Soya Bean Food & Beverage Master Franchise – Strong Brand

Soya Bean Food & Beverage Master Franchise – Strong Brand

Soya Bean Food & Beverage Master Franchise supported by very strong Brand from Singapore
The business is originated from Singapore. Founded in 1995, the company is now the leading soy bean food and beverage retail chain, with more than 80 outlets in the Asia Pacific region, including Singapore, Malaysia, China, Japan, Korea and the Philippines. The company opened its first outlet in Malaysia on 18 May 2012, and was officially opened on 24 June 2012. The opening ceremony was graced by Mr Ong Keng Yong, High Commissioner of Singapore, Mr Abdul Malik Abdullah, Chairman of Malaysia Franchise Association, and Mr Ahmad Faizal, General Manager of Malaysia Franchise Association.

So far, the company has invested RM1million in the business. RM480K in securing the master franchise for 5+5 years, RM300K in opening the first outlet at the Curve, with balance of cash for marketing and operation.The company is now plans to raise additional RM300K to RM500K in the form of preference shares to finance business expansion including open another 2 or 3 outlets in Klang Valley (Location in negotiation including: KLCC, Ampang LRT Station, The Gardens, Sunway Pyramid), and for further marketing and brand awareness.

After the initial investment and start-up costs in the 1st year, The Company anticipates positive EBITDA from its business from the 2nd year onward. The positive cash flow generated from operations will be used to fund further business expansion and more own outlets. The Company is expected to achieve a valuation at the 5th year at RM21,197,000 at PE ratio of 6 with PAT of RM3,532,000 at the 5th year.

WHY THIS IS A GOOD INVESTMENT OPPORTUNITY

With the growing demand for good quality and healthy food and beverages and great service, The company will capitalize on its proximity to its target clients comprised mainly of health conscious and informed working adults, young parents and college students to build a core group of repeat customers.

Proven Market

As of today, it has total over 80 outlets in Asia over Singapore, Japan, Korea, China, Philippines and one in Malaysia.
Very encouraging response since opening of the first outlet at the Curve in June 2012.
Addressable market that is fragmented and growing
Customers already lined up – soya bean has been loved and cherished in Asia and all over the world for a very long time.
High Growth Potential with Potential of Solid Returns

The business model is well-established with diverse sources of income. Besides income from operations of own outlets, the company also developing sub-franchising (either Area/Single Unit franchise) in Malaysia, which will generate franchise fees, regular royalty and also redistribution mark-up income.

With growing economy of scale, we expect synergies can be achieved through set up of central kitchens and greater bargaining power with suppliers.

Scalability

The business is very scalable in the form of franchise. The focus will be to set up store outlets in locations with high traffic flows comprising of our targeted consumers such as:

· Shopping Malls
· Monorail / MRT / LRT Stations
· Mobile Trucks
· Drive-through Services
· Childcare Centers
· Healthcare Centers/Private hospitals

Currently, with RapidKL Group Structuring on the new line extension and MRT project, we are invited by their retail consultant on retail opportunity at future train station.

Brand name and market reputation

An established brand name with good market reputation that appeals to its target group will have more loyal customers, higher market awareness to attract new customers, and the ability to command higher pricing compared to less prominent operators in the industry.

Technology

Adopting a quick serve concept, the company possesses the experience and technology to offer fresh and delectable soy products with rich nutritional value.

Quality of product and service

Quality of products and services is critical to end-consumers. The company can leverage on existing product portfolio, with emphasis on cleanliness and healthy nutrition, slightly customized to cater Malaysian market.

Economies of scale

The capabilities to operate a number of food services outlets would have stronger negotiation power to obtain better commercial terms. With effective franchising plan, The company can leverage to scale up its size and expand its outlets throughout Malaysia efficiently.

Distribution channels

With strategic store locations and extensive store coverage from successful store expansion in Malaysia, The company can provide customers with convenient accessibility to its quality products and services.

Strong Management Team with Good Support from Singapore Franchise Owner

The management team is consisting of young and enthusiastic professionals mostly from different industries with different expertise, although don’t have much experience in running similar business but willing to be coach and supported by a successful franchise system offered by the Singapore franchisor.

Substantial financial commitment by existing shareholders

The shareholders have investment RM1milllion of their own money into the business.

CONCLUSION:

It is a commercially viable opportunity which will appeal to a large target market, and which perceive will have a high likelihood of success.

CAPITAL.MY