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.

  • Costa Coffee takes the cream as Britons wake up to coffee

    Costa Coffee takes the cream as Britons wake up to coffee

    Converting a nation of tea drinkers to coffee will be a tough job. But it has been done before. In 1995, when UK conglomerate Whitbread bought CB Costa Brothers Coffee from Sergio and Bruno Costa, tea was the UK’s favourite hot drink. “At home, people drank instant. If you were lucky, you’d get a filter coffee or a shot from a Rombouts machine in a pub or restaurant,” said Bob Tyrrell, who did extensive market research at the time. Costa had just 41 shops then, turning over £55m. Whitbread thought the market might be worth £600m a year, and paid about £20m for Costa. Two decades later it has more than 2,000 outlets, making it the UK market leader by some distance.

    Total revenue from the country’s 24,000 coffee shops and cafés is estimated by Allegra World Coffee Portal at more than £9bn. This week, Whitbread bowed to pressure from two activist investors and confirmed it would demerge Costa from its other activities — but not before it has set the company up for a big push into China, another country with a long tradition of tea-drinking. Costa aims to have total annual sales of £2.5bn by 2020, with a third of them coming from overseas. Drinking good coffee became a preoccupation of the connoisseur British consumer of the late 1990s. “It wasn’t so much keeping up with the Joneses as keeping away from them.

    People wanted to consume things they could talk about,” said Mr Tyrrell. Other factors were at work, too: disposable incomes were growing, low-cost airlines meant more people were experiencing “proper” coffee in mainland Europe and workers were starting to abandon breakfast in favour of food on the go.

  • BreadTalk Q1 net profit plummets

    BreadTalk Q1 net profit plummets

    The absence of a one-time divestment gain dented results for BreadTalk Group in its first quarter.

    Net profit plunged 89.1 per cent to S$10.8 million from the previous year, the group said in a Singapore Exchange filing on Thursday evening.

    BreadTalk had in the first quarter of 2017 recognised S$9.3 million in capital gain from the sale of its investment in TripleOne Somerset.

    In the first quarter of this year, it also brought forward the early closure of eight bakery outlets in China and one food atrium outlet in Hangzhou.

  • Donut King beats Muffin Break With Best Customer Satisfaction

    Donut King beats Muffin Break With Best Customer Satisfaction

    Donut King has unseated Muffin Break as the number one chain for coffee and doughnut customer satisfaction in Australia, according to a Roy Morgan survey.

    Donut King has broken through for its first monthly customer satisfaction victory for Roy Morgan’s Customer Satisfaction Annual Award for coffee/doughnut stores since July 2015 with a rating of 87 per cent in March 2018.

    Muffin Break, the customer satisfaction annual award winner for the past two years, was third on 83. 5 per cent, experiencing its biggest fall since March 2017 at 6.6 per cent.

    Michel’s Patisserie is at second place with 83.8 per cent, up from 5.9 per cent from a year ago and was the only leading coffee/doughnut store to improve customer satisfaction over the past year.

    Gloria Jeans takes fourth spot with a customer satisfaction rating of 79.9 per cent.

    Michele Levine, CEO, Roy Morgan, says despite media questioning of Retail Food Group’s franchisee model in recent months, the performance of Donut King, Michel’s Patisserie and Gloria Jean’s underlines a strong commitment to customer satisfaction.

    “The business model of franchisor Retail Food Group has been under scrutiny in recent months and the company recently announced the closure of up to 200 under-performing outlets around Australia and spread across several brands,” Levine said.

    “However, today’s latest customer satisfaction ratings show leading RFG outlets Donut King, Michel’s Patisserie and Gloria Jean’s clearly satisfying their customers.

    “All three are rated in Australia’s top four coffee/doughnut stores early in 2018 and represent clear value satisfying often hard to please consumers in a competitive retail market.”

    Roy Morgan’s customer satisfaction awards tracks customer satisfaction, engagement, loyalty, advocacy and NPS across a wide range of industries and brands.

  • Don Chicken Vietnam adding more restaurants

    Don Chicken Vietnam adding more restaurants

    Don Chicken Vietnam is planning to expand its Hanoi portfolio through franchising.

    There are two branches of the Korean fast-food chain in the capital, one in Vincom Royal City.

    As a first move for its expansion in Hanoi and the north, Don Chicken has launched an event to find partners experienced in the dining sector, and will offer franchisees training and marketing support.

    Founded by Apgujeong Group in 2007, Don Chicken has 400 stores across Korea and has also expanded into China and Thailand.

    Don Chicken opened its first store in Vietnam in 2015, in Ho Chi Minh City. It started franchising from 2016 and now has 13 stores nationwide.

  • QSR Brands considering IPO

    QSR Brands considering IPO

    Malaysian fast-food group QSR Brands is mulling an IPO to raise around MR2 billion (US$509.6 million).

    QSR Brands operates the KFC and Pizza Hut restaurant franchises in Malaysia and is part owned by private equity firm CVC Capital Partners, which is looking to exit the business.

    Shareholder Johor Corp president/CEO Kamaruzzaman Abu Kassim says it would like to see this happen no later than November. Johor Corp is the investment arm of Malaysia’s Johor state.

    The listing would be the largest IPO in Malaysia since integrated petrochemical producer Lotte Chemical Titan Holding raised $878 million last July. The move has been planned since 2016, reports Reuters, with the company hiring Citigroup, Credit Suisse and another bank to lead the exercise.

    The estimated market capitalisation of QSR would be about MR6 billion after listing, Kamaruzzaman says. “Further details will have to be worked out with various parties.”

    The  QSR Brands IPO was part of an “exit plan” for CVC and fellow investor the Employees Provident Fund when QSR was privatised in 2013.

  • China boost for McDonald’s appetite

    China boost for McDonald’s appetite

    A strong performance in China, partly offset by continued challenges in South Korea, helped build first-quarter momentum for McDonald’s Corporation.

    President/CEO Steve Easterbrook says the restaurant group has had 11 consecutive quarters of positive comparable sales and a fifth consecutive quarter of positive guest counts.

    Highlights for the first quarter, to the end of March, included a 5.5 per cent rise in global comparable sales and 0.8 per cent in global comparable guest counts.

    A strategic refranchising initiative resulted in consolidated revenues dropping 9 per cent (15 per cent in constant currencies).

    Systemwide sales increased 7 per cent in constant currencies, while consolidated operating income increased 5 per cent (flat in constant currencies) because of growth in franchised margin dollars, offset by the impact of the refranchising initiative

    Comparable sales for the international lead segment increased 7.8 per cent for the quarter, reflecting positive results across all markets. The segment’s operating income grew 21 per cent (9 per cent in constant currencies), fuelled by sales-driven improvements in franchised margin dollars.

  • Starbucks Plans To Step Up Digital Marketing Efforts

    Starbucks Plans To Step Up Digital Marketing Efforts

    The coffee chain added 1.6 million new U.S. members to its Starbucks rewards program. In addition, Starbucks discovered that members of Starbucks rewards were buying more: Over the quarter, their spend increased to 39 percent of U.S. company-operated sales.

    Beyond its loyalty program, Starbucks noted that customers were taking advantage of opportunities to skip the counter: Mobile Order & Pay represented 12 percent of U.S. company-operated transactions during the quarter.

    Overall, Starbucks also saw growth in comparable store sales in both the U.S. and abroad. Global comparable store sales rose by 2 percent, essentially in line with analysts’ estimates of 1.9 percent. Americas and U.S. comp store sales also increased 2 percent, while China comp store sales rose at the slightly higher rate of 4 percent.

    In terms of financials, Starbucks reported better-than-expected sales: The coffee chain beat revenue estimates by $100 million, with revenues of $6 billion, and met analysts’ earnings estimates at $0.53 per share. Starbucks President and CEO Kevin Johnson said the company reported solid results for the quarter.

    “Starbucks Q2 of fiscal 2018 represented another quarter of record financial results, highlighted by accelerating momentum across our Americas business — particularly in the U.S. — continued strong performance in China and our strongest comp growth in Japan in five quarters,” Johnson said in a press release.

    Digital Expansion

    One of Starbucks’ key priorities is to expand its digital interactions with customers.

    “Establishing digital relationships with many more customers represents a significant growth opportunity, as we have proven that a direct communications channel combined with personalization enhances the customer experience and drives customer engagement,” Johnson said during the call.

    To expand its digital relationships, Starbucks is implementing new ways to attract digitally registered customers beyond the rewards program. For example, the coffee chain is offering its Mobile Order & Pay to all customers and leveraging Wi-Fi sign-ins at its brick-and-mortar stores. In addition, Starbucks is reinventing Frappuccino Happy Hour through the use of single-use digital coupons. Johnson said these efforts are already yielding results and will generate a few million more registered users by the year’s end.

    This difference is driving a shift in Starbucks’ marketing strategy. In the past, Starbucks has offered a drumbeat of promotional offers that have not necessarily led to sustained sales. For example, the company offered a Frappuccino Happy Hour to all of its customers over a short period of time. But that strategy didn’t work: The deal didn’t improve sales of other drinks in 2017. The promotion saw “a lower-than-expected lift in non-discounted Frappuccino beverages following Happy Hour,” Chief Financial Officer Scott Maw explained on a July 2017 conference call.

    As a result, the company is taking a new approach. Starbucks’ updated program will sign customers up for direct digital relationships and promote a variety of beverages throughout the year. In essence, the goal behind the shift is to transition from a short-term, one-and-done approach for promotions to more sustained marketing efforts. Through this strategy, the company is expanding its digital reach beyond its loyal rewards members to connect with as many non-rewards customers as possible. Starbucks can now personalize its communications to customers while also gaining direct access to them.

    China Expansion

    Starbucks already has 3,200 company-operated stores in 141 cities across Mainland China, but the coffee chain anticipates a larger potential market there.

    “The opportunities for Starbucks in China, which are significant, are growing along with the size and scale of our business,” Johnson said on the call.

    To that end, the company is holding a China Investor Tour. Of course, the company is no stranger to China: It’s been in the Chinese market for 20 years. According to Johnson, the middle-class population in China stands around 600 million people, which could provide an expanded market for the company.

    “No Western company or brand is better positioned to benefit from the rapidly expanding Chinese middle class than Starbucks,” Johnson said.

  • Fatburger Buffalo’s Express opens Tokyo burger restaurant

    Fatburger Buffalo’s Express opens Tokyo burger restaurant

    A co-branded Fatburger Buffalo’s Express is opening its first Tokyo location tomorrow. Located at the Magnet by Shibuya109 building in Shibuya Crossing, the US fast-food brands’ outlet will feature all-American fare from Buffalo’s Express and Fatburger, as well as alcoholic offerings from bar concept, FatBar.

    “We’ve been waiting for the perfect opportunity to enter Japan and it’s finally here. As a team, we couldn’t be more pleased with how this flagship location has developed,” said Andy Wiederhorn, CEO of Fat Brands.

    “Our recipes, ambiance and service have exceeded expectations in other locations across Asia and I expect nothing less in Tokyo.”

    The Japanese outlet is operated by Green Micro Factory, subsidiary of G Three Holdings.

    Fatburger parent company Fat Brands has recently announced openings and development deals in Canada, the Philippines, Scotland, Singapore and Southern California.

  • Shake Shack opens next week in Hong Kong

    Shake Shack opens next week in Hong Kong

    Shake Shack Hong Kong makes its debut on Tuesday at IFC mall in Central. With panoramic views of Victoria Harbour, the eatery will be able to seat more than 46 guests. As a modern “roadside” burger stand that began as a hot-dog cart in New York’s Madison Square Park, Shake Shack has gained a global following for its Flat-top Dogs with all-natural beef and no hormones and antibiotics, served on a non-GMO Martin’s Potato Roll.

    As well as the New York City brand’s classics of burgers, hot dogs and fries, Hong Kong Shack will serve localised menu items like milk tea shake (vanilla custard blended with black tea), French toast (with vanilla custard, peanut-butter sauce and banana, topped with maple sugar), the Heart & Tart of Central (vanilla custard, egg tart and strawberry puree) and That’s My Jam (vanilla custard, mango/passion fruit jam, raspberries and crumbled shortbread).

    Its crinkle-cut fries can be served plain or with a special blend of American and cheddar cheese sauce.

    Hong Kong Shack customers will also be offered the classic ShackBurger, a cheeseburger made from premium whole-muscle cuts of Angus beef, topped with lettuce, tomato and house-made ShackSauce. A meat-free option is the ’Shroom Burger, a crisp-fried portobello mushroom filled with melted muenster and cheddar cheese, topped with lettuce, tomato and ShackSauce.

    Brooklyn Brewery makes an exclusive ShackMeister Ale for Shake Shack, and as well as this the Hong Kong outlet will include beers by Gweilo, Heroes, HK Yau, Moonzen and Young Master. Wine is served by the glass, including Shack Red and Shack White from Gotham Project Winery in the US.

    To mark the eatery’s opening in Hong Kong, the first 100 people in line when doors open on Tuesday will be given a pair of Shake Shack sunglasses. And as part of Shake Shack’s mission to Stand for Something Good, the outlet will donate 5 per cent of sales to ChickenSoup Foundation, a non-profit that seeks to empower at-risk children in Hong Kong.

    Shake Shack has more than 90 locations in 19 US states and more than 50 international locations including Dubai, Istanbul, London, Moscow, Seoul and Tokyo.

  • Cafe Decoral now operating under 7-Eleven

    Cafe Decoral now operating under 7-Eleven

    Convenience Shopping, a fully owned subsidiary of 7-Eleven Malaysia Holdings (SEMH), has agreed to acquire a 60 per cent stake in Cafe Decoral, a ready-to-eat food supplier, for RM600,000.

    A Bursa Malaysia filing says the deal should be completed within the next few months. The move will enable SEMH to venture directly into the production of ready-to-eat fresh food for 7-Eleven stores.

    A share-sale agreement has been signed with Cafe Decoral founders Ng Kin Chen and Ng Lee Chin and Public Yong Tow Foo, a manufacturer and dealer of food products. Following the acquisition, Ng Lee Chin and Ng Kin Chen will hold 27.56 per cent and 10 per cent stakes respectively, down from 48.78 per cent and 29.27 per cent earlier.

    Furthermore, Public Yong Tow Foo’s ownership of 19.51 per cent will be fully liquidated while another shareholder, Ng Ming Kiat, will continue to own a 2.44 per cent stake.

    Pursuant to the acquisition, a three-storey shop house of Cafe Decoral in Selangor will be acquired for RM250,000. The value of the property is marked at RM108,543 as of the end of this month.

    Since 1984 Cafe Decoral has been supplying fast food such as fried fish balls, fried rice, fried mee hoon and sandwiches to about 300 7-Eleven stores in the Klang Valley in Malaysia.

  • Sulbing dessert about to open new shops in Canada

    Sulbing dessert about to open new shops in Canada

    Korean dessert chain Sulbing will expand into Canada via franchising.

    The chain has signed a deal with a Canadian firm to open the first store in Vancouver by the first half of this year, followed by more stores in major Canadian cities.

    The chain is also planning expansion into Australia, Cambodia and the Philippines.

    Founded in 2013, Sulbing started franchising in China in 2015, followed by Japan and Thailand.

  • UnPackt Singapore offers package-free groceries

    UnPackt Singapore offers package-free groceries

    Singapore is about to have its first zero-waste grocery store, UnPackt. It will sell its goods without any packaging, encouraging customers to take along their own containers.

    In self-serve gravity bins to reduce food waste, dried food and cleaning supplies will go on sale first, with plans to introduce fresh fruit and vegetables when sales volumes pick up. Goods will be priced lower than regularly as they are free of packaging.

    The store will also run a recycling scheme offering donated containers for customers who visit the store without their own. Reusable containers can also be bought.

    Co-founded by former business executives Florence Tay and Jeff Lam, UnPackt is a social enterprise that aims to spread the zero-waste message and make packaging-free shopping more accessible in Singapore. The store will hire staff from two disadvantaged groups, seniors and single parents.

    Tay had the idea for the store while exploring how to cut back on plastic waste. She was particularly looking at how to buy food in small quantities to reduce food waste. A survey she ran this month gave her confidence that Singaporean shoppers will support a zero-waste store.

    On Jalan Kuras, in the commuter district of Ang Mo Kio, Unpackt will open early next month. An online version will be introduced later.

    Singaporeans consume at a rate that would need four Earths to support them, using an average of 13 plastic bags a day per person, reports Eco-Business. Last year the island produced more than 800 million kilograms of plastic waste, with only 6 per cent being recycled.

  • Uji-En brings you to Japan

    Uji-En brings you to Japan

    Harbour City is home to the first international flagship of a Kyoto-founded tea brand that has set its eyes on international expansion. Uji-En is a Japanese green-tea brand with a history dating back nearly 150 years. It decided in the late 1990s to expand its packaged-tea business by opening cafes in its home market.

    More than 20 stores have been opened, including two in Mainland China. As they are trading well, the company decided last year to expand into Hong Kong as the next stepping stone in a grander global plan.

    Head Architecture and Design Limited was appointed by the Shigemura family, founders of Uji-En and their Hong Kong partner to create a younger feel for the brand’s first cafe in Hong Kong, which would also provide a template for further stores to be rolled out across greater China. That design has just won a Silver Award in the new retail concepts category of the ICSC China Shopping Centre and Retail Awards announced in Shanghai last week.

    The Kowloon retail space would merge a cafe, a takeaway area and a retail space stocked with teapots, cups, bowls and accessories along with brightly coloured packages of teas and snack foods for home use or gifting.

    “The brief was to evolve a typically traditional, conservative Japanese brand into something more youthful that would appeal to millennials and engage with people who enjoy green-tea and matcha products, but might not know of the Uji-En brand and its history,” says Head Architecture and Design co-founder Mike Atkin, who was lead designer on the project.

    Austerity and trust

    “So the finished design had to convey a sense of austerity and trust, yet appeal to a younger demographic seeking a modern, trendy destination for relaxing and dining.”

    Uji-En was founded in Kyoto in 1869, so it has a rich heritage and high brand recall in Japan. But abroad it is something of a hidden gem. Atkin’s challenge was to create a modern, appealing destination while still acknowledging the brand’s rich heritage.

    Members of the Head Architecture and Design team visited traditional Japanese tea houses in Osaka and Kyoto, and spent time observing tea-focused cafes closer to home.

    “We looked at cafes in Hong Kong shopping centres, looking to see which venues were typically busier than others, and which were the most successful in drawing shopper dwell-time. We knew the product was a strong offer, especially given the brand’s long success; our role was to create an environment that made that product hero and placed it firmly on the radar of contemporary consumers,” says Atkin

    “Our design was inspired by a traditional wood-framed Japanese tea house, using a mixture of light and dark timbers and liberal doses of matcha green. The resulting design is a bright, open, engaging retail space unlike anything in its category.”

    Footprint challenge

    Another challenge for Atkin was the store’s footprint – an L-shaped 1200sqft space bordering three sides of an atrium in the Harbour City shopping centre, bisected by an escalator well and with a partially open plan. The answer was to provide a Grab & Go counter and product display in the smaller space, with a 24-seat cafe and retail space occupying the rest of the area. This has the spinoff advantage of splitting the takeaway customers buying ice cream or drinks from those dining in, creating a more relaxed dining setting

    Built around an open void under a transparent glass ceiling, the space is filled with natural light during the daytime. A mixture of coloured and opaque glass separates the cafe interior from the mall corridor to provide a sense of privacy for diners, yet ensure natural light continues to flow through both spaces.

    Given the green-tea focus of the cafe concept, it is not surprising the design incorporates a lot of green.

    Emotional connection

    “The shades of green are designed to create an emotional connection between customer and the core green-tea product,” says Atkin. “And the contrast of the green with natural timber reflects the natural, clean properties of the brand and the teas.”

    To evoke the varied shades of drying tea and fields with gardens of trees and bamboo, Atkin’s team introduced vertical panels of mixed green glass, mimicking the zen Japanese model. Tea chests and matcha-green textured paint hark back to the history and core product of the company.

    “One strong element of the existing Japanese branding is the graphics, developed by Hirosuke Watanuki in the early 1990s. These are beautifully crafted, playful elements we wanted to integrate and build on in the new design. Tea, the core product of Uji-En, is represented by the female figure of Okame for matcha tea and Hyotokko (the fire man) for Hoji Cha tea.”

    While Uji-En does not reveal its trading figures, queues are often been seen outside the store at weekends. But the biggest testimony to the success of the store’s design is that many elements will feature in upcoming stores as they open in Hong Kong and on the mainland.

  • World Franchise Associates Signs Exclusive Agreement with T BUN Bun & Bubble Tea for International Expansion

    World Franchise Associates Signs Exclusive Agreement with T BUN Bun & Bubble Tea for International Expansion

    World Franchise Associates has announced the signing of an agreement to exclusively represent T BUN Bun & Bubble Tea for international development opportunities with a focus on Asia and the Middle East.

    T Bun is one of the fastest growing franchises in South Korea. The brand started in 2017, opening 8 shops in South Korea and 1 shop in Perth, Australia. T BUN is planning an aggressive rollout of 20-30 new stores in South Korea over the next 12 months along with 3 new stores in Australia. T BUN is also planning to expand its business to Southeast Asia, the Middle East North Africa (MENA) region, Canada, The United Kingdom and other international markets over the next 2 years.

    Jonathan Kwon, Managing Director of T BUN said, “With support from World Franchise Associates we are currently speaking to candidates about opportunities to become our exclusive master franchisees and area developers in many international markets. An exclusive T BUN master franchisee or area developer would be granted the rights for a specific country or territory and would be expected to develop a reasonable and competitive number of T BUN outlets in that country/territory over an initial 10-year development term, starting initially with company owned T BUN outlets and thereafter via sub-franchising.”

    T BUN offers both doughnuts and baked goods, and beverages. It’s signature beverage, authentic Taiwanese Milk Tea, also called bubble tea or boba tea, is a cold drink which originated from Taiwan in the early 80s. There are more than 300 kinds of milk tea sold in Taiwan.  The tea is noted as being good for health, and customers range from kids to old generations.

    Troy Franklin, Chief Operating Officer, World Franchise Associates – Southeast Asia, said, “We are excited about partnering with T BUN, a world-class concept and product.  As one of the fastest growing franchises in South Korea, T BUN represents an appealing investment for both kiosks and small cafes providing investors with attractive profit margins and dedicated support for international franchisees.”

    T BUN provides franchisees with wide-ranging training and support including:

    • Comprehensive training program, operations manual, performance monitoring tools and reporting templates.
    • Access to continuous innovation, research and development.
    • Access to high quality raw materials and ingredients.
    • Consultation and advice leading up to the market launch, during the initial opening and ongoing including in-market support.
  • Pizza Hut Indonesia plans IPO

    Pizza Hut Indonesia plans IPO

    Pizza Hut Indonesia operator Sarimelati Kencana is planning an IPO to raise US$58.7 million.

    Sarimelati Kencana runs 237 Pizza Hut Restaurants and 156 delivery outlets across 76 centres in Indonesia.

    The company said, it will offer up to 604.375 million new shares each priced between Rp 1100-1350 (US 8-10 cents).

    Sarimelati Kencana director Jeo Sasanto says two-thirds of the funds raised will be used to expand the Pizza Hut Indonesia network and to renovate existing stores.

    The company has already commenced a book-building period which is scheduled to close on May 3, with the shares to start trading on May 23.