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.

  • Fei Fah Novelty Food to open first flagship retail store and cafe 155 South Bridge

    Fei Fah Novelty Food to open first flagship retail store and cafe 155 South Bridge

    “A woman teared (up) when she tried our mooncake at the Hong Kong Food Expo,” recalled Lawrence Lau, the chief executive officer and managing director of Fei Fah International Group, which produces Chui Lau Heung mooncakes.

    That was when he realised how similar the food business is to his family’s traditional trade, said the 50-year-old, third-generation owner of Fei Fah, which started out as a medical hall on South Bridge Road and continues to produce medicinal balms under the brand, Fei Fah Medical. He explained that his grandfather had started the medical hall with the intention of providing for his family. “But once he sorted out his finances, he took up skills as a Chinese physician to help lessen the suffering of others and make them happy.

    “Food does the same thing: I might not be lessening your pain but I am creating joy and happiness through good taste. I am creating bonding experiences between people by selling a product that they can share and enjoy.”

    Lau entered the food business by chance, when he was looking to diversify the family business. “Our Hong Kong office for the medical business was bleeding and I was looking for a breakthrough to turn things around.” It was then that he met a durian mooncake manufacturer in Singapore, who was seeking partners to help export the confection. This led to the creation of Chui Lau Heung mooncakes in 2003 and the subsequent inception of Fei Fah Novelty Food in 2005. “It was challenging understanding the product, learning about food storage, logistics, and how to market the product in Hong Kong,” he said. It was a bold move given the small market in Hong Kong, as few as two out of 10 consumers were receptive to durian. But the company decided to enter the market anyway, said Lau. The subsequent rise of budget airlines made travelling to Singapore and Malaysia affordable for those in Hong Kong and around the South China Sea. This meant more of them were spending time on our shores and getting acquainted with local flavours. “And with durian, once they tried it, they went nuts over it. Today, 70 per cent of Hong Kongers are not put off by durians and demand is so much higher. In fact we are seeing demand also from mainland China, and that is a huge market,” he added. Chui Lau Heung is currently one of Hong Kong’s top five selling mooncake brands.

    When Fei Fah Novelty Food’s first flagship retail store and cafe 155 South Bridge opens at Pagoda Street on August 1, Singaporeans will finally get a chance to taste this homegrown product that is sold across continents, from Hong Kong, Macau and Guangzhou, to Los Angeles, San Francisco, San Jose, Seattle, Houston, Honolulu, New York, and Chicago, to Toronto, Calgary, Edmonton, Montreal and Vancouver.

    Look out for their new offering of crystal durian mini mooncake — the brand’s 2016 creation that features a creamy mix of D24 and Mao Shan Wang durian filling encased in a tender, see-through crystal skin. The novelty mooncake is made to resemble a faceted jewel. Lau shared that the idea was conceived in November last year, and that it took a long time for his master chef to perfect the recipe, as creating the crystal skin proved more challenging than anybody had thought. While not revealing numbers, Lau said that quantities are limited and stocks for this mooncake will not be replenished once they are sold. The crystal mooncakes are already available for early bird orders in Hong Kong, Macau and the United States.

    Apart from the mooncakes, the shop and cafe spanning two levels will showcase products under Fei Fah Novelty Food, which includes items such as durian honey and fish bak kuah, and also those from Fei Fah Medical, such as traditional balms and medical oils. Koh Yuen Lin

  • Fast food giant eyes Jollibee China expansion

    Fast food giant eyes Jollibee China expansion

    Philippine fastfood giant Jollibee Foods Corp is keen to expand its footprint in China.

    Jollibee China is likely to add 20 to 40 new stores to its 400 outlets, according to Jollbee CEO Ernestro Tanmantiong. He said the company continues to target 5 to 10 per cent growth in stores.

    “We are exploring acquisitions. Our focus is on food service,” he said, adding that the company had acquired a commissary to support its business.

    Early this year, Jollibee Foods took over a food manufacturing facility that services Yonghe King, a famous non-Western restaurant in China.

    Asked about the recent international ruling on the West Philippine Sea and its impact on the business, Tanmantiong said the company thinks the ongoing dispute is unlikely to hurt the company’s operations in China.

    “I think the move of the government to employ diplomacy is the best way to settle the differences. It is the best solution,” Tanmantiong said.

    “Our vision in the future is to achieve a 50-50 ratio of international versus Philippines. Today, it’s 80 per cent Philippines and 20 per cent international. We hope to achieve a 50-50 ratio but it doesn’t mean we are slowing down in the Philippines,” he said.

  • SMI helping launch Ippudo in Myanmar

    SMI helping launch Ippudo in Myanmar

    Singapore Myanmar Investco (SMI) will launch Japanese ramen restaurant chain Ippudo in Myanmar early next year.

    Brand owner Chikaranomoto Holdings will provide training programs for SMI to set up and run the Myanmar restaurants.

    ippudo outside

    “We see abundant growth opportunities within the F&B retail market in Myanmar, and the time is ripe for us to introduce the Ippudo brand and cuisine to the growing middle class,” says SMI president/CEO Mark Bedingham.

    SMI, which is involved in consumer products and services in Myanmar, is looking to invest in retail and F&B over the next three years. It has also signed a franchise agreement with restaurant group Crystal Jade and The Coffee Bean and Tea Leaf.

  • Fonterra benefits from growing milk consumption

    Fonterra benefits from growing milk consumption

    Dairy giant Fonterra Brands Indonesia president director Achyut Kasireddy, New Zealand Prime Minister John Key and Trade Minister Todd McClay share a conversation during an event at Fonterra manufacturing plant in Cikarang, West Java, on Tuesday. Key will end on Wednesday his three-day visit to Indonesia, during which he has brought along dozens of executives from various New Zealand companies in an effort to strengthen economic ties and consolidate several investment opportunities.

    New Zealand dairy firm Fonterra Brands Indonesia has reaped benefits from Indonesia’s growing milk consumption, becoming New Zealand’s poster boy for success.

    The company, part of multinational dairy cooperative Fonterra, sees Indonesia as one of its priority markets, with huge promise amid dairy product demand growth.

    According to the Agriculture Ministry, annual household consumption of dairy products rose to 313 ounces per capita in 2014 from only 209 ounces in 2013.

    As demands grow, Fonterra Brands Indonesia president director Achyut Kasireddy said on Tuesday that it was focusing to fulfill the capacity of its plant to “cater to the demand of dairy products for the next three years”.

    It operates a Rp 340 billion (US$25.98 million)-worth plant in Cikarang, West Java. The plant commenced operations last September and is Fonterra’s biggest investment in Southeast Asia in the last decade.

    Utilization rate of the plant has hit 60 percent of its full potential to produce 16,000 tons of milk powder a year and up to 87,000 packages of dairy products a day. It markets several milk brands in Indonesia, including Anlene, Anchor Boneeto and Anmum.

    Kasireddy said Fonterra may expand its investment in the country should it utilize the plant well.

    It deems upcoming investment as important to accommodate changes in consumers’ taste and preference, resulting in different product types, such as powders, liquids and any other formats.

    “For the future, there may be other opportunities that we will seriously look at. There will be a new concept and they are all in the concept stage right now,” he said without going into details.

    He claimed that Fonterra Brands Indonesia had also substantially invested in training for farmers to boost their production. It imports around 75 percent of its ingredients for milk powder from New Zealand and hopes to leverage the farmers’ products in the future.

    “As we keep helping local dairy communities transform their farming and enhance their production, the country is going to have high quality milk produced locally that will be available for companies like us,” he said.

    New Zealand Prime Minister John Key said during his visit to the plant that the company could be at the forefront of the growing demand for dairy products in Asia.

    “These are markets where, inevitably, as the consumer base gets wealthier, demand grows not only for more protein but for more security and quality in its food. That’s where Fonterra fits in,” said Key in his speech.

    He said the plant was an example of how New Zealand and Indonesia could benefit from investment in the dairy industry.

    “This [Fonterra’s plant] is living proof of work by the New Zealand government to pave way for New Zealand companies to develop a footprint and grow New Zealand’s reach to the world,” Key said.

    Key was accompanied by New Zealand Trade Minister Todd McClay and a delegation of New Zealand businesspeople for the plant visit, which was part of his two-day visit to Indonesia. He met with President Joko “Jokowi” Widodo on Monday and discussed economic cooperation.

  • Indonesian coffee showcase to open in Seoul

    Indonesian coffee showcase to open in Seoul

    Indonesia has high hopes of carving out a share of the crowded Korean domestic cafe scene and coffee market.

    A cafe specialising in artisanal Indonesian coffee is planned to open soon on the Bojeong-dong Cafe Street in Seoul. It will sell ground coffee and coffee beans from different regions in Indonesia, according to the Southeast Asian nation’s small and medium enterprises minister Anak Agung Gede Puspayoga.

    “As one of the top coffee consumers in the world, South Korea should buy more coffee from Indonesia,” he said.

    According to USDA data, South Korea’s coffee market is estimated at more than US$3 billion annually. Indonesia does not believe it is getting its fair share.

    The planned Indonesian coffee cafe will initially sell coffee beans grown in three cities: Temanggung in Central Java, Denpasar in Bali and Bandung in West Java, including Priyangan coffee, Indonesia’s version of kopi Luwak, the famed civet coffee, and Temanggung, its Arabica and Robusta coffee.

    The shop is part of a partnership hatched between the Korea Federation of Micro Enterprise, or KFME – which represents South Korea’s 7 million small businesses – and the non-profit International Council of Small Business.

    The partnership will also see prominent Korean bakeries provide training for Indonesian bakers.

  • Store roll-out boosts Starbucks Asia

    Store roll-out boosts Starbucks Asia

    A massive Starbucks Asia store roll-out has boosted the global coffee company’s third quarter results.

    Across China and the Asia-Pacific region, Starbucks opened 888 new stores in the first nine months of the current financial year. That helped lift revenues by 18 per cent in the region.

    However, underlying same-store sales were a far more modest 3 per cent up on the same quarter last year.

    “The concern is that some of this is related to a general slowdown in China which, if part of a longer term trend, could harm company earnings,’ observed retail analyst Neil Saunders, CEO of Conlumino.

    The company’s Channel Development division – which encompasses the sale of Starbucks branded products in grocers and other stores- also posted positive numbers, with revenues rising 9 per cent. This was aided by strong sales of single-serve Starbucks products following a new agreement with Keurig Green Mountain to push branded K-Cups into more channels. A new partnership with Nespresso to launch Starbucks-branded pods should provided a further uplift to this division in the quarters ahead.

    “Unfortunately, the stronger performances in Asia and in the Channel Development Segment were not enough to offset the weakness in the Americas, which remains larger than all other divisions combined,” said Saunders.

    “And therein lies the forward issue for Starbucks: it has to increase momentum in this part of its business if it is to get back into high growth territory and if it is to avoid a future squeeze on profits.”

    Globally, Starbucks seemed to lose momentum in the third quarter, with overall growth slowing to 7 per cent and global same-store growth moderating to 4 per cent – both below forecast.

    “Worryingly, the slowdown took hold across all regions with even the Americas division, which usually puts in a fairly robust performance, posting a lacklustre same-store increase of 4 per cent. The fact that the company appears to have run out of steam somewhat overshadows its nonetheless impressive achievement of breaking the $1 billion operating income barrier for the first time in a non-holiday quarter.”

  • Yogorino Korea lauched, thanks to a Rapper

    Yogorino Korea lauched, thanks to a Rapper

    Irish frozen yogurt franchise Yogorino Korea has opened its first store in collaboration with a local partner.

    Korean rapper Zico helped draw a crowd for the inauguration of the Yogorino store in Seogyo-dong, south-west of Seoul and home of Hongik University. Zico, named Fashion Icon of the Year, has been chosen as Yogorino’s ambassador. He is signing promotional items and customers may have a chance to meet him in one of the stores planned to roll out in Korea.

    The new outlet covers two floors, including a spacious seating area. As well as frozen yogurt, Yogorino sells ice cream, coffee and cakes.

    For South Korea, Yogorino has signed a master franchising deal with Italyo Korea, which has drawn up a 10-year development plan including about 100 stores, corner shops and shopping -centre kiosks, ready to be set in motion in the next few months.

    Yogorino also has branches in Japan and the Philippines.

  • McDonald’s Philippines targets 900 stores

    McDonald’s Philippines targets 900 stores

    Local franchisee, Golden Arches Development, expects McDonald’s Philippines to reach 500 stores in 2016 and 900 in coming years.

    Golden Arches VP for marketing Margot Torres said in an interview, “We are going to hit the 500 stores before the end of the year because we had 494 as of June,.”

    He added that plans would depend on the opening of shopping malls in the country.

    Due to construction delays, the 500 store count originally set in 2015 was moved to mid-2016.

    Torres said Golden Arches, which opens 40 stores every year, has seen strong sales for  McDonald’s since the second half of 2015, when celebrities Maine Mendoza and Alden Richard endorsed the brand.

    “There is still room for growth in Metro Manila but [there] is also huge potential for expansion outside Metro Manila, particularly in the Visayas and Mindanao,” Torres said.

    With convenience stores’ affordable meals posing a threat to the fast-food industry, McDonald’s is boosting its game by focusing on its online delivery.

  • SCR Corp set to move into Indonesia

    SCR Corp set to move into Indonesia

    Sarawak (Malaysia) restaurant chain SCR Corp is set to move into Indonesia, first targeting Pontianak in Borneo as well as Jakarta.

    GM (franchising and strategic planning) Johnny Leo Lee Boon says the company is ready to launch its franchise business once potential partners have secured prime locations in the two cities. He says business groups from Pontianak and Jakarta have visited Sarawak several times to study the chain’s franchise business model.

    “They have come up with proposed secondary locations to set up SCR restaurants that we find may not be ideal,” he says. “We advise them to look for strategic prime locations where there are good daily crowds… The ball now is in their court.”

    Leo says Jakarta has more than 70 malls that are ideal for F&B, while Pontianak with its population of about 1.6 million people could also support the franchise.

    SCR, which celebrates its 30th anniversary next year, owns 36 restaurants and has 19 franchised outlets in Sarawak, Sabah, Labuan and Brunei. Fourteen of the owned outlets and five franchises are in Kuching. The menu features 110 local and western dishes and beverages, with Singapore chicken rice the signature dish.

    Leo says SCR is also in preliminary talks with a company in the Philippines about franchising, and its executives are expected to visit soon.

    Meanwhile, SCR will soon open its first franchise outlet in Lawas, northern Sarawak, and there are expansion plans to to Kapit once the road link is ready.

    “The food business market in Sarawak is saturated,” says Leo. “We are consolidating and limiting the number of outlets in certain towns. Our focus is to expand our franchise business to more countries in Asean.”

  • Wrap & Roll Vietnam gets capital injection

    Wrap & Roll Vietnam gets capital injection

    Restaurant chain Wrap & Roll Vietnam has received a $7 million capital injection from Mekong Capital..

    “The founders and management team of Wrap & Roll have done an extraordinary job of establishing Wrap & Roll as a proven concept with urban consumers in Vietnam and Singapore,” said Chad Ovel, a partner at Mekong Capital. “They have successfully created Wrap & Roll as a modern way to enjoy authentic and healthy Vietnamese food.”

    Mekong Capital invested into the chain via their new enterprise called Mekong Enterprise Fund III to make its first deal since June last year. The fund will focus on retail, restaurants, consumer products and customer services in Vietnam. The private equity company has already taken a stake in electronics retailer Mobile World.

    Wrap & Roll Vietnam owner Nguyen Thi Kim Oanh said the restaurateur found Mekong Capital to be a credible partner to help the business grow sustainably.

    “Mekong Capital not only funds the company but also supports our company with strategic consultancy in many management fields such as human resources, restructuring, management practices and corporate finance.”

    With the experience in investing of Mekong and 10-year operating of Wrap & Roll, the two companies hope the concept will find success globally.

    Established in 2006, the healthy, traditional food brand has 11 restaurants in Vietnam and four franchises in Singapore. More restaurants are announced to be opened in Hanoi and Ho Chi Minh City. Other international markets are being evaluated.

  • Starbucks investing in upscale chains

    Starbucks investing in upscale chains

    Starbucks plans to open a new brand of stores called Starbucks Reserve-only starting next year.

    The coffee chain has also joined global investment team, Milan-based Angel Lab and Pekepan Investments to expand the footprint of standalone boutique bakery’s and cafes into international markets.

    Starbucks Reserve-only will offer premium, small lot reserve coffee in stores that will be approximately twice as large as current Starbucks stores and will feature ‘more of a cafe atmosphere’.

    “We recognise our customers expect and desire a higher level of product and we want to give it to them,” said Howard Schultz, company chair and CEO.

    The company plans to open the new stores next year in hundreds of locations.

    Schultz said the new brand is part of a broader company plan to improve and expand its food offerings.

    The company also announced earlier it has partnered with Italian restaurant Princi, the boutique bakery and café founded by Rocco Princi in 1986 known for its artisan breads created from traditional family recipes.

    Princi’s menu will become the exclusive food offering in all new Starbucks Roastery locations, including Shanghai and New York and will be fully integrated into all new Starbucks Reserve-only stores starting 2017.

    The investment team, which includes Milan-based Angel Lab and Pekepan Investments, will focus on expanding the number of standalone Princi locations worldwide as well as making Princi the exclusive food purveyor at the new Starbucks Reserve Roastery and Tasting Rooms in Shanghai and New York. The Shanghai and New York Roastery locations are on track to open in 2017 and 2018, respectively.

    “We have never baked in our stores in 45 years. But all of that will change with the creation of this unique partnership,” Schultz said.

    “Rocco and his team at Princi possess a passion for handcrafted food and artisanal baked goods that mirrors how I feel about our coffee. The attention to detail, the care invested in selecting the ingredients and the artistry of preparation is second only to the service Rocco offers customers inside his Princi stores.”

    “I can think of no better pairing for our most premium coffee experience and am excited by the possibilities we envision in Princi food elevating every daypart – breakfast, lunch, and dinner – in Starbucks Roasteries and Reserve Stores.”

    Currently, Starbucks has nearly 24,000 stores worldwide and offers Reserve coffee in 2,000 locations in 30 countries.

  • E-Mart and Lotte enter Vietnam

    E-Mart and Lotte enter Vietnam

    The Go Vap district near Tan Son Nhat International Airport and part of Ho Chi Minh City in Vietnam are widely known as special to the Korean retail industry. This is because despite the fact that there are not many Koreans residing in the area, Korean retail giants are competing fiercely in the region. E-Mart, Lotte Mart and Vietnam’s second largest retailer Big C all have stores competing in a four kilometer (2.5 mile) radius.

    E-Mart and Lotte Mart are competing for dominance in the young Vietnamese market. More than half of Vietnam’s population of 93 million is less than thirty years old. The large market industry is also undeveloped in Vietnam, with 75 percent of shopping being done at traditional markets, so there is great potential for growth. This potential attracts big retailers like E-Mart and Lotte Mart. Go Vap is particularly attractive because its residents are middle class, well-earning couples. Lotte Mart established itself in Vietnam in 2008 and has 12 stores, which is the third highest in Vietnam for a retailer. E-Mart leapt into the Vietnamese market last December with its store in Go Vap and it is planning to expand its operations.

    The E-Mart store in Go Vap is no different from the ones in Korea. There were the iconic yellow shopping carts as well as No Brand products displayed in the center of the store. No Brand products, modeled after the Japanese company Muji, are relatively cheap because they have no branding and packaging costs, but their quality remains unaffected. E-Mart’s membership card has the phrase “Korea’s No.1 Mart.”

    “We have set up our stores to reflect the Korean lifestyle,” Chang Yun-suk of E-Mart said. “The reasonably priced No Brand products are considered Korean luxury products in Vietnam.”

    E-Mart also operates an Electro Mart, which specializes in electronic goods, in Vietnam. Even on a weekday afternoon, there are plenty of Vietnamese customers flying drones and enjoying the action figures on show, as well as singing karaoke. E-Mart showcased the Electro Mart when it opened its E-Mart Town last June and it only has them in a few places in Korea, including in Yeongdeungpo in Seoul and in Pangyo, Gyeonggi.

    The Korean lifestyle theme is felt in the food available in the area, with Starbucks and Korean pork belly, or samgyeopsal, restaurants in the store. It is unusual to have a Starbucks in a large mart like E-Mart in Vietnam but Shinsegae Group, which operates Starbucks in Korea, persuaded the Vietnamese authorities to have a Starbucks in the store like they do in Korea. Vietnam normally only has Starbucks in hotels, department stores and luxury shopping malls.

    On the other hand, the Lotte Mart store in Go Vap, located only three kilometers from its rival E-Mart, has a Vietnamese feel. The store is filled with a thousand types of Vietnam Choice L products, which are developed and produced in Vietnam. Lotte Mart aims to offer products based on the Vietnamese lifestyle. The traditional rice noodles and cookies are all made in Vietnam. At the end of this year, Lotte Mart will release a point system for all of its subsidiaries in Vietnam known as Vietnam L. Point.

    Lotte Mart even exports Vietnamese products to Korea. Lotte Mart stores in Korea offer various Vietnamese goods including Vietnamese G7 coffee and hosts a special program onVietnam every summer. This is because Lotte Group is very well established in Vietnam with its many subsidiaries based there, including top restaurant business Lotteria, Lotte Hotel and Lotte Department Stores. Lotte wants to project a positive image of itself to the Vietnamese people.

    In fact, the Lotte Mart enjoys so much export success in the Vietnamese market that even Vietnamese politicians and media often jokingly ask their domestic companies, “Do you know how much Vietnamese products Lotte Mart export?”

    The E-Mart and Lotter Mart stores differ greatly, but their large size and strategy for entertainment are compatible. The E-Mart store is 10,579 square meters in size while the Lotte Mart store is 13,223 square meters. Both stores welcome between 10,000 and 15,000 customers every day and both have large motorbike/scooter parking lots capable of holding 1,500 such vehicles to cater to Vietnamese customers, whose main method of road transport is either motorbikes or scooters.

    Both stores also target couples with children, hence they both have large children’s cafes, each measuring 990 square meters. Lotte Mart’s entertainment stores, including its bowling arena and cinema, cover a considerable area of 6,600 square meters, while E-Mart’s occupies 4,628 square meters.

    “Vietnam does not have many amusement parks and cinemas so families often come to large marts to enjoy leisure activities,” Hong Won-sik, general director of Lotte Mart Vietnam, said. “Also, considering the business side, Vietnam has such low consumer prices that it is common to make profits through external store rents rather than from selling fresh products.”

     

  • Yum China divestment on track

    Yum China divestment on track

    The Yum China divestment is expected to be completed by October 31.

    The US fast food giant released the target date along with second quarter figures showing solid sales growth across most Asian markets, especially within the KFC division.

    CEO Greg Creed said he was particularly pleased with “the continued sales momentum at KFC China,” which delivered better-than-expected same-store sales growth of 3 per cent.

    “Yum! Brands delivered second-quarter (global) core operating profit growth of 7 per cent and earnings-per-share growth, excluding special items, of 9 per cent. Given our strong first-half results and current trends in China, I’m pleased to raise our full-year core operating profit growth forecast to at least 14 per cent.”

    Creed said the China result represented its fourth-consecutive quarter of positive same-store sales growth at KFC China.

    “Importantly, our China Division is off to a good start in the third quarter for both KFC and Pizza Hut Casual Dining, including a return to positive same-store sales at Pizza Hut in recent weeks.”

    Outside of China, challenging industry conditions in the US contributed to soft sales results.

    The separation of the China business would create “two powerful, independent, focused growth companies,” said Creed.

    “Our capital structure is fully in place and we plan to return a significant amount of capital to shareholders both prior to and after the spin.”

    Creed promised further information at an investor briefing on October 11.

    Yum China same-store sales were even, with an increase of 3 per cent at KFC, offset by a decline of 11 per cent at Pizza Hut. The China division opened 72 new stores during the quarter, taking its network there to 7246

    Meanwhile, in developing Asian markets – including Malaysia, Indonesia and the Philippines – which account for 7 per cent of KFC’s global turnover, sales rose 11 per cent in the quarter and are running 10 per cent ahead of last year for the first half.

    In Thailand, which accounts for 3 per cent of KFC’s global turnover, sales rose 17 per cent in both the second quarter and the first half.

    And in developed Asian markets – such as Japan, Korea and Taiwan – which accounts for 9 per cent of turnover, sales rose 6 per cent by quarter and half.

    Pizza Hut sales in developing Asian markets rose 5 per cent in the second quarter and 3 per cent in the first half. In developed Asian markets, sales fell 7 per cent this year.

  • Bidding disappoints McDonald’s Corporation

    Bidding disappoints McDonald’s Corporation

    McDonald’s Corporation says it is struggling to attract the calibre of bidders it envisioned when it put its China and Hong Kong franchise up for tender.

    The restaurant group is offering a 20-year master franchisees for its markets in China, Hong Kong and South Korea. Bidding has gone into its second round and predictions are the deal could be worth US$2 billion to $3 billion.

    Conditions include McDonald’s keeping management intact for two years, with a limitation on taking the franchise public. Other restrictions have reportedly discouraged many private-equity firms from participating in the bidding.

    Global buyout firms such as Bain Capital, Carlyle Group and TPG Capital have put up their hands with the aim of teaming up with some of the Chinese strategic bidders.

    Bidders asked to submit for the second round of the tender include dairy company Beijing Sanyuan Foods, Beijing Tourism Group, ChemChina, state-owned China Cinda Asset Management and Sanpower.

    McDonald’s share price has surged more than 23 per cent since CEO Steve Easterbrook launched a turnaround effort. The plan for Asia comprises one or more local partners taking over the China and Hong Kong franchise of 2800 stores for 20 years while paying royalties to the corporation.

    However, many investors are anxious following the food scandal that hit McDonald’s sales in 2014, reports BFN.

    Meanwhile, McDonald’s last year announced plans to sell its business in Taiwan plus a substantial ownership stake in Japan, but as yet investors have yet to be secured. “We are making solid progress as we look for long-term strategic partners with local relevance who have complementary skills and expertise,” says a company spokesperson.

  • Chicken rice restaurant Pow Sing suspended for link to gastroenteritis outbreak

    Chicken rice restaurant Pow Sing suspended for link to gastroenteritis outbreak

    Pow Sing Restaurant along Serangoon Garden Way, known for its chicken rice, has been suspended due to links to several cases of gastroenteritis between Jul 4 and 11, the Ministry of Health (MOH), National Environment Agency (NEA), and Agri-Food and Veterinary Authority of Singapore (AVA) said in a joint press release on Wednesday (Jul 13).

    As of Tuesday, 29 reported gastroenteritis cases have been verified and further investigations are ongoing, the authorities said.

    MOH, NEA and AVA were first notified of the cases on Jul 4 and had immediately conducted joint inspections of the restaurant’s premises the next day, they said.

    Several hygiene lapses, including a failure to maintain temperature records and allowing an unregistered food handler to prepare food, were observed, and the restaurant had been instructed to rectify them immediately, the agencies added.

    “There is reason to suspect that there might be a continuing source of infection in the premises,” the authorities stated, noting that they were alerted to another four cases on Jul 11, after checks were conducted.

    NEA suspended the 33-year-old restaurant starting Wednesday to protect consumers from public health risks, the agencies said. Pow Sing has also been instructed to dispose of all ready-to-eat and thawed food as well as perishable food items, conduct thorough cleaning and sanitising of its premises including equipment, utensils, work surfaces and toilets, and review and rectify the lapses in food preparation processes identified during the joint inspections.

    Meanwhile, AVA has collected food samples from the restaurant and is conducting laboratory tests on them, and MOH is screening stool samples from the affected cases and the restaurant’s food handlers. Only food handlers who are tested to be free of food poisoning pathogens and have re-attended and passed the Basic Food Hygiene Course will be allowed to resume work, the authorities said, adding that MOH and NEA will continue to monitor the situation closely.

    Based on the findings of the joint inspections, NEA will take necessary enforcement actions against the restaurant for hygiene infringements, the authorities said.

    “Food operators are also reminded to ensure that all food handlers are registered with the NEA and that they do not engage in any food preparation if they are sick. Food retail outlets are inspected regularly and strict enforcement action will be taken against any errant food retail outlets,” they added.

    Members of the public can report incidents related to food hygiene by calling the 24-hour NEA Contact Centre at 1800-CALL-NEA (1800-2255-632).

    RESTAURANT CLOSED FOR RENOVATIONS: OWNER

    When Channel NewsAsia visited Pow Sing on Wednesday at around 8.50pm, the restaurant was shuttered and had notices outside indicating it was “closed for renovations” starting Wednesday.

    “We will resume our business once the renovation finishes. If there are any further delays we will keep you up to date,” the restaurant said in the notice.

    One of the two founders of the Pow Sing group, Lee Chin Soo, said the renovations of the restaurant had nothing to do with the gastroenteritis incidents and that he only found about the suspension on Tuesday morning.

    “It has already been so long; we have never done any sort of renovation. I took this chance and I wanted to change the seats and change the look of the restaurant. I took the chance to clean out everything that looks dirty,” he said.

    Mr Steven Tan, the other founder of the brand, is said to be overseas.

    Mr Lee said he wished to find out why the hygiene lapses happened, as it was the first time such a thing had happened at the restaurant in its 30-plus years of operations.

    “NEA and MOH have not gotten back to us about the cause, and I really do not have much information but I would like to know more. I will take more steps in future to look at everything more closely,” he said.

    He added that he would not “run away” and would face his responsibilities.

    “The employees here have been with me for a very long time, I also stop by often … I have been serving chicken rice since I was young,” Mr Lee said.

    Meanwhile, a manager of Pow Sing Kitchen, also under the Pow Sing group, said it had a separate kitchen from Pow Sing Restaurant and was run by different management, even though they reported to the same bosses. Pow Sing Kitchen, which was still open on Wednesday night, is not affected by the closure, said the manager, who only wanted to be known as “Tommy”.

    CnP7awMVIAABKNI