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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.

  • NOC Coffee Co opens minimalist second branch

    NOC Coffee Co opens minimalist second branch

    NOC Coffee Co has opened its second branch in Hong Kong, offering its famed latte art in Gough Street, Sheung Wan.

    Opting out of creating a dramatic or fanciful exterior, design agency Studio Adjective has created a minimalistic façade in glass, highlighting the coffee bar and its baristas plus customers.

    As it is on a narrow street, NOC makes the most of its size by using the cement floor as tiered seating. Gradually, the platform extends to form a staircase that leads up to an area with communal tables and bar stools.

    Painted surfaces and wooden wall panels blend in with a white countertop that houses coffee machines. The store also offers healthy breakfasts and bagels.

    The original NOC store is in Graham Street, Central, plus there is the NOC Roastery flagship at Bohemian House in Des Voeux Road.

  • Jollibee linked to Pret-A-Manger bid

    Jollibee linked to Pret-A-Manger bid

    Philippines-based Jollibee Foods is reportedly running the numbers to buy gourmet sandwich and coffee chain Pret-A-Manger.

    Sources have told Reuters news agency that the Pret-A-Manger bid would value the business at in excess of US$1 billion, and close to the $1.1 billion it achieved in sales last year.

    While at first glance the Filipino food concept – which has low-cost burgers, chicken pieces and fries as its staple menu – seems an unlikely bedfellow for the London-based sandwich concept which targets office workers, Pret-A-Manger’s previous owners have included US fast-food giant McDonald’s.

    Quoting “sources familiar with the matter”, Reuters said Jollibee has been holding in-camera talks with an advisor over a bid for Pret-A-Manger, affectionately known by its customers as ‘Pret’.

    Jollibee Foods, founded by entrepreneur Tan Caktiong in 1975, recently opened its 1000th Jollibee restaurant in the Philippines and has 2700 stores in all, including in Hong Kong, China, Vietnam and the US. The company is valued at $5.2 billion and its portfolio also includes joint ventures owning Highlands Coffee and Pho 24 (in Vietnam), Smashburger (the US), Chowking (China) and Burger King (Philippines). Its domestic brands include Greenwich, Mang Inasal, Chowking and Red Ribbon.

    Pret has about 400 stores worldwide, including a small network in Hong Kong, selling breakfasts, hot beverages, cakes, its own snack foods and its core sandwich offer.

    The company is owned by private equity company Bridgepoint, which earlier this year was reportedly mulling a listing on the New York Stock Exchange.

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  • UberEATS finds big potential in South Korea food delivery market

    UberEATS finds big potential in South Korea food delivery market

    UberEATS, a food delivery service app run by ride-sharing pioneer Uber Technologies Inc., finds big growth potential in South Korea’s food delivery market due to its advanced wireless networks and growing orders on mobile phones, a senior company executive said.

    The U.S.-based business launched its UberEATS service in Seoul in August 2017,. The service is already available in 112 cities across 28 countries, where it has 60,000 restaurant partners.

    “Seoul is a perfect place for UberEATS. We find South Korea’s fastest internet speed really helpful for our business here. We are looking to expand our business in a few more regions in Seoul at least within this year,” Jaycee Lam, general manager of UberEATS North Asia, said.

    The executive did not elaborate on the names of the additional regions in Seoul. UberEATS service is now available in Itaewon and Gangnam, two downtown districts in the capital city.

    As for other possible cities, he only said there are growing requests from local customers to launch the UberEATS service in cities such as Busan, a southern port city, and the scenic Jeju Island.

    In the past four weeks, more than 200 restaurants have signed up to UberEATS, with more expected to jump on board. Partners deliver food using their own bicycles, scooters or cars and receive a fee from Uber.

    The majority of the food is delivered within 35 minutes to customers and free of charge for the time being as part of a promotion. But the company plans to receive a flat 3,500 won (US$3.00) delivery fee per order from customers, the general manager said, without giving any a specific time frame.

    To differentiate itself from local rivals such as Baedal Minjok and Yogiyo, UberEATS will focus on selecting the best restaurants and providing its customers with an insightful analysis of their businesses and industry outlook in a win-win strategy, he said.

    The UberEATS service was first launched in Toronto, Canada, in 2015 to deliver restaurant meals on-demand to homes and offices.

    The app-based service works like its ride-sharing sister app Uber. When an UberEATS app user orders food from a restaurant on his mobile phone, the restaurant calls a nearby delivery partner and asks him to collect the food when ready and deliver it right to the door of the user.

    UberEATS’ launch here is part of Uber’s commitment to South Korea’s US$14 billion food delivery market, the general manager said, expecting UberEATS to make the pie a lot bigger.

    “Since we have launched our transportation (or ride-sharing) business in Korea, we always think about what is the best way for Uber to keep being involved in the market deeper and then contribute here. UberEATS is one of the options that we can run in the ‘promising and fast-growing’ market,” the executive said.

    Still, a lack of awareness of the UberEATS service is the one area that can be improved in South Korea, he said.

  • Le Buffet restaurant wins interior design award

    Le Buffet restaurant wins interior design award

    Le Buffet restaurant at The Parisian Macao has won an award for its interior design.

    It took the title of best Macau casual-dining restaurant at the Hong Kong Restaurant Interior Design Awards 2017(HKRIDA).

    The awards were part of the fine-dining and bar exhibition Restaurant & Bar Hong Kong, with a judging panel comprising hospitality designers, F&B managers and specialist trade media. Chef de cuisine Guillaume Gully accepted the award on behalf of The Parisian Macao.

    Designed by San Francisco-based Puccini Group, Le Buffet is a 450-seat buffet restaurant that features Art Deco detailing with an upscale French market/food-hall vibe. It has a front dining area with a Parisian cafe ambiance that has views into the main dining and buffet room with its buffet stations and live cooking areas. A design feature is an intricate 5m atrium that offers a sense of natural light.

    The Parisian Macao is Sands Resorts Macao’s newest property, which opened 12 months ago. It features a half-size replica of the Eiffel Tower at the hotel’s entrance.

    One of the primary goals of the awards is to highlight and promote the importance of a restaurant’s interior design in overall business growth.

  • Designer Julien Macdonald beefs up McDonald’s burger offering

    Designer Julien Macdonald beefs up McDonald’s burger offering

    Fashion designer Julien Macdonald has created a special-edition box for McDonald’s UK new Signature Collection range of “gourmet” burgers, described in a press release as “McDonald’s’ first foray into the world of luxury and fashion”.

    Following a trial in selected restaurants, the range is being released in more than 900 McDonald’s eateries across the UK.

    Unveiled in London, the box has a limited release of 1000, with fans being invited to sign up online if they want one. One special box, customised by Macdonald himself, will be auctioned to raise money for the fast-food chain’s Ronald McDonald House Charities.

    “I drew inspiration from my fashion creations and iconic embellished red-carpet dresses,” says Macdonald, who has dressed such celebrities as Beyoncé, Kylie Jenner, Madonna, Mick Jagger, Puff Daddy, Shirley Bassey and Taylor Swift.

    The result is a gold baroque-style crystal-encrusted box, described as “the perfect packaging for the luxury McDonald’s Signature Collection burger”.

    “It’s a brave and exciting move,” says McDonald’s UK VP of marketing Emily Somers. “Julien Macdonald’s beautifully designed star-studded box complements the Signature Collection perfectly.”

    The box complements the “luxury” positioning of the product as demonstrated by this promotional video which is – well, unlike anything we’ve seen from McDonald’s before…:

    One blogger has commented: “You haven’t enjoyed a burger until you’ve eaten it out of a box which has crystal detailing, embellishment and bespoke digital print.”

    Facebook users have been a little less kind (or ironic), one asking, “And the point of it is exactly what? … Congratulations, you have just polished a turd.”

    Another asked, “Is it April 1st already?”

    Meanwhile, Etihad Airways has given its in-flight safety video a makeover by setting it backstage at one of Macdonald’s runway shows. Models put on oxygen masks to escape a cloud of hairspray, they wear life jackets as if they were the season’s must-have accessory, they buckle up safety belts over embellished couture gowns, and move into brace position as they have their hair done.

    Unveiled during New York Fashion Week, the promotional film will not replace Etihad’s safety video, but will be shown on-board from next month and be used to highlight the airline’s ties to the fashion world (it sponsors 17 fashion weeks and events internationally).

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  • Greyhound Cafe Jakarta opens in Grand Indonesia

    Greyhound Cafe Jakarta opens in Grand Indonesia

    Mainly Thai fusion dishes are offered at the new Greyhound Cafe Jakarta, in the Grand Indonesia mall. With a cactus display in its outdoor area, the ground-floor cafe has a mainly black-and-white theme and offers mainly Thai fusion dishes.

    A private dining area is available as well as a smoke area, and takeaway is possible.

    The Thai brand is being introduced in Indonesia by restaurant group Arena Corporation.

    Greyhound Cafe opened its 13th international outlet last December, marking its debut in Singapore.

    At the time it had 14 cafes in Bangkok plus outlets in Beijing, Hong Kong, Kuala Lumpur and Shanghai.

    For Greyhound, the cafe was actually an afterthought to complement to brand’s fashion line.

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  • Bo’s Coffee heading for a century

    Bo’s Coffee heading for a century

    Bo’s Coffee has opened its 97th store in the Philippines, at the NorthDrive mall in Mandaue City, Cebu.

    Leading up to the opening, the Cebu brand organised a tasting session through Philippine Coffee Origins, says brand and marketing manager Toni Santos. This featured five locally harvested beans, from Batangas and Sagada in the Mountain Province, Mt Kitanglad in Bukidnon, Mt Apo in Davao and Mt Matutum in Cotabato. Store coach Serah Amor Samson showed how the manual brewing or pour-over session is done.

    Bo’s Coffee operations VP Ivy Theresa Benatiro says the company hopes to end the year with a 100th store in Intramuros, Manila. Meanwhile, its first two international stores will open in Qatar before November.

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  • The Lime Truck brings tacos to Suntec

    The Lime Truck brings tacos to Suntec

    Featuring fusion food, Californian chain The Lime Truck has parked one of its kitchens on wheels in Singapore – its first permanent site out of the US.

    At the PasarBella@Suntec City food hall, the stationary truck has a Mexican-inspired menu serving six varieties of taco as well as Singapore exclusives like fried chickenskin with chipotle honey drizzle and cheese. The Lime Truck also makes its own tortillas, a first for Singapore.

    There are also slushies, churros for dessert, and rice and salad bowls topped with grilled meat. There are also one-off daily specials.

    The truck initially appeared in Singapore at a pop-up event in Orchard Road three years ago as part of a charity initiative with Fiji Water, where more than 1000 tacos were sold out in two hours.

    Chef Daniel Shemtob launched The Lime Truck in 2010, expanding it from a single truck in Orange County, California, to five trucks in other cities in the state. He also has three restaurants in California, and came to cook at the truck’s Singapore launch.

    The Lime Truck won the second season of Food Network’s The Great Food Truck Race in 2011 and was placed on Yahoo’s Top 10 Trucks In America list for three years running from 2012.

    “There’s a hidden Asian element to a lot of the dishes, so it’s familiar but kind of different,” says Shemtob, who picked up his cooking skills “from the streets”. He started cooking when he was about six years old, learning from YouTube, cookbooks and “just messing around in the kitchen”.

    While regulations prevent the food truck from roving the streets as it does in California, Shemtob says he hopes it can make appearances at events such as the Formula One races.

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  • Starbucks patents cold-pressed espresso process

    Starbucks patents cold-pressed espresso process

    Starbucks has developed a new, patent-pending cold extraction process that produces a concentrated, smooth tasting shot of cold-pressed espresso.

    The cold-pressed espresso shot will serve as the foundation for a new suite of in-store menu options focused on cold espresso beverages and which has been launched at the company’s premium, Starbucks Reserve Roastery in Seattle this week. Since opening in December 2014, the Seattle Roastery has served as a pipeline of innovation for Starbucks including the introduction of Nitro Cold Brew which is now available in more than 1000 stores across the US and 16 markets globally.

    “From Cold Brew to Starbucks Draft, we have been building a cold coffee platform that not only appeals to our customers, but acknowledges that cold beverages are no longer just seasonal,” said Kevin Johnson, Starbucks president and CEO. “This new technique, which produces a dense shot of cold-pressed espresso, is the next step in our cold coffee journey and the perfect ingredient to design a menu of cold espresso or coffee options. We believe the opportunities are limitless.”

    Designed by Starbucks Research and Development team, the new Aqua Tamp Technology uses an ascending flow filtration system that is pressurised by cold water. The inverted process allows for a precise release of flavour characteristics resulting in a dense concentration of cold espresso. In doing so, it allows the release of a sweeter coffee flavour and smooth finish to break through making the cold-pressed espresso extracted the ideal pairing to a variety of cold liquids allowing it to retain the intensity of the espresso flavour.

    This new breakthrough builds on the company’s ongoing investment in the category of iced beverages. During its 2016 Investor Conference, Starbucks said it expects to quadruple the Cold Brew business by 2021 and its overall cold beverage mix to move from over 35 per cent in 2013 to nearly 50 per cent by 2021. US iced coffee consumption has grown by 75 per cent in the past decade and cold brew sales grew 338.9 per cent between 2010 and 2015, according to industry data.

    The Seattle Roastery Cold-Pressed Espresso Menu will include:

    • Sparkling Cold-Pressed Americano: A shot of cold-pressed espresso poured over sparkling water, served on ice.
    • Cold-Pressed Americano Exploration Flight: A tasting flight featuring one Cold-Pressed Americano, one traditional Iced Americano, and one Sparkling Cold-Pressed Americano.
    • Cold-Pressed Ginger Fizz: Crisp, refreshing ginger ale infused with a shot of cold-pressed espresso, poured over barrel-aged vanilla syrup. Finished with grapefruit bitters.
  • Food prices rise, butter hits record high

    Food prices rise, butter hits record high

    New Zealand food prices rose in August, with fruit and vegetables, meat, and groceries such as butter more expensive than a year earlier.

    Butter prices hit a record high of $5.39 per block, up 11 per cent in the month and 62 per cent from a year earlier.

    The food price index advanced 0.2 per cent on a seasonally adjusted basis in the month, and gained 2.3 per cent for the year to August, Statistics New Zealand said.

    Fruit and vegetables cost 5.5 per cent more than a year earlier, while meat, poultry and fish prices rose 0.6 per cent and grocery food prices increased 2.8 per cent.

    The annual butter price increase is the largest in percentage terms since 2010, Stats NZ said. Chocolate prices also rose 3.4 per cent in the month.

    “We have seen butter prices rising lately due to New Zealand’s export driven market,” consumers price index manager Matthew Haigh said.

    “Butter prices have experienced all-time highs in the global market, and this also drives the price here at home.”

    Food prices account for about 19 per cent of the consumers price index, which is the Reserve Bank’s mandated inflation target when setting interest rates.

    Vegetable prices increased 8.7 per cent on an annual basis, driven by higher prices for kumara, potatoes and cucumbers, and were up 5.4 per cent in the month. Fruit prices rose 0.3 per cent annually, but dropped 0.5 per cent in the month, as avocados and strawberries became cheaper in August.

    The price of chicken rose 3.3 per cent in the year to August 2017, but dropped 2.4 per cent in the month, while beef fell 2.6 per cent annually and was down 2.5 per cent on a monthly basis and pork dropped 8.6 per cent in the year.

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  • Pizza delivery by robot cars has arrived with big questions

    Pizza delivery by robot cars has arrived with big questions

    Domino’s Pizza and Ford have paired up in a pilot project that will look at how humans interact with driverless food-delivery cars. Ann Arbor is home to thousands of students, an age group not likely to view this new technology with suspicion. But it could turn into a fascinating social experiment for the food industry.

    Customers ordering through Domino’s will be able to track their delivery in real time by using a downloadable app on their smartphones. They receive a text message that gives them a four-digit code to use once the car arrives.

    But it’s the final portion of the drive that could prove unpredictable for Domino’s. The driverless delivery vehicle could end up in the driveway, or near the curb. Customers may not want to go out to the car if it’s raining or snowing. Domino’s USA president Russell Weiner says these challenges are a major part of the experiment.

    “We’re interested to learn what people think about this type of delivery,” he said in a recent statement. “The majority of our questions are about the last 50 feet of the delivery experience.”

    No tipping attractive to students

    Human behaviour can be difficult to predict at the best of times, especially when dealing with food. This will be the first time a food service or retail company has used driverless cars to interact with actual consumers.

    The experience will certainly offer convenience for customers in a variety of ways. With the app, expectations will be managed, and quality of service — Domino’s key strategic focus — will be more consistent.

    That’s because delivery times will be streamlined, fewer pizzas will be damaged in handling mishaps and the customer won’t have to deal with tips — at least not for now. No tipping will reduce price points, making delivered pizzas more affordable. For cash-strapped students, that’s key.

    For Domino’s, the business case for a driverless fleet is unquestionably strong. Lower insurance costs, lower fuel consumption, consistent delivery times, no thefts, controllable temperatures to keep food safe for customers so therefore less waste — the list goes on.

    Domino’s delivers more than a billion pizzas annually, and has more than 100,000 drivers. Running a driverless fleet could save the company millions.

    Embracing the concept of home food deliveries without having to hire drivers cannot come soon enough for the food service industry, which is looking for ways to increase revenue beyond their regular foot traffic.

    Restaurant operators won’t need to deal with the headache of hiring the right people for delivery, and delivery is an important means of expanding the brand outside their facilities.

    Home delivery can be dicey

    Most of us who have ordered home-delivered food have had mixed experiences.

    Some drivers make convicted felons look like choir boys, causing customers to be hesitant about the food. But home delivery is no walk in the park for the drivers, either.

    Drivers in the U.S. have told of finding themselves in unbelievably awkward situations,including being tipped with weed, being asked to eat with the customer to offer company, showing up during domestic disputes and being greeted by a naked customer as the front door opens.

    There’s an endless list of unpleasant scenarios that would discourage anyone from contemplating home food delivery as a full-time job or even part-time job.

    A humanless home food delivery experience, on the other hand, also offers a unique perspective on the market currency of convenience.

    For years, price has been king. In study after study, price has trumped any other feature consumers were looking for in food service.

    Consumers crave convenience and privacy

    Younger generations, however, have a different take on convenience. Price remains a significant factor for higher revenues of course, but the constant quest for more convenience on both sides of the food continuum is now reaching the point of obsession.

    Getting rid of delivery personnel is now a realistic approach. With driverless home food delivery, one could potentially get food delivered without seeing a single human being — a frightening thought for some, a reassuring one for others.

    In the future, consumers could binge on their favourite junk food several times a week without the embarrassment of seeing the same delivery person.

    No matter how you look at it, Domino’s and Ford are onto something. After all, driverless technologies are consistent with what Domino’s is all about.

    The company has been successful over the years with its mastery of home delivery. Joining forces with Ford could make the company even more efficient.

    Nonetheless not all of us needs Domino’s to get our food fix. Divorcing the human aspect from food is simply impossible for many food service companies — thousands of them, in fact. And thank goodness for that.

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  • Fareground offers new approach to hawker food

    Fareground offers new approach to hawker food

    A hawker centre blending the old and the new, Fareground, will open at Pasir Ris Central in November.

    As well as traditional hawker fare, it will have one floor dedicated to “creative cuisine”, served in a space designed to look like a hipster cafe.

    To add to the vibe, events such as craft fairs and music performances may also be held in the space, says NTUC Foodfare, which is running the centre. Its ambition is to “inject new energy to the local street-food scene”, a spokesman says.

    The food hub’s first level will feature 20 cooked-food outlets offering traditional hawker fare such as chicken rice and wonton mee. Upstairs, the menu features cafe food, fusion fare or local food with a twist. Possible dishes include Japanese donburi, for which diners can choose the ingredients.

    The final list of food offerings will be unveiled after September 22, the closing date for Singaporeans and permanent residents to apply for the stalls.

    It is the third new centre to be managed by NTUC Foodfare, after Bukit Panjang Hawker Centre and Market, and Kampung Admiralty Hawker Centre.

    Foodfare says each stall in its latest venture will offer at least two budget meals, while the “hipster” cuisine will be comparatively cheaper than similar dishes at cafes.

    Seating about 770 diners, the hawker centre will be open from 7am to 10.30pm daily.

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  • Coconut farming languishing

    Coconut farming languishing

    Exports of coconut-based products are sluggish due to challenges and difficulties facing the coconut processing industry and coconut cultivation, according to the Bến Tre Province Agricultural Promotion Centre.

    A study by the centre found that coconut farmers earn on average VNĐ60-70 million per hectare annually, but this could increase to VNĐ100-110 million if coconut is intercropped with cocoa, pomelo or shrimp farming.

    The central province of Bình Định is the third largest coconut growing area in the country behind the Mekong provinces of Bến Tre and Trà Vinh.

    Here, coconut farmers have benefitted from a steady rise in prices since 2015. Now dried coconuts sell for VNĐ9,000 – VNĐ10,000 each while fresh coconut milk is sold for VNĐ13,000 – VNĐ14,000 at groves.

    Nguyễn An Điềm, a former chairman and CEO of the Bình Định-headquartered firm Pisico, said in Asian countries with developed coconut processing industries such as Sri Lanka and the Philippines, the trees offer high economic value because all segments of the industry, from farming to processing, have been modernised.

    Điềm said coconut meat is exported from Việt Nam to European countries where it is processed into ice cream, milk and chocolate, the fibre is sold to Japan for making automobile seat cushions, and shell dippers can be used to make activated carbon, which fetches millions of đồng per kilogramme.

    The timber is used for making handicraft products, he said.

    Though coconut yields are high, the processing industry has not developed much, and thus Việt Nam exports raw materials, which do not fetch high prices.

    Nguyễn Đăng Phú, deputy head of the Ministry of Industry and Trade-run Research Institute for Oil and Oil Plants, said one hectare in Việt Nam produces 9,863 coconuts or 1.9 tonnes of copra per year, the highest in Asia.

    But its coconut export turnover is only worth a third to a fifth of other countries’, he said.

    A coconut fetches VNĐ8,000, but products made from it are valued at up to VNĐ40,000, he said.

    No investment has been made in building coconut processing plants to manufacture high-value products, he added.

    More investment needed

    To enhance the value of coconut-based products, authorities should have policies to mobilise investments in plants, Điềm said.

    He said many enterprises want to invest in such plants, but hesitate because of the realisation they would face raw material shortages since coconut groves are small in size and scattered around the country. r oil to provide enough raw materials for processors.

    They said more investment is required for research into coconut strains and processing and agricultural promotion activities.

    The Government should provide financial support to farmers for acquiring new strains and technologies, they said.

    Coconut co-operatives must be strengthened and alliances must be established in the farming and processing sectors, they said.

    Brand names must be developed for Vietnamese coconut and promoted, they added.

    Read more at https://vietnamnews.vn/economy/393313/coconut-farming-languishing.html#AMBOxsWykDHyCdQD.99

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  • Beans and Brown to take cafe business offshore

    Beans and Brown to take cafe business offshore

    JAS Asset has launched Beans and Brown to take over coffee-house chain Casa Lapin, with plans to introduce the brand overseas and list the subsidiary within three years.

    It is part of the space-management company’s renewed focus on retailing business over the past three years. “That’s why it launched one community mall a year between 2014 and 2016,” says JAS Asset CEO Suphot Wanna.

    He says the diversification move is a springboard for the firm to enter the food and cafe market. It last month signed an agreement to acquire the Casa Lapin trademark and F&B business from the Coffee Project chain. With a budget of THB42 million (US$1.2 million), Beans and Brown was established as a 60:40 JV to manage Casa Lapin.

    Casa Lapin has seven branches in Bangkok, with three fully run by Beans and Brown. The others are a collaboration with partners. Beans and Brown plans to three more Casa Lapins in CBDs this year, then next year add at least 10 outlets a year. A highlight will be the opening of a Casa Lapin flagship store at a premium shopping complex in the heart of Bangkok.

    Casa Lapin’s next step will be to expand to Asian cities such as Hong Kong, Seoul, Singapore, Taipei and Tokyo.

    Beans and Brown expects its revenue to grow by 600 per cent within three years, from THB60 million this year to THB360 million in 2020.

    Presently, 70 per cent of Casa Lapin’s revenue comes from coffee and beverage sales, with the rest from food/bakery, says Beans and Brown CEO Surapan Tanta.

    “In the future, we plan to add souvenirs to our places to generate more income, as our target groups are new-generation people with a love for quality and great design,” he says.

    “The joint venture with JAS Asset enables us to develop Casa Lapin further. With JAS Asset, we have professionals in charge of management, marketing strategies and staff training.”

  • Starbucks Korea eyes record sales and profits

    Starbucks Korea eyes record sales and profits

    Starbucks Korea is expected to exceed a record 100 billion won (US$88.4 million) profit this year as the US coffee chain’s popularity booms.

    Industry sources told Yonhap news agency that the 50-50 joint venture between retail conglomerate Shinsegae and the US company achieved a 52.8 billion won operating profit on 593.5 billion won in sales during the first six months this year. That marks the first time Starbucks recorded more than 50 billion won in profit since it opened its first local branch near Ewha Womans University in Seoul in 1999.

    Full-year profit is likely to easily surpass the 100 billion-won mark as coffee shops usually earn more during the latter half of the year, which includes Christmas and the year-end holiday season.

    The strong figure compares with those of its local competitors Twosome Place and Angel-in-Us Coffee, which averaged between 10 and 20 billion won during the same period.

    Sources told Yonhap the popularity of Starbucks in South Korea is due to the growing loyalty of women in their 20s and 30s, pointing out that the company has succeeded in promoting its image as a luxury brand in South Korea where the luxury coffee market has yet to mature.

    Starbucks Korea’s annual sales topped the 1 trillion-won mark for the first time last year.

    Starbucks has 1050 stores in the country as of the end of June, the world’s fourth-largest number of Starbucks Coffee stores on a pro-rata population basis, behind only Canada, the US and Singapore, according to industry data.

    The number of the stores has risen sharply from 327 in 2010 and 500 in 2013 to 1000 as at the end of last year.

    The dramatic rise has apparently been helped by the regulations that ban franchises from opening new stores within a 500-metre radius from the shop of the same brand: Running its own stores, rather than franchising, exempts Starbucks from such regulations.

    However, critics say while the regulations aimed to protect food franchise contractors from intense competition, they have instead aided foreign businesses operating in South Korea.

    “We are not subjected to the franchise law as all of our shops are run by the company directly,” a Starbucks Korea official said.

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