RECIPE FOR SUCCESS: Singapore & Asia Food Fair 2023 comes to SA

Though hit hard by the recent pandemic and to a certain extent by the ongoing Russia-Ukraine Conflict, the global food service sector finds itself in turbulent waters as it navigates the evolving business climate of 2023 and beyond. However, all is not doom and gloom. Asia has a diverse and rapidly growing consumer market that is increasingly interested in global and Western-style food and dining experiences, making it an attractive region for food and beverage franchising. With McDonald’s, 7-Eleven and KFC leading the pack in franchising, it is no secret that the franchising model is one of the most effective market entry models to manage risk, cost and brand recognition.

According to market research, the Asia Pacific food service market is forecasted to hit a spectacular growth rate of 31.2% for the period 2022 – 2027 – market opportunities abound in many of Asia’s fast-growing regions. In this article, we discuss how franchising can serve as a cost-efficient market entry approach with a tried-and-tested system in new market conditions.

Franchising for F&B Businesses in New Markets

The advantages of franchising present far more advantages than its downsides. For starters, the franchisee has the assurance and confidence in getting into a proven system with well-oiled operational processes, established brand equity and perhaps most notably of all, reduced risk in setting up new F&B investments in new markets, thereby allowing the franchisee to focus on the market dynamics, product localisations and food service innovations to maximise its bottom line.

On the other hand, the franchisor enjoys the benefits of rapidly scaling up its food empire in a capital-light system where the business owner is able to build up its local market knowledge and expand its F&B supply chain network in a systematic manner. Therefore, franchising can thus be a win-win model for both parties when entering into new, unfamiliar markets.

Franchising Empowers Restaurant Chains to Quickly Innovate and Adapt

Successful F&B companies are on the constant lookout to delight discerning customers today and also to stay on top of current social dynamics in the communities they operate in. For instance, BreakTalk outlets sold panda-shaped products to raise funds for the victims of the Sichuan earthquake and rocket-shaped products to celebrate China’s first astronaut in space. BreadTalk prided itself on having a culture of “creative differentiation” – a product-focused business and marketing strategy that helped its brand rise above thousands of competitors offering similar products.

In partnership with San Francisco food tech Eat Just, Taiwanese Michelin-star restaurant Din Tai Fung rolled out a vegan menu with five innovative plant-based dishes that will match the demand for more vegan options across all its US outlets. The plant-based move by Din Tai Fung is a notable pattern replicated across the food service industry with a rapidly rising number of restaurants adopting plant-based dining options to cater to the growing vegan movement globally.

Franchisee’s Localised Market Knowledge Can Make or Break a Business

Domino’s Pizza, one of the easily recognisable fast-food companies across the globe, is big on international franchising. However, not every franchise venture is smooth sailing – it nearly failed in Australia because it underestimated the need to adapt its offerings to local tastes; only after it turned the country over to a local master franchisee did Domino’s become the largest pizza chain there. Another example: McDonald’s in Indonesia offers a range of menu items that cater to local tastes, such as the McRice burger, which is a burger patty served with rice instead of a bun, and the Spicy Chicken McD, which is a fried chicken sandwich with a spicy sauce.

Differentiate Through Superior Customer Service

Haidilao, one of China’s biggest hotpot restaurant chains, is one of the best-known Chinese restaurants around the world. Its exceptional customer service propels its value proposition to its quick rise – customers often have to wait for long periods of time (usually more than an hour on average) for a table, and Haidilao provides free entertainment to keep customers happy. Queuing perks such as complimentary manicures, board games, as well as snacks and drinks are a common sight in their restaurants everywhere. And that’s not all: customers will be pleased to find a considerate dining experience with plastic covers for their mobile phones, well-thought-out toilets fully stocked with sanitary towels, razors, toothbrushes, toothpaste, toothpicks, perfume and mouth freshener. In selected restaurants, a toilet attendant will hand you a fresh towel as soon as you lift your hands off the basin!

Asia presents an abundance of franchising opportunities for the food service sector

The rapid rise of the Asian middle class typically spending more on consumer goods and services, including travel and culinary experiences, has led to a surge in demand for different food and beverage options. Africa is home to a diverse range of food cultures, with different regions having their own unique cuisine. This provides a wide range of opportunities for food service franchises to adapt their menu offerings to suit local tastes and preferences in Asia, or anywhere they set up shop. The opportunities offer African as well as global F&B operators a set of compelling reasons to seize the opportunities in setting up innovative F&B concepts that offer great value propositions and are superior in the dining experience.

Singapore & Asia Food Fair 2023: Experience and Network

Visit us this May at the Singapore and Asia Food Fair 2023 to experience the breadth of Singapore and Asia food cultural heritage through this strategic business-to-business and business-to-consumer F&B platform in Johannesburg. Meet and network with established F&B operators with diverse culinary backgrounds from traditional South East Asian roasts to Malay pastry to authentic Chinese heritage food fare.

Article by Ezekiel Ang, CEO, Biz Africa Events Private Limited (Singapore)

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