• From Reuters:
"Alibaba's supermarket chain Freshippo is seeking to raise funds at a valuation of about $6 billion, much lower than a hoped-for valuation of up to $10 billion earlier this year, three people familiar with the matter told Reuters.
"The company had to cut its valuation expectations after China's COVID-19 restrictions, in particular a draconian lockdown in the economic hub of Shanghai, badly dented business, they said.
"Investors are also sceptical about whether loss-making Freshippo can keep growing and turn a profit anytime soon given the company's bleak outlook as the world's second-largest economy continues to pursue a strict policy of stamping out COVID-19 cases, said two of the people.
"The supermarket chain, known as Hema in Chinese, is aiming to raise $400 million to $500 million from outside investors, two of the sources said."
The story notes that "Freshippo's lowered ambitions for its first independent private fundraising round come amid a drop-off in investor interest globally in tech ventures that have yet to turn a profit … Private fundraising in China has also slowed since last year due to a sweeping regulatory crackdown on the tech, tutoring, gaming and other sectors."
• Foot traffic analytics firm Placer.ai is out with a report saying that at Starbucks and Dunkin' last month, "coffee visits dropped below QSR levels for the first time all year, as a combination of inflation, high gas prices, and the rise in COVID cases kept some consumers away … The fall in foot traffic was evident at both chains in June, with visits falling 7.8% year-over-year at Dunkin’, and 4.1% at Starbucks. Compared to June 2019, visit growth was flat (0%) at Dunkin’, and down 6.6% at Starbucks.
"The outlier: Dutch Bros., conversely, continues to grow. Visits to Dutch Bros. locations were up 22.8% in June year-over-year, and up 178.2% compared to 2019, as the brand has expanded rapidly over the past few years."
