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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.

  • Shake Shack Korea tops global sales chart

    Shake Shack Korea tops global sales chart

    Sales at a Shake Shack Korea store are the highest of any store worldwide.

    Just seven months after the chain launched in Korea, Shake Shack’s 13th international market, the Gangnam branch has outstripped some 120 branches outside the US. It sells 3000 to 3500 burgers a day, according to the Union Square Hospitality Group (USHG), the Shake Shack franchisor.

    Also known as the maker of the “New York burger,” the fast casual restaurant started out as a food cart inside Madison Square Park in 2001, expanding its menu from New York-style hotdogs to hamburgers and milkshakes.

    It made a foray into the South Korean market last year through an exclusive partnership contract with SPC Group, South Korea’s major food manufacturer and distributor.

    Another branch in Chungdam, southern Seoul, has also made it to one of the top three in terms of sales.

    A third shop is scheduled to open in April in Dongdaemun, a busy shopping district.

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  • First Starbucks Roastery to open in Europe

    First Starbucks Roastery to open in Europe

    The Milan Reserve Roastery will be the fifth top open globally after Seattle, Shanghai, New York and Tokyo.

    Located at the historic turn-of-the-century Palazzo Delle Poste building on Piazza Cordusio, this one-of-a-kind 25,500 sqft retail space will feature the company’s premium, small-batch Reserve coffees served in a variety of brewing methods.

    “It took us some time to find it, but once I walked through the former Post Office building, I knew that it would be the perfect location to honor the craft of coffee and pay respect to the uniquely Italian culture in which it will be served,” said Howard Schultz, Starbucks chairman and CEO.

    “This store will be the culmination of a great dream of mine – 34 years in the making – to return to Milan with one of the most immersive, magical retail experiences in the world.”

    At a recent Investor Day, Starbucks announced its ongoing investment in the premium Reserve brand, including opening 20 to 30 Roastery locations around the world, over time.

    “This new location will be designed specifically for the Milanese customer, integrating the world-famous theatre of coffee in Italy and will offer freshly baked food on site from Italian artisan baker Rocco Princi, the exclusive food provider for all new global Roastery locations,”the company said in a statement.

    Following the Roastery opening, Italian licensee and business partner Percassi will open a small number of Starbucks stores in Milan for the balance of 2018.  Each new store will be designed and curated to respect the local community and unique Milanese context.

    “Taking a respectful and measured approach to store openings is at the heart of the Starbucks strategy in Italy,” said the statement.

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  • Giorgio Armani consolidating brands

    Giorgio Armani consolidating brands

    Italian designer Giorgio Armani says he plans to consolidate his various collections under three labels as the fashion company undergoes an internal restructuring.

    “There will only be three lines: Giorgio Armani, Emporio Armani and A|X Armani Exchange starting with the spring-summer 2018 season,” he says.

    Armani Collezioni and Armani Jeans will be blended into the main three lines.

    “There was too much confusion with so many collections,” says Armani. “Times have changed, and we have to evolve.”

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  • Starbucks Coffee Japan aims to blend in

    Starbucks Coffee Japan aims to blend in

    Starbucks Coffee Japan is aiming to blend in with its first cafe in Uji, Kyoto, giving it a local tea culture theme.

    The branch of the US coffee chain will be opened by the front gate of Byodoin temple, a UNESCO World Heritage site, on March 31.

    It will occupy a space along the front approach to the temple, offering customers a view of the Ujigawa promenade. The 142 sqm outlet will have 41 seats inside and 19 outside.

    Starbucks Japan

    A gable roof will match local custom, and decor features will be related to Uji tea culture.
    Another cafe and a parking lot stood on the site until last year.

    Ten years ago, Starbucks had a 19 sqm outlet in the 587-year-old Forbidden City in Beijing, but protests led to the Seattle-based company closing it.

  • 20,000 farmers join in international standard tea production

    20,000 farmers join in international standard tea production

    Nearly 30 firms and 20,000 farmers will take part in producing 25,000 tonnes of tea of international standards in a project to promote the private-public partnership (PPP) model in tea production.

    The information was released at a conference to launch the second phase of the project “promoting tea farmers to join the sustainable and quality tea supply chain” in Hanoi on February 28.

    The project, jointly implemented by the sustainable trade initiative (IDH) organisation of the Netherlands, the Unilever group and the Ministry of Agriculture and Rural Development (MARD), aims to train and provide technical assistance for farmers to produce tea certified by the Rainforest Alliance (RA).

    Le Quang Chuyen, Deputy Director General of the My Lam Tea JSC in northern Tuyen Quang province said the PPP model has helped improve tea quality and productivity while saving production costs and labour. Their tea products meet food safety requirements of the EU and Japan.

    Tran Vu Hoai, Vice President of Unilever Vietnam, underlined tea quality improvements after three years of implementing the PPP model, saying that the group raised its import volume of Vietnam’s tea from 5,000 tonnes to 11,000 tonnes.

    He expressed his hope that with the model will continue improving Vietnam’s tea quality and the group can import up to 20,000 tonnes of tea from Vietnam.

    Under the second phase of the project, 15 factories and 6,500 households are expected to work together and produce 25,000 tonnes of tea, including 15,000 tonnes of RA certified tea, which are shipped overseas and supply for Unilever.

    So far, only eight firms have registered to join the project.

    Besides, the Vietnam Tea Association is implementing an IDH-funded project on the quality and sustainability of the tea industry. The project aims to enhance Vietnam’s tea quality to meet international standards.

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  • Thai specialty coffee growers tip cafe boom

    Thai specialty coffee growers tip cafe boom

    Despite many cafes closing in the past year, the Thai coffee-shop business is expected to grow 15 to 20 per cent this year.

    According to specialty coffee growers, the growth will be driven by the country’s economic improvement and higher demand from coffee drinkers.

    Specialty Coffee Association of Thailand (SCATH) president Apicha Yaemkesorn says coffee shops can be easily opened on every corner in Bangkok and major provinces, and more will be seen as there are many new offices and condo buildings.

    “The growth can also be expected to spread into small provinces and towns in the near future.”

    Fewer than 10 per cent of Thais drink coffee, and those who do drink about 1.2 cups a day on average, compared with three cups a day for American coffee drinkers.

    While about 30 to 40 per cent of coffee shops closed last year, the number of new entrants increases every year.

    Apicha says that opening a coffee shop is not hard in Thailand as only a small budget is needed and coffee makers are inexpensive. “It is an ideal business for new entrepreneurs, but many of them have lack knowledge about coffee and cafe management skills.”

    This year Thailand is projected to have a 15 per cent rise in arabica coffee planting areas in the north and a 5 per cent increase in robusta planting areas in the south. Rubber and palm growers in the south have turned to growing coffee because of low prices for rubber and palm oil.

    Coffee beans can be harvested about three or four years after planting, says the Office of Agricultural Economics.

    Apicha estimates the longer droughts in Thailand will reduce the supply of local arabica coffee beans to 7000 tonnes this year from 9000 tonnes last year, while robusta coffee beans will total 15,000 tonnes, down from 17,800 tonnes.

    Arabica coffee beans are priced at about 180 baht (US$5.10) a kilo in Thailand and 80 to 90 baht/kg for robusta.

    Volatile climate change and longer droughts are pushing Thai coffee bean prices higher than in Cambodia, Laos, Myanmar and Vietnam, which see prices around 95 to 105 baht/kg.

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  • Starbucks Korea polls 1 million customers

    Starbucks Korea polls 1 million customers

    Starbucks Korea is killing two birds with one stone – improving sales by making customers happier.

    According to the coffeemaker, the number of participants on its mobile survey platform “My Starbucks Review” has exceeded 1 million. Surveys are offered to Starbucks members who use Siren Order – ordering food and beverages on a smartphone, instead of having to wait in line.

    Starbucks Korea app

     

    The platform has been serving the coffeehouse well in terms of gathering customer feedback, officials said, and some 20 of the suggestions coming from customers have either been adopted or are expected to be introduced in the near future.

    One of the suggestions was related to Grapefruit Honey Tea, a seasonal drink temporarily introduced last year that was met with unprecedented popularity. Following the soaring demand, Starbucks decided to introduce the tea as an official menu item, and ended up selling over 1.2 million cups in just five months.

    Other successful ventures with the help of consumer input include the Starbucks Card Holder, with over 10,000 units sold since its launch late last year, and special edition coin pouches for chocolate coins, which sold out in just five days (50,000 batch) in early January.

    “We’ll continue to take into account customer feedback, to offer better products and services,” an official said.

    -Kevin Lee

  • Doutor Coffee heading to China

    Doutor Coffee heading to China

    Japanese low-price cafe chain Doutor Coffee is heading to China following its parent company’s failed foray with pasta restaurants.

    Doutor Nichires Holdings is partnering with restaurant group Xiao Nan Guo, whose business includes high-end Chinese dining. It flourished on lavish official meals funded by taxpayer money until President Xi Jinping cracked down on official extravagance.

    As Chinese consumers become increasingly price-conscious, the partners see potential for the low-price Doutor Coffee chain.

    Doutor Nichires, which also runs chains such as Excelsior Caffe and Hoshino Coffee in Japan, had three pasta restaurants in Shanghai until about three years ago. It now has 18 overseas locations, including cafes in Singapore.

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  • Tim Hortons Philippines launches in Bonifacio

    Tim Hortons Philippines launches in Bonifacio

    Tim Hortons Philippines has launched its first branch at Uptown Place Mall in Bonifacio Global City.

    It is the Canadian cafe and bakeshop’s first foray into Southeast Asia.

    Miss Universe Canada 2016 Siera Bearchell was in Manila for restaurant’s ribbon-cutting ceremony. With her were Department of Tourism secretary Wanda Teo, Tim Hortons president Elias Diaz Sese and executives of TH Coffee Services Philippines, which is the Philippines partner for Tim Hortons.

    The store is known for its signature pastries, including bite-sized doughnuts known as Timbits, and Iced Capp, an ice-blended coffee drink.

    Another speciality is the Double Double, a coffee with two servings of cream and two of sugar.

    There are also full-sized doughnuts, plus regular and breakfast sandwiches. Breakfast offerings also include muffins.

    Tim Hortons was named after its founder, a National Hockey League player, and first opened in Ontario in 1964.

    Restaurant Brands International announced its plans last July to launch the Canadian brand in the Philippines.

  • Lotteria Burger Laboratory concept to open Korea-wide

    Lotteria Burger Laboratory concept to open Korea-wide

    London-based consultancy JHP Design has created a fast-dining experience for Asian fast-food restaurant group Lotteria.

    The new concept, called the Lotteria Burger Laboratory, features an open kitchen combined with a made-to-order system, so customers can watch the “burgerista” preparing every stage of their meal.

    Customers can place orders via an app before arriving, or in store through bespoke tablets as well as at the counter.

    Lotteria Burger Laboratory Korea 6

    A science and experimental theme in the restaurant is reflected in every aspect of the customer experience. A red industrial ceiling-mounted pipe snakes from the front of the “laboratory” to the back, guiding the customer journey. The ceiling also features an illuminated digital clock indicating how long customers need to wait for their order to be ready.

    Lotteria Burger Laboratory Korea 5

    Science icons

    The walls are decorated with periodic tables, food-assembly diagrams and science-based icons. The chairs have chemical-resistant wire frames and the tables offer power plugs for charging mobile devices.

    The seating area offers individual code-writing tables, laboratory benches and breakout booths as found in high-tech start-ups.

    Lotteria Burger Laboratory Korea 4

    A stainless-steel drinks machine enables customers to mix and refill their own beakers.
    With “radioactive” yellow and black doors and frames, the restrooms have acid-resistant white glazed tiles.

    Lotteria Burger Laboratory Korea 3

    All materials used have low environmental impact. Recycled strawboard, reclaimed porcelain and salvaged waste pipes have all been combined in an environment lit entirely with low-energy LED bulbs, and the kitchen uses hyper-efficient induction cooking equipment. All packaging is recycled and biodegradable.

    Lotteria Burger Laboratory Korea 2

    The first Burger Lab opened in Seoul last November, built in just four weeks at a total cost of US$480,000. The concept is now being rolled out across the company’s 3000 outlets throughout Asia.

    Lotteria Burger Laboratory Korea 1

    The Lotteria Burger Laboratory sources its ingredients solely from Lotteria’s own vertically integrated sustainable farms. As well as beef, chicken and shrimp burgers and fries, the new outlet offers local specialties and vegetarian options.

    Lotteria is owned by Lotte, a conglomerate established in 1948 with headquarters in Japan and South Korea.

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  • Malaysian bubble-tea stoush now question of loyalty

    Malaysian bubble-tea stoush now question of loyalty

    Malaysia’s Chatime bubble-tea stoush continues, with a fresh argument regarding outlet loyalties.

    Taiwanese Chatime franchise owner La Kaffa International says nearly 50 outlets will stay with it, while former Malaysian master franchisee Loob Holdings claims that only four outlets have opted to keep the Chatime banner.

    Loob CEO Bryan Loo says more than 95 per cent of the total 165 Chatime outlets in Malaysia have decided to quit the brand and adopt Loob Holding’s new brand.

    “Only three franchisees, who run a total of four stalls, do not want to move on with us. They will be handed back to the franchise owner,” he told journalists at Kuala Lumpur’s Pavilion Shopping Mall after launching his new brand, Tealive.

    He did not name the franchisees or pinpoint their outlets.

    Loo says the new name was chosen to appeal not only to Malaysians, but across the other regions – and internationally.

    “So we felt like we had to find a very good name; and it had to be different from Chatime. We started with over 300 names and over three days, we shortlisted it down to 30 names and then the last one. In the end, we wanted a name that was simple and easy to digest no matter who you are.

    “While shortlisting, we felt that we exceptionally liked the names that had different pronunciations.

    People used to pronounce Chatime in so many different ways and it stirred conversation. So we wanted the same spirit; and that’s how we landed on the name Tealive (live pronounced similar to ‘a live show’). Some people could pronounce it tea-live (as in live at home) but the important thing is the underlying meaning to it – we want to bring a new life to tea.”

    Loo said in an interview that Tealive will be very different to other brands in the crowded bubble-tea market.

    “We want to be the brand that protects the weak and isn’t afraid of the strong; but also the brand that embraces changes. On the other side, with our hands untied, I believe that over the next quarters there is going to be a lot of innovation in terms of products, which we couldn’t do before.

    “When we used to collaborate with local brands, we were served warning letters; so moving forward that’s something we don’t have to worry about, so we can be innovative. I would also like to establish a regional R&D centre to come up with more creative drinks that will excite the market. Also, we’re looking to carry on with our aggressive expansion and move into other regions. We were already planning to do that with the previous brand, but now we get to do it with Tealive,” Loo said.

    La Kaffa contradicts claims

    At a press conference in a Kuala Lumpur hotel earlier this month, La Kaffa International executive VP Teresa Wang said the company was confident that nearly 50 franchisees would continue to collaborate with Chatime.

    At the same time, La Kaffa claimed Loob Holdings had stopped ordering the halal ingredients it supplied from Taiwan for Chatime’s Malaysia outlets. Loob Holdings has denied this, with Loo saying its products are certified by the Department of Islamic Development Malaysia (Jakim).

    The dispute bubbled to the surface in early December when the Taiwanese company terminated the master franchise agreement between the two parties, even though there was more than 20 years left on the deal.

    Loo has lodged a police report over the sudden termination, and both companies have taken the dispute to the Singapore International Arbitration Centre.

    Vietnam foray

    Meanwhile, Loo says Tealive will be opening its first overseas outlet in Vietnam before October.
    “We plan to deliver five outlets in Vietnam this year, and hope to increase that with another 20 outlets by the end of next year,” he says.

    Chatime is already in Vietnam with seven outlets in Hanoi, two in Ho Chi Minh City and one in Di An, Binh Duong province.

    Loo says Tealive will also venture into other Asean countries within the next few years.

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  • Cathay Pacific Is Brewing Its Own Beer

    Cathay Pacific Is Brewing Its Own Beer

    In efforts to beat out their aerial competition, Cathay Pacific has employed something that will appeal to almost everyone, the universally beloved: beer. They’re not giving it away for free or anything, but instead they have decided to make their own custom brew named Betsy Bee (after their first aircraft), in collaboration with Hong Kong Beer Co. The craft ale has Dragon-Eye fruit, honey, and a special type of hop called Fuggle.

    Going along with their marketing drive, ‘Travel well,’ Betsy beer is a “product designed purely with the traveller, and beer lover, in mind,” according to their Generar Marketing Manager, Julian Lyden.

    They will be offering Betsy to business and first class passengers on flights between Hong Kong and the United Kingdom from March 1 until April 30. It will also be sold online at Deli Delight.

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  • McDonald’s China does nothing, but under attack anyway

    McDonald’s China does nothing, but under attack anyway

    McDonald’s China is drawing criticism from Hong Kong trade unions, who fear the impact of the new owners on employment conditions.

    Despite reassurances from local McDonald’s management – or any evidence at all suggesting changes to labour policies are looming – the fast food giant has come under attack on both sides of the border.

    The new business unit taking over the McDonald’s business in China and Hong Kong is jointly owned by state investment group Citic Ltd and US private equity company Carlyle Group. McDonald’s Corporation (US) will maintain a cornerstone minority stake. The new company holds 20-year franchise rights.

    In a statement issued this week, the Hong Kong Confederation of Trade Unions (HKCTU) said the change of ownership will put further pressure on pay rates at Hong Kong outlets, where it says many workers earn little more than the minimum wage of HK$32.50 (US$4) per hour.

    “In other countries where McDonald’s has sold a large stake of its business, the resulting model has placed enormous pressure on franchisees, which has made it harder for franchise operators to provide adequate pay and conditions for their workers,” HKCTU official Wong Yu Loy said.

    “If the buyers in Hong Kong get squeezed by McDonald’s as they have in other countries, workers here may get even less as a result,” Wong said.

    Last week, a Chinese labour consultancy Hejun Vanguard Group filed a formal complaint with the mainland’s Ministry of Commerce claiming the move to the new business model may adversely impact its 120,000 workers in China – and McDonald’s customers.

    But McDonald’s has rushed to placate concerns saying its franchise models all over the world are based on “mutually beneficial partnerships” and the company “treasures” its employees.

    “The level of remuneration of our employees is based on their positions, working experience, expertise, performance, as well as market conditions,” said a spokeswoman.

    “McDonald’s strictly abides by Hong Kong labor legislation and the statutory requirements. The current compensation and benefits of McDonald’s Hong Kong will not be affected as a result of bringing in strategic partners.”

    The HKCTU, which represents 90 affiliate labour organisations covering 170,000 workers, appears unmoved.

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  • Manila hosts Sugar Factory Asia debut

    Manila hosts Sugar Factory Asia debut

    Restaurant/bar/candy shop Sugar Factory American Brasserie has opened at Shangri-La at the Fort in Bonifacio Global City, Taguig.

    The Philippines is home to the first Sugar Factory Asia outlet, with more regional markets on the horizon.

    Following a soft opening four months ago, the Manila venue was officially launched with an exclusive party for VIPs, celebrities and media. Guests of honour, including Filipino Vice-President Maria “Leni” Robredo, billionaire businessman Fernando Zobel and his wife Kit, and dermatologist/TV personality Dr Vicki Belo, who all walked down a pink carpet.

    Sugar Factory’s menu includes pancakes, salads and burgers, while for adults the bar offers spiked beverages including the brasserie’s signature smoking candy goblets.

    The chain is known for its “couture pops”, sparkly lollipops that have been seen in the hands of such celebrities as Britney Spears, Carmen Electra and Eva Longoria. Other supporters of the restaurant include Charlie Sheen, Katy Perry, Kylie Jenner, Rihanna and Sting.

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  • Ajinomoto becomes SEA Games sponsor as healthy eating promoter

    Ajinomoto becomes SEA Games sponsor as healthy eating promoter

    Japanese food company Ajinomoto has signed an agreement to become a top sponsor for the 29th Southeast Asian Games (SEA Games) and the 9th ASEAN Para Games in Kuala Lumpur this year.

    Ajinomoto Co., the parent company of Ajinomoto Vietnam, will provide support for both events as Platinum Sponsor. This is the first time a Japanese company has become an official sponsor for these regional events.

    Since 2003, Ajinomoto Co. has been working on the Victory Project®, which supports activities including sports nutritional guidance and amino acid conditioning for top-level athletes at international tournaments.

    The project provides top level athletes in Japan with Ajinomoto Group’s products and nutritional support through Kachimeshi® program, Ajinomoto’s sports nutrition meal program for building a winning physique.

    Being an official sponsor for the SEA Games and the ASEAN Para Games gives Ajinomoto Co. the opportunities to provide various supports through its subsidiaries in the Southeast Asian region based on a wealth of knowhow on nutritional support for athletes that the company has accumulated in Japan.

    Under the agreement, Ajinomoto Co. will provide products including seasonings, soups and coffee, depending on the cuisine of each country. It will also supply Amino VITAL®, the amino acid based product which aids in conditioning during extreme workouts, provides substantial muscle-building properties as a typical protein supplement and helps replenish energy during endurance sports.

    Ajinomoto Group representative inks deal making it the Platinum Sponsor of the 29th SEA Games and the 9th ASEAN Para Games.

    Ajinomoto Group representative inks deal making it the Platinum Sponsor of the 29th SEA Games and the 9th ASEAN Para Games.

    Founded in 1909, Ajinomoto is now operating in 28 countries and regions. It earned net sales of $9.87 billion in fiscal 2015.

    As a global manufacturer of high-quality seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals, Ajinomoto has for decades contributed to food culture and human health through wide-ranging application of amino acid technologies. Today, the company is becoming increasingly involved in finding solutions for improved food resources, human health and global sustainability.

    The company has established business bases in many Southeast Asian countries including Vietnam, Malaysia, Thailand, Indonesia, the Philippines and Singapore. The company has developed a consumer food business in these countries for many years, and thus has maintained a strong connection with the local food culture.

    Ajinomoto Co. established its Vietnam business in 1991. Ajinomoto Vietnam follows the mission of contributing to the growth of Vietnam, and to the happiness and good health of Vietnamese people through food culture and food resources development. The company specializes in “Delicious No.1” seasoning, food and beverage products.

    With the company’s specialty in food and health, Ajinomoto Vietnam is now taking initiatives in ASV, short for “Ajinomoto Group Creating Shared Value” which represents Ajinomoto Vietnam’s unchanging commitment to the creation of economic value and growth by contributing to the resolution of social issues, to create value together with the society and local communities.

    The company is now helping improve nutrition status for healthy living, develop food resources in agriculture sector and become model citizen in saving energy and natural resources.

    The Victory Meal as part of the Kachimeshi Program includes five dishes which provide nutritional balance with carbohydrates, protein and fiber.

    The Victory Meal as part of the Kachimeshi Program includes five dishes which provide nutritional balance with carbohydrates, protein and fiber.

    Under its School Meal Project, Ajinomoto Vietnam is collaborating with education and nutrition authorities to perform its social responsibility in the education sector. The project aims to improve the state of health among children and enhance their awareness of nutrition through primary school meals, to improve nutrition and health for the country’s next generation.

    The company’s expansion to the sports area aims to further its contribution to advances in food and health for general public as well as athletes in each country.

    The SEA Games and the ASEAN Para Games are held every two years to help forge strong regional cooperation, understanding and unity in the Southeast Asian community. They are the largest sports events in the region, attracting more than 600 million people each time.

    The 29th SEA Games and the 9th ASEAN Para Games are mainly held in Kuala Lumpur, Malaysia and hosted by Malaysia Organising Committee, with the participation of 11 nations: Vietnam, Brunei, Cambodia, East Timor, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. The 29th SEA Games will take place between August 19-31, 2017 and the 9th ASEAN Para Games September 17-23.

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