The Food & Beverage (F&B) sector is one of the most lucrative and profitable ones in Malaysia. Being a food haven means that Malaysia has a strong outlook when it comes to businesses here. As such, many investors would seek opportunities in investing in F&B businesses.
Snacks Market is Highly Demanded
One of the names that you might come across is Big Apple Donut. You will see this name in outlets operating around shopping centers which at times could have a long queue of customers waiting.
Offering a variety of donuts and other related snacks, this is one brand with a strong reputation in offering great food at affordable prices.
Franchising Big Apple Donut
The biggest challenge about franchising Big Apple Donut is the franchise fees. You will need an initial capital of about RM4 to 5 million to start an outlet. From there 5% of your gross sales will be used to pay the royalty fees.
This means that your initial capital outlay can be quite high. However, it must be noted that although Big Apple Donut is about selling snacks, the price point can be at a premium which means you are getting better margins in profit.
What do our experts say?
Big Apple Donut is a very well recognized brand often seen in shopping malls. With its unique value proposition of delicious donuts and a foreign persona, it goes a long way when it comes to customer perception.
- Brand Reputation – Very good and established among customers.
- Initial Capital – Very high for this size of operations.
- Return on Investment – Premium pricing gives good options for ROI.
- Location – Should be in shopping malls mostly. Big Apple Donut counters are commonly seen at high traffic locations.
- Customer Segment – Shoppers mostly.
The Final Word
The Big Apple Donut brand is established as well as popular. Most shoppers and their target segment can easily identify with this brand for its tasty offerings. Investing in this franchise is sound but the location is crucial.
Perhaps the biggest downside is the initial startup costs. It is on the high side and choosing a high-traffic location is another challenge. Most prime locations in top shopping malls are already occupied and new malls might not have the traffic that you desire.