January – March 2023

Liew Chief Executive Officer F&B OldTown

Dawn

Thanks to the strong partnership between Singapore’s premium chocolate cake baker and Japan’s premium chocolate maker, Chocolate Origin with CACAOCAT respectively and collectively offer the consumer a plethora of cacao delights from chocolate cakes, gelato ice-creams, and chocolate bon buns to satisfy all their chocolate indulgences.

Chocolate Origin uses the finest ingredients, and its products are handmade with love to ensure that they are all tasting oh-so delicious, with every bite. CACAOCAT’s Chocolate Bon Bons are chocolates product from Japan, Hokkaido, using only the most premium ingredients to achieve the ultimate smoothness. Each chocolate melts in your mouth and that provides a real heavenly cacao taste experience.

There are now twelve outlets spread over many malls in the beautiful city of Singapore. There are eight outlets (add over two hundred pop-up shops) in Japan. There is also one shop in cosmopolitan Shanghai. The franchise packaged is attractive: as a guide, the franchise fee for the first six years is US$40,000 for the first outlet; the second and subsequent outlet’s franchise fees are reduced to US$20,000. Renewal fees are just US$15,000/outlet.

For more information, please contact info@dadaca-asia.com

Incorporated in Singapore since January 2012, Chocolate Origin has grown very healthily due to the increasing sophisticated taste buds of locals and tourists from around the world.

Franchise companies, once they have built a solid net work of outlets in their own countr y, will often st art to look at overseas markets. Because many entr y barriers can be overcome via franchising , this is naturally a preferred model for overseas expansion.

However, in my 33 years in franchise consulting , I have seen many franchisors rush overseas in the most unprepared conditions – e.g ., when their nancial position is still relatively weak; when their team members are still inexperienced and psychologically unprepared to travel frequently overseas; and when their intellectual propert y protection is not in place…

Interestingly, I recently read an article about international expansion by Wharton management professor Exequiel (Zeke) Hernandez who studied a phenomenon in the banking industr y in his paper, “When Do Ethnic Communities A ect Foreign Location Choice? Dual Entr y Strategies of Korean Banks in China” Professor Hernandez mentioned the example of a Korean bank which, among other strategies it deploys, open branches in China populated by people of its own ethnic group.

I opine that before venturing overseas, doing tons of pre-entr y homework, and evaluating the external environment of a business by breaking down the opportunities and risks into Political, Economic, Social, Technological, Environment al, and Legal factors (PESTEL) is tot ally essential.

At the time of writing this, Hong Kong (HK) has just announced that they were ending most international travel restrictions. Hooray! (I have a soft spot for this lovely place where my maternal grandfather lived). And hopefully, the Hong Kong Trade Development Board will consider organizing their HK International Franchise Show (HKIFS) in 2023.

May 2022 be a year when great breakthroughs happen for the good of all humanit y

在撰写本文时，香港 (HK) 刚刚宣布他 们将结束大部分国际旅行限制。棒极了！ （我对我外祖父居住的这个可爱的地方情 有独钟）。希望香港贸易发展局考虑在 2023年举办香港国际特许经营展 (HKIFS) 。

The topic might seem unusual, but the phenomenon of rms expanding into foreign markets [to follow immigrants] is actually quite common. I am inclined to see Philippines’ fast-food Jollibee as a real example. Their rst outlets were in California because there are many Filipinos who live there…

In my mind, franchising should and can work in almost all economies regardless of the population size or GDP. Franchising offers businesses an adaptable mechanism for expanding domestically and internationally. This implies that a proven business (mainly lifestyle businesses like f&b, wellness, education, retail, services) that has developed a versatile franchise package has the potential to be liked and approached by franchisees (local and overseas) that want to bring the same business to their market/ territory. Of course, both the franchisor and franchisee should analyse the various important factors to minimize a mismatch (PESTEL, Marketing P’s, etc.)

But not all companies will nd it desirable to locate where immigrants from their home countr y live. There are cases in which companies deliberately avoided locating where immigrants live because they didn’t want to be associated with catering to a ‘niche-y’ ethnic group of customers or workers. Instead, they actually wanted to ser ve the broader market. Professor Hernandez’s ‘dual entr y strategy’ is quite interesting “If I am a rm and I’m considering expansion into a location that has an ethnic population, I’m going to do it if that location has a weak institutional environment weak courts, weak laws, weak propert y rights — but I will not or I will be at least much less swayed by the ethnic population in places where institutional environments are strong”

The franchise shows/conventions in Taiwan, Japan and the USA in the first quarter of 2023 will help get all our juices flowing. Please visit https:// asiawidefranchise.com.sg/events/

To friends that celebrate the lunar new year (January 22nd to 24th being the first three days), may you and your loved ones enjoy good health, peace and prosperity.

在我看来，特许经营应该而且可以在几乎 所有经济体中发挥作用，无论人口规模 或 GDP 是多少。特许经营为企业提供了 一种在国内和国际扩张的适应性机制。这 意味着已经开发出多功能特许经营体系的 成熟企业（主要是生活方式企业，如餐 饮、美容/保健、教育、零售、服务）都 有可能受到想要带来相同业务的特许经营 加盟商（本地和海外）的喜爱和接触到 他们的市场/领土。当然，特许人和加盟 商都应该分析各种重要因素以尽量减少不 匹配（PESTEL分析模型又称大环境分析; 营销4P理论：指的是产品（Product）、 渠道（Place）、价格（Price）、促销 （Promotion），以及它们的组合,等）。 2023 年第一季度在台湾、日本和美国举 行的特许经营展/会议有可能会助于让我 们展开丰富的创造想象力，获得灵感,展 翅飞翔。。。

请浏览 https://asiawidefranchise.com. sg/events/ 春节过年（1月22日至24日为头三天）的 朋友们，祝您和您的亲人身体健康，平安 吉祥

reserves the right to edit letters for publicaiton and also reserves the right to refuse advertising. With the publicaiton of AFBO, Aisawide Trends is not offering legal, financial or any professional advice or endorsements. Readers are encouraged to seek advice from professionals in specialized fields before acting on any information published herein. The views and opinions expressed in AFBO are those of the author(s) and do not necessarily reflect the views and opinions of Asiawide Trends.

Albe Editor

Strong In Traditions, Yet Trendy In

Our Journey- From Humble Beginnings To Grand Openings

Our colorful journey began in Ipoh, Malaysia in 1999. This is where a special blend of the 3-in-1 OLDTOWN White Coffee is formulated. From then, the aroma and unique taste of our Signature White Coffee gained popularity and spread rapidly beyond Ipoh.

We have grown into a household name in Malaysia, manufacturing instant beverage mixes and products in addition to operating over 180 cafés throughout Malaysia, Singapore, Indonesia and Hong Kong.

Our heart & soul

The full creamy taste of our Signature White Coffee evokes a sense of calm and satisfaction. That same feeling is what inspired our founders to share this unique taste with the world.

Following a classic recipe, our Signature White Coffee is roasted and prepared according to the original method to ensure that every cup of OLDTOWN White Coffee imparts the same full- bodied taste, texture and aroma, time after time, year after year.

Capturing The Cravings For Malaysian Flavours

We first started out as a kopitiam (vernacular term for coffee shop in the regions of Indonesia, Malaysia & Singapore) . A kopitiam is traditionally a place where people of all races come

together for friendly conversations, exchanging news updates, & cups of freshly brewed coffee. Over the years, we have revolutionized our store concepts into the more polished modern hangout that we find today.

The Oldtown Concept

Riding on the huge success of its coffee products, the coffee shop chain has grown into a strong heritage brand pioneering Malaysian and Asian “Kopitiam” cuisine and even culture.

Our Menu Revolves Around Our Heritage & Comfort-Food

OLDTOWN has created a good following of customers for its delicious “Kopitiam” menu which comprises comfortfood favorites like Nasi Lemak (coconut-flavored rice with fried chicken, anchovies, etc.) , Ipoh Hor Fun (rice noodles with chicken shreds) , Curry Mee (yellow noodles in spicy curry gravy), Prawn Meehoon Mee (prawn noodles in rich fragrant soup), Egg Noodles and more.

OLDTOWN is also famed for its distinctive variety of Toasts and Breads, all excellently paired with its traditional local coffee and tea beverages range.

Refreshed Kopitiam Outlet Concept

The OLDTOWN coffee chain has two modules: full service and semi self-service set-ups. Both set-ups will usually accommodate a fully equipped

Its Food & Beverages Offerings

kitchen, beverage and toast bar area. The interiors feature furniture and elements that are reminiscent of olden day unique Kopitiam culture with a modern-day aesthetic twist and comforts.

Oldtown Express Concept

Evolving with the times, OLDTOWN has created OLDTOWN EXPRESS – a new exciting concept extension suited for a kiosk-in-shop or standalone island kiosk (uses a smaller space) in high traffic areas such as transportation hubs, shopping malls, petrol marts and colleges.

OLDTOWN EXPRESS is very much attuned to the need for a mix of indulgence and the expectation of quick convenience, quick bites, grab-and-go products – serving up familiar and comforting flavors, but in a new and novel way to excite the customer’s taste buds. OLDTOWN EXPRESS menu offers Specialty and Novelty Beverages, in-trend creations from coffee and tea bases, fruits and dairy ingredients and it also offers a range of bakery items and ready- to-eats.

White Coffee 最初是一家 kopitiam（印度尼西

们今天发现的更加精致的现代聚会场所。 旧街场咖啡店概念---凭借其咖啡产品的巨大成功，这家咖啡连 锁店已发展成为一个强大的传统品牌，引领马来西亚和亚洲 的“Kopitiam”美食乃至文化。

Putien’s 22nd Anniversary Dinner

On October 13th 2022, Putien held its 22nd anniversary dinner at the 5-star Fairmont Singapore, with 860 people, more than half of which are loyal employees of Putien Singapore. Other attendees included high officials from government agency Enterprise Singapore (ESG), banks, business partners, suppliers, and other VIPs from institutions like National University of Singapore (NUS), as well as loyal, long-time customers.

Mr. Fong Chi Chung, founder and CEO of Putien, said in his welcome speech: “Putien is a family-oriented organization that sets ambitious goals and constantly surpasses them. I am fortunate to have like-minded partners who have worked together with me for the last 22 years. Regardless of whatever kinds of tests, we will embrace our dreams, face the difficulties head-on, regenerate ourselves , and move forward together towards our goals!”

His remarks are very apt, as the theme of the dinner is “Rebirth”. “

He remarked that Singaporean enterprises are lucky as the government provides various support schemes. He is especially grateful to ESG for its strong assistance to Putien to go abroad and develop overseas markets. At present, Putien has set up 93 stores in 19 cities in Singapore, Malaysia, Indonesia, the Philippines, Taiwan, Hong Kong and mainland China.

In conjunction with Putien’s 22nd anniversary, Mr. Fong announced a donation of S$22,000 to the National Kidney Foundation (NKF). Putien’s Vice President Fong Chak Ka took the stage to hand over the check to NKF’s CEO Tim Oei.

Fong Chi Chung has a vision: to turn the one-Michelin-

starred Putien store located at 127 Kitchener Road into a time-honored brand that is highly respected by locals and overseas tourists, and to promote Fujian (where he was born and raised) cuisine. He is determined to build the old Putien store in Singapore into an “internal proofing store” (using it as a benchmark for other stores) and a “ must-visit place for international tourists”. These two goals will help integrate resources and help steer various projects, and do not take profit as the main consideration.

Post event of TFBO 2022

he 18th TFBO 2022 ended with much success, with 7,431 visitors from 25 countries. The fourday show was participated by Thais, plus international exhibitors from Korea, Taiwan, Japan, the USA, and India.

With almost 100 leading franchise brands, they covered 10 business categories from food, drinks, bakery, car care, transportation, laundromat, vending machines, retail, stationery shop, etc.

The next show will be on July 13-16, 2023, at BITEC, Bangkok.

To reserve your space, please contact Ms. Varintorn: varintorn.kavin@gmail.com, +66 88-554-1715

88-554-1715

WFC meeting in Seoul, South Korea

Korea Franchise Association (KFA) hosted 15 countries’ franchise association representatives during the annual World Franchise Council meeting held in Seoul, South Korea over the period October 19 to 22 2022.

Under the theme of “Franchise in 10 Years,” the meeting was scheduled to let all delegates experience ‘K-Franchise’ – including various non-face-to-face business models, robots being used in the kitchens and retail stores.

Korea Franchise Association’s Chairman Mr. Chung Hyunsik said, “l hope that this WFC Seoul meeting has contributed to the capacity building of the global franchise industry. Also, I want the various programs & events we had put together to remain a very good memory for you concerning the Korean culture and people. l am looking forward to seeing you at the meeting in the United States and the Philippines next year. Thank you very much. ”

Chillax Asia’22 Post Event Update

he 3rd rendition of Chillax Asia 2022 ended off with a bang on the 10th of November 2022. This year’s high points – budding entrepreneurs looking to franchise their business; smart technologies for F&B businesses; launch of Healthy Food & Beverage Association (HFBA). Guest of Honour Ms. Yeo Wan Ling, Director U SME and MP of Pasir Ris – Punggol GRC.

Exhibitors, visitors and also media outlets were able to get a hands-on experience on the Unmanned Smart Kopitiam whereby they were brought to their tables by greeter robots which later served them the food items they ordered. This streamline concept allows diners to order and enjoy their food through a seamless process without any human interaction.

Dr. Lim Wee Kiak, MP for Sembawang GRC gave away prizes during the 3rd Singapore Bake-A-Star Championship.

Chillax Asia ‘22 Post Event Update

Chillax Asia’22 Post Event Update

The 3rd rendition of Chillax Asia 2022 ended off with a bang on the 10th of November 2022. This year’s high points – budding entrepreneurs looking to franchise their business; smart technologies for F&B businesses; launch of Healthy Food & Beverage Association (HFBA). Guest of Honour Ms. Yeo Wan Ling, Director U SME and MP of Pasir Ris – Punggol GRC.

Exhibitors, visitors and also media outlets were able to get a hands-on experience on the Unmanned Smart Kopitiam whereby they were brought to their tables by greeter robots which later served them the food items they ordered. This streamline concept allows diners to order and enjoy their food through a seamless process without any human interaction.

Dr. Lim Wee Kiak, MP for Sembawang GRC gave away prizes during the 3rd Singapore Bake-A-Star Championship.

WhyLivestream Commerce is on the Rise

livestream commerce, one of the hottest trends in digital sales. There are great benefits to using the medium, but only if retailers can get it right.

If you’re not selling on social media, maybe you should be.

Livestream commerce, in which brands sell their products to online audiences in real time, is one of the hottest trends in retail. The format is growing in popularity, accounting for $200 billion in sales in China and $11 billion in the United States in 2020. Those numbers are only expected to climb.

“Livestream commerce is fast becoming a medium of choice,” said Wharton marketing professor Thomas S. Robertson, who is also academic director of the Jay H. Baker Retailing Center.

In an article he wrote for Harvard Business Review, titled “Selling on TikTok and Taobao,” Robertson examines the rise of livestream commerce and offers guidance for companies that want to jump on the trend. He spoke with Knowledge at Wharton to share some insights from the article and explain why livestream commerce is a challenge for both retailers and the social media platforms they rely on to run their events.

Why is livestream commerce becoming so popular?

I think we have to look at the evolution of online. It started with text, and over time that became rather boring. Text then became accompanied by imagery, and that was a step forward in building audience engagement. The next step was video, which turns out to be more powerful than imagery in building engagement. After that came live video or livestream. The ability to buy from the stream was added, and that’s what this article in Harvard Business

Review is about. That’s where we’ve arrived in terms of the evolution of online. It’s become an important means of going to market and selling with certain audiences and under certain conditions.

Did the COVID-19 pandemic spur this format? Many retail stores closed during the height of the pandemic and had to come up with new ways to sell merchandise.

I think it’s primarily the changing technology and changing generations. The pandemic would have been a stimulus, but it remains to be seen how long lasting that effect will be. The question is, will people go back to stores? They are, but it will never go back to where it was in 2019. About 85% of shopping is now in store, and 15% is online — some of that is livestream commerce. It’s my opinion that it won’t go back to 100%. Why should it? People have gotten used to online shopping.

“If you go back to the beginning of online shopping, it was a solitary experience, whereas livestream commerce is very much a communal experience.”

What is the role of the social media influencer in livestream sales?

One of the important factors of livestream commerce is the influencer. They can be a professional influencer, or the influencer may be a salesperson in a store. Sometimes they have enormous followings, so they guide the discussions and encourage people to buy. If you go back to the beginning of online shopping, it was a solitary experience,

Wharton’s Tom Robertson explains

whereas livestream commerce is very much a communal experience. People are relating to one another, so you’re not alone. You may not know the people shopping with you, but you identify with them because you have similar interests. Other people buy, and you feel it’s legitimate and will do it as well. There’s a social pressure of sorts in livestream commerce events.

If we look at the literature, we’ve always known that personal influence is one of the most important factors in making decisions. It’s often friends and neighbors who make you aware of something and encourage you to buy. Switch that over to livestream commerce, and you have a form of personal influence coming from the influencer and from the other people who are shopping.

Is this changing the business model for social media platforms that provide the channels for livestream commerce?

It depends on the platform. If we look at META, Facebook Live is no longer going to exist. They are switching it over to Instagram and Reels, which is like TikTok. TikTok has been so successful, and the challenge for Meta is that Facebook and Instagram weren’t designed as a short-form video experience. So, how do you compete with TikTok? Facebook said let’s give that to Reels and let Reels carry the banner to compete with TikTok. It’s changing the business model, for sure. Some platforms will be in better positions than others.

It’s definitely a challenge, even for companies that were built for digital shopping. [Television network] QVC has been reinventing themselves to be online more and to engage in livestream commerce — with some success.

Their problem is that their audience is more mature than a TikTok audience. And advertisers love the younger audience.

Your article mentions how livestream commerce is maturing faster in China than in the United States. In China, it already accounts for 10% of online shopping and is projected to grow to 25% by next year. Why is the Chinese market so different from the U.S.?

I think the biggest difference is that they have integrated platforms. Taobao was designed for consumers to buy online and be able to pay for it without leaving the stream. We don’t have an integrated app at the present time in the U.S. It’s moving in that direction. I’m sure we’ll get there. There are companies trying to develop it right now. In fact, I have one company coming into my class this fall to talk about it.

What should brands be thinking about as they jump into livestream commerce?

I would start with the notion that there is no magic marketing bullet. This is part of your arsenal. You have to integrate livestream commerce with your other marketing strategies and tactics. How does it fit in?

“There is no magic marketing bullet … you have to integrate livestream commerce with your other marketing strategies and tactics.”

I recognize that, as I talk to some of these major brands, it took more than one experience to get it right. There’s a learning curve involved. It does, indeed, depend on the product category. In talking to Ferragamo, for example, they made the good point that you can’t just show up in the store with a camera for your existing customers. You can’t do that for a luxury good. You have to have a livestream commerce event that’s compatible with the prestige and the price of the item you’re trying to sell. You’re going to have a different feel, use different influencers, and have different expectations about how many people will buy. If you’re Ferragamo or Jimmy Choo, you’re trying to sell a few items to a limited market segment.

You have to choose the right platform, and you have to choose the right influencer. Is it someone with a following, or a more specialized influencer who knows more about a specific category, such as cosmetics or a technology good?

You’ve also got to measure your success against expectations. You must test whether you are able to achieve those goals. It’s not just about making immediate sales. Maybe your objective is to reach new market segments, introduce new products, or create buzz for the brand. Given your expectations, you are going to track sales outcomes, social media mentions, likes and dislikes. But you would have determined before I run the event what your objectives were and how to evaluate outcomes.

“Advertisers love the younger audience.”

The Malaysian Retail Chain Association (MRCA)

The Malaysian Retail Chain Association (MRCA) held a dinner at the Sunway Resort and Spa Hotel on December 16th night, attracting about 1,400 members and guests in costumes to celebrate Christmas and welcome the coming Chinese New Year.

Sharan Valliram, MRCA president, pointed out that last year was a challenging year for the retail industry. The ongoing global pandemic has disrupted production capacity and supply chains, prompting many businesses to temporarily suspend operations.

“Despite these challenges, our industry has demonstrated extraordinary resilience. We have a V-shaped recovery this year, bringing retail sales back to pre-pandemic levels. In fact, the industry is expected to grow by 13.1% this year, a testament to the efforts of retailers nationwide and determination.” He said that the retail industry in the country contributes nearly 45% to the gross domestic product. According to the Malaysian retail industry report in September this year. The domestic retail industry posted a 62.5% increase in retail sales in the second quarter of this year, compared to an 18.3% increase in the first quarter.

The 17th edition of Franchising & Licensing Asia (FLAsia 2022) took place over three days from 27-29 October 2022 at the iconic Marina Bay Sands Expo & Convention Centre, Singapore.

FLAsia is acknowledged as Asia’s leading marketplace for franchising & licensing. It is where businesses in franchises, licenses, brands, and business concepts from all over the world congregates and search for opportunities.

The event, owned by the Franchising & Licensing Association (Singapore), and managed by Constellar, brought together more than 100 wellknown brands, business leaders, entrepreneurs, and investors from 12 countries, and the number of participants reached 5,000+. This 3-day event will create a favorable business environment for the brand’s business growth and promotion of influence in Asia

The 17th edition of Franchising & Licensing Asia (FLAsia

2022)

ietnam international Retailtech and Franchise show – VIETRF 2022 attracted the participation of 260 brands with 218 booths from 14 countries such as Vietnam, Korea, Taiwan, Indonesia, Japan, Singapore, Malaysia, etc…

At the same time, a buzzing coffee show displaying coffee-related products, barrister competition, thematic workshops, and various seminars on franchising took place.

More than 14000 visitors and 892 buyers thronged the three-day show.

Franchise & License Expo Indonesia (FLEI)

Franchise & License Expo Indonesia (FLEI) XIX is the 19th edition of the International Franchise, License, and Business Opportunities Exhibition and Conference in Indonesia that was held on November 1820, 2022 at the Jakarta Convention Center (JCC). FLEI XIX featured a wide range of local and international franchising, licensing, and business opportunities. Consulting service providers , as well as supporting services also exhibited. Incorporating with RSEI – Retail Solution Expo Indonesia. RSEI featured 4 areas: Retail Tech-Equipment, Retail Store Furnishing, Retail Services, and Internet Retailing.

Managed by Panorama, the show was supported by Kadin Indonesia and WALI (Indonesia Franchising & Licensing Society).

FLEI – Franchise & License Expo Indonesia: RSEI – Retail Solution Expo Indonesia Mobile Phone: +62 859 594 83515 (Call & WhatsApp); rulief.harjianto@panoramamedia.co.id

Rulief Harjianto: Project Manager

THAILAND – Legislative Updates 2022

(contributed by Sher Hann Chua & Alan Adcock of Tilleke & Gibbins)

Notification on the Guidelines for the Consideration of Unfair Trade Practices in Franchise Businesses: On July 13, 2021, the Trade Competition Commission of Thailand (the “TCC”) issued a notification on the Guidelines for the Consideration of Unfair Trade Practices in Franchise Businesses (No. 3) (the “Update”), which amended the initial Guidelines for the Consideration of Unfair Trade Practices in Franchise Businesses (the “Guidelines”) first issued in 2019. The Update was published in the Government Gazette on August 19, 2021 and entered into force on the following day.

The Guidelines and the Update were issued by the TCC pursuant to powers conferred upon it via Section 17(3) of the Trade Competition Act B.E. 2560 (2017) (the “TCA 2017”) and are aimed at preventing franchisors from adopting overly restrictive and unfair contractual conditions that may cause damage to franchisees.

Specifically, the Update replaced Clause 4 of the Guidelines, which regulates geographical restrictions typically imposed on franchising relationships. Notably, this Update marked the second amendment to Clause 4 of the Guidelines, which was first amended via the TCC’s Guidelines for the Consideration of Unfair Trade Practices in Franchise Businesses (No. 2) announced on August 11, 2020 and published in the Government Gazette on September 22, 2020. Pursuant to the Update, Clause 4 now adopts a less restrictive approach for franchisors, which is summarized as follows:

• Where a franchisor decides to open a new outlet, whether by itself or by another franchisee or person, the franchisor must notify the existing franchisee located in the closest proximity to the intended location and provide such existing franchisee with a right of first refusal for a period of 30 days.

• A franchisor is exempted from the obligation to provide such franchisee with a right of first refusal if the franchisee’s existing performance does not meet the franchisor’s criteria as specified and communicated to the franchisee in advance.

• In considering what constitutes “closest proximity”, consideration is given to the demand of the goods and services, the geographical area, and the condition of the market competition.

• Where a franchisor is not able to grant the rights to operate the new outlet to an existing franchisee due to existing area development rights or other contractual obligations, the franchisor shall consider granting the right to open such new outlet to other suitable franchisees based on reasonable commercial reasons.

Franchisors should also be reminded of the precontractual disclosure requirements introduced under the Guidelines, wherein the following information must be provided to prospective franchisees before entering into franchise agreements:

• Information on applicable payments and expenses relating to the franchise, such as franchise fees, royalties, marketing expenses, training costs, costs of mandatory equipment and materials, as well as their respective calculation methods, payment details, and conditions for reimbursement;

• Information on the franchise business model, including matters relating to assistance, training, and advisory services to be provided by the franchisor, as well as information regarding the existing and future branches

and their respective locations operated by other franchisees in the vicinity, and information on sales and promotion;

• Information on intellectual property rights, such as trademarks, patents and copyright, including their respective terms of protection, and their licensing scope and restrictions; and

• Information on the renewal, amendment, cancellation, and termination of the franchise agreement.

Additionally, franchisors should also be aware that the Guidelines prohibits them from engaging in the following trade practices, which are deemed capable of causing damage to the franchisees under Section 57 of the TCA 2017:

• Setting restrictive conditions for the franchisees without justifiable reasons, such as requiring the franchisees to purchase products or services that are irrelevant to the operation of the franchise business, exclusively from the franchisors or from sources designated by the franchisors, or requiring the franchisees to purchase more products or raw materials than actually required and refusing to accept the return of excessive purchases;

• Setting additional conditions for the franchisees to comply with, after the franchise agreements have been executed, such as requiring the franchisees to perform actions not stated in the franchise agreements. Exceptions may apply if there is a justifiable reason, or if such conditions are necessary in order to maintain the reputation, quality, and standards of the franchise

business. In such cases, all additional conditions must be made in writing.

• Imposing product tying or purchasing restrictions on the franchisees without justifiable reasons, such as restricting the franchisees from purchasing products from other sources that offer products with comparable quality but at a lower price;

• Restricting the franchisees from offering discounts on perishable goods or products close to their expiration, without justifiable reasons;

• Stipulating discriminatory conditions among franchisees, without justifiable reasons; and

• Setting any inappropriate conditions for purposes other than to maintain the reputation, quality, and standards of the franchisors in accordance with the franchise agreement.

Although the Guidelines and the Update do not apply directly to foreign franchisors who do not have a physical presence in Thailand, local master franchisees in Thailand appointed by such foreign franchisors will need to comply with all such requirements prescribed under the TCA 2017 and the Guidelines. The noncompliance of the TCA 2017 and the Guidelines may subject a business operator to administrative penalties, such as a fine not exceeding 10% of the turnover in the year of the offence, capped at THB 1 million (approximately USD 30,010), if the violation was committed in the first year of such party’s business operations. Therefore, it is prudent for foreign franchisors to ensure that the franchise agreement templates and disclosure documents to be used by their local master franchisees when appointing sub-franchisees in Thailand are consistent with the requirements under the TCA 2017 and Guidelines.

Thailand’s Personal Data Protection Act B.E. 2562 (2019) (“PDPA”) entered into force in full on June 1, 2022, after a postponement due to the Covid-19 pandemic.

The PDPA defines “personal data” as “any data pertaining to a person, which enables the identification of such person, whether directly or indirectly, but not including data of the deceased specifically.” Foreign franchisors should be aware of the extra-territorial application of the PDPA. Specifically, the PDPA applies to entities domiciled outside of Thailand that collect, use, or disclose personal data of data subjects in Thailand, under the following situations:

• Where the activities of collection, use, and disclosure are related to the offering of goods or services to the data subjects who are in Thailand, irrespective of whether the payment is made by the data subject; or

• Where the activities of collection, use, and disclosure are related to the monitoring of the data subject’s behavior in Thailand.

In certain franchising relationships, a foreign franchisor may receive personal data of end consumers, such as names, email addresses, phone numbers, payment information and other shopping preferences, either directly or from a local franchisee. In circumstances where a foreign franchisor has the power and duties to make decisions regarding the collection, use, or disclosure of such personal data, it will be deemed a data controller under the PDPA. As a data controller, such foreign franchisor must ensure that it obtains the informed consent of data subjects prior to or during the collection of personal data. Franchisors operating in the children’s franchise market, such as early childhood education and enrichment programs, should also note that consent related to collection of personal data of a minor must be obtained from the person exercising parent power over such minor.

The PDPA also requires data controllers outside of Thailand to appoint an authorized representative within the jurisdiction, to act on behalf of such data controllers in respect of the collection, use or disclosure of the personal data. When collecting personal data, data controllers must inform data subjects of the following matters:

• The purpose of the collection to use or disclose personal data, including the circumstances in which a data controller is granted to statutory powers under the PDPA to collect any personal data without the data subject’s consent;

• Circumstances where data subject is required to provide personal data for compliance with the law or contractual obligations, and the implications of not providing such personal data;

• The type of personal data collection and period of retention;

• The types of persons or agencies to whom the collected personal data may be disclosed;

• Information of the data controller, contact address, and contact method, or such information of a personal data protect officer or agent, where applicable; and

• The data subject’s rights under the PDPA.

Additionally, a foreign franchisor who receives personal data of end consumers, whether directly or indirectly, should also take note of the restrictions on the transfer of personal data outside of Thailand imposed by the PDPA. When transferring personal data overseas, the PDPA requires the relevant destination country or organization that receives such personal data to have sufficient personal data protection standards, and for such transfer to be performed in accordance with any rules that may be prescribed by the Personal Data Protection Committee established under the law. Noncompliance with the PDPA will subject data controllers to administrative fines of up to THB 5 million (approximately USD 150,050), as well as criminal fines of up to THB 1 million (approximately USD 30,010). Further, Thai courts may also award punitive damages, as well as impose imprisonment for up to one year. Therefore, it is imperative

Loyalty programs are levelling the playing field for smaller restaurants

(By Alicia Kelso)

If it seems like nearly every restaurant concept is adding a loyalty program these days, that’s because nearly every restaurant concept is adding a loyalty program these days. The past two years have been full of loyalty launches, or iterations, and now nearly 60% of all restaurants offer such programs.

Consumers who are used to more personalization from the likes of Amazon and Netflix are very much driving this trend and in fact, 86% of consumers say they are interested in joining a restaurant loyalty program. But there are other drivers at play here. Zach Goldstein, who founded Thanx in 2011, said restaurants are in an attention and convenience battle with third-party delivery that is creating more urgency. “If you’re not locking in repeat purchasing with your top customers, the thirdparty companies are. You’re going to be turning away revenue because it will be easier for customers to order from third parties,” he said. This has created what he calls an “unprecedented” adoption of loyalty programs. “I’ve never seen a period with more attention on customer loyalty. Restaurants of all sizes are jumping into this space at a remarkable clip,” he said.

Andrew Robbins, CEO of Paytronix, added that we’re nearing the end of the loyalty adoption stage that began in 2000 with spreadsheet databases. “When a late majority is in the adoption phase, the technology comes crashing in quickly. This is now a mandate of hospitality because programs are now able to know more about customers and what they want,” Robbins said. “As the world’s gotten more digital, that has changed the mandate.”

Indeed, the world has gotten more digital – a trend that accelerated significantly during the pandemic. This has increased the comfort level of consumers engaging

with brands digitally. It has also proven a solid return on investment for restaurant operators who have historically been conservative on tech adoption. Both Goldstein and Robbins note that the technology has quickly become more affordable and more efficient, which also bodes well for smaller operators. “Five years ago, operators had to string together five different vendors. Now, they can get all of their guest engagement through one provider. For independents, it’s much easier now to get started. That’s a big, big change,” Robbins said. “

As such, this digitally enabled, loyalty-heavy environment seems to be levelling the playing field between large chains and small concepts/independents in the fight over consumers’ increasingly fractured attention. Last year, for instance, McDonald’s introduced its MyMcDonald’s Rewards. Also last year, 30-unit Velvet Taco launched its first-ever loyalty program, The Velvet Room. While the two concepts serve wildly different occasions, having an incentive program in place could ultimately help consumers make a last-minute dining decision toward either. “McDonald’s plays a game of scale and smaller restaurants can’t compete with it when it comes to contracts, finding great locations, systems – all that stuff. But loyalty and digital guest engagement with loyalty as the centerpiece, you can compete with the big guys,” Robbins said. Cassie Cooper, director of marketing at the Velvet Taco, agrees. She said over 15% of all sales now come through members of The Velvet Room. “This means our loyalty program is increasingly top-of-mind for our customer base,” she said.

What enables that top-of-mind response is loyalty programs’ shift toward brand-centric experiences. “Jimmy John’s is all about ‘freaky fast’ and so their loyalty program is all about freaky fast. Dutch Brothers has a

sticker program that ties into what the brand is already doing. It comes down to extending your brand to the digital world. People now want and expect brand engagement and hospitality beyond the four walls of a restaurant,” Robbins said. For Velvet Taco, that means offering exclusive rewards that other restaurants might not offer, like a paid trip to Dallas to attend a Weekly Taco Feature (WTF) taste testing. For Erik’s DeliCafe, based in California, that means directly communicating with consumers through the loyalty program. “Guest relations is how (we differentiate). If guests have questions, we get back to them in a timely manner. I see guest relations as a marketing package of our loyalty club. We could have the best loyalty club in the world, but if we don’t reply to them, the club loses its

become even more critical. “Instead of trying to get all of the customers and focusing on volume, loyalty programs are moving toward more personalization. Incentivizing customers who come in more and spend more rather than the ones who may come once and never return is much more aligned with the success of a restaurant,” Goldstein said. “Small restaurants have a new secret weapon of attracting the attention and lifetime value and of their most frequent guests and getting their revenues directly. The margin impact potential is massive. It’s a game changer.”

This article is reprinted with permission from Nation’s Restaurant News, and the author is Alicia Kelso Alicia. Kelso@informa.com

impact,” said Erik’s President and General Counsel, Brian Johnson. Johnson adds that his concept doesn’t have the resources to compete with huge brands, but loyalty is an area where it can. “I believe we punch above our weight when it comes to our loyalty and bigger brands,” he said. “I also believe it is important to have a loyalty club because of the brand awareness and loyalty it creates.”

Indeed, loyal customers are critical for the success of any restaurant. According to a study from BIA/Kelsey, a repeat customer spends nearly 70% more than a new customer, for instance. PYMTS.com data finds that 40% of diners would spend more if they were a loyalty member. Cooper said The Velvet Room members spend over 6% higher per check than other channels and visit more frequently.

As the industry continues to evolve well beyond a brickand-mortar presence, blurring lines and intensifying competition, a focus on top-spending, frequent customers

的消费者表示他们 有兴趣加入餐厅忠诚度计划。但这里还有其他驱动因素在 起作用。 2011 年创立 Thanx 的 Zach Goldstein 表示， 餐厅正与第三方送货进行一场关注度和便利性的较量，这 种情况更加紧迫。 “如果你没有锁定顶级客户的重复购 买，那么第三方公司就会这么做。你将失去收入，因为客 户更容易从第三方订购，”他说。这创造了他所谓的“前

Alicia.Kelso@informa.com

We are connected internationally... Our Strategic Partners:

Malaysia (1)Sest Nee Lim

Portugal (1)Jose Antonio Cavaco

Australia George Georgiou

Britain Iain Martin

Brazil Paulo Mauro

Cambodia Sim Hoy Chhoung Sim

Canada & Africa J Perry Maisonneuve

Canada Steve Chui

Greece (1)Sotiris Yanakakis

Greece (2)Kostas Sarris-Tzamtzis

Hungary (Budapest) Tamas Milla India Srinivas Kona

Malaysia (2)Doris Wong Malaysia (3)Yau Sir Leng Mexico Ferenz Feher

Middle East (1)Sary Hamway

Portugal (2)Ana Martins Correia

Romania Constantin Anton Russia (1)Ekaterina Soyak

Russia (2)Vasil Gazizulin

Indonesia (1)Feca Hanafi

Indonesia (2)Nancy W idjaja

Canada Andrae Marrocco

China (North) Alex Xu

China (Wester n) Eileen Lou

China (Shanghai) Joy Gou

China (Chengdu) Li Weishi

China (HK/Guangzhou/ Macau)

Norman Cheung

China (Hong Kong) Karen Kwan

Croatia Dr. Ljiljana Kukec

Italy Federico Fiorentini

Japan (1)Jun Harada

Japan (2)Joseph H. Shima

Middle East (2)Mukesh Viroomal

Mongolia Luvsantseren Davaadelger

Myanmar (1)Ko Myo Niang

Myanmar (2)Hannie Hay

South Africa Vera Valasis

Taiwan (1) Lin Ku Yeh

Taiwan (2)Yeoh Ewe Chean

Thailand Sethaphong Phadungpisuth

France Louis Malta-Bey

Finland Veli-Pekka Pihlainen

Germany

Japan (3) Kotaro Kohata Korea (2) Simon Yoo

New Zealand David McCulloch Nigeria Oluseyi Adebayo-Olubi

Korea (1) David Kwon

Pakistan M Naeem Younas

Philippines (1)Marvin Q. Da Silva

Lebanon Yasser Kouatly

Lithuania Severin Zhilinskis

Philippines (2)Henry Ong

illiam LeSante

USA (2)Mark Shieh

Vietnam (1)Adrian Leong

Vietnam (2)Dau Van Huan

Vietnam (3) Felix Cheok

More strategic partners, all with high integrity in other countries, will be recruited on an ongoing basis so as to serve our customers even better.

Asiawide Franchise Consultants’

Franchising Calendar of Events

Note: All event dates and formats (physical or virtual) are subject to change due to the ongoing COVID19 situation

2023 - 1ST QUARTER

Jan 12-14 3rd FRAX Tokyo 2023 Intl Franchise Business Platform@Tokyo Big Sight (Japan)

Feb 10-13 TICFE 2023 Taipei Intl Chain & Franchise Expo-Spring 2023 (Taiwan)

Feb 16 Workshop: Franchising in Japan (Trade Association Hub, 9 Jurong Town Hall Rd)

Feb 17-19 MRCA Southern Business Summit (MSBS) & Malaysia International Retail & Franchise Exhibition (MIRF) 2023 at Mid Valley Exhibition Centre Johor Bahru.

Feb 24-28 IFA Convention / World Franchise Council Meeting at Las Vegas (USA)

Mar 1-3 Japan International Franchise Show JIFS 2023 at Tokyo Big Sight

Mar 19-22 Franchise Expo Paris 2023 at Porte de Versailles (France)

Mar 24-25 Franchise & Business Opportunities Expo in Melbourne (Australia)

Mar 30-Apr 1 Intl Franchise Show-Spring 2023 in Seoul (CoEx Building)

2023 - 2ND QUARTER

Apr 13–15 Café Show Vietnam 2023 @ SECC in HCMC, Vietnam

Apr 27–29 The Licensing Show 2023 at HKTDC, Wan Chai, Hong Kong

May 4-7 Singapore & Asia Food Fair 2023 in Johannesburg, South Africa

May 5-7 FLEI 2023 at JCC, Indonesia

May 23–27 ThaiFex – Anuga Asia 2023 Show @ IMPACT, Bangkok

May 25- 27 Restaurant Asia 2023; ICY Asia 2023; Café 2023 @ Sands Expo & Convention Centre

May 26–28 CCFA China Franchise Show 2023 at China National Convention Centre (CNCC) , Beijing

Jun 9-12 TICFE 2023- Taipei Intl Chain & Franchise Expo - Summer 2023 (Taiwan)

2023 - 3RD QUARTER

Jul 6 - 8 Malaysia Int’l Retail & Franchise Show (MIRF 2023) at Hall 2 - 5 KLCC

Jul 12–14 Malaysia Int’l Food & Beverage (MIFB 2023) & MyFoodTech Trade Fair

Jul 13–16 19th Thailand Franchise & Business Opportunities (TFBO 2023) @ BITEC

Aug 4 - 6 CCFA China Franchise Show 2023 at CNEC, Pudong Shanghai

Aug 17-19 Franchising & Licensing Asia (FLAsia) 2023 at Marina Bay Sands

Sep 7 – 9 Franchise International Malaysia 2023 (FIM 2023) at KLCC

Sep 14–17 TICFE 2023 Taipei Int’l Chain & Franchise Expo – Autumn 2023 - Taiwan

Sep 19-22 Food and Hotel Malaysia at Kuala Lumpur Convention Centre

Sep 26– 28

Specialty & Fine Food Asia 2023 (SFFA), Restaurant (Pub & Bar) Asia 2023, Specialty Coffee & Tea Asia 2023 (SCTA) at MBS, Singapore

2023 - 4TH QUARTER

Oct 5 – 7 International Franchise Show – Autumn 2023 Seoul, Korea

Oct 13-15 IFRA 2023 at JCC Jakarta, Indonesia

Oct 27 – 29 Franchise Asia Philippines (FAPHL 2023) @ SMX Convention Centre, Manila

Nov 2 – 4 Vietnam Int’l Retail & franchise (VIRF 2023) Show at SECC in HCMC

Save 2023 the dates

NOTE: For the latest updates, please visit https://www.asiawidefranchise.com.sg/events

Clarence Nah clarence@asiawidefranchise.com.sg M: 65-96227369

Benjamin Wong ben.wong@paloe.com.sg M: 98237403