In the push to go digital, Huggs also went beyond online deliveries and cashless payments to set up its own online reward system.
Running its own roastery and bakery is a key part of its goal to become self-reliant. Huggs does not want to be “held hostage” by suppliers amid rising costs and supply chain disruptions, said Mr Lee. These in-house capabilities can also help the firm to grow its business-to-business operations.
That’s not all the company is doing. It is also launching a “Huggs academy” soon to try and tackle the F&B industry’s perennial manpower woes.
Mr Lee said the academy, which will offer a variety of barista and customer service training courses, will be a key source of talent for the company. Beyond that, it also hopes to convince people that there are opportunities for career development in the industry.
“Within our stores, you can work up to be head barista or manager. If not, you can be transferred back to the headquarters to be a trainer at the academy, or be involved in R&D at the roastery and bakery. There’s also the option of office roles so our employees don’t have to be stuck at the stores.”
NOT EXPANDING BLINDLY
Asked how Huggs has been funding these plans, Mr Lee said franchisee investments have helped with the start-up costs of new stores. The firm also tapped on government schemes for loans.
But for the most part, it has been “bootstrapping on sales revenue” and carefully timing every move.
While in a better position compared to two years ago, the company is 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 rising costs, from food ingredients, labour and construction materials to logistics.
The inflationary environment and unpredictable economic and geopolitical circumstances could mean that the year ahead may even be “more challenging” than the past two years, Mr Lee said.
“Because you get less support, less relief and less leniency. There will also be a lot of unforeseen curveballs.”
While Huggs is forging ahead with expansion, it is not doing so blindly. For example, it has chosen not to renew the leases of some of its outlets in the business district.
“Expansion is not just about blindly opening. It’s also about strategically closing certain outlets so that we cut losses as well,” said Mr Lee.
“Others have asked us too – why are you expanding so rapidly? Why are you even expanding? Surely you’d want to take on a more conservative position?
“From how I see it, expansion does not just mean spending. Expansion also means adaptability and innovating. Because if you have a wait-and-see mentality and stop moving forward, you will eventually die.”
The ambitious restructuring and rebranding moves it has taken on during the tough times embodied that, Mr Lee said, as he gestured to the brand’s new teal logo and bear mascot.
“Do you know why the bear is looking to the side and at a certain direction? It represents our hopes to be forward-looking and be open to whatever that may come,” he told CNA.
“We have redone everything to give people a new look. I see it as an opportunity to introduce ourselves all over again and a chance to get it right this time.”
For all the latest business News Click Here
