Cutting Edge FEEDING TRADITIONAL Putien has constantly refreshed profit between 2014 and WITH A its operations in accordance to 2016,” says Mr Xiao. “2016 industry standards. In early 2010, was the most glorious year MODERN TWIST THE PASSION its founder Fong Chi Chung spent for Putien. Our Causeway Qi Ji has an eye on using new technology and about S$10,000 on each Putien Bay outlet in Hong Kong outlet in Singapore to implement the was recommended by Michelin HOME-GROWN food and beverage (F&B) brand Qi Ji prides methods to prepare traditional dishes while 5S, a structured programme introduced by the Guide Hong Kong and Macau, and itself on bringing local comfort food to the average Singaporean. Putien is firmly focused on authenticity and fresh, Restaurant Association of Singapore (RAS). our Kitchener Road outlet in Singapore was Just don’t be too surprised when you walk into one of its stores The 5S system, which is still in place at crowned as a Michelin one-star restaurant.” and find that the otah in your nasi lemak is coin shaped and seasonal ingredients. Both are doing something Putien outlets today, is designed to systematically Mr Fong told IE Singapore last year that comes sans coconut leaf. right to succeed in a nation of foodies. achieve cleanliness and standardisation in a he hopes to take Putien to other major Chinese Qi Ji’s recent coin-shaped otah (grilled fish cake) is workplace in order to drive productivity. It refers cities, as well as Japan, South Korea, the Middle yet another example of innovation in an industry that is to: sort, systemise, sanitise, standardise and East and Europe. “But such expansion will fairly traditional. self-discipline. As a result, operational efficiency still retain Singapore as the centre of learning, “We needed to take a different approach because the at the restaurants has received a boost, using management and brand value because this is traditional approach was very difficult to automate,” says Kenneth concepts such as visual cues, space management the country of origin for the Putien brand,” says Low, senior manager (central operations and administration). and work allocation. Mr Xiao. The traditional process was too manual, and required five Putien started in 1987, when Mr Fong He reveals that cultural difference is to six staff working for half a day to supply to both retail and ventured out of his hometown of Putian, a small the biggest challenge that lies ahead for the catering operations. This was excluding the time taken to grill agricultural coastal village in China, and arrived restaurant chain. “It affects not only the extent the otah, which was done via a conveyor belt system that also in Singapore. He established Putien in October of food taste, but also marketing strategy, had to be manned. “So the first step that we took was to trial a 2000 as a small coffee shop on Kitchener Road, brand positioning and even daily operations,” different shape because people are very emotional about operating with seven staff. For the first few years, he explains. “Our global HQ plays a key role to traditional food,” he says. “Surprisingly, it was Putien sustained losses. But Mr Fong clung to his set our vision and core values, and allows each very successful.” goal of providing authentic Fujian cuisine. region to have its own creative operation to Strategy officer and Qi Ji “Japanese and Western cuisine were popular bring the best to the respective market.” co-founder Leith Neo explains back then,” says Mr Xiao. “However, the macro More than anything, Putien is focusing on that instead of having workers market environment made us unique. With our the overall customer experience. For instance, manually wash, dry and open heartfelt culinary offerings, our food was well birthday celebrations for babies at their outlets up coconut leaves to fill them accepted and complimented by the market.” involve staff singing an in-house prepared song, a with otah paste, workers can For the first seven years, Putien’s focus birthday gift as well as photo-taking and printing. now simply load the paste into a was heavy on brand positioning and building. The group has also leveraged on technology big drum in the central kitchen and to have it “The precise brand positioning (authentic to boost productivity in stock replenishment moulded into a consistent coin shape. It is then transferred Fujian cuisine) gave us a clear direction to and automated initial food preparation, as into a combination oven to cook. “We found that the leaves move towards. This principle had been applied well as customer relationship management might pose hygiene issues, and it doesn’t add much value to throughout our operation, from R&D and (CRM), online food ordering, table reservation the taste too, so we got rid of it,” says Mr Neo. Qi Ji had tailor- marketing, to in-store activities,” says Mr Xiao. and loyalty programmes to offer a smooth made machines to make the automated process possible. In 2006, Putien opened its second outlet at experience for customers. The local brand has come a long way since its start 18 years Mapletree mall VivoCity. The same year, it was That said, Putien commits attention to its ago. Qi Ji has its origins as a humble family-owned business. voted as one of Singapore’s Top 50 Restaurants own employees as well. It devotes one-third of During the 1980s and 1990s, the Lim brothers and sisters – by The Sunday Times and also moved beyond its profits every quarter to dividends for staff. eight uncles and aunts of Qi Ji’s co-founders – operated Hock Singapore’s shores to open its first overseas “We plan career paths for each employee so that Heng Food Stall in Funan Centre, and in later years, in Shaw restaurant in central Jakarta. Today, Putien they have a clear direction to fight for,” says Gallery Food Court. They served homemade popiah, laksa, has more than 30 outlets across Malaysia, Mr Xiao. “Sharing the company’s vision and mee siam and nasi lemak. Hock Heng’s popiah became a hit Indonesia, Hong Kong, Shanghai, Taiwan and future with them gives them the confidence to with the customers, with up to 500 to 600 rolls sold daily. WHILE most firms in the food and beverage says Mr Xiao. “We strongly believe that the most Guangzhou. It has 10 outlets in Singapore. commit their future in Putien.” ■ “But retail in food courts is not very scalable,” says Mr Neo. (F&B) sector are adapting to keep pace with the fundamental factor in a good dish is its freshness. “It has been a 150 “There is also a danger where you can only sell certain products TRIED rapid growth of technology, homegrown restaurant Sometimes it does not make a profit for us, but we per cent growth per because the operator will impose restrictions. And if the operator chain Putien believes that sticking with perennial believe it helps us to build our brand.” annum in terms of the loses the food court, the entire place has to be shut down. values will set it apart from its competitors during The restaurant chain uses seasonal ingredients number of outlets, and a Overseas cuisines can be scalable and can go far – why can’t our AND 60 per cent increase per this period of great change. throughout the year to attract customers. For local cuisines do the same?” “Delivering innovative dishes while matching instance, its yearly First Harvest Seaweed menu annum in terms of gross So with the blessings of the Lim siblings to use their recipes, TESTED local diners’ tastes is the challenge that we have features the first batch of the annual harvest of fully Mr Neo co-founded Qi Ji in December 1999 with his brother-in- been facing since day one,” says Jayden Xiao, general grown seaweed from Wheat Island, 50 km from the BACK TO ➤ law Alan Lau, now director (central operations & catering), and manager of Putien. “Providing foreign cuisine has city of Putian in Fujian Province. HIS ROOTS his uncle, one of the Lim siblings. been our selling point, but whether customers accept Adhering to its principles of freshness and Mr Fong hopes to Qi Ji specialises in retail, catering and business-to-business the taste is a risk as well. Fortunately, our principle of authenticity helped Putien tide through the severe take Putien to other supply of popiah ingredients. At the core of its business is its choosing only the freshest ingredients and cooking in acute respiratory syndrome (Sars) period in 2003, major Chinese central kitchen. “During our startup period, the concept of cities, as well as the most authentic Putien taste differentiates us from which Mr Xiao says was the most difficult time for a central kitchen was relatively new in Singapore compared Japan, South Korea, the market.” the restaurant. the Middle East to other more developed markets,” recalls Mr Neo. “Having a Putien’s unofficial slogan is “fresh ingredients”, Besides staying loyal to its timeless principles, and Europe central kitchen also means that it is a cost centre that requires 14 theSMEmagazine PHOTO: YEN MENG JIIN theSMEmagazine 15 Cutting Edge multiple revenue streams to support it.” constantly seeks direction But Qi Ji founders had also observed that from industry experts cities such as Hong Kong were getting densely through Spring Singapore. populated, with shops getting smaller, adds Five years ago, Qi Ji Mr Neo. They had reckoned that Singapore significantly expanded its ➤ HOMEGROWN would soon face a similar issue, making it central kitchen, housed Qi Ji started as unsustainable to put a big kitchen in every along with its head office and a family business, retail outlet.