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Malaysia’s Kedai Ayamas Eatery plans 100 more stores

By Aiko TanakaMalaysia
1 min read
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Kedai Ayamas eatery operator Kara Holdings is looking to establish 100 outlets within four years through its new franchising program, predominantly within peninsular Malaysia. The move into franchising should elevate the company’s finances by 10 per cent this year to about RM40 million (US$9.85 million). Nine franchises have opened so far, with 20 more targeted within the year.

“As Johor Corp’s wholly owned subsidiary, we complement the KFC business in terms of maximising the use and distribution of poultry products at the farm,” said Kara’s executive director Abd Rahman Md Dawi. “The poultry-relating business has always been a high-demand market for the food and beverage sector in Malaysia.

“Last year, we registered a revenue of RM35 million [$8.6 million]”, he added. “With the additional franchise business, hopefully, it will amplify our revenue this year, coupled with Kara’s technological adoption of food delivery services such as Foodpanda and Grab-Food.”

According to Dawi, the company is open to franchisee acquisition of Kara’s 40 corporate outlets. Six of the nine new franchises were acquired from the firm.
“There are certain criteria that will be considered for us to sell our own shops, but we encourage the newcomers to open a new shop,” he said.

Kara’s franchising program costs between RM100,000 and RM400,000 ($24,600–98,450), and includes management and operational training sessions.

Questions & Answers

Q.

What is the primary motivation for Kara Holdings to expand its franchising programme?

A.

The franchising programme is expected to elevate the company's finances by 10 per cent this year, aiming for about RM40 million. It also complements the KFC business by maximising poultry product use and distribution.

Q.

How many of the new franchises have opened, and what is the target for the current year?

A.

Nine franchises have opened so far. The company is targeting 20 more new franchises to open within the current year, primarily within peninsular Malaysia.

Q.

What is the cost range for joining Kara Holdings' franchising programme?

A.

The franchising programme costs between RM100,000 and RM400,000. This fee includes comprehensive management and operational training sessions for new franchisees.

Q.

Is Kara Holdings selling its existing corporate outlets to new franchisees?

A.

Yes, Kara Holdings is open to franchisees acquiring its 40 corporate outlets, with six of the nine new franchises already being acquisitions. The company has criteria for selling its shops but encourages newcomers to open new ones.

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