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Asia's food retail sector: What's up?

19Jan2001 Supermarkets Expand Operation.

Almost all supermarkets in Ho Chi Minh City are investing in expanding their operation to attract more buyers.

The Mien Dong Supermarket, one of the biggest in the city, has spent VND28 billion ($1.92 million) in expansion and the Maximark, VND40 billion ($2.75 million). The Co-op Mart chain is also planning to open branches in Hanoi and southern Can Tho province this year.

Market observers said the shopping demand of consumers in supermarkets is increasing significantly from several hundreds people a day in past few years to 4,000-5,000 currently. The Mien Dong alone receives up to 20,000 buyers/day with the average billing coming up to VND100,000-200,000 each. However, they said, the appearance of the newly-licensed German Metro and the US Associates Grocers, the two world's leading goods wholesale suppliers, will surely make a turn point in the supermarket business in the city as well as throughout the country.

The Saigon Agriculture Corp (SAI) is now waiting for a license to build a four-hectare agricultural service trade center. The center will sell agro-forestry products and seafood and seeds and farming techniques. Total capital for this four-year project is estimated at VND40 billion.

16Jan2001 Thai Rak Thai may amend law to help Thai retailers compete with foreign companies.

A top Thai Rak Thai party official said consideration would be given to protecting Thai retailers against competition by large foreign-owned businesses. He said the Alien Business Act may have to be amended to put a limit on the extent to which the retail sector is liberalized.
Small and medium-sized Thai retailers have complained that large foreign-owned retail operations such as Lotus and Carrefour are driving them out of business because they cannot compete. Under the administration of Prime Minister Chuan Leekpai, the retail sector has undergone liberalization in accordance with the requirements and rules of the World Trade Organization (WTO).
However, the Thai Rak Thai official did not specifically say what would be done, nor did he say when the Alien Business Law would be amended.

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26Jan2001 Fish Shop goes `steak' for a different taste.

KNOWN across the country as a leading fish and chips restaurant, the Fish Shop hopes to give Bangsarians a difference from its routine fried Hoki fish.
Bangsar's Fish Shop Bistro in Jalan Telawi 2, which opened last November, serves poached salmon steaks with three special sauces to go with them - curry, caper, and anchovy.
And if cod is available from New Zealand, the home of the fish served at the shop, there will be poached cod steaks, prepared like their salmon counterparts, as well.
Restaurant director Jack Smith said each Fish Shop in the country had the flexibility to introduce fish dishes of its own, and the Bangsar shop was no exception.
He said the Bangsar Fish Shop welcomed suggestions on good fish dishes from customers, and would add them to their menu, from time to time.
"Our salmon steaks are going down well with many customers, who stop to try them daily.
"However, the standard menu dishes as fried fish and chips, mussels, oysters, squid rings and scallops remain popular."
He said they had recently added the seafood chowder, a creamy soup with tomatoes, fish, mussels and squid to the menu.
"We chose to offer soup, as no dining place can be complete without it."
Smith said the word, Bistro, was tagged on to the Fish Shop in Bangsar, as such a concept meant, an open-air cafe, which was fast becoming a hit in the hip township.
"We have plans to make our shop more than just a restaurant. Theme parties and a meeting place for specific car fan clubs will come later," he said.
At present, the Fish Shop is having a special offer for fans of fish and chips. One can get two fish and chips dishes for the price of one, until the end of February.
The offer at the 60-seater restaurant which is decorated with wall paintings of marine life, began on Jan 15.
Smith hopes to obtain educational photographs with information on marine life on the walls, at a later date.
"We have about 100 patrons daily," he said, adding that food was priced between RM2 and RM20.
Opening hours are from 11.30am to midnight. On Fridays and Saturdays, the opening hours are extended to 1am.
The restaurant can be contacted at 03-22827970.

26Jan2001 Thumbs-up for hot, spicy chicken.

DINING is best at KFC and Canteena for nine-year-old S. Thilashini.
She is all thumbs-up for KFC's hot and spicy, as well as original recipe chicken, and calls the popular recipes "the best chicken of all".
Canteena is a delight for her, as it gives good Eastern and Western food.
Chicken chops and grilled fish are excellent in the restaurant, which is patronised by Thilashini and family who live in nearby Jalan Telawi, weekly.
"I like Lotus, too, for its thosai. It is always crisp and tasty," says Thilashini.
The Sekolah Kebangsaan Bukit Bandaraya student says, while Bangsar Baru is her home, it is also a wonderful dining place.
"There is so much to choose from - Indian, Chinese, Malay and Western," she says, adding that while the food may be costly, it is worth every cent.

26Jan2001 Growing trend of people going to the Airport for coffee session.

Changi Airport is increasingly become a hip place, especially after midnight.
And some 30 percent of customers patronising its food and beverage outlets go there solely for the coffee, ever since two chains started business in Terminal 2 six months ago.
When asked why people chose to hangout at Changi Airport, most cited the spacious, clean and safe environment as the pull factor.
And they are hoping that more facilities will be added so that it can become a social hub.
One of the interviewees said: "It's a pity if you don't make use of the airport because it's so clean, with all the first grade facilities around."
One coffee chain said the improved transportation such as the SBS night service and expected MRT next year will bring in more business.
Another said if business at the airport flourishes, it is a bonus, as its aim is to build up the company's brand name.
"The airport is good to showcase our outlets in terms of international branding because we intend to expand overseas," said Ong Ju Yi, Marketing & Communications Director of Coffee Club.
24-hours F&B outlets have been at Changi Airport for a long time but only now is it becoming more popular.
Many said it is due to a change in lifestyle and besides, there are not many equally comfortable 24-hour places in Singapore.
An Airport spokesperson said they have no immediate plans to develop the airport into a social hub and that the coffee crowd was an unexpected bonus.
But the intention of the new coffee outlets was to provide more facilities for airport users.

26Jan2001 State-owned firms sought for restaurant chain.

THE Department of Export Promotion would like two state enterprises, Thai Airways International (THAI) and the Tourism Authority of Thailand (TAT), to take part in the planned Thai restaurant holding company, Global Thai Restaurant (GTR), a department official said yesterday.
Thanitta Maneechote, director of the department's service trade division, said the idea behind GTR is to promote Thai restaurants to an international market under the three brand names: "Golden Leaf", "Cool Basil", and "Elephant Jump".
GTR will run the restaurants under a franchise system, the department said.
GTR has Bt400 million in registered capital, of which 30 per cent is held by the government. The remaining 70 per cent will be offered to the private sector. The national carrier THAI and the TAT will represent the government in the GTR initiative.
However, before the idea can get off the ground the proposed restaurant needs approval from the new Cabinet, Thanitta said.
The Department of Export Promotion expects that under the franchise system, GTR will help boost the number of Thai restaurants overseas from 5,000 to about 8,000 over the next five years.
The department expects to follow in the footsteps of global restaurant giants "McDonald's" and "KFC" in expanding to an international market.
The plan to offer foreign investors franchise rights to the three GTR brands has already attracted some interest, Thanitta said.
Following the success of GTR's first road show in the US last year, US catering and fast food firms Marriott, Starwood, and AFC Enterprises expressed an interest in the Elephant Jump franchise, she said. Elephant Jump's speciality is the popular Thai fried noodle dish, Pad Thai.
The UK-based Compass Group UK is also interested in acquiring a GTR franchise, and Blue Elephant, a Belgium-based Thai restaurant operator, has shown an interest in the Golden Leaf franchise, she said.
A number of local food suppliers have also expressed an interest in acquiring the 70-per-cent GTR stake. However, Thanitta denied a rumour that the Charoen Pokphand (CP) group would be given the stake.
In the eyes of the Department of Export Promotion increasing the number of Thai restaurants overseas will boost Thailand's exports of foodstuffs and ingredients to an international market, she said.
According to department statistics, the 5,000 Thai restaurants overseas reported a combined total turnover of Bt175.6 billion in 1999.
In a separate development, the CP group recently launched its new Thai fast food restaurant, Bua Baan, and is aiming to sell Bua Baan franchises.

25Jan2001 Look Who's Going Native - `Fusion' cuisine is gaining ground in Asia, thanks to the ...

Fast Food - Look Who's Going Native - `Fusion' cuisine is gaining ground in Asia, thanks to the fast-food influence of Colonel Sanders and the Golden Arches.

TATSUTA CHICKEN marinated in sake and fried in soy sauce, topped with a lightly-toasted bun on a bed of pommes frites. Tangy spiced samosas stuffed with grilled vegetables, slightly-melted cheese and Italian pizza sauce.
They may sound oh-so-fusion chic, but you won't find them on the menu at the hottest new five-star restaurant in town. No, they're available for $3.50 and 50 cents at the McDonald's down the street if you're in Tokyo or Bombay. While shi-shi restaurateurs struggle to create the perfect meld of East and West in esoteric dishes, McDonald's and other fast-food restaurants throughout Asia have found many a localized recipe. And they're bringing fusion food to more people and doing it better than the master chefs.
"Fusion food suffers greatly because it was first introduced in the high end. People think it's just a trend, a passing fashion," says Richard Armstrong, planning director at Ogilvy & Mather in Hong Kong. "But fusion is here to stay, just look at the menus at fast-food restaurants." Armstrong led an Ogilvy & Mather team that recently conducted the largest study on food in Asia. It found that throughout the region, even in less-developed markets like Sri Lanka and Indonesia, consumers savoured tastes that were a blend of East and West, local and international.
Surprisingly, McDonald's has been particularly successful at catering to those tastes. The global giant is often criticized for standardizing tastes by serving the same burger the same way everywhere in the world. But that's far from the truth. Though the core menu - hamburgers, Big Macs, fries, etc. - is available in all McDonald's restaurants, it's complimented with an array of localized choices. Usually in Asia, about a third of the menu is made up of dishes you won't find anywhere else, like Tatsuta Burgers in Japan or Pizza McPuffs in India. In fact, the 25 McDonald's in Bombay and Delhi feature a menu that is over 75% locally-developed.
McDonald's started localizing its menu in the early 1980s before "fusion" became a culinary catchphrase. It introduced the Teriyaki Burger in 1989 in Japan and the Fried Chicken in 1988 in Malaysia. Even the good old standards like cheeseburgers and Big Macs were tweaked to appeal to local tastebuds - they don't always taste exactly the same in all the different markets. "The core concept of the product may be the same," says Steen Puggart, marketing manager for McDonald's in Asia. "But the flavour profile is different from country to country, depending on the tastes of consumers."
So in Thailand, McPork Burgers with Thai Basil are served, while in Korea, it's spicy Bulgogi Burgers. Chicken, the protein of choice for most Asians, is on the menu throughout the region - spiced up a bit in Malaysia, sweetened in the Philippines. McSpaghetti - spaghetti with Filipino ham - is another favourite in the archipelago and McTempeh Burgers, made using fermented soybean, are big in Indonesia.
But more than any other country, India has been the biggest inspiration for McDonald's fusion chefs. With a population that is mostly Hindu, the restaurant chain can't serve its mainstay - beef. So most of the standard menu had to be thrown out, down to the "special sauce" that goes into Big Macs elsewhere. Many Hindus, who are strict vegetarians, eschew mayonnaise, the sauce's main ingredient.
In place of the Big Mac, McDonald's India developed the Maharaja Mac - a mutton burger. But far more popular have been Vegetarian Pizza McPuffs, which combine Pizza ingredients with samosas, and Chicken McGrill, seasoned with mint mayonnaise and extra tangy Indian spices.
These fusion dishes have been the key to McDonald's success in India and elsewhere in Asia. Though still not profitable, McDonald's is one of the few fast-food chains to grow in India. KFC pulled out last year. "Of course it's been successful. Otherwise we wouldn't do it," says Puggart.
Tricon International, which runs KFC and Pizza Hut, may have flopped in the Subcontinent but it's pushing ahead in the rest of the region. Pizza Hut has kung pao chicken toppings in Taiwan and kimchi pizza in Korea, while KFC is serving soups and dumplings in China. Not only do consumers like fusion fare, but over 85% of all KFC's and Pizza Hut's ingredients are locally bought. "So it's inevitable that we combine Eastern and Western cooking and flavours," says Tony Chen, Tricon's menu developer in China.
But it's not just global giants like McDonald's and KFC that are taking their menus to fusion. Homegrown chains like Mos Burger in Japan or Jollibee in the Philippines are creating some of the most innovative and tasty blends.
Mos Burger, for instance, took fusion burgers one step further by replacing the buns with rice in its rice burgers. And instead of beef patties, Mos Burger offers shrimp cakes and Japanese-style fried beef. Jollibee, on the other hand, serves up local noodle dishes topped with smoked dried fish bits, onion leeks, shrimp and hard-boiled eggs.
But don't expect McDonald's or KFC to be putting these types of more Eastern than Western dishes on their menus. Though they've localized their offerings, McDonald's and KFC still have an all-American image to maintain. "Consumers don't come to McDonald's to eat completely local food," says Puggart. "So we have to stay true to our heritage while catering to customer's tastes."
McDonald's and other fast-food chains in Asia are destined to walk the fine culinary line between East and West.

23Jan2001 KFC launches new blazing burger for Chinese New Year.

KFC launched its new hot spicy Double Blazing Burger to usher in the Chinese New Year. The burger is also KFC's first new product to be launched this year.
The burger consists of two succulent, hot and spicy chicken fillets, fresh lettuce, mayonnaise and is spiced up with the new Thai Chilli Sauce.
"I think our hot and spicy Double Blazing Burger will be a must try for burger lovers during this festive period," said Mr C.K. Tan, Managing Director of KFC (East Malaysia), at its launch.
"When you take a bite of it, you will know exactly why we call it the hottest burger in town."
"I think that it is going to be a great Chinese New Year hit," Tan said. "We always respond to the voice of the customers who are looking for high quality, tasty, affordable meals.
"KFC already has a selection of burgers including the "Zinger Burger" and the "Deli Burger" which are firm favourites. The Double Blazing Burger will add to the meal variety."
"We want to show them that they get not only the best fried chicken at KFC restaurants but also the hottest and spiciest burgers in town. Nobody has come out with such a burger concept before," added Tan.
The Double Blazing Burger is now available at all KFC outlets throughout Brunei at $4.50 a burger.

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