Tapping the potential in rising foot traffic

“We will focus on the food kiosk market to keep our costs as low as possible. This allows us to sell our value meals at much lower prices.” - Kevin Ng

WITH foot traffic picking up, food and beverage (F&B) kiosk chain Grill Box by Sagfood is looking to boost its outlet count and capitalise on the potential growth in demand.

Sagfood (M) Sdn Bhd is planning to raise up to RM4mil, or equivalent to 13.79% of its equity, through an equity crowdfunding (ECF) campaign to fund its outlet expansion plan. About 40% of the funds raised will be used for this while the remaining will go towards marketing, licensing and various overhead expenses.

The ECF campaign on Ata Plus has already exceeded its minimum target of RM750,000 with more than three weeks to go before the campaign ends.

“Grillbox by Sagfood’s mission is to sustainably contribute to the F&B industry demand, especially for the busy and on the go customers, at the same time serving these customers with quality value meals.

“We will focus on the food kiosk market to keep our costs as low as possible. This allows us to sell our value meals at much lower prices – 20% lower than our competitors,” says Sagfood founder and managing director Kevin Ng.

Although the chain was only launched in June this year, it has secured an agreement with Aeon Mall to open in 52 locations within the next 36 months, including 15 new outlets in various malls in the Klang Valley over the next one year.

Currently, they have three outlets located in the Klang Valley.

There are also plans to expand into the regional market with countries such as Indonesia and Thailand.

With 15 new outlets, Ng is projecting a conservative net profit of RM1.44mil in the next 12 months. This is expected to grow to close to RM7.5mil by 2024.

“There is no direct competition (for Grill Box by Sagfood at the moment), there are F&B kiosk concept businesses but none with the same business model as Sagfood. Hence, there’s an opportunity gap where Grill Box by Sagfood is serving these customers who want a quick and quality, balanced meal.

“The company believes it can achieve a large market share because Grill Box by Sagfood is also affordable and value for money.”

Meanwhile, Ata Plus chief executive officer and co-founder Elain Lockman says Sagfood will be able to leverage the growing trend in healthy food.

“Malaysians are starting to realise how important it is to stay healthy. This was mainly due to the pandemic where health and safety were the main priorities. It is encouraging to see companies like Sagfood that focus on providing quality value meals rather than riding on the higher demand of fast food,” she says.