In the press to go digital, Huggs also went above online deliveries and cashless payments to setup its own online prize system.
Running its roastery and bakery is a key component of its goal to become self-reliant. Huggs does not want to be “held hostage” by suppliers among rising costs and supply chain disruptions, stated Mr Lee. These types of in-house capabilities may also help the firm to grow its business-to-business operations.
That isn’t all the company does. It is also launching a “Huggs academy” quickly to try and tackle the particular F& B industry’s perennial manpower woes.
Mr Shelter said the academy, which will offer a selection of barista and customer service training courses, will be a key source of talent for that company. Beyond that, it also hopes to convince people that there are opportunities for profession development in the industry.
“Within our shops, you can work up to become head barista or even manager. If not, you will be transferred back to the particular headquarters to be a fitness instructor at the academy, or even be involved in R& D at the roastery and bakery. There is also the option of workplace roles so our employees don’t have to become stuck at the shops. ”
NOT EXPANDING BLINDLY
Asked how Huggs has been funding these plans, Mr Shelter said franchisee purchases have helped with the particular start-up costs of recent stores. The company also tapped upon government schemes meant for loans.
However for the most part, it has been “bootstrapping on product sales revenue” and meticulously timing every proceed.
While in a better position compared to two years ago, the company can be keenly aware of a still-uncertain business environment.
Even as the country moves to living with COVID-19, new challenges have emerged in the form of increasing costs, from meals ingredients, labour plus construction materials to logistics.
The particular inflationary environment plus unpredictable economic and geopolitical circumstances could mean that the year forward may even be “more challenging” than the past two years, Mr Shelter said.
“Because you get less support, less relief and less leniency. There will also be a lot of unexpected curveballs. ”
While Huggs will be forging ahead along with expansion, it is not doing this blindly. For example , it offers chosen not to renew the leases associated with some of its outlets in the business district.
“Expansion is not just regarding blindly opening. It’s also about intentionally closing certain outlets so that we cut losses as well, ” said Mr Shelter.
“Others have got asked us as well – why are you expanding so rapidly? Why are you also expanding? Surely you would want to take on a more conservative position?
“From how I find it, expansion does not just mean spending. Growth also means adaptability and innovating. Because if you do have a wait-and-see mentality and prevent moving forward, you will eventually die. ”
The ambitious restructuring and rebranding goes it has taken upon during the tough times put that, Mr Shelter said, as he gestured to the brand’s brand new teal logo and bear mascot.
“Do you know the reason why the bear is certainly looking to the side and at a certain direction? This represents our hopes to be forward-looking and become open to whatever that could come, ” this individual told CNA.
“We have remade everything to give people a brand new look. I see it as an opportunity to expose ourselves all over again and also a chance to get it right this time. ”