“Pau� specialist Era-Life Sdn Bhd, which aims to “revolutionise� the culture of bun consumption in Asia, plans to set up a chain of franchised BAOZ outlets locally and abroad by next month, said its managing director Lim Wooi Hong.
Describing BAOZ’s success in transforming the ordinary steamed buns into a “healthy and novel� eating experience, Lim is confident it is well positioned for such an expansion.
“After 15 months using our current business model, which is by expanding into a chain, we are going into the second phase, which is more of a brand recognition.
“Franchising is just one of the avenues to help us achieve that,� he told FinancialDaily in a recent interview at BAOZ outlet in 1Utama, Petaling Jaya.
Among Era-Life’s signature buns are King&Baoz, Rendang Sayang, Kampung Boy, Melting Gold and Sunshine Delight. All BAOZ products are halal.
Lim said it would open two of its own and 11 franchised outlets by year-end. It currently owns and operates seven outlets, mostly in Kuala Lumpur.
The new outlets will be situated in the Klang Valley, Ipoh, Penang, Johor Bahru, Sabah and Sarawak. Two new outlets will be launched at Sunway Pyramid and Mid Valley Megamall in the next two months.
He said the opening of its own and franchised outlets would be vital to enable it to achieve a RM4 million revenue for the calendar year ending Dec 31, 2006. Lim said the company saw franchise opportunities in other markets such as Brunei, Singapore, Indonesia, Thailand, China and the Middle East.
He said BAOZ’s could export its model to Singapore and Brunei because of the similarities of these markets with Malaysia.
“As for (other) foreign franchise, we are still in talks; we need time to develop a different model.�
He said over the last 12 months, it had received enquiries from 50 interested parties, who were keen on the franchise.
Potential franchisees would only need to invest about RM50,000 to RM80,000 to set up a store while a kiosk would costs RM30,000 to RM50,000, he added.
“We would provide our knowledge, expertise, training and support to help franchisees grow their business.
“We have developed SOP (statement of principles) and training menus. We are very sure franchisees would have good prospects in their investments,� he said.
BAOZ’s central kitchen, which is now located in Cheras, Kuala Lumpur, has a capacity of producing 30,000 to 45,000 buns daily, which are sufficient for supply to 30 outlets.
Following the setting up of franchises in the new markets, Lim said it would have to establish localised central kitchens in the respective markets to supply the buns to the franchisees.
He added that each BAOZ outlet now received up to 200 visits daily on weekdays and up to 500 visits per day on weekends.
Era-Life’s research and development (R&D) team, Lim said, had introduced 30 new recipes, inspired by local taste buds and culture, since its inception in 2004.
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