Industry Analysis Breadtalk

Industry Analysis Future outlook and trends For its outlook, BreadTalk planned for the China and regional market and rising food cost. This is the largest challenge for the Bakery business. BreadTalk is going to shorten the supply chain and buying in bulk globally for economies of scale. Shanghai is one of the example that BreadTalk have successfully piloted using frozen dough to arrest rising labour and rental costs while maintaining the quality of our products. This is to encourage that BreadTalk will explore the possibility of extending this initiative beyond Shanghai.

The BreadTalk Transit model has also proven to be an efficient model for swift expansion and its potential we will be harnessed to expedite growth. For Market Trends, KFC, McDonald's, Long John Silver's and Pizza Hut were dominating most of the chains in the past in Singapore. However, trends have been changed for decades. Local Brands were replaced. BreadTalk controls 55% of Indonesia’s bakery market and it becomes giant franchises dominate the Southeast Asia region. (Fresin Fries,2012) Analysis of competitors BreadTalk operates in the highly competitive F&B industry which has close to no barriers to entry.

Some of its competitors are established players in the bakery and confectionery industries and may have greater financial and marketing resources. The entry of new competitors into the same F&B segments or into the immediate areas around the group’s retail outlets may affect its earnings (CIMB Research Report,2009). Focusing on main competitors, the direct competitors of BreadTalk outlets are local names such as Four Leaves and My Bread (CIMB Research Report,2009). Market segmentation BreadTalk divides itself into three segments: bakery, food court and restaurant.

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The bakery segment is not only bakery products but it includes the business of manufacturing and retailing of all kinds of food also franchising. For the management and operation of food , drinks and drinks outlets are in the segment of food court. For operating food and drinks outlets, eating houses and restaurants are in restaurant segment (CorporateInformation. com, 2012). Industry forecasts According to CIMB Research Report in 2009, BreadTalk expected its revenue to grow at 10-15% over from the year 2009-2011. It is no longer part of the group after the disposal of its 70%-owned Twin Peak Venture Singapore Pte Ltd.

BreadTalk expected profit growth to pick up to around 31% this year from the opening of new outlets in 2009 and lower raw material costs. Its net profit was forecasted CAGR of 29. 3% for 2009-2011. Description of Venture Products and Services BreadTalk® Group Limited runs 7 sections of products and service. BreadTalk, the first section, keys as the bakery chain that has over 1,000 different types of bakery. While the Icing Room, second, sells a wide range of cakes, pastries and cookies and brings with it a unique proposition of allowing customers to decorate their own cakes.

Third, Toast Box was developed in 2005 as the coffee shops in the 1960s and 70s generation. It serves traditional favorites such as peanut butter thick toast, mee siam, kaya toast and soft boiled eggs. Coffee and other hot beverages are also prepared in the traditional “pulled” style. Food Republic , fourth, offers a wide spread of local hawker and street food under one roof and in an air-conditioned environment. Fifth, Din Tai Fung Din is known for the healthy house specialties such as its ‘Xiao Long Bao’ (steamed pork dumplings).

Sixth, Carl’s Junior which is a fast-food chain offering juicy, premium-quality charbroiled burgers in western US. The last one, The Station Kitchen which is the group’s integrated F&B concept for diners, one of Singapore’s latest clubbing hot spots (BreadTalk,2012). Size of business BreadTalk was founded as F&B operator in Singapore in 2000 and listed on the SGX in 2003 and became BreadTalk® Group Limited with global staff strength of more than 6,000 employees, the Group has a network of over 500 bakery outlets in 16 countries.

It also operates 13 Michelin Star Din Tai Fung restaurants in Singapore and Thailand, as well as over 30 award-winning Food Republic food atrium in Singapore, China, Hong Kong, Malaysia, Taiwan and Thailand. (BreadTalk. com,2012). According to SME award winning for 2010 in Singapore, HSBC was the key to sponsor the award of SME together with DP Information Group, has helped elevate the status of SMEs and entrepreneurs by acknowledging their achievements. Exactly, Breadtalk Group Limited was achieved Sales/Turnover Growth Excellence Award (HSBC. com,2012) Office equipment and personnel

The concept of Breadtalk is about the bakeries with our distinctive sleek and clean lines and signature 'see-through' kitchens showcasing the expertise of our bakers. It also make customers feel familiar and warm close friendships into its stores. Happy Chefs are the new characters of Breadtalk in different nationalities. The centerpieces of the stores are the bread display cases. It is cut out like facets of a diamond, bringing out the freshness like their jewels - the freshly baked aromatic breads. The new stores also recreate the atmosphere of a friend's kitchen.

Equipped with new state-of-the-art bakery equipment imported from Germany, Spain and Japan, the taste, aroma, quality and texture consistency of our breads are further enhanced. New staff uniforms also environmentally-friendly packaging for all products complete the entire new look. The new concept stores will be rolled out gradually in Singapore and overseas to further reinforce a cohesive branding effort (BreadTalk,2012) Background of entrepreneurs BreadTalk was incorporated in Singapore on 6 Mar 03 as an investment holding company.

Its principal subsidiary, BreadTalk Pte Ltd, is a private limited company incorporated in Singapore on 24 Apr 2000. The group was founded by its managing director, Mr George Quek and Executive Director, Ms Katherine Lee. It was listed on the SGX Catalist Board in 2003 (CIMB Research Report,2009). Brief For industry analysis can be summarized into Market segmentation of BreadTalk were divided itself into three segments: bakery, food court and restaurant which many subordinated lines of the main segmentation. Analysis of competitor from CIMB Research in 2009, the direct ompetitors of BreadTalk outlets are local names such as Four Leaves and My Bread Future outlook and trends was planned by BreadTalk to expand into China and regional market and rising food cost. As it is the largest challenge for the Bakery business. BreadTalk is going to shorten the supply chain and buying in bulk globally for economies of scale. Industry forecasts was reported by CIMB Research in 2009 that BreadTalk’s revenue grew as they expect and the net profit was forecasted to grow up more in 2009-2011. Description of Venture

Products and Services of BreadTalk® Group Limited can be grouped into 7 sections : BreadTalk keys as the bakery chain. The Icing Room sells a wide range of cakes, pastries and cookies and allowing customers to decorate their own cakes. Toast Box is the coffee shops in the 1960s and 70s generation. Food Republic offers a wide spread of local hawker and street food with an air-conditioned environment. Din Tai Fung is the healthy house. Carl’s Junior is a fast-food chain offering juicy, premium-quality charbroiled burgers in western US.

The last one, The Station Kitchen is the group’s integrated F;B concept for diners. Size of business, BreadTalk was founded as F;B operator in Singapore in 2000 and listed on the SGX in 2003 and became BreadTalk® Group Limited and won SME awards from many institutions. Office equipment and personnel were renew again with the concept of friendly kitchen , friendly friendship and the most clean. Background of entrepreneurs said in CIMB Research Report in 2009 that BreadTalk was incorporated in Singapore on 6 March 2003 as an investment holding company.

The group was founded by Mr George Quek and Executive Director, Ms Katherine Lee. It was listed on the SGX Catalist Board in 2003. Reference BreadTalk. com, 2012, Breadtalk Concept retrieved 19 July, 2012 from http://breadtalk. listedcompany. com/concept. html Breadtalk. com, 2012, Business Review, retrieved 19 July, 2012 from http://www. breadtalk. com/business-review. html Fresin,F. , 2012, Fast Food Restaurant Business Plan, Market Segmentation, retrieved 19 July, 2012 from http://www. bplans. com/fast_food_restaurant_business_plan/market_analysis_summary_fc. php#ixzz213vUZ1us

CIMB Research Report, 2009, BreadTalk Group Limited, Main competitors, retrieved 19 July, 2012 from http://breadtalk. listedcompany. com/misc/BreadTalk_Initiation. pdf CIMB Research Report, 2009, BreadTalk Group Limited,Background, retrieved 19 July, 2012 from http://breadtalk. listedcompany. com/misc/BreadTalk_Initiation. pdf CorporateInformation. com, 2012, Breadtalk Group Ltd, retrieved 19 July, 2012 from http://www. corporateinformation. com/Company-SnapShot. aspx? cusip=C702VL300;from=Manta HSBC. com , 2012, Industry Event , retrieved 23 July,2012 from http://www. hsbc. com. sg/1/2/business/news-and-events/events/sme500

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