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Sydney’s Burger Head chain shuts down due to Economic Strain and Rapid Growth

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Burger Head
Burger Head (Representative Image)

Burger Head, a cherished burger chain in Sydney, has officially ceased operations, closing its doors after nearly seven years in business. This decision was driven by the financial pressures stemming from rapid growth, surging inflation, and increasing interest rates, leading to the closure of its last two restaurant locations in Penrith and Botany on a recent Sunday.

Once boasting a total of four restaurants across various Sydney locations – Penrith, Botany, Casula, and Blacktown – alongside three food trucks, the burger chain had established a notable presence in the region.

Established in 2017, Burger Head made its debut in Penrith, founded by friends Joshua Deluca, Timothy Rosenstrauss, and Richard Borg.

The threesome, all in their early twenties, characterized themselves as “three young individuals with limited life experience but considerable kitchen expertise.”

Nonetheless, the business found itself grappling with insurmountable financial pressure, attributed to the soaring inflation, escalating interest rates, and the swift post-Covid expansion it undertook.

Rosenstrauss and DeLuca took to social media to announce their “heart-wrenching choice” to close the physical outlets of Burger Head.

‘And just like that, all good things must come to an end,’ they wrote on Instagram.

‘The past seven years have been nothing shy of an incredible journey of ups, downs, and everything in between, but unfortunately, we’ve decided to hang up the apron.

‘Although it’s been a sh***y 18 months, we’re still beyond proud of what we’ve accomplished in such a tough industry, in the toughest four years of it ever.’

The proprietors elaborated that “issues began to surface” as they endeavored to expand their business in the aftermath of the Covid pandemic.

Burger Head Sydney Closes Amid Rapid Growth

Within a mere span of 10 weeks in 2022, the duo inaugurated their Blacktown and Casula restaurants.

During that very year, Burger Head additionally launched a production kitchen situated in Wetherill Park.

The burger chain had plans to open a fifth store in Box Hill, but the owners ultimately decided to “withdraw” from the endeavor.

Looking back, Rosenstrauss and DeLuca expressed regret, stating, “If we had chosen to open just one of these stores and retained our existing prep kitchen, we would have had the necessary resources to successfully establish store number three and would still be in business.”

Burger Head Chain
Burger Head (Representative Image)

The owners also criticized Philip Lowe, the former Governor of the Reserve Bank of Australia, contending that he bore some responsibility for the business’s decline.

‘If you own any property or a business, there’s a good chance you know this fella and if you’re like us you have a voodoo doll of Mr Lowe,’ they said.

‘I feel for the pain that the interest rate rises [have] caused everyone because we’ve certainly felt it.

‘Many households have had to cut back on luxuries, which for many, is a meal out at your favourite burger joint.’

Read more Article: Recode Studios Expands with Ludhiana Store, Eyes Nationwide Growth!

However, the owners reassured customers they could still get their hands on their famous burgers and fried treats as Burger Head was pivoting to ‘just the trucks’.

‘I want to make it clear that this is not the death of Burger Head but merely a major pivot for us,’ they wrote.

‘Where we’ve been in the restaurant business with food trucks, we’re continuing on with just the trucks.

‘To be honest, we thought we wouldn’t make it past one year in business, so to say we got into our seventh year is f amazing!’

Burger Head made its debut in 2017 and gained significant popularity for its unique burger creations, featuring delights like the renowned Twisties burger.

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Curefoods Acquires Yumlane Pizza, Expands Portfolio!

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Curefoods
Ankit Nagori, Founder, Curefoods

Curefoods, a cloud kitchen startup, has completed the acquisition of Yumlane, a foodtech startup, for an undisclosed sum. With this strategic acquisition, Yumlane will harness the extensive network of Curefoods to enhance its exclusive pizza technology.

Established in 2016 by Hitesh Ahuja, Rueben Ghosh, and Rahul Kumar, Yumlane has created an exclusive technology platform for pizza and introduced the Yumlane Pizza cloud kitchen brand, along with a B2B business division.

The startup asserts its presence in 15 cities across India and boasts a clientele that includes prominent names such as Curefoods, Barbeque Nation, Frozen Bottle, and 7-11. It has garnered investments from renowned investors like Binny Bansal, Anupam Mittal, Orios Ventures, and RB Investments.

Commenting on the acquisition, Gokul Kandhi, chief business officer, CureFoods, said, “Their extensive B2B client network and their positioning as a value leader in the pizza category align strategically with our brand portfolio. we are excited to harness Yumlane’s potential as we work toward enhancing the pizza category as a whole.”

Curefoods and Yumlane Deal:

Curefoods’ association with Yumlane dates back to 2021 when it acquired the Yumlane Pizza cloud kitchen franchise rights for the South India market. Subsequently, in 2022, Curefoods acquired a 10% stake in the business.

Ankit Nagori founded Curefoods in 2020, and it is home to various brands, including EatFit, CakeZone, Nomad Pizza, Sharief Bhai Biryani, and Frozen Bottle, among others. The startup asserts its presence in 15 Indian cities, operating more than 200 cloud kitchens and offline stores, offering a diverse range of over 10 cuisines.

Company appears to be actively expanding within the food industry. In July, it strategically invested in Hyderabad’s Millet Express, aiming to support the millet startup’s growth and broaden its reach among a larger audience for millet-based products.

Read more articles: Recode Studios Expands with Ludhiana Store, Eyes Nationwide Growth!

Subsequent to this investment, Curefoods secured a $37 million funding round, spearheaded by Binny Bansal’s Three State Ventures. At the time, They announced its intention to utilize the capital for geographical expansion and diversification of its brands, transitioning from its existing cloud kitchen business model into offline formats.

Within the Indian cloud kitchen sector, it directly rivals Rebel Foods, a company that expanded into the Saudi Arabian market in July.

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JSW Ventures Logs 2.7x Return, Sells Purplle Stake!

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Purplle
Purplle

JSW Ventures has successfully divested its stake in Purplle by selling it to the Manipal Education & Medical Group Family Office (MEMG). This strategic move has yielded an impressive 2.7x return on their initial investment from JSW Ventures Fund I.

In 2023, this marks the second consecutive secondary transaction for the online beauty marketplace. In May, JSW Ventures partially divested its stake in the company to the Abu Dhabi Investment Authority (ADIA), resulting in a 2x return for the venture capital firm.

JSW Ventures made its initial investment in Purplle during the company’s Series A round in 2016, using its Fund I. Notably, JSW has maintained its investment in Purplle through its second fund.

In June 2022, Purplle secured $33 million in funding during its Series E round, with investments coming from South Korea’s Paramark Ventures, alongside its existing backers including Blume Ventures, Kedaara, and billionaire Azim Premji’s Premji Invest. Following this round, the company achieved unicorn status, boasting a valuation of $1.1 billion.

JSW Ventures Founders:

Under the leadership of Manish Taneja, the company primarily operates as a marketplace, though it also features its own brand labels like “Good Vibes.” Its main competitor is Nykaa, a publicly traded company, while it faces indirect competition from broad-ranging marketplaces such as Amazon, Flipkart, and the Good Glamm Group, among others.

In the fiscal year 2022, Purplle’s revenue from operations increased by 71.6% to INR 219.88 crore from INR 128.15 crore in FY21. According to data from the intelligence platform TheKredible, the company witnessed a significant rise in losses, with a 3.9-fold increase to INR 203.63 crore in FY22. The firm has not yet reported its financial figures for FY23.

Check Out More News: Curefoods Acquires Yumlane Pizza, Expands Portfolio!

In the fiscal year 2022, Purplle’s revenue from operations increased by 71.6% to INR 219.88 crore from INR 128.15 crore in FY21. According to data from the intelligence platform TheKredible, the company witnessed a significant rise in losses, with a 3.9-fold increase to INR 203.63 crore in FY22. The firm has not yet reported its financial figures for FY23.

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CJ CheilJedang’s frozen rice sales surpass $74 Million in the US

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CJ CheilJedang
CJ CheilJedang (Representative Image)

South Korean food company CJ CheilJedang Corp. proudly revealed on Monday that their cumulative sales for frozen rice products, produced and distributed in the United States, have reached a remarkable 100 billion won ($74 million) for the current year. Furthermore, they anticipate this figure to surge beyond 130 billion won ($96 million) by the year’s end.

The surge in sales coincides with the company’s revenue tripling over the past four years, a growth trajectory that began when they acquired Schwan’s Company in 2019. This acquisition enabled them to establish a comprehensive nationwide cold chain distribution system in the United States.

Among their leading offerings are “Chicken with Korean BBQ Flavor,” “Vegetables with Kimchi,” and “Shrimp with Soy Garlic Flavor” fried rice, among other options. These delectable products are manufactured at Schwan’s Vermont facility and distributed through prominent retail outlets like Walmart, Kroger, and Target.

CJ CheilJedang Success:

The success of CJ CheilJedang’s frozen rice products in the US market can be attributed to their skillful adaptation of Korean food culture to suit the preferences of local consumers. The company has enriched the most favored fried rice varieties in the US, such as chicken, vegetables, and shrimp, by infusing them with Korean BBQ sauce, kimchi, garlic, and various other flavors.

Another contributing factor to this success is the growing consumption of rice-based processed foods in the United States. According to export data on rice-processed foods collected by the Korean Ministry of Agriculture, Food, and Rural Affairs last year, the US led the way with a remarkable 28.2% year-on-year surge in export value, claiming the largest share of this increase.

The sales of CJ CheilJedang’s frozen rice products, produced in South Korea and shipped to international markets, have experienced substantial growth. Over the past three years (2021-2023), the company’s frozen rice export value has consistently expanded at an average rate of 22% annually. Notably, the number of countries to which they export has grown from a mere seven in 2017 to a total of 17, now including nations like Taiwan and Vietnam.

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Going forward, CJ CheilJedang is set to intensify the distribution of its frozen rice products within pivotal countries’ major mainstream retail networks. As an example, in Australia, “Kimchi Cheese Rice Balls” will be accessible to consumers at Costco outlets starting this month.

“Considering the increasing popularity of K-food in the United States, we are making efforts to disseminate Korean food culture, such as creating a separate ‘Asian Food Zone’ in stores,” a CJ CheilJedang source said. “Following the success of dumplings in the US, we will focus on nurturing the processed rice category, including frozen rice, as the next-generation global strategic item.”

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SK Networks Invests $20.7M in BMSmile, becomes 2nd Largest Shareholder!

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SK Networks Co.
SK Networks Co. (Representative Image)

South Korean trading firm SK Networks Co. made a significant announcement on Monday as it confirmed the completion of its 28-billion-won ($20.7 million) investment in the domestic pet care startup BMSmile.

Through this strategic investment, SK Networks acquired a 10% ownership stake in BMSmile by purchasing 135,811 new shares, thereby becoming the second-largest shareholder in the company.

BMSmile stands out as the sole South Korean startup to fully integrate its corporate structure around the pet industry. Its flagship brand, Pethroom, has firmly established itself as a frontrunner in the K-pet market and engages in a diverse range of pet care-related ventures, encompassing pet litter, pet supplies, and pet technology. Additionally, the company boasts a subsidiary, “Wiggle-Wiggle,” specializing in design intellectual properties.

SK Networks Investments:

SK Networks made its investment decision based on the promising growth prospects within the pet care market. As reported by the Ministry of Agriculture, Food, and Rural Affairs, the South Korean domestic pet market achieved a size of 8 trillion won ($5.9 billion) in 2022, with a projected annual growth rate of around 10%. It is anticipated to expand to approximately 20 trillion won ($14.8 billion) by the year 2032.

Discover Additional News Here: Raymond-Godrej FMCG deal faces DGGI scrutiny over GST implications

In 2022, the worldwide pet market expanded to a size of $368 billion. Furthermore, the Pet Humanization trend, which involves treating pets as integral family members, continues to grow. The average monthly cost of pet ownership has surged by 44%, rising from 91,000 won ($67.3) in 2018 to 131,000 won ($96.9) in 2023.

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Raymond-Godrej FMCG deal faces DGGI scrutiny over GST implications

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Raymond-Godrej
Raymond-Godrej (Representative Image)

The Directorate General of GST Intelligence (DGGI) is currently investigating a recent transaction where Raymond transferred its consumer goods division to a unit under the Godrej Group. Informed sources have disclosed that GST authorities have contacted Raymond Consumer Care Ltd (RCCL) and requested an explanation regarding the potential imposition of GST on the transaction value. Godrej Consumer Products Ltd (GCPL) acquired the FMCG business, along with the Park Avenue, KS, KamaSutra, and Premium brand names, through a slump sale in April 2023. In a statement submitted to the stock exchanges, Godrej Consumer Products Ltd, the acquiring entity, reported a payment of INR 2,825 crore for this acquisition.

Raymond-Godrej FMCG Deal

The DGGI is reportedly seeking clarification from GCPL regarding this issue as well. According to the sources, the DGGI’s Mumbai unit carried out an inspection at locations associated with Raymond as part of its inquiry. Section 67 of the CGST grants authority to an official to conduct inspections if there are grounds to suspect that an individual has concealed information to avoid paying taxes.

In response to an inquiry sent via email, a Raymond representative explained, “… please note that it was an inspection by DGGI in respect of the specified transaction and not a search. Further, we have provided suitable explanation along with the documentary evidence to the effect that the sale of business to GCPL on going concern basis, does not attract GST. Given the contours of the deal and basis the independent tax expert opinion sought by both the parties, the said transaction does not attract any GST as it was a slump sale of the business on going concern basis.”

Try more news here: Huxtaburger & Audio Technica to launch Japanese-Inspired Burgers!

As of the time of press, GCPL had not yet replied to an email.

The department maintains that the transaction is subject to an 18% GST obligation.

“Certain documents have been handed over by the company and the explanation is being studied,” said a person aware of the ongoing probe.

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Huxtaburger & Audio Technica to launch Japanese-Inspired Burgers!

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Huxtaburger
Huxtaburger (Representative Image)

Huxtaburger is collaborating with the technology brand Audio Technica to introduce two burgers infused with Japanese-inspired flavors.

Established by Hideo Matsushita, Audio Technica is a Japanese corporation specializing in the creation and production of professional-grade microphones, headphones, turntables, phonographic magnetic cartridges, and various other audio devices.

What Prompted Audio Technica to Collaborate with Huxtaburger?

Audio Technica partnered with Huxtaburger to commemorate the launch of their latest turntable, a legendary portable model originally introduced in 1979 under the name “Sound Burger.”

In accordance with this collaboration, They has crafted two fresh Japanese-inspired burgers: “Suzi,” featuring crispy chicken, pickled ginger, and yuzu mayo, and “Kenji,” showcasing miso beef and wasabi ketchup. These delectable creations are set to make their official debut in stores at the beginning of October.

Find More News Here: Revival of Persimmon Cultivation in Kashmir Elevates Farmers’ Income!

They will offer their Sound Burger-inspired burgers at all of their establishments across Victoria, New South Wales, and Western Australia.

Each individual who acquires one of these Japanese-inspired burgers through Huxtaburger’s loyalty program, ATE Rewards, will be entered into a drawing for a chance to win an AT-SB727 Sound Burger portable Bluetooth turntable. Audio-Technica is generously offering one record player giveaway at every Huxtaburger location.

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Revival of Persimmon Cultivation in Kashmir Elevates Farmers’ Income!

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Persimmon
Persimmon (Representative Image)

Persimmon, known as Japan’s national fruit, has made a notable impact in the Kulgam district of South Kashmir. Recently introduced to the region, this non-native fruit crop has proven to be a more lucrative choice than apples, substantially increasing the income of local farmers.

Thriving in the picturesque district of Kulgam in Kashmir, the bittersweet, orange-hued fruit originally hailing from China has found a new home. Shabbir Ahmad Itoo, a resident of Sonigam in Kulgam, brings a diverse educational background to his farming endeavors and has successfully introduced non-native persimmons to the region, planting them on his farm.

Shabbir said the fruit had been brought by his father from Himachal Pradesh.

Japan’s National Fruit – Persimmon:

“The fruit does not need much care or pesticides like apples. This fruit has very good medicinal value with vitamin C in it. The fruit is also useful for expecting mothers, with qualities that increase blood circulation and provide relief from joint pains,” Shabbir said.

Some of the Best Trending Stories: Consumers go Green: Tetra Pak Index 2023 reveals shift towards sustainable diets

He added, “It took us about two years, and now it’s bearing fruits. These plants grow significantly, much like apple trees. Furthermore, it has a promising market value. In Kashmir, this fruit is relatively new, but we successfully introduced it in Delhi, where one kg of these fruits sells for more than INR 100.”

With a history spanning more than two millennia, the Diospyros kaki, commonly known as Persimmon, has its origins rooted in China. Presently, China, Japan, and South Korea have emerged as the foremost cultivators and leading producers of this delicious fruit, firmly establishing its importance in East Asian agriculture.

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Consumers go Green: Tetra Pak Index 2023 reveals shift towards sustainable diets

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vegan

According to Tetra Pak Index 2023, consumers are now factoring in environmental concerns in addition to their personal well-being when making food purchases. These environmentally mindful individuals, often referred to as “Climatarians,” are willing to adjust their dietary choices to safeguard the planet.

The market for health-conscious foods is firmly established, with consumers actively searching for products that promote their physical well-being. However, a substantial majority now adopt a more comprehensive perspective. Seventy percent of them believe that healthful products should also be eco-friendly, while an additional 54% are prepared to adjust their diets to play their part in creating a better world for the environment.

Tetra Pak Index – Survey!

This dual emphasis is evident in the increasing number of consumers who are intentionally reducing their meat consumption, commonly referred to as ‘flexitarians.’ Nearly half of all consumers indicate that they are either decreasing their meat consumption or eliminating meat from their diets entirely. The Tetra Pak Index, derived from a survey conducted by the global market research firm IPSOS across ten countries, reveals that this trend of reducing meat consumption is a worldwide phenomenon. A total of 56% of survey respondents attribute their dietary choices to health concerns, including adopting flexitarian, pescatarian, vegetarian, or vegan diets, while more than a third (36%) specifically point to environmental considerations as their primary motivation.

The study further uncovers that convenience is no longer the reigning priority. In a significant departure from long-standing beliefs, 70% of individuals are now willing to forego convenience in favor of healthier products. Additionally, the pursuit of health remains unwavering, even amidst the current economic challenges, as only 17% are prepared to give up food and beverages with health benefits in the face of the cost-of-living crisis.

Tetra Pak follows The climatarian trend is anticipated to expand as the consequences of climate change become more pronounced. Consumers increasingly demand that food manufacturers provide products that are not only health-conscious but also sustainable.

Adolfo Orive, president and chief executive officer at Tetra Pak, comments, “The findings of this year’s Index are reflective of the direction we have taken in the last few years, to decarbonize the food industry and make food systems more resilient and sustainable. In many parts of the world, people rely on products such as milk and juices for their daily nutrition, so it is critical to optimize their value chain with innovations in sourcing, packaging, processing and distribution, which is where we have been playing an active role together with our customers and suppliers.

Reach more articles here: Government Sets $800/Tonne Minimum Onion Export Price!

In addition, considering that the world will need 60% more food by 2050, Tetra Pak are complementing these efforts through technologies that can help explore new sources of nutrition – ranging from new plant-based sources to alternative proteins produced with biomass and precision fermentation. Both these areas are critical to contribute towards food system sustainability.”

Tetra Pak Technology: Cutting-edge advancements in food technology can significantly aid in producing products that are not just delicious but also resource-efficient. The encouraging news is that consumers are open to embracing innovations that enhance our lifestyles and dietary choices, with 62% acknowledging the potential of technology in fostering a more sustainable future. Nevertheless, there are concerns among some consumers that such innovations might not be as natural as fresh, unprocessed foods. Hence, striking the right balance will be crucial.

“This area is developing quite rapidly, and it is difficult to predict when and to what extent it will succeed; but it is only through continued efforts and leveraging collaboration to explore every potential opportunity, that we will find solutions to the current food system challenges,” says Adolfo (CEO of Tetra Pak Group).

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Government Sets $800/Tonne Minimum Onion Export Price!

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Onion
Onion

On Saturday, the government announced a minimum export price (MEP) of $800 per metric tonne for onion exports, effective from October 29 through December 31, 2023.

The measure has been taken to address the declining quantity of stored Rabi 2023 onions and to ensure an adequate supply of onions to local consumers at reasonable prices. This has been achieved by reducing the volume of onion exports.

Why Govt Sets minimum Onion Export Price to $800/Tonne?

The MEP of $800 per metric tonne equates to roughly INR 67 per kg.

In addition to the imposition of MEP on onion exports, the government has declared the acquisition of an extra 200,000 tonnes of onions for the buffer stock, in addition to the 500,000 tonnes already procured.

In a concerted effort to stabilize onion prices and ensure accessibility to consumers, onions from the buffer stock have been consistently distributed. Since the second week of August, these onions have been actively dispensed across key consumption centers nationwide. Moreover, to enhance accessibility, retail consumers have been provided access to these onions at an affordable price of INR 25 per kg. This initiative has been facilitated through the operation of mobile vans managed by the National Cooperative Consumers’ Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED).

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Till date about 1.70 lakh metric tonne of onion has been disposed from the buffer.

This ongoing process of acquiring and distributing onions from the buffer stock stands as a testament to the government’s commitment to ensuring stabilized prices for consumers. Simultaneously, it endeavors to secure equitable returns for onion farmers, establishing a harmonious balance in the onion market landscape.

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