Breadtalk Group Background Information

BreadTalk Group Ltd.1.0 Introduction1.1 Background information on the industryThe F&B industries play an important role in Singapore’s economy. Being amultinational country, the F&B industries have been influenced by culture fromdifferent nationalities and countries. Singapore has been ranked as one of thethree major eating capitals in the Asia Pacific region and the other twocountries are Hong Kong and Australia. Singaporeans’ extremely large appetitefor eating out has rose the incredible rang and numbers of F&B outlets, fromupmarket restaurants and eateries to inexpensive cafes (Springs Singapore,2008).There is a great opportunity to be an entrepreneur in this industry because ofits low entry barriers. Having this opportunity, enterprising individuals areattracted to give up professional careers and go into business. Today, many F&Bentrepreneurs have expanded overseas by setting up franchises, joint ventures orcorporate­owned outlets (Springs Singapore, 2008). 1.2 Background information on the companyBreadTalk Group was founded in 2000, operates its chain of retail outletsselling breads, buns, cakes and pastries through its principal subsidiary,BreadTalk Pte Ltd. BreadTalk has become a unique Singapore brand that has gainedinternational appeal. The Group owns and operates 34 bakery outlets in Singaporeas of 31 Dec 2007, as well as several outlets in various countries regionally,including Shanghai and Beijing. It is most famous for its cream­filled bunstopped with pork floss, named Flosss (BreadTalk, 2008). In 2003, the Group opened the world­renowned Din Tai Fing restaurants, famousfor its its “xiao long bao” meat dumplings, in Singapore (BreadTalk, 2008). In 2005, BreadTalk enters further into the China market by acquiring TopwinInvestment Holding Pte Ltd, which owns and operates 13 food courts under theaward­winning brand­name "Megabite" in the PRC (BreadTalk, 2008). In October 2005, the Group opened Toast Box coffee shop which inherits the styleand atmosphere of coffee shops in 60s and 70s (BreadTalk, 2008). 1.3 How the firm creates valueAs part of Breadtalk’s unique concept, the layout of retail outlets are designedin a way that customers have a clear view of bakery items on display. Theoutlets’ “see thru kitchens” allow the chefs to share the preparation of thefreshly browned breads with customers and shoppers. The design of retail outletsalso gives customers a warm and friendly atmosphere. To provide customers withhigh quality and freshly baked breads, breads are kept only one day on theshelves, and disposed at the end of business hours. Breads are created toreflect the local taste so that customers can enjoy the combination of westernconcept with eastern design. To accommodate the customers’ changing taste andindividual differences, it constantly introduces new varieties of products.