TWENTY-ONE Shakey's restaurants will be converted into Domino's Pizza outlets by June following a partnership agreement between Shakey's co-owners Datuk George Ting and Datuk Mohd Sarit Yusoh with Domino's Pizza Malaysia founder and chairman, Ben Chang.
Ting, Sarit and Chang have formed a new company, Mikenwill Sdn Bhd, which is the holding company of Dommal Food Services Sdn Bhd, which in turn holds the master franchise for Domino's Pizza in Malaysia.
Ting and Sarit, who jointly own 50% of Mikenwill, will assume the positions of chief executive officer and chairman respectively, while Chang, who holds the remaining stake, will become the executive director of the company.
The 21 converted stores will result in an instantaneous doubling of Domino's Pizza stores.
It is our aim to build Domino's Pizza into a 100-store delivery operations within the next five years, Chang said at the partnership agreement signing in Kuala Lumpur yesterday.
Dommal currently has 16 Dominos Pizza outlets in the Klang Valley, three in Johor Baru and one in Penang.
The 21 to-be-converted Shakey's stores, located in the Klang Valley, Seremban and Malacca, will increase the number of Domino's Pizza outlets to 41 nationwide.
Four new stores were expected to be opened by year-end, thus increasing the total to 45, Chang said.
The financial year ended December 2004 was quite exceptional. We saw sales increased by 30% to RM21mil without opening any new outlets. This year, with the expansion, we expect a double-digit growth in revenue.
Mikenwill will invest about RM10mil this year in Domino's Pizzas operations in Malaysia, of which RM4mil is for the conversion of the Shakeys stores.
The company's principal, Domino's Pizza LLC in the US, has granted Dommal a new 15-year master franchise up to 2020, as well as the rights for Domino's Pizza in Singapore, which is expected to begin operation by end 2006 or early 2007.
Chang said the local pizza industry was now estimated at RM300mil, but declined to disclose Domino's Pizza's market share in the pizza delivery segment.
Ting said Shakey's, which had 31 stores nationwide, planned to sell the remaining 10 outlets and the Shakey's brand to a local firm backed by fast-food experience. The sale would be completed by end-March, he said.
Did you find this article insightful?
100% readers found this article insightful