Tag: retail acquisitions

  • DFI to Take over 1,100 Starbucks Stores in $340 Million Deal

    DFI to Take over 1,100 Starbucks Stores in $340 Million Deal

    DFI Retail Group said on Wednesday that its unit will take control of more than 1,100 Starbucks stores across seven Asian markets through a deal with Maxim’s Caterers.

    Maxim’s will pay DFI US$340 million in cash to buy back the 50 per cent stake the pan-Asian retail group currently holds in the Hong Kong catering giant.

    The mechanics of the seven-market swap

    Under the reorganization agreement, a DFI business unit takes over Maxim’s operating interests in licensed Starbucks stores across Hong Kong, Macau, Singapore, Thailand, Vietnam, Cambodia and Laos. The transfer converts DFI from a passive joint-venture shareholder in a broad food-service group into the direct operating licensee for the world’s largest coffee brand across Southeast Asia and Greater China.

    Management expects the absorbed coffee business to generate between US$600 million and US$650 million in subsidiary revenue during the nine months from April to December 2027. Full-year contributions are projected to reach roughly US$900 million by 2028.

    Immediate gains in group revenue and operating margins will follow completion. Additional financial upside will stem from retail procurement and logistics integration across existing store networks.

    Shifting risk from broad dining to branded coffee

    Swapping a diversified dining portfolio for a focused coffee business sharpens DFI’s retail profile during intense regional competition. Running full-service restaurants and traditional bakeries across Hong Kong has exposed operators to shifting consumer habits, rising labor overheads and cross-border spending leakage to mainland Chinese cities. Direct ownership of the Starbucks network gives DFI a single, high-frequency format backed by strong customer loyalty and higher gross margins.

    For retail landlords and supply partners, the consolidation brings Starbucks operations under the corporate umbrella behind major grocery, health and beauty, and convenience store chains. That operational scale provides use over prime mall leases, freight routes and warehousing across Bangkok, Singapore and Ho Chi Minh City. Execution risks center on sustaining store productivity and managing beverage price points across developing markets like Laos and Cambodia as consumer budgets tighten.

    Starbucks overhauls its Asian footprint

    Chief executive Brian Niccol is orchestrating a broader restructuring of Starbucks licensed and equity holdings across the Asia-Pacific region. The Seattle-based coffee chain has cut corporate headcount and closed underperforming North American outlets to protect operating margins while reworking partner equity in Asian territories.

    In mainland China, Starbucks finalized a joint venture structure in April, selling a 60 per cent controlling stake in retail operations to private equity firm Boyu Capital while keeping a 40 per cent interest. Seattle headquarters is also evaluating the divestment of a majority stake in its Japanese retail arm, delegating operational weight to capitalized regional specialists.

    Earnings guidance and payout targets

    Alongside the transaction terms, DFI lifted its 2027 dividend payout ratio target to 80 per cent to return more operational cash flow directly to shareholders. Management reaffirmed its standalone 2028 underlying profit forecast within a range of US$310 million to US$350 million.

    Both companies plan to close the transaction ahead of April 2027, when the initial US$600 million revenue run rate begins registering in group financial statements.

  • Thai Ice-Cream Brand Hawell’s Put up for Sale for 165 Million Baht

    Thai Ice-Cream Brand Hawell’s Put up for Sale for 165 Million Baht

    Hawell’s founder Siripong Akkarasriyuk has put the Thai ice-cream chain up for sale for 165 million baht as he prepares to enter the Buddhist monkhood.

    The package covers seven rai of land, a production factory in Nonthaburi, recipes developed across 37 years, and the brand’s sole operating standalone outlet.

    What the 165 Million Baht Sale Includes

    Siripong announced the sale on Friday, offering a 5 million baht referral fee to anyone who secures a buyer. The assets bundled into the 165 million baht price tag include the Hawell’s trademark, operating licences, an office building, plant machinery, and proprietary formulas for both hard-scoop and soft-serve ice cream.

    The sale also comes with an expansion blueprint targeting 8.8 billion baht in annual revenue. That model requires rollouts across 300 soft-serve shops, 100 hard ice-cream stores, and 5,000 automated cup-dispensing machines nationwide, provided the incoming buyer secures capital within two years.

    From 22 Mall Stores to One Standalone Unit

    Founded in 1999, the brand opened its first branch at Central Pinklao and expanded to 22 mall locations within three years by positioning itself as an affordable, quality domestic alternative. Growth stalled when competing international and corporate-backed chains secured exclusive lease clauses with shopping centre operators, barring direct rivals from mall premises. The closures culminated in the shutdown of the original Central Pinklao branch in 2014.

    Retail landlords in Bangkok have long favoured well-funded conglomerate brands with exclusive tenancy covenants, squeezing independent operators out of prime foot-traffic corridors. Hawell’s pivot away from department stores toward standalone sites and automated vending mirrors broader efforts by local food operators across Southeast Asia to bypass mall lease restrictions and high occupancy costs.

    After opening a standalone restaurant in Bang Bua Thong in 2023, Siripong attempted to renegotiate entry into shopping complexes over the past two years without success. Having authored a book on Buddhist philosophy in 2016, he has committed to entering full monastic ordination within two years, making a complete transfer of the business his final operational deadline.