Retail News CRM

Tag: food and beverage

  • Cinnabon to Exit Singapore as Final Ion Orchard Store Closes

    Cinnabon to Exit Singapore as Final Ion Orchard Store Closes

    Cinnabon will pull out of Singapore on September 22, shutting its final Ion Orchard outlet after a three-year comeback attempt failed to gain commercial traction. The closure leaves master franchisee Wabi-Sabi empty-handed against an initial target to build a network of 10 locations across the city-state within five years.

    The American cinnamon roll brand announced the wind-down on September 8, confirming that operations at its sole remaining store in Orchard Road will finish before the end of the month. Outlets at Raffles City Shopping Centre and Jewel Changi Airport have already ceased trading.

    High Rents and Footfall Realities

    Securing high-profile retail space in Singapore demands relentless sales volume to cover overheads. Single-category bakery concepts face a severe margin squeeze when novelty fades and everyday demand fails to match prime shopping mall rental rates. Ion Orchard, Raffles City and Jewel Changi offer heavy pedestrian traffic, but they rank among the most expensive commercial addresses in Southeast Asia.

    For food and beverage operators, relying on a narrow product catalogue creates immediate vulnerability when footfall shifts or local consumer spending tightens. While larger multi-brand operators can cross-subsidise prime leases, standalone single-concept franchisees bear direct exposure to rising mall rents and labour costs. Wabi-Sabi took on substantial lease commitments in premier corridors rather than testing lower-cost suburban clusters first.

    The Second Exit in Two Decades

    This shutdown marks the second time Cinnabon has abandoned the Singapore market. The chain previously operated in the city before closing its retail footprint in 2002. It returned in February 2023 with the Raffles City debut, aiming to build a broader local presence through standard units and smaller kiosk formats.

    Master franchisee Alvin Ng outlined plans at the launch to take the franchise into suburban residential hubs. Those outer-island locations never materialised, leaving the business dependent on tourist-heavy downtown malls where foot traffic fluctuates and local repeat purchases remain harder to lock down.

    Regional Footprint After Singapore

    The retreat from Singapore leaves Cinnabon adjusting its wider Southeast Asian strategy. The brand re-entered neighbouring Malaysia in mid-2024 with a different franchise partner, testing whether suburban mall clusters and lower operating costs in that market can sustain unit economics that proved unviable in Singapore.

    Final trading at the Ion Orchard store concludes on September 22, when Wabi-Sabi hands back the premises and Cinnabon officially vacates the Singapore market.

  • Starbucks Opens Vietnam’s First Signing Store in Ho Chi Minh City

    Starbucks Opens Vietnam’s First Signing Store in Ho Chi Minh City

    Starbucks opened its first Signing Store in Vietnam on Ho Chi Minh City’s Cao Thang Street on Wednesday, expanding a regional format that already runs 26 outlets across four other Asian markets.

    Deaf staff work alongside hearing employees across counter service and daily operations, using visual menus, gestures and written order systems rather than spoken prompts.

    Operations on Cao Thang Street

    The unit sits set back from the main roadway on Cao Thang Street with a garden-style layout planned to lower ambient street noise for staff and guests. It serves the chain’s standard beverage and food menu while changing the service counter workflow to accommodate point-and-sign ordering.

    Chi Nguyen, director of external affairs at Starbucks Vietnam, stated to local media that the location functions as an inclusive space where staff and visitors interact directly through visual methods.

    Format Expansion Across Asia

    Specialised format stores of this type allow multinational food and beverage operators to test altered counter workflows without changing back-of-house supply chains. Starbucks established its first signing outlet in Kuala Lumpur in 2016 before expanding the concept to China, Japan and South Korea, where dedicated customer communication tools were integrated into standard point-of-sale setups.

    For commercial landlords, quiet and garden-style layouts of this type offer ways to activate secondary street frontage and deeper, non-standard retail floorplates that struggle to accommodate high-turnover drive-throughs or standard counter lines. The operational friction sits in staff onboarding and maintaining service speed during peak morning trade, where non-verbal communication systems must process complex drink customisations without causing counter bottlenecks.

    Market Positioning in Vietnam

    Starbucks opened its initial location in Ho Chi Minh City in 2013 and has spent more than a decade building a store network across major commercial hubs including Hanoi, Da Nang and Binh Duong. The brand competes against established domestic chains such as Highlands Coffee and Phuc Long, which operate larger branch networks at lower price points across Vietnam’s urban centres.

    The Cao Thang unit brings the company’s regional signing store count to 27 locations across Asia, with operators watching whether the model will be adapted for additional high-density retail districts in Hanoi.

  • Mixue Shifts Malaysia Strategy Toward Food Safety and Quality Control

    Mixue Shifts Malaysia Strategy Toward Food Safety and Quality Control

    Mixue has shifted its operational focus in Malaysia to food safety and standardized store management this quarter. It has slowed its rapid store openings to protect franchise consistency.

    The value-priced ice cream and tea operator is standardizing ingredient handling, audits, and franchise training across hundreds of independently run franchised outlets in the country.

    Standardising Store Operations

    Headquarters teams are rolling out stricter supplier checks, central storage compliance, and mandatory staff retraining. The goal is curbing hygiene inconsistencies across high-volume suburban counters.

    For franchisees, the tightened rules raise daily discipline and audit frequencies. Store managers face unannounced inspections covering temperature logs, equipment sanitization, and ingredient shelf-life tracking.

    Pressure on Value Tea Rivals

    Rival low-cost bubble tea chains in Malaysia now face immediate pressure. Many compete on single-digit ringgit price points. Churning out high volumes at discount prices leaves little room for error in cold chain logistics or store sanitation.

    Protecting customer trust before hygiene lapses damage the brand drives the compliance push. The main risk sits behind the counter. Enforcing uniform standards across hundreds of independently run franchised outlets demands continuous oversight costs.

    Next Phase of Southeast Asian Expansion

    Mixue entered Southeast Asia aggressively, relying on low franchise fees and an integrated Chinese supply chain to blanket Indonesia, Vietnam, and Malaysia. Rapid expansion quickly secured brand recognition across shopping malls and commercial shop lots.

    Maintaining product consistency across thousands of regional outlets poses a major challenge as local health authorities step up inspections of quick-service beverage chains.

    Malaysian franchisees will complete updated audit cycles over the coming quarter as headquarters evaluates network compliance across Peninsular Malaysia.

  • Informa Opens Restaurant, Bar & Café 2026 with 400 Brands in Hong Kong

    Informa Opens Restaurant, Bar & Café 2026 with 400 Brands in Hong Kong

    Informa Markets opened the 2026 edition of Restaurant, Bar & Café Hong Kong on September 1. More than 400 commercial brands across 11 countries and regions are taking part. The trade exhibition runs for three days at the Hong Kong Convention and Exhibition Centre. Organisers expect to draw over 9,000 commercial buyers, operators and hospitality suppliers.

    Eight commercial sectors are represented, spanning food and beverage, coffee, hospitality equipment, natural products and front-of-house technology. Informa co-located the show with the Retail Asia Conference and Expo. That pairing links traditional foodservice procurement directly to retail automation, point-of-sale software and artificial intelligence systems.

    Equipment Debuts and Dedicated Sourcing Zones

    Exhibitors are using the floor to debut equipment and raw ingredients in Asian commercial channels. Hardware displays include the FSWAAI automated packing and labelling scale, as well as robotic dispensing units from Tao Bin Smart Beverage Machine (HK) Limited. Food suppliers brought premium lines such as Marble King Full Blood Wagyu and Kochi Prefecture chicken from Japan. These items target upscale restaurant buyers looking for differentiated menus.

    Dedicated sourcing zones divide the floor to speed up buyer meetings. The Japan Sake & Spirits Pavilion groups regional distillers and brewers. Nearby, the Eco-Innovation Hub concentrates on biodegradable packaging and certified organic food products. The Specialty Coffee Corner features live demonstrations at a dedicated Brew Bar, connecting green coffee importers with independent café chains.

    Retail Technology and Automation Take the Floor

    Hong Kong restaurant operators face heavy margin pressure from high rents and kitchen staffing shortages. Automation is no longer optional. Dining chains must automate basic prep work, weighing, inventory control and beverage delivery to protect their margins. Suppliers displaying self-service beverage dispensers and automated packaging systems are pitching directly to quick-service operators seeking to trim back-of-house headcount.

    Landlords and food hall operators face equal pressure to refresh tenancies with destination dining concepts. Store layouts increasingly require digital ordering kiosks, automated inventory integration and rapid takeaway counters. The commercial risk falls hardest on small operators. Many face steep capital costs when adopting proprietary smart kitchen tech that takes years to deliver a return.

    Demographic Shifts Drive Sourcing Priorities

    Consumer demographic shifts across East Asia shape this year’s conference programme. Organised with KPMG, the Retail Asia Conference focuses on artificial intelligence adoption and younger consumer engagement. On the final day, the IFSA Food Safety Symposium addresses nutrition and texture formulations tailored specifically to an ageing population.

    Local trade shows are working to rebuild international exhibitor numbers following years of travel disruptions and tighter regional budgets. Earlier editions saw smaller regional turnouts. Drawing 11 exhibiting jurisdictions sets a benchmark for the city’s cross-border hospitality trade recovery.

    Events wrap up on September 3 with the Hong Kong Coffee Challenge finals, the Pairing Sensations Awards and the release of final verified trade buyer attendance figures.

  • Destination Italy Adds Two Frozen Pizza Lines Across Australia and New Zealand

    Destination Italy Adds Two Frozen Pizza Lines Across Australia and New Zealand

    Destination Italy expanded its frozen pizza lineup across Australia and New Zealand on September 7, 2026, launching two Italian-made varieties into regional supermarket freezers.

    Made in Italy, Woodfired Puttanesca and Woodfired Salame ship directly to Australian and New Zealand retailers catering to demand for imported convenience meals.

    Ingredients and Recipe Formats

    The Woodfired Puttanesca pizza uses a traditional tomato and mozzarella base topped with black olives, capers, and oregano. Woodfired Salame pairs that same base with sliced salami, produced in Italy before frozen transport.

    Both products rely on Italian-baked woodfired crusts to stand out from local alternatives. The format targets shoppers who want regional recipes without paying foodservice prices.

    Premium Competition in the Freezer Aisle

    Major grocers across Australia and New Zealand have steadily reallocated freezer space to imported and specialty private-label items over the past three years. Mainstream frozen pizzas face ongoing margin compression. That pressure has prompted distributors to push higher-value imported SKUs onto shelves.

    For retailers, imported lines offer higher basket values in a category historically dominated by discount domestic labels. Cold-chain freight costs and exchange-rate swings between the euro and the Australian dollar remain key operational hurdles, squeezing margins when shipping volumes fluctuate.

    Retail Distribution Timelines

    Destination Italy built its initial ANZ footprint around core woodfired SKUs before widening the range with specialized regional flavor profiles. Across the supermarket frozen sector, brands are taking similar premium routes, using origin-certified manufacturing to defend shelf share.

    Supermarkets will roll out the two new varieties across national freezer networks through the remainder of the month.

  • Kau Kee Opens First Retail Store in Hong Kong to Cut Out Middlemen

    Kau Kee Opens First Retail Store in Hong Kong to Cut Out Middlemen

    Kau Kee Food Factory opened its first physical retail shop in Mong Kok, selling fish balls directly to shoppers at HK$10 for 10 pieces. The price sits at roughly half the prevailing rate across Hong Kong street stalls.

    The business spent 66 years operating exclusively as an upstream manufacturer, supplying processed fish balls to nearly 1,000 local eateries and food stands. The direct storefront bypasses those third-party vendors entirely.

    Factory Pricing on the Street

    Second-generation owner Anita Lee Yan-kwan took charge of the manufacturing operation after leaving the civil service during the pandemic. Sharp declines in wholesale volumes prompted the shift down the supply chain.

    By managing its own retail counter, the factory absorbs its own output and eliminates distributor margins. The Mong Kok unit relies on volume, selling street-formulated fish balls made with tuna to maintain texture in heated broth. Store design elements, including a 3D-printed display, have helped pull in foot traffic, with tourists now accounting for 30 per cent of daily sales.

    Wholesale Margins Under Squeeze

    Legacy food manufacturers across East Asia face tight wholesale margins as independent snack stalls close under commercial rent pressures. Upstream processors that rely purely on supply contracts risk losing their entire distribution network when mom-and-pop tenants exit urban centres.

    Opening proprietary counters gives suppliers a predictable floor for production volume and real-time sales data. The trade-off is operational complexity. Managing retail staffing, high-street lease commitments and counter service requires capabilities that industrial food processors rarely possess internally.

    The Direct-to-Consumer Shift

    The physical store follows an initial direct-to-consumer digital trial. Kau Kee launched its first e-commerce store in 2023 to test consumer appetite for factory-direct purchases after street restrictions hit wholesale orders.

    Lee is currently scouting locations for Kau Kee’s second retail storefront in Hong Kong.

  • Burma Burma Expands to 21 Outlets Across India with D2C Lines

    Burma Burma Expands to 21 Outlets Across India with D2C Lines

    Indian dining chain Burma Burma has expanded its footprint to 21 outlets across India while adding direct-to-consumer pantry goods and ice cream lines. The concept, launched in Mumbai in 2014, built its network by converting traditionally meat-heavy and fish-sauce-based Burmese dishes into an entirely vegetarian, alcohol-free format.

    Founder Ankit Gupta began development for the concept in 2011, three years before opening the first restaurant in Mumbai’s Kala Ghoda district. Gupta spent that period travelling through Mandalay, Yangon, and Sagaing to document street food preparations, dine in private homes, and secure supply links directly from local agricultural markets. His connection to the cuisine came through his mother, who lived in Myanmar for more than 20 years.

    Adapting a Regional Menu

    Traditional Burmese cooking relies on fermented seafood pastes and meat broths, ingredients that Gupta stripped out entirely to fit Indian dining preferences. The resulting menu created a new reference point for a cuisine that had virtually no commercial presence in India prior to the chain’s launch.

    Most international food concepts entering India rely on pre-existing consumer awareness or western brand equity. Burma Burma established demand for an unfamiliar Southeast Asian category by pairing strict vegetarian compliance with specialized ingredient sourcing, demonstrating that niche regional formats can scale nationally without serving alcohol or meat.

    Retail Pantry and Ice Cream Expansion

    Alongside its 21 physical restaurants and tea rooms, the business has diversified into packaged consumer goods. The brand now sells a direct-to-consumer pantry line and an artisanal ice cream range, targeting at-home consumption across major urban centres.

    The company continues to distribute its packaged line online while managing supply chain flows for imported specialty ingredients across its 21-store restaurant network.

  • Bangladesh Power Shortages Force Consumer Goods Makers to Cut Factory Output

    Bangladesh Power Shortages Force Consumer Goods Makers to Cut Factory Output

    Bangladeshi consumer goods, food, and apparel manufacturers are cutting factory output and rescheduling shifts as industrial gas pressure drops by two thirds across major production hubs.

    The supply squeeze, triggered by an offshore liquefied natural gas terminal going offline on July 21, has forced plants onto costly diesel generators and raised operating expenses by up to 15 percent.

    Export Delays and Rising Fuel Costs

    Food and snack producers face immediate export disruptions. Bombay Sweets missed 45.47 percent of its export orders in August because of low gas pressure, leaving 113,000 dollars in paid orders undelivered while container freight rates to the Middle East reached 8,500 to 12,000 dollars.

    Diversified conglomerate PRAN-RFL Group has cut capacity on select processing lines in Narsingdi, Habiganj, Gazipur, and Narayanganj. The company is using liquefied petroleum gas to keep priority machinery running while idling others during pressure drops.

    Household goods supplier ACI Consumer Brands reports that running diesel generators for continuous 24-hour operations has increased production costs by 10 to 15 percent. Foreign buyers and domestic retail channels have resisted absorbing the difference, leaving manufacturers to absorb the margin squeeze.

    For regional retail brands sourcing apparel and packaged goods across South Asia, the bottlenecks demonstrate the fragility of grid-dependent production hubs, where sudden utility shortfalls directly jeopardize delivery timetables.

    Solar Investments to Offset Grid Failures

    Garment exporter Newage Group has altered shift patterns around electricity availability while drawing 25 percent of its plant power from rooftop solar installations. Drugmaker Incepta Pharmaceuticals is now juggling four distinct energy sources, grid electricity, natural gas, LPG, and diesel, to keep medicine lines operational.

    PRAN-RFL currently generates 35 to 38 megawatts of captive renewable power toward its 200-megawatt plant demand, with plans to expand solar generation capacity to 100 megawatts before the end of the fiscal year.

  • Yeo’s Launches Teriyaki Canned Tuna in Malaysia Protein Push

    Yeo’s Launches Teriyaki Canned Tuna in Malaysia Protein Push

    Yeo’s added Teriyaki and Chilli Spicy canned tuna to its Malaysian packaged food lineup, claiming the country’s first teriyaki-flavoured shelf-stable tuna variant.

    The product expansion targets consumers seeking convenient high-protein meals across supermarket and hypermarket channels.

    Protein Counts on Front-of-Pack Formats

    Both seafood products arrive in standard metal cans tailored for direct consumption or quick meal preparation. Yeo’s is positioning the line alongside its recent ready-to-eat ambient poultry launches, which use retort packaging to deliver traditional Malaysian recipes without refrigeration.

    Those retort pouch releases, Boneless Chicken Curry and Boneless Chicken Rendang, package 33 grams and 24 grams of protein per pouch respectively. Yeo’s engineered the poultry line for microwave heating, printing protein counts directly on the outer packaging to court shoppers monitoring macronutrient intake.

    Shifting Away From Commodity Canning

    Packaged seafood brands across Southeast Asia traditionally sell canned fish on basic functional attributes like omega-3 content and budget affordability. That strategy leaves margins exposed to rising raw fish costs and competition from supermarket private labels.

    Flavour-forward seasonings allow ambient seafood processors to command higher unit prices. Western brands successfully recast canned seafood into premium lifestyle items through specialty sauces and design-led branding, creating a playbook Asian food manufacturers now adapt for local retail shelves.

    Category Push Across Packaged Foods

    The tuna rollout follows a broader cycle of recipe and packaging adjustments at Yeo’s. The company pushed into modern convenient cooking earlier in the year with ambient cooking pastes and unsweetened heritage teas, testing whether legacy Asian food brands can capture younger urban households.

    Retail buyers are tracking initial off-take figures for both seasoned tuna variants across Malaysian grocers as Yeo’s prepares distribution for regional convenience chains.

  • Singapore Attracts over 50 Consumer Brand Investments as Regional Hub

    Singapore Attracts over 50 Consumer Brand Investments as Regional Hub

    Singapore secured more than 50 new consumer company investments between 2022 and September 2025, drawing global brands seeking a regional operating base for Asia.

    Danish jeweller Pandora opened its regional headquarters in Singapore in November, adding roughly 50 corporate positions to support 62 stores and 400 retail and office staff across Asian markets.

    Headquarter hubs and flagship rollouts

    Pandora Chief Commercial Officer Massimo Basei said the Singapore hub focuses on market development, digital operations, and marketing across both mature markets like Japan and South Korea and expansion targets including India and Indonesia.

    Swiss sportswear maker On and activewear brand Alo opened flagship locations at Jewel Changi Airport and The Shoppes at Marina Bay Sands in July and August. South Korea’s Lotte Shopping plans to open its international headquarters in Singapore in 2026 to direct its Southeast Asian store network.

    Global consumer groups increasingly treat Singapore as an operational bridge between headquarters in Europe or the United States and fragmented retail markets across Southeast Asia. Establishing central merchandising and supply chain teams in the city reduces the risk of running decentralized Asian market entries.

    American dining brands brave high failure rates

    Food and beverage chains from North America are also expanding their footprint in the city despite intense local competition. Fast food operator Chick-fil-A opens its first Asian outlet in Singapore on 11 December, following Blue Bottle Coffee, which launched its debut local cafe on 3 April.

    Tapestry broadened its luxury label Coach into hospitality with the Coach Cafe in 2023, followed by a Coach Coffee Shop and the woodfire-focused Coach Restaurant. In grocery retail, US potato supplier Lamb Weston rolled out retail frozen fries across FairPrice, FairPrice Xtra, and FairPrice Finest stores in November.

    The expansion runs counter to tough local operating conditions. Over 60 per cent of Singapore food businesses closed within five years between January and October 2025, and 82 per cent operated without a profit, according to parliamentary figures from Deputy Prime Minister Gan Kim Yong.

    US chain Chipotle Mexican Grill opens its first Singapore restaurant in 2026, while Lotte prepares its international headquarters for operation the same year.

  • Thai Brand Emily’s Rolls Out Konjac Version of Signature Chicken Noodles

    Thai Brand Emily’s Rolls Out Konjac Version of Signature Chicken Noodles

    Thai food brand Emily’s launched a limited-edition konjac version of its signature shredded chicken noodles on 20 August, targeting consumers seeking low-calorie dining options.

    The Bangkok-born business introduced the high-protein alternative as an adaptation of its core menu item, which drove the company’s initial viral retail growth across Thailand.

    Health-Focused Menu Shift

    Founders Naiyanachanok Patamasingh Na Ayutthaya and Thaparat Waerojruedee developed the dish by swapping traditional wheat-based noodles for konjac root substitutes. The formulation retains the brand’s original chicken seasoning while cutting net carbohydrates and overall calorie counts.

    Konjac noodles have gained traction across Southeast Asian quick-service and casual dining formats. Fast-casual concepts across Bangkok and regional capitals frequently use limited-run functional dishes to convert casual social media interest into repeat footfall without changing baseline kitchen inventory permanently.

    Limited-Edition Rollout

    The new recipe operates as a short-run promotional item across the brand’s sales channels. Emily’s built its retail footprint around packaged and ready-to-eat comfort food formats before branching into dedicated counter operations.

    Customer sales performance and reorder velocity during the initial promotion window will determine whether the brand integrates the konjac dish into its permanent daily menu.

  • MILO Partners Malaysian Sports Ministry Ahead of SEA Games 2027

    MILO Partners Malaysian Sports Ministry Ahead of SEA Games 2027

    MILO partnered with Malaysia’s Ministry of Youth and Sports in Putrajaya to distribute more than 100,000 cups of malt beverage during national day celebrations.

    The sampling initiative tied the chocolate malt brand directly to state-backed athletic programs ahead of the 2027 Southeast Asian Games. Grassroots sports alignment remains central to Nestlé’s commercial strategy for the brand across Southeast Asia.

    Sampling and Sports Alignment

    Field teams deployed distribution vans across Putrajaya on 31 August 2026 during Malaysia’s 69th Independence Day gathering. Officials from the Ministry of Youth and Sports joined the event, linking the brand’s school sports outreach to national youth athletic development.

    Sports partnerships have anchored MILO’s market share in Malaysia for decades, insulating the brand from newer ready-to-drink beverage competitors. Rivals in the dairy and malt category rely heavily on supermarket retail promotions, while Nestlé uses institutional sporting ties and on-ground school van activations to secure early brand loyalty.

    Preparation for Regional Games

    Both parties structured the collaboration around youth athletic readiness ahead of Malaysia hosting the SEA Games in 2027. The ministry plans to use existing youth development tracks to identify talent across primary and secondary schools nationwide over the next 12 months.

  • Chagee Same-Store Sales Fall 16.1% in China as Network Shifts Direct

    Chagee Same-Store Sales Fall 16.1% in China as Network Shifts Direct

    Chagee posted a 16.1 per cent drop in same-store gross merchandise value across Greater China for the second quarter, marking its fifth consecutive quarter of double-digit declines at home.

    Total revenue for the Nasdaq-listed tea chain edged up 2.5 per cent year on year to RMB3.4 billion (US$503.3 million) in the three months ended June 30, while operating income jumped 387.6 per cent to RMB524.7 million. Total gross merchandise value fell 5.5 per cent to RMB7.66 billion, weighed down by a 9 per cent contraction in Greater China to RMB7.16 billion.

    Network shifts to corporate stores

    Chagee is responding to cooling domestic demand by buying back franchised outlets and running them directly. In Greater China, company-operated stores jumped from 164 to 624 over the past twelve months, while franchised locations declined from a peak of 6,836 in September 2025 to 6,616.

    Those company-owned outlets made up 11.6 per cent of the total network at the end of June but generated 27.5 per cent of overall revenue. Direct-store revenue climbed to RMB940.6 million, offsetting an 18.1 per cent fall in franchise revenue to RMB2.47 billion. Meanwhile, active members fell from 50 million in the first quarter to 47.1 million.

    China’s beverage chains are grappling with the aftermath of an aggressive 2025 delivery platform price war that drove cup prices down to single digits. While rivals like Mixue and Heytea rely heavily on deep discounting and sheer store density, Chagee is attempting to lift unit margins by consolidating ownership of its best locations.

    Overseas footprint doubles

    Outside China, gross merchandise value rose 114.3 per cent to RMB504 million. Chagee expanded its international footprint to 399 stores from 208 a year earlier, with initial momentum in new territories including South Korea, where its first three Seoul locations sold more than 16,000 cups in three days.

    Yet existing international stores are feeling the same demand pressures as domestic sites. Overseas same-store GMV declined 15.1 per cent during the quarter, steepening from a 12 per cent drop in the first three months of the year.

    Investors will watch whether the pace of franchise buybacks can stabilize network revenue before international same-store sales deteriorate further in the third quarter.

  • Robusta Coffee Climate Resilience Is a Flawed Myth, Study Warns

    Robusta Coffee Climate Resilience Is a Flawed Myth, Study Warns

    A new research study has challenged the widely held assumption that robusta coffee will withstand global warming better than arabica varieties. The crop suffers from severe drought intolerance, undermining its reputation as a climate-resilient alternative for global beverage supply chains.

    Tens of millions of bags of robusta reach international markets every year, with the bulk originating from farms in Vietnam and Brazil. Beverage brands and roasters have increasingly relied on the bean as rising temperatures squeeze traditional arabica harvests across Latin America and Africa.

    Flawed Assumptions on Crop Tolerance

    Researchers found that prior assessments overlooked how sensitive robusta plants are to water shortages during key growing cycles. The lead author described claims of broad climate resilience as an internet myth built on incomplete data.

    “Robusta is more heat-tolerant than arabica, but it’s drought-intolerant,” the study noted. While the variety can endure higher ambient temperatures, dry spells drastically cut yields, leaving commercial growers exposed to sudden harvest declines.

    Pressure on Asian Beverage Supply Chains

    For Southeast Asian agricultural hubs and instant-coffee processors, the findings point to growing volatility in raw bean procurement. Vietnam supplies the vast majority of global robusta exports, meaning prolonged dry weather in the Central Highlands directly disrupts margins for consumer packaged goods groups and cafe operators across Asia.

    Food and beverage manufacturers now face higher hedging costs and the need for heavier capital investment in farm irrigation systems to secure future robusta volumes.

  • Chagee Second Quarter Profit Jumps to $68.5 Million as Overseas Sales Surge

    Chagee Second Quarter Profit Jumps to $68.5 Million as Overseas Sales Surge

    Chagee posted a net income of RMB464.8 million ($68.5 million) for the second quarter, up from RMB77.2 million a year earlier as international expansion lifted returns.

    Net margin climbed to 13.6 per cent from 2.3 per cent in the prior-year period. Total revenue rose 2.5 per cent to RMB3.4 billion ($503.3 million) for the three months ended June 30, supported by an 8.5 per cent increase in store count to 7,639 locations worldwide.

    Overseas Momentum Offsets Domestic Softness

    Operating income surged 387.6 per cent to RMB524.7 million after the chain cut operating expenses by 10 per cent. While gross merchandise value dropped 9 per cent in Greater China, sales across eight international markets jumped 114.3 per cent.

    Seoul provided an early spark for that overseas push. Three teahouses in the South Korean capital sold over 16,000 drinks during their first three days, driven by more than 46,000 mobile app downloads recorded ahead of the launch.

    The divergence between domestic and overseas performance reflects the intense discounting battle among premium tea brands inside mainland China. Rivals such as Nayuki and Heytea have faced margin erosion at home, prompting operators to look abroad where pricing power remains intact and consumer demand for Chinese milk tea formats is expanding rapidly.

    Member Retention and Sales Outlook

    Loyalty membership reached 257 million registered users by the end of June. Repurchase rates among active loyalty users held above 43 per cent during the period.

    Management reported that same-store sales declines moderated in July, with comps projected to swing into positive territory in August.