You would by now see so many local Malaysian cafes operating and mushrooming all over the place. Naturally, you would have thought of running one of these operations yourself if you could.
Locally produced for the global market
If you have always wanted to own your own F&B outlet and is looking for an established brand, then you might want to consider Pappa Rich. This is, after all, one of the most established local names in coffee and toast serving local favorites for both Malaysians and foreigners.
The Pappa Rich Signature
One of the major setbacks about franchising Pappa Rich would be its franchise fees. You would need somewhere above RM1 million to start this business. However, you will be able to capitalize on the brand which has a strong reputation serving local dishes. This includes some of the most popular Nasi Lemak, Hainanese Chicken Rice and Ice Kacang.
What makes Pappa Rich so popular is that it has a local ambiance to it. Being a Malaysian name, it resonates very well with the locals while foreigners will like it as it is modern, contemporary while offering the place to try out every Malaysian favorite they can find.
What do our experts say?
The Pappa Rich business is a sound one to enter but you have to be cautious as it is a crowded market. Names like Old Town White Coffee are very established and are leading this market in most segments.
- Brand Reputation – Strong but still need to compete with more established brands.
- Initial Capital – Very high. A high percentage goes to the franchise fee and you have to honor the royalty fees as well.
- Return on Investment – It would be at least a year to break even.
- Location – Most suitable in corner shop lots. It is possible to be in shopping malls too but the overheads will be too high.
- Customer Segment – Families and local customers.
The Final Word
To run a Pappa Rich outlet, you need to have disposable cash. The initial capital is high and that means you need to be able to sustain for at least 2 years. This is one business that you need to be cautious about but once you break even, it can be very profitable.