We are the master franchisor of xxx Fried Chicken in Malaysia. Currently we are have 5 outlets which is located at Sunway Putra, DAMEN USJ, Sunway Pyramid, Midvalley , Sunway Velocity Mall. Upcoming outlet we will have Genting Sky Avenue (tentatively open on March 2017).
And we operate our own central kitchen to do marinate process and supply to each outlet.
xxx was set up on year 2014, November. then we send 2 key person to Taiwan for training (3 months). After back from Taiwan, we set up our own central kitchen and start looking for lot to operate our 1st store. Our 1st store (Sunway Putra) open on November 2015.
Currently Mr xxx holding 50% share and Mr xxx holding 50% share.
I personally know this brand since year 2007 when I first visit to Taiwan. I personally love their fried chicken very much . on year 2013, I start contacting Taiwan HQ to inquiry about the possibility of bringing this brand to Malaysia. after having a almost 1 year discussion and market survey and study (Taiwan boss visit Malaysia several times), then we successfully gain the franchise rights from Taiwan principal.
Key Team member
Mr xxx – act as General manager. Overlooking operation, production (central kitchen), marketing
*** assist by personal assistant Ms xxx
Mr xxx – act as finance & account director. Overlooking account, finance.
*** assist by personal assistant Ms xxx
Mr xxx – act as area manager. Handling outlet operation.
We are confident that our 44 years secret recipe fried chicken are well accept by majority of the population, no matter which age group, sex, races. Our selling price (RM9 per pack) are slightly higher compare with our competitor (SHILIN, Pasar malam brand), but it is still affordable by all income group .
Based on estimation, we are looking at the potential of having 50 – 100 outlets nationwide. FYI, SHIHLIN are operating around 70 outlets now in Malaysia.
Our central kitchen will have 10% Gross profit by supplying to each outlet.
Our outlet will have 60% Gross profit – 3% loyalty to Taiwan. Currently our outlet revenue are averagely RM40,000 per month.
We are looking forward to open another 4 outlets in Year 2017 (to make it in total 10 outlet by end of year 2017). Each outlet will cost us around RM140,000 (renovation), RM50,000 (equipment), RM30,000 (rental deposit and etc), RM20,000 (cash for rolling) and 6000 USD franchise fee per outlet (based on the total amount / 20 stores).
So we are looking at around RM270,000 per outlet. X 4 outlets, approx RM 1 million.
Investment risk and mitigating measures.
When we first introduce our brand in Malaysia, we find it difficult to look for nice location in shopping malls due to our brand are still new and shopping mall leasing department are mostly skeptical on our brand. After having a few outlets , people start knowing our brand and Major shopping malls (example Midvalley) even welcome & invite us to have outlets in their shopping mall. By having 5 outlets now, we learn some experience and now we got the bargain power to negotiate with shopping mall/landlord to get a better location / rental rate.
We would like to value our company worth RM5 million. 2.5 X of our current up to date investment in term of $. We would like to liquidate our share in return to get fund.
If based on our best performance outlet (Midvalley and Velocity). Investment RM247k (franchise fee , renovation (can consider as asset), equipment (can consider as asset), renovation deposit( asset). Based on RM60,000 sales. Profit before tax will be around RM10k per month X 12 months = RM120,000 per annum . ROI are 48% per annum.
We assume that once we grow up to certain size (example 10-20 outlets), there might be potential F&B group would like to acquire us.
Current retail market are suffering due to Malaysia economic . Although xxx Fried Chicken are new in Malaysia market but we still manage to sustain and gain profit in such tough situation. Our profit are low at this moment due to weak ringgit currency, but still manage to have 60% GP (if Ringgit are RM3.8 to 1 USD, our GP will increase another 2-3%). So we think now is the best timing for investor to come in, with a lower entry cost.
And we do also believe our fried chicken business can sustain for long term (Taiwan got 44 years history), due to we are not a “hit & run / trend “business. Nowadays there is a lot of F&B new concept in Malaysia which doesn’t sustain in long term, such as the bubble tea trend, cheese tart/cake, yogurt ice cream and etc.