(Front from left) Secret Recipe Restaurants India Pt Ltd director Chelikam Rajashekara Reddy, Sim, Mukhriz and Faba Global Group Co Ltd Cambodia director Luu Meng.
Posted on 20 December 2011
EVA YEONG
sunbiz@thesundaily.com
The Sun Daily
KUALA LUMPUR (Dec 20, 2011): Secret Recipe Cakes & Café Sdn Bhd is investing some RM60 million to expand into the Cambodian and Indian markets next year as well as to open 100 outlets locally in the next five years.
Its CEO Datuk Steven Sim said the cake and cafe chain aims to open 10 outlets in India and six outlets in Cambodia by the end of 2013. The first outlets in the two countries will be opened in Phnom Penh in April and Bangalore in the third quarter of next year.
Speaking to reporters after a signing ceremony with its master franchisees, Sim said the 100 new outlets to be opened in Malaysia over will be mainly in smaller towns. It currently has 212 outlets in Malaysia and 76 outlets in Singapore, Indonesia, Thailand, China, Philippines, Brunei and Australia.
He said each outlet costs about RM500,000 to set up while the Cambodian and Indian markets need a central commissary each that will cost RM1 million respectively.
Secret Recipe has secured master franchisees in Cambodia and Southern India, and signed agreements with Faba Global Group Co Ltd Cambodia and Secret Recipe South India Pt Ltd yesterday.
Under the Secret Recipe Master Franchise Agreement, these two companies will be the master franchise for operating Secret Recipe, have the rights to develop the brand and hold the rights for future sub-franchising and development in the respective countries.
Deputy Minister of International Trade and Industry Datuk Mukhriz Mahathir, who witnessed the signing ceremony, said the collaborations would encourage local brands, SMEs and companies to take similar paths, as it brings together local enterprises and foreign investors.
Over the last decade, he said the local franchise industry enjoyed a healthy pace of growth between 10% and 15% a year, and currently contributes about 6% to the country's retail sector revenue compared with over 50% in the US and Australia.
"Therefore, it is evident that there is great potential and room for growth in this sector locally," he said.
"As franchise penetration to overseas markets is expected to grow between 10% and 25% next year especially among Asian countries, developing countries in high gear like India and Cambodia are both on the radar screens of global companies and businesses looking for expansion," he added.
sunbiz@thesundaily.com
The Sun Daily
KUALA LUMPUR (Dec 20, 2011): Secret Recipe Cakes & Café Sdn Bhd is investing some RM60 million to expand into the Cambodian and Indian markets next year as well as to open 100 outlets locally in the next five years.
Its CEO Datuk Steven Sim said the cake and cafe chain aims to open 10 outlets in India and six outlets in Cambodia by the end of 2013. The first outlets in the two countries will be opened in Phnom Penh in April and Bangalore in the third quarter of next year.
Speaking to reporters after a signing ceremony with its master franchisees, Sim said the 100 new outlets to be opened in Malaysia over will be mainly in smaller towns. It currently has 212 outlets in Malaysia and 76 outlets in Singapore, Indonesia, Thailand, China, Philippines, Brunei and Australia.
He said each outlet costs about RM500,000 to set up while the Cambodian and Indian markets need a central commissary each that will cost RM1 million respectively.
Secret Recipe has secured master franchisees in Cambodia and Southern India, and signed agreements with Faba Global Group Co Ltd Cambodia and Secret Recipe South India Pt Ltd yesterday.
Under the Secret Recipe Master Franchise Agreement, these two companies will be the master franchise for operating Secret Recipe, have the rights to develop the brand and hold the rights for future sub-franchising and development in the respective countries.
Deputy Minister of International Trade and Industry Datuk Mukhriz Mahathir, who witnessed the signing ceremony, said the collaborations would encourage local brands, SMEs and companies to take similar paths, as it brings together local enterprises and foreign investors.
Over the last decade, he said the local franchise industry enjoyed a healthy pace of growth between 10% and 15% a year, and currently contributes about 6% to the country's retail sector revenue compared with over 50% in the US and Australia.
"Therefore, it is evident that there is great potential and room for growth in this sector locally," he said.
"As franchise penetration to overseas markets is expected to grow between 10% and 25% next year especially among Asian countries, developing countries in high gear like India and Cambodia are both on the radar screens of global companies and businesses looking for expansion," he added.
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