Retail News CRM

Tag: Franchising

  • TGI Fridays Signs Deal to Open 15 Restaurants in Pakistan

    TGI Fridays Signs Deal to Open 15 Restaurants in Pakistan

    TGI Fridays announced a development agreement with Meerab Hospitality on Sept. 23, 2026, to expand its presence in South Asia by scaling to 15 restaurants across Pakistan.

    The agreement targets a market of more than 240 million people with a median age of 21, aligning with the brand’s wider 1-2-3 Strategic Vision to reach over 1,000 restaurants and $2 billion in annual revenue by 2030.

    Flagship site set for Lahore

    Development begins in Lahore, where the first flagship restaurant is targeted to open within the next 12 months at the Hyatt Regency Hotel complex to establish the standard for future locations.

    Operating rights belong to Meerab Hospitality, the franchise and development arm of Meerab Properties. Led by founder and group chief executive Pervaiz Iqbal Shahid, the group holds two decades of property and operational assets across the UAE, Pakistan, and Central Asia.

    Shahid confirmed the group plans to rebuild the brand through a capitalized operating structure following earlier market exits.

    Franchise mechanics and local operating risks

    Pakistan offers international operators massive demographic scale, but execution risks are high. Western chains operating full-service formats face volatile currencies, rising utility overheads, and shifting import duties on specialized ingredients. To protect unit economics from currency shocks, operators must build domestic supply chains for poultry, produce, and dairy.

    Competition is fierce from domestic dining brands and fast-casual burger chains running lower average checks. TGI Fridays bets that dense commercial developments and hotel sites like the Hyatt Regency will generate the footfall needed to fill large dining rooms.

    Shift toward experiential dining formats

    Retail landlords and developers increasingly rely on international food-and-beverage banners to pull foot traffic into mixed-use sites. Landlords in Lahore, Karachi, and Islamabad are shifting gross leasable area away from apparel retail and toward dining and entertainment hubs aimed at consumers under 30.

    Offerings will center on non-alcoholic drinks, mocktail menus, and American bar-and-grill staples tailored to local dining habits. Support hubs in Dubai, London, and Dallas will handle franchisee assistance, quality audits, and menu localization across South Asia.

    Global pipeline targets 1,000 locations by 2030

    The expansion fits into the Dallas-based chain’s 1-2-3 Strategic Vision turnaround plan. That program aims to expand the global footprint past 1,000 restaurants and generate $2 billion in annual system revenue by 2030. Today, the chain runs roughly 400 restaurants across nearly 40 countries.

    September has already brought two market entries for the brand, starting with a franchise launch in the Balkans. Over the past year, regional agreements have added nearly 200 commitments across the Maldives, the Philippines, Japan, Kenya, Peru, Mexico, Spain, Greece, and Cyprus.

    Fit-out work at the Hyatt Regency complex in Lahore begins this year, with initial guest intake targeted before the final quarter of 2027.

  • McDonald’s Tests Third-Party Ads on Screens Across 13,700 US Stores

    McDonald’s Tests Third-Party Ads on Screens Across 13,700 US Stores

    McDonald’s is testing third-party ads on digital menu boards and ordering kiosks in select company-owned US restaurants. The trial targets the gap between payment and collection across a domestic footprint of more than 13,700 outlets.

    Drive-thru boards and self-service kiosks display commercial promos once a customer completes an order. Reserving that post-purchase window for outside brands lets the chain build a high-margin ad business without slowing down the ordering queue.

    Sales growth has decelerated sharply. Second-quarter global comparable sales rose 1.3 per cent for the period ended June 30. Domestic comparable sales slowed to 0.8 per cent, down from 3.9 per cent in the first quarter.

    Turning Customer Wait Times into Ad Inventory

    The system relies on idle visual time. After an order is logged and paid for, the display switches from item selection to third-party commercials while the kitchen prepares the meal.

    McDonald’s reaches roughly 26 million daily customers in the US. It interacts with nearly 90 per cent of the country’s population each year. That physical footfall provides an audience density rival digital networks struggle to match at the point of sale.

    A company spokesperson confirmed the test in an email statement:

    “This limited menu board advertising pilot at select company-owned restaurants is exploring ways to share post-purchase content that customers may find helpful, relevant, or interesting, while ensuring the McDonald’s experience remains at the center of every visit.”

    The Push into In-Store Retail Media

    Supermarket operators have spent years converting aisle footfall into retail media revenue. Media margins now generate between 3 per cent and 10 per cent of total operating profit for grocers, according to McKinsey & Co.

    Fast-food chains have lagged behind supermarkets in building dedicated advertising arms. A study by Forrester Consulting found restaurant operators have been slow to commercialise transaction data and screen interactions, leaving physical point-of-sale displays underutilised.

    In-store hardware is already deployed. Digital board rollouts began roughly a decade ago. By 2019, dynamic screens sat in more than 11,000 drive-thru lanes alongside self-ordering kiosks inside dining rooms.

    Implications for Asian Master Franchisees

    Asian master franchisees and licensed operators could use the pilot as a blueprint to extract auxiliary revenue from capital-intensive store refits. High-density markets such as Japan, South Korea, Taiwan and the Philippines already run heavily digitised ordering environments with dense foot traffic.

    Monetising screen real estate introduces friction with store operations. Franchisees run the vast majority of outlets globally. Operators will demand a clear split of ad revenues if corporate headquarters mandates third-party messaging on store hardware.

    Clutter presents another hurdle. Displaying non-food advertisements in dining areas risks degrading store environments. Promoting outside consumer goods at drive-thrus can also distract drivers during meal rushes, forcing operators to balance ad income against speed-of-service metrics.

    Traffic Squeeze and Hardware Modernisation

    Mounting margin pressure from rising input costs and softening store traffic drove the ad pilot. McDonald’s responded earlier this year by introducing value-oriented meal bundles to counter customer resistance to menu price increases.

    Modernising the digital footprint formed the first phase of this strategy. Over the past decade, capital poured into indoor touchscreens, drive-thru automation and mobile loyalty programmes to lower labour requirements and capture first-party consumer data.

    An investor day, the company’s first in three years, is scheduled for September 23. Management is expected to outline whether third-party screen advertising will expand across franchised locations or remain confined to company-operated pilot stores.

  • Tim Ho Wan Opens First Global Dim Sum Innovation Lab in Hong Kong

    Tim Ho Wan Opens First Global Dim Sum Innovation Lab in Hong Kong

    Tim Ho Wan opened its first Global Dim Sum Innovation Lab at Lee Garden Two in Hong Kong in September 2026. The site serves as the central development kitchen for its worldwide restaurant network.

    The facility centralises recipe testing and chef training to standardise food quality across international branches. Glass walls separate the test kitchen from the dining room. Diners in Causeway Bay can watch staff test ingredients, adjust steamer temperatures, and refine techniques.

    Developing Standardised Dim Sum Menus

    Culinary teams at the site test recipe tolerances and intentional errors. This work establishes baseline operating procedures before dishes roll out overseas. Global creative director Chef Cheung Yat Sing leads menu development inside the Causeway Bay kitchen, focusing on consistency across varied kitchen setups.

    Global chief executive Sheng Lee said the objective is converting high-end dim sum craft into replicable commercial formats across all markets.

    “Our ultimate goal is to translate our best recipes into standardised processes,” Lee said.

    Operational Impact on Global Franchises

    Centralised recipe development addresses quality control challenges during rapid cross-border expansion. Dim sum relies heavily on skilled pastry folding, precise steaming moisture, and fresh filling preparation. These factors often vary widely between franchise operators in different countries.

    By turning the kitchen into an operational testing hub, the group aims to lock down ingredient specifications and cooking parameters before overseas branches introduce new items. Success depends on whether strict procedural standards can maintain texture and flavour when local franchisees substitute regional flour grades and fresh proteins.

    Menu Engineering and Causeway Bay Exclusives

    Causeway Bay is also using the facility to test consumer demand directly through exclusive trial dishes. The company introduced three launch items for the site: a Chef’s Special Siu Mai Trio, a Roasted Tea and Fig Steamed Pudding, and an Iced Apple Lychee Lu’an Tea.

    Dishes that perform well with local diners and meet production efficiency benchmarks will join the master menu distributed to overseas franchisees and joint-venture partners.

    Regional Expansion and Concept Testing

    The lab opening follows recent operational adjustments across the chain’s regional footprint, including trials of a dedicated takeaway format in Taiwan. That trial examined throughput speed and packaging durability for off-premise sales in dense urban transit corridors.

    Staff at the Lee Garden Two innovation lab are now preparing the first batch of seasonal recipes for rollout across Asian outlets later this year.

  • Soul Origin to Double Store Network to 400 Locations over 10 Years

    Soul Origin to Double Store Network to 400 Locations over 10 Years

    Fast-casual chain Soul Origin plans to more than double its store network to approximately 400 locations globally over the next 10 years.

    The company, which marks its 15th anniversary this year, has grown into a network of 178 locations with around 22 million customer visits each year. Opening 15 to 20 stores annually across Australia, New Zealand and additional international markets will drive the expansion.

    Shifting Out of the Food Court

    Alongside continued growth in shopping centres, Soul Origin will add more regional, drive-through, airport, hospital, university and service-centre locations. Six new stores are scheduled to open before Christmas, including a new company-owned flagship at Sydney International Airport.

    Highway retailing forms a central pillar of the push. Soul Origin operates a hybrid service-centre format in partnership with fuel retailer Ampol, with two additional co-located sites scheduled to open before the end of the year. The business is scouting further roadside and regional plots across New South Wales, Queensland and Victoria.

    Trans-Tasman Growth and Extended Trading

    New Zealand represents the immediate cross-border priority. The company currently runs four stores across the country and has mapped out approximately 10 additional openings there over the next two years.

    Longer operating hours in roadside and transit hubs require a wider menu. Kitchens across the network are rolling out hot dinner items, matcha drinks and expanded iced beverage selections. Soul Origin is also taking side dishes and add-ons first tested in its drive-through prototypes and adding them to traditional metro counters.

    Franchise Pressures and Highway Formats

    Transitioning from enclosed shopping mall food courts into roadside and transit locations alters the underlying store economics. Food court units rely on captive foot traffic with heavy daytime peaks, whereas highway service centres and airport terminals demand split-shift staffing, higher capital expenditure for kitchen fit-outs and steady evening volume to recover rent.

    Competing quick-service operators across Australia and the wider region have pursued identical fuel-convenience partnerships to escape rising mall occupancy costs. For Soul Origin, sustaining average transaction values during afternoon and dinner trading will determine whether these extended-hour formats generate acceptable returns for franchise partners.

    Management Transition at Fifteen Years

    The expansion plan arrives as the company marks 15 years since its founding as a single family-run food outlet. Current chief financial officer George Gebran will step into the chief executive role on October 1 to manage the operational expansion.

    Co-founder and current managing director Hao Quach will step down from day-to-day management on the same date. Quach will remain with the business to focus on long-term strategy, market entry and corporate development.

    Network development will center on the delivery of the six pre-Christmas openings, the performance of the new Sydney Airport terminal site, and the execution of the 10-store pipeline planned for New Zealand through 2028.

  • Mixue Reaches 60,000 Global Stores as US Expansion Challenges McDonald’s

    Mixue Reaches 60,000 Global Stores as US Expansion Challenges McDonald’s

    Mixue Group is expanding its footprint in the United States. The company now runs six stores in New York City after overtaking McDonald’s as the world’s largest restaurant network by store count.

    The Zhengzhou-based beverage chain operates roughly 60,000 outlets worldwide. McDonald’s runs 46,000 locations, Starbucks has 38,000 and Subway counts 37,000.

    Value pricing and high-volume rollout

    Mixue entered the American market in December with a store on Hollywood Boulevard in Los Angeles. Its Manhattan footprint includes sites in Chinatown and near Times Square. There, signature vanilla soft-serve cones sell for $1.19 alongside bubble tea, jasmine milk tea and lemonade.

    Low prices anchor the strategy against entrenched fast-food rivals. In Manhattan, Mixue sells its 117-gram soft-serve cone for roughly 1.0 cent per gram. A standard 185-gram McDonald’s cone costs $3.89, or 2.1 cents per gram. Mixue protects franchisee margins by manufacturing its own tea powders, syrups and core ingredients.

    The read-across for Asian F&B exporters

    This Western expansion changes how Asian consumer brands enter foreign markets. Instead of pitching premium specialties to diaspora communities, the company sells low-cost, high-volume products in prime retail corridors. It sits directly beside legacy Western operators.

    Rival fast-food operators and commercial landlords face immediate pressure. Franchisees in high-rent urban corridors face tighter margins when lower-ticket beverage concepts siphon off younger foot traffic during peak afternoon hours. Asian suppliers gain a steady export channel for agricultural inputs, packaging and automated beverage dispensary equipment.

    Foundation and public listing timeline

    Chairman Zhang Hongchao founded the business in 1997 as a university student. He opened the first branded store two years later. Zhang and his brother retain an equity stake of nearly 82 per cent in the company.

    Global store totals surpassed McDonald’s in March last year. That same month, the company completed an initial public offering on the Hong Kong stock exchange. Its market capitalisation reached $20 billion by year-end, alongside the launch of a London subsidiary to manage European operations.

    The pipeline in Western markets

    Expansion teams are now screening additional franchise locations across major US metropolitan markets. The company is evaluating commercial leases in Southern California and the East Coast to build regional supply hubs before broadening its footprint across North America and Europe.

  • Heytea Expands US Footprint with Philadelphia Store as Chinese Chains Scale Up

    Heytea Expands US Footprint with Philadelphia Store as Chinese Chains Scale Up

    Staff deployed crowd-control barriers at 10th and Arch Streets as Heytea opened its first Philadelphia store. Lines for its chilled fruit teas stretched down the block.

    Headquartered in Shenzhen, the chain operates more than 4,000 stores worldwide. It sells drinks like King Jasmine Guava tea for $7.99 while ramping up its international footprint.

    That debut follows a launch on New York’s Upper West Side weeks earlier. Heytea press representative Yinnan Shen said more than 600 people lined up across three city blocks for that opening. Founded in Guangdong in 2012, the company specialises in what it calls new-style tea. It blends brewed whole-leaf tea with fresh fruit rather than powdered mixes.

    Challenging the First Generation of Boba Retailers

    This expansion reflects a broader shift across North American beverage retail. Scaled mainland Chinese operators are pushing past first-generation Taiwanese bubble tea concepts. Early entrants like Vivi Bubble Tea, Kung Fu Tea, and Mr. Wish established US footprints between 2015 and 2017, alongside Gong Cha, Chi Cha San Chen, and Tiger Sugar. Most of those networks operate between 80 and 300 locations globally. That leaves them exposed to rivals backed by deeper capital and larger supply chains.

    Mainland brands rely on industrial throughput and heavy digital marketing. Smaller franchise networks and independent operators now face rising rents across prime Chinatown strips. In those corridors, quick-service and beverage chains continue to displace legacy family restaurants, pharmacies, and dry goods merchants.

    The Scale Race Led by Chinese Coffee and Tea

    Scale gives these mainland chains their chief advantage. Luckin Coffee entered Manhattan in 2025 and already operates 25 outlets in New York City out of 36,310 stores globally. Its buyout of specialty roaster Blue Bottle earlier this year strengthened that network. Budget rivals Cotti Coffee and Mixue run more than 18,000 and nearly 60,000 global stores respectively. Both entered New York in 2025.

    Western cafe chains build around seating and customer dwell time. By contrast, these Chinese operators design compact stores for fast mobile app pickups. High transaction volume and lean store footprints allow them to absorb steep urban rents.

    Franchise Proliferation Across East Coast Hubs

    Standardised franchise systems are multiplying across the East Coast. Over the past twelve months, Philadelphia has absorbed a string of mainland franchise concepts. Arrivals include dessert and snack operators Kyo Matcha and Yin Ji Rice Roll, alongside yogurt drink chain Hey I Am Yogost.

    Taiwanese brands spent the past decade establishing Asian tea across Western metropolitan centres. Now, mainland competitors are testing whether volume models built in tier-one Chinese cities can generate profit on expensive American real estate.

    Heytea is scouting further locations across the US Northeast corridor. Future sites will target high-density student and commercial districts in New York and Pennsylvania.

  • 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.

  • 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.

  • Philippine Seven Corp to Open 5,000Th 7-Eleven Store in Cebu

    Philippine Seven Corp to Open 5,000Th 7-Eleven Store in Cebu

    Philippine Seven Corp will open its 5,000th 7-Eleven store in Lapu-Lapu City, Cebu on Dec. 3, completing an expansion of 1,000 outlets in two years.

    The convenience chain closed June with 4,650 branches nationwide after net profit climbed 3.8 per cent to 1.84 billion pesos in the first half. System-wide sales rose 15.1 per cent over the same six months, with locations opened within the period generating more than 6 per cent of total turnover.

    Franchise Split and Store Economics

    Half of the 350 outlets needed to hit the year-end target will be company-owned, with franchisees taking the remainder. The rapid buildout follows the opening of store number 4,000 in 2024, four decades after 7-Eleven entered the Philippine market.

    PSC chair Victor Paterno told reporters that unit economics improved despite rising electricity, fuel and labor expenses. Cashless checkout terminals installed across tourist destinations and higher-income districts lifted average spend by enabling credit card transactions.

    The operator is also adjusting its merchandise mix to attract younger shoppers while brushing off competition from fast-spreading hard discounters. Paterno noted that discount grocers stock minimal immediate-consumption items, leaving local convenience formats largely insulated from their price pressure.

    Next Targets in Mindanao

    Across Southeast Asia, convenience store chains are racing to build dense logistics networks outside capital cities to capture rising provincial purchasing power before regional competitors establish dominance. PSC is mirroring strategies used by convenience operators in Thailand and Indonesia, where rural expansion delivers higher sales gains than saturated tier-one metros.

    PSC plans to open approximately 600 additional stores in 2027, subject to broader macroeconomic conditions. Distribution routes will push deeper into Western Mindanao, with Zamboanga City designated as a key focal point for logistics development.

  • Mixue Closes 89 Overseas Stores as First-Half Profit Drops 15%

    Mixue Closes 89 Overseas Stores as First-Half Profit Drops 15%

    Mixue cut its overseas footprint by 89 stores in the first half of 2026, driven by closures across core Southeast Asian markets Vietnam and Indonesia.

    Net profit fell 15 percent year on year to 2.32 billion yuan, even as total revenue edged up 2.3 percent to 15.2 billion yuan ($2.26 billion). Group filings show higher selling and distribution expenses ate directly into margins across its franchise network.

    Rising Distribution Costs Squeeze Margins

    The Henan-headquartered drinks giant operated 63,987 outlets globally by June 30, with 59,609 locations in mainland China. That leaves roughly 4,378 international stores, concentrated heavily in Southeast Asia where the brand sells budget soft-serve ice cream and milk tea.

    Mixue did not publish country-level closure totals for Vietnam or Indonesia. The company stated in its interim report that reducing store density improved individual unit quality and created a cleaner base for sustainable operations.

    Franchisee economics have tightened across the region. Rapid street-level expansion in major cities sparked cannibalisation between neighbouring outlets, forcing operators to absorb higher logistics costs on imported syrups and packaging without room to raise retail prices.

    Rebalancing Southeast Asian Footprints

    Vietnam was Mixue’s first international market when the chain launched in Hanoi in 2018. By September 2024, the brand ran 1,304 stores across the country, according to its Hong Kong listing prospectus filed in early 2025.

    Mass-market tea and coffee chains in Southeast Asia now face heavier competition from local discounters and Chinese rivals copying the low-price franchise playbook. Mixue’s retreat from sheer store count growth signals that overseas networks cannot rely solely on relentless opening schedules to deliver profit.

    Investors now await Mixue’s updated capital-raising timeline in Hong Kong, where full-year store productivity figures will test whether the overseas pruning protected operating cash flow.

  • Pizza Hut Owner Flynn Group Pledges $10 Million to Expand in Australia

    Pizza Hut Owner Flynn Group Pledges $10 Million to Expand in Australia

    Flynn Group will invest $10 million to overhaul Pizza Hut Australia and open 100 outlets across the country. The expansion aims to add 300 jobs and lift the chain from its current footprint of roughly 300 stores.

    US-based Flynn Group, which acquired the master franchise from private equity firm Allegro Funds in 2023, plans to roll out redesigned store layouts, updated menus and upgraded ordering hardware. The chain has traded in Australia since 1970, but recent financial filings from Flynn Group’s local operating division showed a $1 million loss for the previous financial year.

    Digital Sales And Store Redesigns

    Online channels now generate roughly 80 per cent of all sales for the brand in Australia. Flynn Group said the business has recorded seven straight years of same-store revenue growth, with average sales per location doubling over the past five years despite the recent bottom-line loss.

    “This isn’t a lick of paint; it’s a complete reinvestment in the product, the stores, and the people behind them, moving at a pace this category has never seen,” said Richard Wallis, president of Flynn Group Apac.

    Turning Around Australian Losses

    Across Asia-Pacific, legacy quick-service restaurant chains face tight margins from wage inflation and delivery aggregator fees, forcing operators to downsize dining rooms and automate order processing. Flynn Group is testing whether streamlined formats and higher store density can convert steady same-store sales momentum into sustainable net profits in a crowded fast-food sector.

    The group has not named the locations for the first batch of new outlets, leaving the timeline for reaching the 400-store mark as the primary metric for the turnaround plan.

  • Mega MGC Coffee Approaches 4,500 Stores Across South Korea

    Mega MGC Coffee Approaches 4,500 Stores Across South Korea

    Mega MGC Coffee reached 4,466 outlets in South Korea on August 27, widening its lead as the country’s largest coffee franchise by physical store count.

    The network now sits within striking distance of the 4,500-store threshold in a national market that holds more than 100,000 coffee shops. Founded in 2015, the brand expanded through a low-price, high-volume model built on large drink sizes and small takeaway shop footprints.

    Franchise density and territory controls

    Rapid growth has pushed Mega ahead of older rivals. Domestic competitor Ediya Coffee operates more than 4,200 locations, while Compose Coffee passed the 3,000-store mark last year. Starbucks closed last year with just over 2,000 outlets across South Korea, operating on a corporate-owned model rather than franchises.

    To prevent its own stores from cannibalising sales, the chain analyses pedestrian commercial zones before approving new franchise applications. A company representative said Mega evaluates whether both neighbouring existing units and proposed locations can generate stable returns before clearing an opening.

    Bifurcation in the cafe sector

    The scale achieved by Mega and Compose illustrates how deeply value-tier operators have penetrated South Korea’s daily commuter market. While premium brands focus on seated dining space and elevated menus, budget chains capture weekday takeaway volume through kiosk ordering and lower pricing.

    Foreign chains continue to test the opposing end of the market. Canada’s Tim Hortons is expanding its presence toward 50 locations across South Korea, adding 26 stores this year with larger flagship formats and broader food menus.

  • 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.

  • Lotte GRS to Re-Enter Indonesia with 10 Angel-in-Us Coffee Outlets

    Lotte GRS to Re-Enter Indonesia with 10 Angel-in-Us Coffee Outlets

    South Korean restaurant operator Lotte GRS will reintroduce its Angel-in-Us coffee brand to Indonesia through a master franchise agreement with Surabaya-based Bogajaya Group.

    Bogajaya plans to open 10 outlets across Indonesia over the next five years, starting with a debut location before the end of 2026.

    The agreement brings Angel-in-Us back to Southeast Asia’s largest economy after Lotte pulled its direct operations in 2020. Bogajaya Group, an Indonesian food and retail operator with nearly 50 years of operating history, specializes in travel retail and runs concessions across the country’s major airports.

    Airport operator takes the master franchise

    Lotte GRS operates several consumer foodservice brands across Asia and the United States, including burger chain Lotteria, Krispy Kreme Doughnuts, Villa de Charlotte, and food hall concept Plating. Outside its home market in South Korea, the group runs locations in Vietnam, Malaysia, Singapore, and the US.

    Securing a local franchisee with established airport concessions allows foreign food groups to avoid the heavy capital commitments and real estate bottlenecks that often hamper direct store operations in Indonesia. South Korean food operators have increasingly favored asset-light franchise partnerships across Southeast Asia, shifting operational risk to domestic companies with existing commercial lease networks.

    Southeast Asian expansion targets

    The Indonesian rollout follows Lotte GRS’s push into neighboring markets earlier this year. The company introduced its Lotteria fast-food chain to Singapore in February with an opening at Jewel Changi Airport.

    Bogajaya will begin store buildouts immediately, targeting its first Angel-in-Us site launch before January 2027 as it starts the 10-unit rollout schedule.

  • Domino’s China Operator DPC Dash Adds 235 Stores as Revenue Hits RMB3.13 Billion

    Domino’s China Operator DPC Dash Adds 235 Stores as Revenue Hits RMB3.13 Billion

    DPC Dash added 235 net new Domino’s Pizza stores in China during the first half of 2026. Group revenue rose 20.8 per cent.

    Revenue for the six months ended June 30 reached RMB3.13 billion (US$440 million). Net profit rose 22.9 per cent year on year to RMB81 million, supported by a 7.1 per cent lift in same-store transactions.

    That buildout took the chain’s network to 1,550 stores across 75 cities. The operator entered 15 new municipal markets during the period.

    Pushing Into Lower-Tier Markets

    Lower-tier Chinese cities now make up the bulk of the brand’s footprint. The operator runs 1,018 stores outside Tier 1 hubs, compared with 532 locations across primary metropolitan areas.

    DPC Dash holds exclusive master franchise rights for Domino’s in mainland China, Hong Kong and Macau. Chief executive Aileen Wang said the company will focus on lifting average transaction value and expanding customer volume as third-party food delivery subsidies diminish across the sector.

    Western fast-food chains in China have redirected capital expenditure away from saturated top-tier cities to capture cheaper real estate and consumer demand in secondary markets. While quick-service competitors battle heavy price discounting on aggregator apps, Domino’s relies on its own delivery network and lower operating costs to protect unit margins.

    Pipeline Toward 350 Openings

    Between June 30 and August 14, the operator launched another 27 stores across the country.

    Another 38 locations are under construction, with 36 additional leases signed or approved. Those sites keep the business on track toward its full-year target of approximately 350 net new store openings.