SCR Corp to go regional with franchise

KUCHING: SCR Corp Sdn Bhd, one of Sarawak's fastest growing and biggest food chains, is to expand regionally through franchising.

Franchising and strategic planning general manager Johnny Leo Lee Boon said SCR targetted to launch its franchise business in the next two to three months.

“We are now in the final stages of putting in place all the necessary requirements for the franchise system, including supply and logistics infrastructure as well as operational and marketing support.

“Franchising means duplicating our operational model,” he told StarBiz.

SCR has engaged a consultant and is working closely with the Malaysian Franchise Association to set up its franchise system.

Leo said SCR, which offers universal food, was in preliminary talks with potential investors from China and Indonesia who were keen to invest in its franchised restaurants.

In Sarawak, the company has attracted much interest with enquiries from over 40 potential investors on setting up SCR franchised outlets including in rapid growing smaller towns, like Mukah.

“These potential investors are mostly individuals who have seen and are impressed with SCR's growth and expansion,” said Leo, adding that Peninsular Malaysia was also a potential market.

He said for most Malaysian food brands, the start-up investment in a franchised outlet was between RM700,000 and RM800,000.

To encourage and support local franchise companies to strengthen and expand their business abroad, the Malaysian government allows, from this year, tax deduction for franchise fees borne by local franchisees.

Franchising offers a franchisee the advantage to set up business quickly based on a proven brand and successful business model by duplicating it.

Leo said SCR, which started its business selling Singapore chicken rice, had established itself as a strong brand with a household name in Sarawak.

Singapore chicken rice remains SCR's signature dish, and SCR halal restaurants offer western meals, SCR Xpress and local delights.

“There are up to 80 food items and 36 types of drinks. There is a wide variety for customers to choose from,” he said.

The popular Sarawak laksa and kolo mee are on the menu.

SCR general manager Michael Sim said the company now had a network of 31 restaurants, including 13 associate outlets, in Borneo. There are 18 restaurants in Kuching and one each in Kota Kinabalu, Federal Territory of Labuan and Brunei. Other outlets are spread in Sarawak's major and secondary towns.

Sim said three new restaurants in the city opened for business in the past few months, including one at the new Kuching Sentral bus terminal near the old airport.

Marketed as “our family restaurant,” SCR's single biggest outlet in E-Mart Miri has a seating capacity for 200. The smaller outlets can cater for 120 to 130 diners.

Sim said SCR recorded over RM20mil in revenue last year, and it targeted double-digit growth per annum.