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Tag: BreadTalk

  • First BreadTalk India has opened

    First BreadTalk India has opened

    BreadTalk India has opened its first store, in the capital New Delhi. The inaugural BreadTalk India store opened on Wednesday on the first floor of the Select Citywalk shopping centre, the company said in a statement. India marks BreadTalk’s 18th international market. It now has stores all over Asia, including in Mainland China, Hong Kong, Indonesia, Malaysia, Philippines, Thailand, Vietnam, Myanmar, Cambodia and Sri Lanka.

    “We are very excited to work with SomDatt Group to open our first BreadTalk outlet in New Delhi,” said founder Tan Aik Peng.

    The Singapore-headquartered chain is promising to deliver the same authentic taste of the brand’s signature breads, including its Flosss bun, Hokkaido Roll, Chilli Pepper Dog, Pumpkin Loaf, Japan Light Cheesecake, Salted Egg Lava Croissant, Tuna Bun and Raisin California Dry Cake.

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  • BreadTalk high expectation on its tea brands

    BreadTalk high expectation on its tea brands

    Bakery franchise BreadTalk Group has brought two Shenzhen-based specialty tea brands – Nayuki and TaiGai – into Singapore.

    BreadTalk will operate and manage both brands in its joint venture with Shenzhen Pindao Food & Beverage Management. The agreement marks both tea brands’ first overseas stores, which will open this year. They enter a market in which tea drinks are an increasingly popular beverage product.

    Both the Shenzhen-based tea brands have been successful in China. TaiGai operates 60 stores on the Chinese mainland, while Nayuki has 100 new stores planned in China by end of this year – it made national news when it opened three stores within 33 days, earning it the label “veloci-tea”.

    Their signature offerings feature healthy tea options using mainly fresh fruits and premium-quality teas. While Nayuki is known for its “soft-euro bakes” cake products, TaiGai is best known for its signature fruit-blended milk cheese crowns, which it terms “fruity milky kisses”.

  • BreadTalk celebrates another quarter of growth

    BreadTalk celebrates another quarter of growth

    Singapore-headquartered F&B group BreadTalk has announced US$148.8 million in total sales for the second quarter, an increase of 0.8 per cent over last year.

    Henry Chu, BreadTalk Group CEO said the company ended yet another quarter of core earnings improvement powered by growth in its existing brands and contributions from new brands which have surpassed expectations.

    “This was achieved despite costs being incurred to consolidate certain underperforming businesses as well as investments made to boost the efficiency of our backend support infrastructure. On the back of the many corporate actions announced over the past six months, my team and I are excited to get on with the execution to see these initiatives to fruition.”

    While pursuing its global expansion plans with strategic joint-venture partnerships, the group will continue to broaden its business mix by developing new direct-owned brands such as Sergeant’s Kitchen in Hong Kong, Shanghai and Bangkok and Una-Yu in Food Republic Shanghai Tower.

  • BreadTalk sets expansion plan for China, Indonesia

    BreadTalk sets expansion plan for China, Indonesia

    BreadTalk Group is expanding through new joint ventures in China and Indonesia.

    Using a wholly owned subsidiary, Shanghai BreadTalk Gourmet, the Singapore-listed food chain operator has formed a joint venture with Ge Ying to operate BreadTalk bakeries in Chongqing, China.

    “This strategic partnership combines BreadTalk Group’s wealth of experience in managing and developing franchisee relationships with Ge Ying’s strong understanding of Chinese consumers’ preferences,” BreadTalk Group said in a statement.

    Ge Ying has been managing the BreadTalk brand of bakeries in Tibet for the last six years. “With proven track records, the group is confident of his team’s capabilities to lead the growth plans for Chongqing, China.”

    BreadTalk Group will hold a 30 per cent stake in the joint venture, which will potentially expand across southwestern China.

    Tan Aik Peng, BreadTalk Group’s bakery division CEO said adopting a joint venture approach rather than a franchising agreement was in line with the group’s long-term direction of increasing directly owned outlets in Mainland China.

    “Our strong product development and innovative brand promotion, coupled with Mr Ge Ying and his team’s proven track record in BreadTalk operational management and strong local knowledge will create a win-win situation for us in Chongqing. Looking ahead, it will serve as a good foundation for us to build a strong southwestern China base in Chongqing, enabling us the opportunity to penetrate further into other southwestern markets like Yunnan and Guiyang provinces.

    “We are fully committed to the Chinese bakery market in which we have full confidence to meet the discerning tastes of the Chinese consumers,” concluded Peng.

    Toast Box expands into Indonesia

    Meanwhile, through its BreadTalk International subsidiary, the company has formed another joint venture in Indonesia.

    It has a 70 per cent stake in BTG – Pura Indah Berkat Venture, with partner Pura Indah Berkat, which operates the Toast Box brand and chain of outlets in Indonesia.

    The first Toast Box outlet is scheduled to open this year in central Jakarta. Currently, PIB manages a Toast Box outlet at Soekarno-Hatta International Airport Terminal 3.

    In a statement announcing the venture, Peng described Indonesia as “a strategic and important market for the company” and that the Toast Box format is “highly relevant” to Indonesian consumers.

    “We are confident that with our insights and experience from operating Toast Box in Singapore and other regions, our consumers will be able to enjoy our quality Nanyang coffee, toast products and local delicacies in Indonesia,” said Tan.

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  • Toast Box to launch new concept

    Toast Box to launch new concept

    Toast Box Philippines, the Singaporean restaurant chain known for its kaya toast, eggs, and coffee sets, is closing – but plans to re-open with a new concept.

    Announcements at its Manila branches have cited tomorrow as the final day of trading in the Philippines. “We want to take this opportunity to sincerely thank you for your patronage for the past 10 years. It has been a privilege and a delight serving you.

    “We will be renovating our stores and will reopen with a new brand. We hope to see you back in our stores very soon.”

    Toast Box is one of several food retail brands owned by Singapore’s BreadTalk Group. Others include Bread Society, BreadTalk, Din Tai Fung, Food Republic, So, The Icing Room and Thye Moh Chan.

    However a Toast Box Philippines marketing executive has confirmed the company will close its Manila branches then introduce a new concept, “Nanyang”, which will offer Asian favourites. It will launch at SM Aura in Taguig on June 1.

  • BreadTalk Group to bring new tea cafes to Singapore and Thailand

    BreadTalk Group to bring new tea cafes to Singapore and Thailand

    BreadTalk Group has partnered with Shenzhen Pindao Food & Beverage Management to introduce tea beverages to Singapore and Thailand.

    BreadTalk’s wholly owned subsidiary Together Inc and Shenzhen Pindao have formed a JV, BTG-Pindao Venture. Together Inc will hold a 90 per cent stake of the JV, with Pindao holding the balance. Under the S$3 million (US$2.2) agreement, BTG-Pindao will run and manage tea beverage brands Nayuki and Tai Gai in Singapore and Thailand, with a first right of refusal for Malaysia, Indonesia and the Philippines.

    The first Tai Gai store outside China is slated to be launched late this year. While it offers a novel way of appreciating tea, Nayuki brings a new cafe concept of premium tea creations complemented by European-inspired artisanal breads. Tai Gai first opened in China in July 2015, followed four months later by Nayuki.

    “It took us just three years to build both Nayuki and Tai Gai to more than 100 stores in China, despite a landscape where international beverage chains were capturing the hearts of many young consumers,” says Pindao CEO Zhao Lin.

    Founded as a bakery brand in Singapore in 2000, BreadTalk has become an award-winning F&B group with bakery, restaurant and food-atrium footprints. With nearly 1000 retail stores across 17 territories, its brand portfolio comprises Bread Society, BreadTalk, Din Tai Fung, Food Republic, So, The Icing Room, Thye Moh Chan and Toast Box.

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  • BreadTalk Group to broaden brand mixes

    BreadTalk Group to broaden brand mixes

    Diminished returns from BreadTalk Group’s bakeries in Hong Kong and Mainland China saw the division’s sales slip 4.5 per cent in the first quarter of this year.

    However, group revenue rose 0.5 per cent to S$148.5 million (US$111.55 million) as other divisions compensated. And on a like-for-like basis, BreadTalk’s core food and beverage business posted an increase in net profit of 89.4 per cent, from $1.6 million to $2.9 million.

    “This was attained through the group’s continual focus on pursuing sustainable growth and eliminating underperforming assets which improved earning quality,” explained chairman Dr George Quek.

    “We will continue to identify new growth opportunities through joint-venture partnerships and invest in talent development. Through higher operational efficiencies, we remain well positioned to pilot through a challenging food and beverage retail landscape this year,” he said.

    During the quarter, the group brought forward the closure of eight bakery outlets in China and one Food Atrium outlet in Hangzhou. At the end of the quarter, BreadTalk had 254 Chinese franchise outlets across 28 cities compared with 278 outlets across 36 cities the same time a year earlier.

    Quek said during the rest of this year, BreadTalk will continue to diversify its business mix and portfolio, while remaining agile in managing underachieving stores, introducing new Direct-Owned Restaurant (DOR) concepts for its Food Atrium division, and take brands such as Song Fa Bak Kut Teh into China.

    Restaurant expansion

    BreadTalk’s restaurant division’s revenue rose 6.2 per cent to $36.9 million with the addition of three more outlets – one in Singapore and two in Thailand. Pre-tax earnings improved  by 24.4 per cent to $8.7 million despite higher staff and administrative costs in the lead-up to the opening of its first Din Tai Fung outlet in the UK, scheduled for the final quarter of this year.

    The new 4orth Food Concepts business achieved revenue of $2.7 million during the quarter.

    It now comprises five So Ramen outlets in Singapore and one Song Fa Bak Kut Teh (“Song Fa”) outlet in Shanghai, China.

    Taiwan foray

    In March, BreadTalk entered into a joint venture agreement with Taiwanese brand, Wu Pao Chun Bakery to take its products into four Mainland China cities: Beijing, Shanghai, Shenzhen and Guangzhou. There are further plans to expand the joint venture into Singapore and Hong Kong.

    March also saw the debut of BreadTalk Group’s Toast Box brand into Indonesia following a JV with Pura Indah Berkat.

    BreadTalk now has close to 1000 retail stores spread across 17 countries and territories, its brand portfolio comprising BreadTalk, Toast Box, Food Republic, Din Tai Fung, Bread Society, Thye Moh Chan, The Icing Room and So. The group owns bakery outlets in Singapore, China, Malaysia, Hong Kong and Thailand as well as franchised bakery outlets across Asia and the Middle East. It also owns and operates the world-renowned Din Tai Fung restaurants in Singapore and Thailand, as well as the Food Republic food atria in Singapore, China, Taiwan, Hong Kong and Malaysia.

  • BreadTalk Q1 net profit plummets

    BreadTalk Q1 net profit plummets

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

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

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

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

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  • BreadTalk to take Taiwan’s Wu Pao Chun bakeries into China

    BreadTalk to take Taiwan’s Wu Pao Chun bakeries into China

    BreadTalk Singapore says it has formed JVs with a Taiwan company to run bakeries in China.

    BreadTalk subsidiary Shanghai Star Food F&B Management has partnered with Wu Pao Chun Food of Taiwan to run Wu Pao Chun outlets in Beijing, Shanghai, Shenzhen and Guangzhou. Shanghai Star will hold 80 per cent of the Shanghai JV and can own up to 40 per cent of the Beijing, Shenzhen and Guangzhou JVs.

    Both companies expect to form JVs for co-operation in Singapore and Hong Kong later.

    BreadTalk owns 1000 retail stores in Singapore, Mainland China, Hong Kong, Malaysia and Thailand.

  • Singapore’s BreadTalk Unit Forms Joint Ventures To Operate Bakeries In China

    Singapore’s BreadTalk Unit Forms Joint Ventures To Operate Bakeries In China

    Singapore baker BreadTalk unit Shanghai Star Food F&B Management has formed joint ventures with Wu Pao Chun Food of Taiwan to operate Wu Pao Chun bakeries, BreadTalk said in a filing Monday.

    The joint ventures will run Wu Pao Chun bakeries in Beijing, Shanghai, Shenzhen and Guangzhou. Shanghai Star will hold 80% of the Shanghai joint venture and can own up to 40% of the Beijing, Shenzhen and Guangzhou joint ventures. Both companies expect to conclude joint ventures for Singapore and Hong Kong later.

    The deal isn’t expected to have any material effect on the earnings per share and net tangible assets of BreadTalk for the financial year ending Dec. 31. The filing didn’t disclose further financial details.

     

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  • BreadTalk Group posts a positive profit growth

    BreadTalk Group posts a positive profit growth

    With a record 91 per cent profit growth, lifestyle F&B company BreadTalk Group says it is ready to soar in a challenging market.

    Its record net profit for last year came in at US$21.8 million despite an “unpredictable” macro retail environment, says the Singapore-headquartered company.

    “We are well positioned to soar above the challenging retail market conditions,” says chairman Dr George Quek.

    “The group remains determined to identify innovative food concepts and partnerships, delivering them promptly across our 17 territories.”

    In line with the group’s consolidation strategy for the year, group revenue eased 2.5 per cent to $599.7 million.

    For the same period, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 3.5 per cent to $84.4 million, with EBITDA margin steady at 14.1 per cent.

    Profit after tax and minority interests (PATMI) improved 91 per cent from $11.4 million to $21.8 million. PATMI margin rose from 1.9 to 3.6 per cent.

    During the year, $9.3 million in net capital gain was recognised from the divestment of the group’s investment in TripleOne Somerset in the first quarter.

    Excluding one-off items, core F&B business net profit for the year would have been $17.7 million, an improvement of 153.3 per cent.

    Bakery less bouyant

    Bakery-division revenue declined 3.2 per cent to $297.2 million, attributed to lower revenue from directly run stores in Beijing, Shanghai and Hong Kong, as well as lower franchise revenue from China because of the planned early termination of eight franchisees during the year.

    There were 20 fewer directly run stores at 240, following the reclassification of the eight outlets in Malaysia in the fourth quarter to franchise, as well as closures in China and Singapore.

    Franchise outlets ended the year at 631, 29 more because of the addition of the re-classified outlets from Malaysia as well as more outlet openings by franchisees in Indonesia, Philippines and Thailand.

    EBITDA for the division declined 20.5 per cent to $23.2 million, with EBITDA margin at 7.8 per cent, down from 9.5 per cent, mainly because of lower profitability at Shanghai and Singapore directly run stores, and lower high-margin revenue contribution from the China franchise business.

    For the food atrium division, revenue was 5.4 per cent lower at $149.3 million with four fewer outlets. The same-store sales growth momentum for the entire food atrium portfolio was strong, especially in China. Two outlets opened in Shenzhen during the fourth quarter, at MIXC World and Uniwalk.

    EBITDA improved 53.7 per cent to $25.1 million, with EBITDA margin improving from 10.3 to 16.8 per cent.

    London debut

    For the restaurant division, revenue was up 2.2 per cent to $140.7 million, with one outlet being added in Thailand. EBITDA rose in tandem by 2.1 per cent to $30.1 million with EBITDA margin steady at 21.4 per cent despite costs related to the start-up of the group’s first Din Tai Fung outlet in London.

    A new business division, the 4orth Division, was launched with the objective of incubating F&B concepts, as well as enter into joint ventures. The division ended the year with revenue of $7.9 million and EBITDA of $500,000, translating to an EBITDA margin of 6.8 per cent.

    “Significant” efforts were put into consolidating and turning around the group’s bakery business, particularly underperforming stores in China and Singapore. Also, the Toast Box product in China was revamped to better suit the local palate and to meet the consumers’ mobile lifestyle.

    BreadTalk’s food-atrium division ended the year with a record low stall vacancies of less than 2 per cent.

    The management team is also staying focused on deepening reach in Singapore and Thailand to further optimise economies of scale. Two outlets were opened last month, at the new Northpoint City in Singapore and at Thonglor in Bangkok.

    All five Ramen Play outlets were rebranded as So, turning the business profitable. The group’s first JV, Song Fa Bak Kut Teh outlet at Jing An Kerry Centre in Shanghai officially opened last month, to be followed by further Song Fa outlets in other parts of Shanghai as well as in other cities in China and Thailand.

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  • BreadTalk Group great profit results

    BreadTalk Group great profit results

    BreadTalk Group has moved beyond merely making a crust, with breakthrough profits for its third quarter to the end of September.

    This was despite a challenging retail environment, says the F&B group which recorded a 139.5 per cent explosion in net profit to S$16.8 million (US$12.3 million) for the period. It attributes its success to an “unwavering focus” on assessing and re-organising its business portfolios while identifying new growth opportunities.

    “Our core F&B net profit increased fivefold to $12.1 million for the quarter, signifying the underlying strength of our core businesses,” says BreadTalk Group chairman Dr George Quek.

    Last month the company won the World Branding Awards for the third time.

    Meanwhile, group revenue for the first nine months of this year declined 2.6 per cent year-on-year to $449.5 million. At the same time, EBITDA rose 9.1 per cent to $64.9 million, with EBITDA margin improving to 14.4 per cent from 12.9 per cent for the same period a year ago.

    In quarter one, there was $9.3 million in net capital gain from the divestment of the group’s investment in TripleOne Somerset, as well as $8.8 million from the divestment of 112 Katong Mall.

    Robust recovery

    In line with overall group strategy, BreadTalk’s consolidated food-atrium portfolio in China and Singapore showed robust recovery. The vacancy rate across the portfolio remained at a record low of less than 2.5 per cent.

    EBITDA for the division rallied by 127 per cent to $17.7 million, with EBITDA margin improving by 9.3 points to 15.7 per cent. However, with the closure of three underperforming stores in China, total revenue declined 6.9 per cent to $112.4 million. It now has 54 outlets.

    For BreakTalk’s restaurant division, total revenue grew by a steady 2.5 per cent to $104.8 million, driven mainly by its Din Tai Fung restaurants in Singapore and Thailand. Overall EBITDA improvement 7 per cent to $22.3 million, with EBITDA margin rising by 0.8 points to 21.2 per cent.

    Weaker performance by directly run stores in Beijing, Shanghai and Singapore eroded bakery division revenue by 2.7 per cent to $223.1 million. While these stores were unchanged at 255 outlets, 15 more franchise outlets were added to reach a total of 604.

    In September, the group signed a sale-and-purchase agreement for its business with United Malayan Land. This will enable the group to take advantage of the developer’s experience in the Malaysian property market.

    EBITDA for the division declined 13.3 per cent to $18.7 million, with margin at 8.4 per cent (9.4 per cent previously).

    BreadTalk formed 4orth Division this year to identify F&B opportunities, and is led by group CEO Henry Chu. It converted five RamenPlay outlets to So Ramen by the end of September, which are now generating 8.5 per cent improvement in revenue to reach $658,000 from August to September.

    In July, the division entered into a 90-10 JV with Song Fa Holdings to introduce the Bak Kut Teh brand to China and Thailand.

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  • Breadtalk Group quarterly profit jumps 62 per cent

    Breadtalk Group quarterly profit jumps 62 per cent

    Breadtalk Group has posted a 61.9 per cent jump in net profit to S$2.11 million (US$1.5 million) for its second quarter to the end of June.

    This followed an 18.7 per cent rise in other income to $5.68 million and reduced interest and administrative expenses. Revenue slipped 1.5 per cent to $147.57 million.

    Its higher earnings were achieved by consistent focus on evaluating and streamlining portfolios while maximising growth opportunities, says the Singapore company.

    Net profit for the half-year more than tripled to $12.8 million despite a 3 per cent decline in revenue to $295.2 million.

    “This places the group in a strong position to rise above the difficult retail environment,” says chairman George Quek.

    He says the group remains on course to consolidate underperforming stores and expand its footprint in high-performing markets.

    While outlet openings still proceed at a cautious pace, the group will continue to focus on improving overall profitability and quality of earnings.

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  • BreadTalk to take Din Tai Fung into UK

    BreadTalk to take Din Tai Fung into UK

    BreadTalk Group has signed a franchise agreement with the parent of the Din Tai Fung brand of restaurants to take the Taiwanese concept into the UK.

    BreadTalk Group says the deal with Fairy Rise Development, the owner of Din Tai Fung, will see the first restaurant opened in London next year, followed by outlets in England, Ireland and Northern Ireland.  They will be run by a joint venture company TFUK, comprising BreadTalk subsidiary Together Inc as majority shareholder, Din Tai Fung Taiwan, Fairy Rise, a UK partner and Taiwanese investors.

    Cheng William, divisional CEO (restaurant) of BreadTalk Group says the deal will see the concept enter Europe for the first time.

    “With our experience in operating the brand for the last 13 years in both Singapore and Thailand, we hope to bring the much loved Din Tai Fung to new consumers who will appreciate this authentic Taiwanese cuisine,” he said.

    Din Tai Fung’s owner,  Chi-Hwa Yang, says the international recognition Din Tai Fung enjoys today “is in no small part attributable to our long-standing partnership with the BreadTalk Group. BreadTalk Group has played an integral role in our success by growing and exposing our Taiwanese brand to an international audience.”

    BreadTalk Group operates 21 Din Tai Fung restaurants in Singapore and three restaurants in Thailand with more planned.

    Globally, Din Tai Fung’s stores have won multiple awards, including a Michelin star in Hong Kong, and are favoured by celebrities and food critics alike with a total of 135 restaurants in 13 territories.

    BreadTalk Group won the franchise rights to operate Din Tai Fung in Singapore and Thailand, in 2003 and 2011 respectively. The Taiwanese brand also has branches in Australia, China, Hong Kong, Indonesia, Japan, Malaysia, the Philippines, South Korea, the UAE and the US.

    BreadTalk Group has nearly 1000 stores spread across 17 markets, its brand portfolio comprises BreadTalk, Toast Box, Food Republic, Din Tai Fung, Thye Moh Chan, Bread Society, The Icing Room and RamenPlay.

    BreadTalk Group has a network of owned bakery outlets in Singapore, China, Malaysia, Hong Kong, and Thailand, as well as franchised bakery outlets across Asia and the Middle East. It also owns the Food Republic food atria in Singapore, China, Taiwan, Hong Kong, and Malaysia.

  • The evolution of BreadTalk Singapore through the years

    The evolution of BreadTalk Singapore through the years

    It rolls out new bakery concepts every four years.

    To stay relevant in this difficult operating environment amidst the onslaught of e-commerce, constant make-over and product innovation are inevitable for retail stores.

    Standing out amongst retailers in Singapore is homegrown bakery brand BreadTalk, which carried out a series of space revamps and exhibited willingness to experiment.

    RHB analyst Juliana Cai notes that BreadTalk launches a new bakery concept every four years to maintain a fresh brand image. It also rolled out 50 new products along with its latest concept launch.

    Here are the four major faces of BreadTalk from year 2000 to the present, from a simple boutique bakery to a store with rustic feel:

    1
    Generation One – boutique bakery (2000-2004)

     

    2
    Generation Two – eye on elegance (2004-2008)

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    3
    Generation Three – jewellery casing (2008-2011)

     

    4-breadtalk
    Generation Four – rustic feel (2012-present day)

     

    What do you think? Leave a comment about BreadTalk transformation.

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