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Franchising

“Be Your Own Boss”SugarBun offers both variety and value, besides the traditional QSR features of quality, service and cleanliness. Its hero product is Broasted Chicken; famous for being juicer, tender and less oily-unlike the typical “fried chicken”. Other distinctive and unique products (relative to other popular fast foods) include savoury rice, hot saucy kano, fish and chips, and fresh pickled vegetables. Other products it offers include chicken/beef/fish burgers and hot and spicy chicken, mash potato, french fries and coleslaw.

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SugarBun has so far established 44 franchise stores successfully in Malaysia, five in Brunei Darussalam, one in Chittagong Bangladesh and one in Yin Kou, Liaoning, China.The new "4-in-1" Concept or QSR and Destination Centres has been instrumental in ensuring unique differentiation for the SugarBun brand. Its strength lies in its potential in catering to the needs of children, families, teens and young working adults.

The main future concentration of franchising will be in building more of this 4-in-1 concepts stores, which has been proven to outdo other QSR chains in the vicinity. This will ensure competitiveness against other QSR chains should they be located nearby.

STRATEGIC DEVELOPMENT & ACHIEVEMENT

Quick learners were the people behind SugarBun. In the mid-80's recession, they encountered a bitter experience when two super-markets chains collapsed affecting their restaurants in Sibu and Kuching. In Sibu, they were forced to relocate or buy up the four shophouses pegged at RM3 million. They decided to relocate - a move which turned profitable in later years. The other restaurants, unfortunately (set up within a supermarket), had to be closed at a substantial loss. Nevertheless, over the years SugarBun has achieved many "first". They were the:-

*First Malaysian homegrown fast food restaurant to expand internationally;

*First Malaysian homegrown fast food restaurant to achieve the MS ISO 9002 certification-the highest possible industry operating standards;

*First Malaysian fast food franchisor to be listed on the KLSE;

*First Malaysian fast food chain to incorporate a Junior Library into its major restaurants, thus providing "edutainment" and additional service to the community;

*Only fast food chain in Malaysia to have a 100% local work force, a plus point for SugarBun as they face less cultural and language problems in the frontlines with customers.

The listing has brought on many benefits for SugarBun. Among them are open doors for upstream and downstream synergistic activities, mergers and acquisitions. Then, there is the ability to tap into the capital market for cheaper funds which will assist in the growth of SugarBun.

A better image has surfaced as well which has provided for better locations, recruitment of better manpower and better sales because of a higher awareness level.

(Malaysian Enterprise Journal '98 extract)www.sugarbun.com