Retail News CRM

Tag: Restaurant

  • Chick-fil-A Boosts Singapore Presence: Second Restaurant Opens at Millenia Walk

    Chick-fil-A Boosts Singapore Presence: Second Restaurant Opens at Millenia Walk

    American fast-food chain Chick-fil-A is set to expand its footprint in Singapore with the inauguration of its second restaurant, located at Millenia Walk, on July 30th.

    This new establishment forms part of the company’s strategic growth plan following its successful entry into Singapore last year, marking the brand’s debut in the Southeast Asian market. In a bid to boost its international presence, Chick-fil-A has committed to investing over US$75 million across Asia over the forthcoming decade.

    Details of the New Outlet

    The Millenia Walk restaurant, situated in Marina Centre, will offer both dine-in and takeaway services. Consistent with the brand’s longstanding global operating policy, the restaurant will operate from Monday to Saturday and remain closed on Sundays.

    The new venue will be managed by local owner-operator Deborah Ku, a seasoned professional in the food and beverage sector with more than two decades of industry experience. Ku will lead a workforce of 60 to 80 employees, focusing on training, mentorship, and leadership development.

    In expressing her excitement about the venture, Ku said, “Growing up in a culture deeply ingrained in warm hospitality, being part of Chick-fil-A’s journey in Singapore is a dream come true – not just for me, but also for my family, who have long admired the company’s strong culture of care and commitment to the community.” She added that she looks forward to creating a welcoming environment at Chick-fil-A Millenia Walk, where guests feel genuinely cared for and team members can grow, realize their potential, and make a profound impact in the lives of others.

    Community Contributions

    Coinciding with its launch, the Millenia Walk restaurant will participate in Chick-fil-A’s Shared Table program. This initiative combats food waste by redistributing surplus food to local charities through The Food Bank Singapore. So far, the program has provided more than 42 million meals globally.

    Chick-fil-A currently operates over 3,000 restaurants in multiple locations, including the United States, Canada, Puerto Rico, the United Kingdom, and Singapore.

    Questions & Answers

    What is Chick-fil-A’s investment plan for Asia?
    Chick-fil-A has committed to investing more than US$75 million across Asia over the next decade.

    Who will manage the new Chick-fil-A restaurant at Millenia Walk?
    The new restaurant at Millenia Walk will be managed by local owner-operator Deborah Ku, who has over 20 years of experience in the food and beverage industry.

    What is Chick-fil-A’s Shared Table program?
    The Shared Table program is an initiative by Chick-fil-A that redistributes surplus food to local charities. The Millenia Walk restaurant will participate in this program, which has so far provided over 42 million meals globally.

  • Jollibees Aggressive Franchise Expansion in Vietnam Bolsters Quick-Service Restaurant Market Dominance

    Jollibees Aggressive Franchise Expansion in Vietnam Bolsters Quick-Service Restaurant Market Dominance

    Jollibee, a leading Philippine fast-food company, is stepping up its franchising efforts in Vietnam, aiming to expand its presence in one of Southeast Asia’s most fiercely contested quick-service restaurant (QSR) markets. The move follows the brand’s prestigious recognition as Vietnam’s foremost QSR brand by Euromonitor International.

    Franchising Expansion Strategy

    Jollibee launched its franchising model in Vietnam in 2015, effectively inviting capable local investors to manage Jollibee-branded outlets under a standardized operating system. Initial expansion was carried out cautiously as the brand worked to establish scale and maintain operational control. However, the company has now shifted gears to a more assertive growth phase, primarily targeting quicker network expansion.

    Franchising not only facilitates the company’s accelerated growth but also generates more employment opportunities, fortifies the domestic supply chain, and aids in the advancement of Vietnam’s food and beverage service industry, according to a representative from the company.

    This renewed drive towards franchising is spurred by Jollibee’s recent accolade as Vietnam’s top QSR brand in terms of turnover, as awarded by Euromonitor International.

    Growing Footprints Across Vietnam

    Since the establishment of its first store in Ho Chi Minh City in 2005, Jollibee Vietnam has grown to encompass more than 250 locations dispersed across over 50 provinces and cities. The company’s expansion has been fueled by a diverse strategy that includes outlets in shopping malls, street-front locations, and delivery-centric stores.

    Ernesto Tanmantiong, Global President and CEO of Jollibee Group, attributed the brand’s success to its understanding of local consumers and its adherence to fundamental business practices. He asserted that the company’s progress underscores the potency of merging a popular brand with a profound local understanding and consistent execution. It further strengthens their belief that sustainable growth in international markets stems from remaining relevant to consumers while establishing solid operational foundations.

    Questions & Answers

    When did Jollibee first introduce franchising in Vietnam?
    Jollibee introduced franchising in Vietnam in 2015.

    What factors have supported Jollibee’s expansion in Vietnam?
    Jollibee’s expansion has been supported by a multi-format strategy that includes outlets in shopping malls, street-front locations, and delivery-centric stores.

    What is the significance of franchising for Jollibee’s growth?
    Franchising not only facilitates Jollibee’s accelerated growth but also generates more employment opportunities, fortifies the domestic supply chain, and aids in the advancement of Vietnam’s food and beverage service industry.

  • Decade-Old BBQ & Hotpot Restaurant Closes Following Surge of Negative Online Reviews

    Decade-Old BBQ & Hotpot Restaurant Closes Following Surge of Negative Online Reviews

    For over a decade, a small-town barbecue and hotpot restaurant enjoyed a regular and content clientele, primarily consisting of employees from a neighboring industrial park. The eatery was particularly bustling over the weekends, basking in the laudatory comments of its patrons, until an unfavorable online review sent shockwaves through its reputation.

    The Power of Social Media

    The advent of various Facebook pages and groups disseminating information and instigating discussions about the local area introduced an unforeseen variable to the restaurant’s business operations. While these platforms initially focused on benign topics such as local weather or picturesque landscapes, they soon evolved into forums for promoting new businesses, including milk tea shops and eateries in the vicinity. One day, a disparaging post targeting the barbecue and hotpot restaurant surfaced in one of these groups. The review characterized the food as “overpriced” and “mediocre,” encouraging patrons to explore “better and cheaper” alternatives.

    This single review unleashed a flood of negative feedback, severely tarnishing the restaurant’s hard-earned reputation. The previously steady stream of customers trickled to a halt, and, unable to recover from the sudden downturn, the establishment was soon compelled to close its doors.

    The Dark Side of Food Reviewers

    This incident underscores the growing concern among many restaurateurs regarding the disproportionate influence wielded by self-proclaimed food reviewers active on platforms such as TikTok and YouTube. Questions arise regarding the legitimacy of these reviewers’ authority to critique an establishment and the objectivity of their assessments. For instance, when reviewing pricing, do they account for factors like portion sizes, the quality of ingredients, or prevailing market rates?

    Taste, being a highly subjective matter, varies significantly from person to person. The certainty with which these reviewers label a dish as appealing or repugnant potentially sways their audience’s opinion, often without them having sampled the food themselves.

    In the current digital age, where smartphones equip ordinary individuals with the power to document, judge, and “expose” others, we must tread with caution. While these online exposés may help spotlight unhygienic or exploitative practices, they also pose the risk of damaging the reputation of legitimate establishments through orchestrated smear campaigns.

    Questions & Answers

    What impact did the unfavorable review have on the barbecue and hotpot restaurant?
    The negative review led to a surge of similar feedback, causing a significant decline in the customer footfall. Unable to recover from the reputational damage, the restaurant was forced to close down.

    What concerns do restaurant owners have about food reviewers on platforms like TikTok and YouTube?
    Restaurateurs worry about the credibility and objectivity of these self-proclaimed reviewers. They question whether these reviewers consider factors like portion sizes, ingredient quality, or market rates when critiquing pricing and how they confidently label food as good or bad without accounting for varying taste preferences.

    What are the potential risks associated with the power of judgment that smartphones provide individuals?
    While smartphones can help highlight unethical business practices, they also risk damaging legitimate businesses through potential smear campaigns.

  • Iconic Brunch Spot Penny University Bids Farewell to Jalan Klapa Outlet Amid F&B Industry Challenges

    Iconic Brunch Spot Penny University Bids Farewell to Jalan Klapa Outlet Amid F&B Industry Challenges

    Singapore-based Halal brunch café, Penny University, has announced the closure of its Jalan Klapa outlet. The doors will shut for the last time on May 3, following a challenging four-year period due to unfavorable conditions within the food and beverage industry.

    Established Reputation

    The café was established in 2012 on the East Coast and quickly garnered a reputation for its distinctive coffee and brunch selections. In 2022, after a successful decade at the original location, it moved to Jalan Klapa in Kampong Glam.

    In a post on Instagram, Penny University characterized its tenure at Jalan Klapa as an exciting journey. It emphasized how the café remained true to its commitment to serving quality coffee and brunch, while simultaneously building strong relationships with the local community. The café also expressed delight in the increase in its international clientele, describing them as a delightful crowd.

    Business Challenges

    The café acknowledged facing economic difficulties in the food and beverage sector, stating these as the reason behind the closure. “The economic conditions can be unforgiving, and we haven’t been an exception. The challenges in the F&B sector necessitate that we bid farewell to our time at Jalan Klapa,” the café shared in their post.

    They went on to express their sorrow at the closure but also their joy and gratitude for having had the opportunity to serve the patrons at this location. The café shared its intentions to use the closure period to recharge and reassess their next steps.

    Remaining Operations

    Despite the closure of the Jalan Klapa outlet, the café’s other outlet, located at Wisma Geylang Serai and opened in 2024, will continue to operate.

    During their tenure at Kampong Glam, Penny University had been a community hub, hosting events centred around the community like crochet sessions, art workshops, and book club meetings.

    Questions & Answers

    Why is Penny University closing its Jalan Klapa outlet?
    The café cited economic challenges within the food and beverage sector as the reason for the closure.

    When is the Jalan Klapa outlet closing?
    The Jalan Klapa outlet is set to close on May 3.

    Will the café’s other outlets remain open?
    Yes, the café’s Wisma Geylang Serai outlet, which opened in 2024, will continue operations.

  • Chinese Dining Chains Spice Up South Korea’s Restaurant Scene with Explosive Growth

    Chinese Dining Chains Spice Up South Korea’s Restaurant Scene with Explosive Growth

    Chinese restaurant chains are accelerating their growth in South Korea, capturing customers in the major tourist regions of Seoul with genuine Chinese food. This development is fueled by a boost in sales.

    Emerging Leaders in the Industry

    Among the most rapidly developing contenders is the hot pot franchise Tanghuo Kungfu Malatang. Since the inauguration of its initial franchised store in Suwon in 2012, the chain has expanded exponentially, boasting over 560 locations in South Korea as of the end of March. These locations encompass both franchised and company-managed stores.

    Tanghuo Kungfu Korea reported an impressive KRW22.2 billion (US$14.7 million) in revenue in 2024, an increase of 21% from the previous year. The company’s operating profit skyrocketed elevenfold to KRW10.5 billion during the same timeframe.

    Now, the company’s establishments are primarily located in the main tourist hotspots of Seoul, such as Gangnam Station, Myeong-dong, Hongdae, Seongsu, and Daehangno.

    The company is also offering incentives for new partners by exempting franchise, training, and royalty fees and providing free serving bowls.

    A spokesperson for Tanghuo Kungfu Korea stated, “As the malatang market in Korea continues to grow, we aim to appeal to potential entrepreneurs and share with them our brand’s operational expertise and practical support benefits. We look forward to active involvement by local restaurant owners so we can jointly spearhead malatang’s market growth here.”

    Other Key Players

    Other Chinese brands are also on the rise. The hot pot chain Haidilao reported sales of over KRW100 billion last year, a significant increase compared to KRW78.1 billion in 2024. The brand, recognized for offering customers complimentary nail art services and entertainment shows, has grown to ten locations since its introduction into South Korea in 2024.

    Bantianyao Grilled Fish has established six outlets since it entered the market in 2020, while Haihai Kaochuan, a skewer barbecue chain managed by Haidilao, inaugurated its first Seoul outlet in Myeong-dong this past January.

    These restaurant chains are emulating the expansion strategy of major Chinese tea brands, which have demonstrated their success in China with thousands of stores. Their push into South Korea is a strategic move, given that China’s domestic market is nearing saturation.

    Milk tea brand Chagee announced plans to launch three outlets in Seoul by the end of June, marking its first expansion into East Asia outside China. Other brands, such as Chabaido, HeyTea, and Mixue, are also extending their reach in the country.

    Market Outlook

    Market analysts regard South Korea as a desirable entry point for global expansion, attributing its appeal to the country’s significant cultural influence through trends like K-pop, K-food, and K-beauty. This positions the country as an ideal testing ground for new brands prior to broader international deployment.

    Questions & Answers

    What are some Chinese restaurant chains expanding in South Korea?
    Some Chinese restaurant chains expanding in South Korea include Tanghuo Kungfu Malatang, Haidilao, Bantianyao Grilled Fish, and Haihai Kaochuan.

    What strategies are these chains employing for their expansion?
    These chains are waiving franchise, training, and royalty fees for new partners, providing complimentary offerings, and focusing on locations in major tourist areas. They are also following the successful expansion strategies of Chinese tea brands.

    Why is South Korea considered an attractive market for these expansions?
    South Korea is considered an attractive market due to its strong cultural influence and trends such as K-pop, K-food, and K-beauty. These aspects position the country as a potential testing ground for brands before broader international rollout.

  • Haidilao Heats Up: Chinese Hotpot Giant Crowned World’s Strongest Restaurant Brand Two Years Running

    Haidilao Heats Up: Chinese Hotpot Giant Crowned World’s Strongest Restaurant Brand Two Years Running

    For the second consecutive year, Chinese hotpot chain Haidilao has earned the title of “the world’s strongest restaurant brand” after experiencing a robust double-digit increase in value. The brand’s worth rose by 16% to reach $3.6 billion, propelling its strength index score to an impressive 94.1 out of 100.

    Factors Behind the Success

    Haidilao’s resounding success can be attributed to a variety of elements, including an expanded restaurant network, elevated brand influence and customer experience, as well as a more diverse product range. Despite the market’s competitive nature, the company was able to maintain its premium AAA+ brand strength rating.

    Other Emerging Brands

    Luckin Coffee, another brand originating from China, has also seen substantial growth. Its value has surged by 17% to reach $1.7 billion, which has allowed it to climb two places and achieve 19th place in the global rankings. Its score increased to 89.7 out of 100, making evident the growing allure of competing brands within China’s coffee market. Despite the escalating competition, Luckin Coffee achieved an AAA+ brand strength rating for the first time.

    Scott Chen, Managing Director of Brand Finance China, commented on the performance of these brands. He suggested that Haidilao’s sustained dominance as the world’s strongest restaurant brand, along with Luckin Coffee’s resilience amidst stiff competition, underline the dynamic character of the Chinese market. Chen also pointed to the innovation driving these brands to new heights.

    Brand Strength

    Brand strength refers to the effectiveness of a brand’s performance when compared to its competitors. Brand Finance, for instance, assesses the strength of a brand on the basis of several factors. These include marketing investment, stakeholder equity, and the effects of these on overall business performance.

    American Brands Domination

    Despite the success of Chinese brands, American brands remain dominant in terms of value. The five most valuable brands globally all hail from the United States. McDonald’s, in particular, has emerged as the world’s most valuable restaurant brand, with its value growing 7% to $40.5 billion. However, Starbucks, which used to hold the second spot, saw its brand value plummet by 36% to $38.8 billion.

    Chick-fil-A recorded the fastest growth in value within the sector, with its brand value soaring by 43% to $5.7 billion. This surge has resulted in the company now holding the eighth spot among the world’s leading restaurant brands.

    Questions & Answers

    What factors contributed to Haidilao’s success as the world’s strongest restaurant brand?
    Haidilao’s success was largely due to its expanded restaurant network, increased brand influence and customer experience, and a more diversified product range.

    How is brand strength measured?
    Brand strength is assessed based on the effectiveness of a brand’s performance in comparison to its competitors. Factors such as marketing investment, stakeholder equity, and their impact on business performance are taken into consideration.

    Which is the world’s most valuable restaurant brand?
    As of the latest rankings, McDonald’s is the world’s most valuable restaurant brand, with its value increasing 7% to $40.5 billion.

  • Coach Dives into Hospitality with Flagship Restaurant Launch at Jewel Changi Airport: A Mix of Fashion, Food, and New York Heritage

    Coach Dives into Hospitality with Flagship Restaurant Launch at Jewel Changi Airport: A Mix of Fashion, Food, and New York Heritage

    Coach, the American fashion brand, has unveiled The Coach Restaurant Singapore at Jewel Changi Airport as part of its continued expansion into the hospitality industry and overarching lifestyle approach.

    The Restaurant Blueprint

    The restaurant’s design is heavily influenced by Coach’s New York roots, boasting an impressive view of the Jewel’s Rain Vortex. Its layout is spacious, accommodating a 56-seat dining room, a 10-seat bar, and a 10-seat chef’s counter that is centered around an open woodfire kitchen.

    The interior design is a creative harmony of bronze mirrors, terrazzo flooring, tropical wood louvres, and leather accents, the latter being utilized in menu covers and staff aprons. As the centerpiece, a full-sized yellow taxi cab is suspended above the dining area, a nod to the brand’s origin.

    Location and Comment from Coach

    Marcus Sanders, VP of global food and beverage at Coach, highlighted Singapore’s vibrant food culture and international community as the driving factors behind the decision to place the hospitality concepts there.

    He said, “In this venue, we are providing an opportunity for guests to come together, celebrate, and experience the Coach brand in a manner that is both timeless and innovative.”

    The Wider Strategy

    This latest venture enhances Coach’s existing food and beverage initiatives and aligns with its Coach Coffee Shop and the recently revamped retail store at Jewel. These three spaces are designed to fortify the brand’s most comprehensive integrated lifestyle concept in Asia.

    Questions & Answers

    What is the design inspiration for The Coach Restaurant Singapore?

    The design takes its cues from Coach’s New York heritage and includes elements such as bronze mirrors, terrazzo flooring, tropical wood louvres, and leather accents.

    What are the features of the restaurant?

    The restaurant includes a 56-seat dining room, a 10-seat bar, and a 10-seat chef’s counter built around an open woodfire kitchen. A full-sized yellow taxi cab is suspended above the dining area as a focal point.

    What is the purpose of the new restaurant in Coach’s broader strategy?

    The new restaurant is part of Coach’s continued expansion into the hospitality industry. It complements Coach’s existing food and beverage ventures, including the Coach Coffee Shop and the refurbished retail store at Jewel, strengthening the brand’s integrated lifestyle concept in Asia.

  • Coach Unveils Chic Dining Experience with New Flagship Restaurant at Jewel Changi Airport

    Coach Unveils Chic Dining Experience with New Flagship Restaurant at Jewel Changi Airport

    Coach, the well-known American fashion brand, has expanded its horizons into the hospitality industry by introducing The Coach Restaurant in Singapore’s Jewel Changi Airport. This venture is a part of the brand’s wider lifestyle strategy.

    Design Inspired by New York Heritage

    The Coach restaurant’s design takes inspiration from the brand’s New York roots. The establishment offers breathtaking views of Jewel’s Rain Vortex. It includes a spacious 56-seat dining room, a 10-seat bar, and a chef’s counter with 10 seats, all built around a centralized, open woodfire kitchen.

    The interior design showcases a harmonious blend of bronze mirrors, terrazzo floors, and tropical wooden louvres. Leather accents have been thoughtfully utilized in menu covers and staff aprons, adding to the restaurant’s sophisticated ambiance. A noteworthy feature is a full-sized yellow taxi cab hanging above the dining area, serving as a focal point and a nostalgic nod to the brand’s origins.

    Singapore: A Natural Choice for Coach’s Venture

    Marcus Sanders, the Vice President of Global Food and Beverage at Coach, shared his excitement about the brand’s new venture. He highlighted that Singapore’s vibrant food culture and diverse international community made it an excellent choice to host their hospitality concepts.

    Sanders expressed his desire to create a space where guests can gather, celebrate, and experience Coach in a manner that feels both traditional and innovative.

    Building on Previous Successes

    The new restaurant is an extension of Coach’s earlier forays into the food and beverage sector. It enhances the brand’s in-house coffee shop and its refurbished retail store, both located at Jewel. These three distinct spaces are strategically devised to bolster the brand’s most extensive integrated lifestyle concept in Asia.

    Questions & Answers

    What is the inspiration behind the design of The Coach Restaurant?
    The design of the restaurant is inspired by Coach’s New York Heritage. It features bronze mirrors, terrazzo flooring, and tropical wooden louvres alongside leather accents used in menu covers and staff aprons.

    Why did Coach choose Singapore for their hospitality venture?
    Coach chose Singapore due to its dynamic food culture and globally diverse community, which aligns with Coach’s broader lifestyle strategy.

    How does the new restaurant enhance Coach’s integrated lifestyle concept?
    The new restaurant, along with Coach’s coffee shop and refurbished retail store at Jewel Changi Airport, strengthens the brand’s largest integrated lifestyle concept in Asia.

  • KFC Unveils Butterbear Merchandise: New Trend Sweeps Fast-food Giant In Singapore

    KFC Unveils Butterbear Merchandise: New Trend Sweeps Fast-food Giant In Singapore

    Step aside, Labubu. A new captivating character is capturing our affections, and it doesn’t hail from Pop Mart. The Butterbear, a charming mascot from Thai bakery Butterbear, is quickly gaining fame. So, it was only a matter of time before brands jumped on the trend with an appealing collaboration. Leading the way in Singapore is the fast-food giant, KFC, which recently unveiled a delightful range of collectible Butterbear merchandise that fans will surely find irresistible.

    The Butterbear Boom

    This comes in the wake of the successful Mofusand launch for the Chinese New Year 2025. The launch included items like soft toy keychains, stickers, and red packets decorated with cats.

    KFC Meets Butterbear

    In keeping with the current rage for blind boxes, the KFC x Butterbear collection intriguingly includes surprise keychains. Collectors can seek out four different designs from October 15 to November 25, 2025, while stocks last. Each design draws inspiration from a different beloved item on the KFC menu: the egg tart, the Zinger, the drumstick, and the chicken bucket.

    To secure one of these keychains for $12.95, customers need to purchase either the Thai-Thai Saucy Chicken Box ($13.95) or the Thai-Thai Saucy Bites Box ($11.95). These are new limited-edition offerings that are part of the collaboration. The Thai-Thai Saucy Chicken Box offers a spicy, tangy, Thai-inspired version of KFC’s hot and crispy chicken, while the Thai-Thai Saucy Bites Box features boneless chicken pieces doused in the same distinctive sauce.

    Additionally, the menu features Thai fritters with condensed milk ($4.40 for four pieces), which can be thought of as the Thai twist on you tiao.

    A Rewarding Experience

    Early birds will be rewarded for their punctuality with Butterbear stickers. To claim these, they simply need to purchase two breakfast Twister buddy meals for $12. This offer is valid for both dine-in and takeaway orders. But fear not, night owls; those who prefer to order their Thai-Thai Saucy Chicken or Bites Box via KFC delivery can also snag a pair of red KFC Butterbear long socks for $5.95. If they choose to order via Grab, they can get a green version of the socks instead.

    Butterbear Plush Crossbody Bag

    One of the collection’s highlights is undoubtedly the KFC Butterbear plush crossbody bag. This accessory allows you to carry your essentials and your buttery buddy wherever you go. The bag, like the blind boxes, is purchasable with any order of the Thai-Thai Saucy Chicken or Bites Box. But act fast, as only 3,000 are available across selected KFC outlets in Singapore.

    These outlets include: Plaza Singapura, West Mall, Bedok Town Square, Causeway Point, HarbourFront Centre, Nex, Jurong Point, Lot One, Compass One, Northpoint City, Toa Payoh, Tampines Mall, Star Vista, Novena Square, and Admiralty Place.

    Questions & Answers

    What are some of the items included in the KFC x Butterbear collection?
    The KFC x Butterbear collection includes surprise keychains, Butterbear stickers, red and green KFC Butterbear long socks, and a KFC Butterbear plush crossbody bag.

    How can one acquire items from the KFC x Butterbear collection?
    The items can be obtained by purchasing certain meals from KFC, such as the Thai-Thai Saucy Chicken Box or the Thai-Thai Saucy Bites Box. Some items are offered as rewards for purchasing specific meals or placing orders through certain platforms.

    Where can the KFC x Butterbear collection be found?
    The collection is available at 15 selected KFC outlets across Singapore, including Plaza Singapura, West Mall, Bedok Town Square, and Causeway Point, among others.

  • Saizeriya Sets Sights On Doubling China Presence With Local Production Strategy By 2035

    Saizeriya Sets Sights On Doubling China Presence With Local Production Strategy By 2035

    Saizeriya, a Japanese-owned Italian restaurant chain, has unveiled an ambitious plan to double its presence in China from its current footprint to approximately 1,000 outlets by the year 2035.

    Expansion Strategies and Local Production

    In order to facilitate its expansion, Saizeriya established a subsidiary in Wuhan in July. Furthermore, they have plans to inaugurate a $30 million plant in Guangzhou next year. This new plant will produce local ingredients, including sauces, pasta, and pizza.

    The restaurant chain aims to attract “cost-conscious” consumers with its pricing strategy. As an illustration, at its Shanghai branches, Milan-style rice is priced at 15 yuan (roughly $2), and squid-ink pasta is available for 16 yuan.

    Noboru Nagaoka, the General Manager for overseas business, provided insight into the company’s performance. According to Nagaoka, the company currently generates an annual operating income of $40 million, a figure that is triple the amount earned from its operations in Japan.

    “We initially wanted to challenge the notion that Western food had to be expensive. Our goal was to demonstrate that genuine Italian meals could also be affordable,” he explained.

    Established Presence and Future Growth

    Saizeriya launched its first branch in Guangzhou in 2007, followed by a branch in Beijing in 2008. Recently, in July, the restaurant chain established a head office in Guangdong Province. This office is responsible for managing its operations in China and standardizing menu development.

    Nagaoka stated, “The Chinese market is of utmost importance to us. Our profits from this market have already surpassed those from Japan. Moreover, the potential for future growth in China is much larger.”

    To continue expanding its presence in the Chinese market, Saizeriya plans to open a minimum of 50 new stores per year. This would align its presence in China with the approximately 1050 restaurants it currently operates in Japan.

    Questions & Answers

    What is Saizeriya’s expansion plan for China?
    Saizeriya aims to double its presence in China to about 1,000 outlets by 2035.

    How does Saizeriya plan to support its expansion in China?
    The company plans to open a $30 million plant in Guangzhou to produce local ingredients. Additionally, a subsidiary has been established in Wuhan, and a head office has been set up in Guangdong Province to manage operations and standardize menu development.

    What is Saizeriya’s pricing strategy?
    Saizeriya targets “cost-conscious” diners by offering affordable prices for its dishes. For instance, at its Shanghai branches, Milan-style rice is priced at 15 yuan, and squid-ink pasta is available for 16 yuan.

  • Over 2,000 Demand Free Tap Water at Singapore Restaurants, Igniting Vital Health Discussion

    Over 2,000 Demand Free Tap Water at Singapore Restaurants, Igniting Vital Health Discussion

    The recent Change.org petition calling on the Singaporean government to ensure public access to free tap water at eateries is gaining traction. Launched in late May, its visibility surged following a Facebook post by Gerald Giam, a member of the Singapore parliament, which highlighted the issue’s importance and potential health implications.

    Giam passionately pointed out, “Some eateries charge as much for water as they do for sugary drinks. This unintentionally nudges consumers toward less healthy options, increasing the risk of obesity and diabetes.” The petition reminds us of the alarming trend where many outlets across Singapore have begun charging for a basic commodity, tapping into economic pressures and beverage sales strategies. A 2018 survey conducted at VivoCity found that over half of the surveyed outlets charged anywhere from 30 cents to S$1 (23 to 78 US cents) for a glass of water. Furthermore, a report by The Straits Times documented a troubling climb in the number of eateries charging for tap water—from 5% in 2013 to around 10% in 2015.

    Yee Yucai, the petition’s organizer and consultant at the Singapore General Hospital, drew upon a personal experience to voice his frustration. At a recently visited buffet costing about S$60 per person, water was not provided without an additional S$5 for beverages. “That’s going too far,” Yee lamented, highlighting how food and beverage (F&B) establishments are pushing diners toward buying profit-generating drinks instead of offering complimentary water, despite ongoing governmental campaigns to curb sugar consumption.

    Customers have certainly taken notice of this trend. Student Koh Liang Lin reflected, “If water is chargeable at the restaurant, it will push me to top up a dollar more to get a canned drink.” Such sentiments have been echoed in the past by a human resource manager who expressed reluctance at paying for water, considering it “super not worth it.”

    What Are Businesses Saying?

    While many dining establishments do not charge for tap water or have ceased the practice due to customer complaints, the reality for F&B operators is more complicated. Daniel Sia, the chef-owner of Nasi lemak restaurant The Coconut Club, acknowledged the financial burdens involved in providing free tap water. “Utilities cost money, and offering that service often leads to a drop in beverage sales, which is an opportunity cost,” he explained. Anonymous sources from various cafés indicated that, in a tight economy, every cent counts. One owner candidly remarked that they charge 50 cents for free-flow tap water as their profit margins can be precarious.

    Additionally, certain establishments invest in filtration systems that can set them back between S$1,000 and S$3,000 monthly. While offering complimentary drinks may seem minor, the cumulative operational costs—cleaning, service, and utilities—rapidly accumulate. A Korean restaurant operator noted, “Bigger restaurant groups may absorb the cost, but for small businesses like ours, utilities are just a fraction of many overheads.”

    ‘A Basic Service’

    The debate over mandating eateries to provide free tap water resurfaced in parliament in 2021 but was dismissed due to the financial burdens on businesses. Giam suggested a compromise, proposing that eateries be allowed to charge for tap water but at lower rates than sugary beverages, to encourage healthier consumer choices. Conversely, Yee contended that the financial impact of providing free tap water is “very minimal,” based on calculations showing that offering water could only amount to about 0.13 cents per customer. For Yee, providing free water should be seen as an essential service that fosters public health.

    As diners navigate the waters (pun intended) of dining out amidst these changes, one can wonder: is there a better way for businesses to balance profit margins while providing a basic need? Perhaps it’s time restaurants reevaluate their drink strategies in favor of health and goodwill.

    Questions & Answers

    What is the main goal of the Change.org petition?
    The petition seeks to urge the Singaporean government to ensure that eateries provide free tap water to promote healthier food and beverage choices, reducing reliance on sugary drinks.

    How have some businesses responded to offering free tap water?
    While many have stopped charging for water, some F&B operators argue that the costs of providing it affect their already thin profit margins, leading them to charge nominal fees instead.

    What does the public think about the trend of charging for tap water?
    Many consumers are frustrated by the trend, feeling that charging for water nudges them toward purchasing less healthy options and that access to water should be a basic service in dining establishments.

  • Mad Mex plans five-country Asian restaurant rollout

    Mad Mex plans five-country Asian restaurant rollout

    Australian Mexican restaurant chain Mad Mex plans to expand into Asia, starting with its first Singapore restaurant this month.

    An inaugural Malaysian store is on track to open in December, and Indonesia and Thailand are also on the list.

    Mad Mex, which recently partnered with Singapore’s 4Fingers group, runs 70 restaurants in Australia and New Zealand and claims to have served up more than 4 million burritos within the last year.

    “Asia is a growth market with diverse cultures and adventurous appetites for great tastes and flavours, which is perfect for Mad Mex,” said founder Clovis Young.

    “The expansion into Asia Pacific comes at an exciting time for Mad Mex: we’ve launched our Fresh Fuel for Life brand positioning which highlights our continued commitment to best-quality Mexican food, packed with fresh and healthy ingredients to fuel our amigos’ lives and passions. We pride ourselves on providing real food with no nasties, and big bold authentic flavours to nourish real people on the go.”

    Young said Southeast Asia is in the midst of a food revolution towards healthy eating, and believes Mad Mex’s healthy, quality offer will resonate with local customers.

    “We are very excited by the opportunity and we have big plans for the next five years.“

    Mad Mex has opened in Singapore’s Marina Bay financial district. With 4Fingers the company plans to make the most of local market knowledge in growing both brands in Singapore, Australia, Indonesia, Thailand and Malaysia.

    Meanwhile, the company has reported like-for-like sales growth of 6.5 per cent this year and 70 consecutive weeks of sales growth in its core Australian market.

    “The results our team has delivered are truly remarkable and a demonstration of the passion and enthusiasm our restaurant teams have for the food and the brand. The last year has been very tough for retailers, so this performance really is exceptional.”

    Lees ook:

    Lees ook:

  • Cafe De Coral Profits Plummet Amid Economic Fragility; Embraces Strategic Adaptations For Resilience

    Cafe De Coral Profits Plummet Amid Economic Fragility; Embraces Strategic Adaptations For Resilience

    Cafe de Coral, a prominent foodservice operator, has disclosed a slump in earnings, attributing the setback to a frail economy and lukewarm consumer sentiment. The fiscal report for the year ending March 31 revealed a 1.4% slide in revenue, resulting in HK$8.568 billion (US$1 billion). Concurrently, the profit attributable faced a steep 29.6% fall, amounting to HK$232.7 million.

    Challenging Industry Landscape

    The management acknowledged a severe downturn in the restaurant sector both in Hong Kong and Mainland China. The slump was aggravated by heightened economic fragility and a tepid consumer sentiment. Additional factors contributing to the downturn included the outbound spending habits of Hong Kong’s residents and stiff price competition in Mainland China’s marketplace.

    In Hong Kong, the revenue loss was marked at 1.4% with casual dining and quick service restaurants experiencing a decline of 6.4% and 0.3% respectively. Revenue from Mainland China recorded a 1.3% decrease.

    Strategic Adaptation

    Sunny Lo, the Chairman of Cafe de Coral, contended that the uncertainty over the course of the previous year was indicative of a long-term transformation in global markets. As per him, this transformation was triggered by geopolitical forces adapting to a new dynamic.

    Lo stated, “Our management team has accepted and embraced the current economic challenges and is adapting the business to thrive in the new environment.” He further emphasized the company’s commitment to the future by refining its restaurant portfolio, hiring new talent, and integrating innovative technological solutions to transform the business operations.

    Cafe de Coral currently oversees a network of over 500 stores spanning Hong Kong, Macau, and nine principal cities in Mainland China.

    Questions & Answers

    What is the main reason for Cafe de Coral’s decreased profits and sales in the last fiscal year?
    The primary reasons for the decrease in profit and sales were attributed to a weak economy and lukewarm consumer sentiment, particularly in Hong Kong and Mainland China.

    How did the downturn affect different restaurant types?
    The downturn affected casual dining and quick service restaurants differently. Casual dining saw a decrease of 6.4%, while quick service restaurants experienced a smaller decrease of 0.3%.

    What steps is Cafe de Coral taking to adapt to the current economic challenges?
    The company is adapting by refining its restaurant portfolio, recruiting fresh talent, and incorporating new technology into its operations.

  • Hecho En Mexico Debuts Ready-to-heat Packs At Coles Supermarkets Nationwide

    Hecho En Mexico Debuts Ready-to-heat Packs At Coles Supermarkets Nationwide

    The Melbourne-based Mexican fast-food chain, Hecho En Mexico, has made moves to broaden its horizons into the retail market by introducing two of its most popular dishes in ready-to-heat packs.

    The launch, resulting from a collaboration with cooked-protein provider Country Cooked, includes two of the chain’s fan favorites: Hecho En Mexico Chicken Fajitas and Hecho En Mexico Pulled Pork Tacos. The chicken fajitas consist of a 12-hour marinated chicken fajita mix, while the pulled pork tacos feature seasoned Mexican pulled pork.

    The convenient packs are inclusive of six flour tortillas and tomatillo salsa. Customers need only add shredded cheese and lime to have a well-rounded meal ready in under 20 minutes.

    Since making its first appearance in Fitzroy, Melbourne back in 2013, Hecho En Mexico has experienced rapid growth, resulting in the opening of over 20 restaurants across Australia.

    Loui Marcocci, the co-founder of Country Cooked, expressed his optimism about this new venture. According to him, this partnership illustrates the increasing opportunities for fast-service restaurants to venture into the retail sector.

    Marcocci highlighted that Hecho En Mexico had already been utilizing Country Cooked’s products in its restaurants. He expressed how this move is mutually beneficial, extending the brand’s reach to retail consumers and offering fans of the restaurant the convenience of purchasing their favorite dishes at their local Coles supermarket.

    The new Hecho En Mexico range is currently accessible at Coles supermarkets nationwide.

    Questions & Answers

    What is Hecho En Mexico’s new venture?
    Hecho En Mexico, in collaboration with Country Cooked, is launching two of its popular dishes in ready-to-heat packs for retail.

    What dishes are included in the ready-to-heat range?
    The range includes the Hecho En Mexico Chicken Fajitas, a 12-hour marinated chicken fajita mix, and Hecho En Mexico Pulled Pork Tacos, made with seasoned Mexican pulled pork.

    Where are the ready-to-heat packs available for purchase?
    The ready-to-heat packs are available at Coles supermarkets nationwide.

  • Jollibee secures approval to lift foreign ownership limit

    Jollibee secures approval to lift foreign ownership limit

    F&B giant Jollibee Foods Corporation (JFC) has received approval from the Philippine Stock Exchange (PSE) to remove its 40 percent foreign ownership limit.

    The decision follows the company’s amendment request to its articles of incorporation, which also includes removing its ability to own, acquire, mortgage, pledge, or encumber land.

    Article 12 of the Philippine Constitution restricts foreign ownership of land and certain businesses to 40 per cent, with the remaining 60 per cent reserved for Filipino citizens or corporations.

    Following the change, JFC is now positioned to accommodate more foreign investors.

    AP Securities research analyst Jose Cipres said the move allows the company to raise additional capital for expansion through a sale-leaseback transaction.

    “They could use the proceeds from the sale of land to expand their current store portfolio, translating to higher earnings,” explained Cipres.

    Meanwhile, Unicapital equity research analyst Jeri Alfonso said removing the foreign ownership limit is a good catalyst for JFC.

    “Given this current market condition, this will provide a big boost to the company in terms of trading volume,” Alfonso added.

    Lees ook: