestic outlets, making the restaurant among the few that serve food that complies with Islamic practice.

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  • Jamba Juice tempted to expand after good sales

    Jamba Juice tempted to expand after good sales

    US chain Jamba Juice has been bought for US$200 million by Focus Brands.

    Already, there is speculation that the Jamba Juice sale may lead to the brand being expanded overseas. The reason: Focus is owned by private equity firm Roark Capital and the parent of some high-profile food retail concepts.

    Focus already operates more than 5000 eateries in the US, Puerto Rico and 50 other countries under brands including Carvel, Cinnabon, Schlotzsky’s, Moe’s Southwest Grill, Auntie Anne’s, McAlister’s Deli and Seattle’s Best Coffee. So it has established partnerships in many international markets, including in Asia.

    “We are delighted to have reached this agreement with Focus Brands and are confident that it will result in a positive outcome for our guests, our franchisees and our employees,” Jamba Juice CEO Dave Pace said in a statement. “Over the last few years, we have worked hard to strengthen our foundation and reposition this iconic brand for the future. Partnering with Focus Brands will allow us to build on this work and further accelerate the company’s growth.”

    The deal is expected to close in the third quarter of 2018.

    Once Jamba Juice is acquired, it will operate as a privately held subsidiary of Focus and an independent brand.

    Jamba Juice was founded in California in 1990 and has expanded to more than 800 retail stores but only a small number outside the US.

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