Soup Restaurant to develop AI-driven kitchen solutions with Shanghai e-commerce player
The group’s subsidiary has inked a memorandum of understanding with Xi Xiang Technology for a joint venture
[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.
The new entity 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 Restaurant 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.
Soup Holdings said it wants to help Singapore food and beverage (F&B) companies manage manpower issues and rising costs.
The group will tap the technology of the e-commerce and robotics company which controls XXT, Shanghai Xixiang Yixiang E-Commerce, 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, said 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. Its parent company Shanghai Xixiang Yixiang E-Commerce carries out research and development, and produces, operates and maintains smart kitchen equipment in China.
Wong said that the recent plans for diversification is part of a longer-term road map, with Soup Holdings expanding into food-related businesses more over the past decade. Its sourcing, procurement and manufacturing business Samsui Supplies and Services has seen continued growth even as its restaurant business faces 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.
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