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Last Updated: Sep 25th, 2006 - 11:36:04 |
KUALA LUMPUR: Nineteen O One Sdn Bhd is set to spread its wings to several Middle East and Asean countries by next year through a joint venture with PNS Francais Sdn Bhd.
The company, franchisor of the 1901 Hot Dog, will enter Saudi Arabia by year-end, followed by United Arab Emirates, Thailand, Indonesia and Egypt next year, said chief executive officer Tengku Rozidar Tengku Zainol Abidin.
Besides the 60 outlets in Malaysia, it has five in Singapore.
“PNS Francais will assist us to further upgrade our documentation process flow, automate our business processes and provide financial support to go overseas. It will invest for us to operate in a few countries that both parties agree to be viable choice,” Tengku Rozidar told StarBiz.
PNS Francais is a subsidiary of Perbadanan Nasional Bhd, an agency under the Entrepreneurial and Cooperative Development Ministry.
Tengku Rozidar said investment in a foreign country could cost between RM1mil and RM1.5mil.
Tengku Rozidar Tengku Zainol Abidin.
“PNS Francais did not commit a sum but it will help us invest in other countries.
“Depending on the demographics in these countries, we hope to open a minimum of three outlets in each country,” she added.
For the countries it was going into, Tengku Rozidar said it could have a master franchisee to invest or enter into a master franchise agreement.
“From our survey, these countries offer the easiest entry point and the market will easily accept the product. So far, there is no major competition (for our product) unlike the burger industry, so it will give us an opportunity to be pioneer there,” she added.
Nineteen O One, established in 1997, is engaged in the setting up of 1901 outlets and the retail of food and drinks, primarily hot dog.
On why it was expanding now, Tengku Rozidar said: “We are now ready in terms of resources and operations, and are better prepared for any damage control. We want to grow 1901 as a global brand.”
The company also plans to expand its number of outlets in Malaysia to 100 by end-2007.
“We are looking at ways to improve on the sales of our franchisees. We want all the outlets to be profitable,” she said.
The company’s revenue was RM9.5mil in the financial year ended Dec 31, 2005.
Tengku Rozidar said she expected revenue to increase by 200% next year.
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