[SINGAPORE] Chinese restaurant chain Soup Holdings announced on Wednesday (Aug 13) that it has signed a memorandum of understanding for a joint venture (JV) with Xi Xiang Technology (XXT) to sell smart kitchen solutions powered by artificial intelligence.
It will have a paid-up capital of up to S$2 million, to be requisitioned in tranches, the mainboard-listed company said in a media statement.
As part of the JV, Soup Holdings’ wholly owned subsidiary Soup Restaurants Investments (SRI) will own 51 per cent while XXT will hold 49 per cent.
The two parties will provide smart kitchen solutions and equipment to clients, as well as promote, sell and lease smart kitchen equipment and solutions to kitchens.
Soup Holdings said it wants to help Singapore F&B companies manage manpower issues and rising costs.
The group will tap the technology of the Shanghai e-commerce and robotics company to help F&B businesses – specifically those catering to schools, enterprises and government agencies – integrate smart technologies into traditional kitchen operations.
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The aim of this move, according to Soup Holdings’ managing director Wong Chi Keong, is to begin greater mechanisation to the handling and preparation of Asian food, while minimising human contact and improving food hygiene.
XXT is based in Singapore and controlled by Shanghai Xixiang Yixiang E-Commerce, which carries out research and development, as well as produces, operates and maintains smart kitchen equipment in China.
Wong said that the recent plans for diversification is part of a longer-term roadmap, with Soup Holdings seeing more expansion into food-related businesses than over a decade ago, with its sourcing, procurement and manufacturing business Samsui Supplies and Services seeing continued growth even amid manpower shortages and rising costs.
Founded in 1991, Soup Holdings runs a chain of restaurants specialising in herbal soups and home-styled dishes such as its signature “Samsui” Ginger Chicken. It also operates restaurants under the Teahouse by Soup Restaurant and Cafe O brands in Singapore and Malaysia, as well as a franchised outlet in Indonesia.
Shares in Soup Holdings closed flat at S$0.071 on Tuesday.
