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SCR Corp set to move into Indonesia

By Rajiv MenonIndonesia
1 min read
SCR
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In this article (5)

Sarawak (Malaysia) restaurant chain SCR Corp is set to move into Indonesia, first targeting Pontianak in Borneo as well as Jakarta.

GM (franchising and strategic planning) Johnny Leo Lee Boon says the company is ready to launch its franchise business once potential partners have secured prime locations in the two cities. He says business groups from Pontianak and Jakarta have visited Sarawak several times to study the chain’s franchise business model.

“They have come up with proposed secondary locations to set up SCR restaurants that we find may not be ideal,” he says. “We advise them to look for strategic prime locations where there are good daily crowds… The ball now is in their court.”

Leo says Jakarta has more than 70 malls that are ideal for F&B, while Pontianak with its population of about 1.6 million people could also support the franchise.

SCR, which celebrates its 30th anniversary next year, owns 36 restaurants and has 19 franchised outlets in Sarawak, Sabah, Labuan and Brunei. Fourteen of the owned outlets and five franchises are in Kuching. The menu features 110 local and western dishes and beverages, with Singapore chicken rice the signature dish.

Leo says SCR is also in preliminary talks with a company in the Philippines about franchising, and its executives are expected to visit soon.

Meanwhile, SCR will soon open its first franchise outlet in Lawas, northern Sarawak, and there are expansion plans to to Kapit once the road link is ready.

“The food business market in Sarawak is saturated,” says Leo. “We are consolidating and limiting the number of outlets in certain towns. Our focus is to expand our franchise business to more countries in Asean.”

Questions & Answers

Q.

What is SCR Corp's primary reason for expanding its franchise business into other countries?

A.

SCR Corp aims to expand its franchise business to more countries in ASEAN because the food business market in Sarawak is currently saturated. They are consolidating and limiting the number of outlets in certain towns within Sarawak.

Q.

Which specific locations in Indonesia are SCR Corp initially targeting for expansion?

A.

SCR Corp is initially targeting Pontianak in Borneo and Jakarta for its expansion into Indonesia. Potential partners need to secure prime locations in these two cities before the franchise launch.

Q.

What challenge has SCR Corp encountered with potential partners regarding location selection?

A.

SCR Corp has found that proposed secondary locations from potential partners in Pontianak and Jakarta may not be ideal. They advise partners to look for strategic prime locations with good daily crowds for their restaurants.

Q.

Does SCR Corp have any other international expansion plans in progress apart from Indonesia?

A.

Yes, SCR Corp is also in preliminary talks with a company in the Philippines about franchising. Executives from the Philippines are expected to visit soon as part of these discussions.

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