S'pore franchisers look for greener pastures in RI<\/p>\n
Tony Sitathan, Contributor, Singapore<\/p>\n
Who would have guessed that Singapore, known for its image as an
\ninternational export, trading and travel hub is fast emerging as
\na regional franchise hub exporting its own delectable concoction
\nof food and beverage franchises in Asia.<\/p>\n
And there is no greater proof of success than looking at the
\nnumber of Singapore franchisers that have quietly taken root in
\nIndonesia.<\/p>\n
In less than two years more than a dozen F&B franchisers have
\ndecided to tie the knot with entrepreneurial Indonesians by
\nawarding them master franchisee contracts so that they can roll
\nout several outlets in their designated territory within an
\nacceptable timeframe.<\/p>\n
According to Terry Wong, the General Manager of the
\nFranchising and Licensing Association (FLA) Singapore, formerly
\nknown as Singapore International Franchise Association (SIFA)
\nmore than 40 percent of the existing franchisers of 160-odd
\nmembers in FLA are in the F&B industry.<\/p>\n
And in order to promote Singapore as the franchise hub in
\nAsia, the FLA takes its role religiously and organizes events and
\ntrade shows like the Global Franchising Licensing seminars.
\n\"Franchising is much more than appointing the right franchisee.
\nIt is the active promotion and protection of intellectual
\nproperty rights and working collaboratively where both the
\nfranchiser and the franchisee share equal responsibilities and
\nrisks as well as rewards. Hence branding, licensing and even
\njoint ventures are considered part of the franchising
\nexperience,\" she revealed.<\/p>\n
Like it or not the franchise arrangement is indeed a marriage
\nof convenience for both parties. The franchiser does not have to
\nworry about capital outlays to spread their brand name abroad.
\nThere is also reduced risks for the franchiser that is often
\nunsure of the local market conditions or the inability to
\nunderstand the local culture in a foreign country.<\/p>\n
The local partner or franchisee on the other hand benefits by
\nhaving a ready proven business or formula that actually makes
\nmoney as well as benefiting from the technical know-how and
\nexpertise in setting up and running a business especially so if
\nthe entrepreneur is a rookie in managing their own business.<\/p>\n
According to Jean Lee, the managing director from Cavana
\nChicken under the Carona Holdings Pte Ltd, the importance of
\nhaving the right business partner cannot be underestimated when
\nbuilding or breaking a brand overseas.<\/p>\n
\"We have built a very strong foothold relationship between our
\nmaster franchisee in Indonesia and it has developed beyond just a
\nMaster Franchiser and Master Franchisee relationship. We fully
\nassist them in all areas of setting up their new restaurants.
\nFrom site selection, design and renovation, menu planning and
\ncustomization, advertising & promotion and all related training,\"
\nshe said.<\/p>\n
It is this attention to detail and often visiting Indonesia
\nhas reinforced their strong business ties with their partners.<\/p>\n
In less than a year their Indonesian franchisee has set up
\nthree restaurants in Indonesia and another one is on the drawing
\nboard. It took Jean a long time before selecting the right
\nfranchise partner in Indonesia.<\/p>\n
\"It was not an easy task but in the end we decided to choose
\nsomeone who had little experience in the food and beverage
\nindustry or even in the retail business. What the partners lacked
\nin skill was made up by their credibility and loyalty to the
\nCavana brand name,\" she revealed.<\/p>\n
The one common thread that runs through any successful
\nfranchisee is the passion for excellence and an uncompromising
\nattitude. Most of the Indonesian entrepreneurs who believed in an
\nidea feel passionate about it.<\/p>\n
When Breadtalk, a lifestyle boutique bakery that has taken
\nSingapore by storm since it first opened in 2000, felt that there
\nwas no room for expansion after opening 24 outlets in Singapore.
\nFor its first expansion plan overseas it looked no further than
\nIndonesia. It was snowed under with more than 500 enquiries
\ninterested in being the franchise holder.<\/p>\n
According to Frankie Quek, the Group General Manager of
\nBreadTalk Group Limited, now a publicly listed company in
\nSingapore, it was a strenuous tasks selecting and prequalifying
\nthe applicants.<\/p>\n
\"We were, however, looking for like-minded individuals who
\nshared our business philosophy, and dedicated to ensuring that
\nBreadTalk would live up to its brand spirit. We finally decided
\non the Johnny Andrean Group, which is well-known locally in the
\nfashion circles.<\/p>\n
\"It didn't matter to us that Johnny did not have any
\nexperience in the F&B industry. What impressed us was his
\nrelentless pursuit to take BreadTalk to a higher plane and his
\npersonal conviction to even do better than BreadTalk Singapore,\"
\nhe said.<\/p>\n
True to his word, BreadTalk Indonesia since it opened last
\nyear has done roaring business; its best outlet does better sales
\nthan BreadTalk Singapore by a ratio of two to three times.<\/p>\n
Frankie credits Johnny's energy and conviction that has
\npropelled BreadTalk Indonesia to its current level of success.<\/p>\n
Johnny Andrean has plans to take BreadTalk on a regional
\nblitzkrieg besides Jakarta starting with Bandung, Medan, Surabaya
\nand Bali.<\/p>\n
\"My guiding business philosophy is based on team building, a
\nconducive learning culture, innovative value, customer focus and
\ntrust and integrity. And to excel in this business, one needs a
\nlot of creativity because BreadTalk is more than bread but a
\nlifestyle brand,\" he said.<\/p>\n
Johnny Andrean's unbridled creative energy is seen to be
\ndriving force behind the seven outlets in Indonesia with plans to
\nextend beyond the Java island.<\/p>\n
What is rather amazing still is the ability of the humble
\n\"kaya\" which is made from coconut milk, eggs and pandan flavoring
\nspread on toasted bread to be a well accepted staple fare in
\nIndonesia. Ya Kun Kaya Toast started from simple beginnings in
\n1944. It started off as a coffeestall that was named after the
\nlate patriarch Loi Ah Koon.<\/p>\n
Adrin Loi, the son and current executive chairman of Yakun
\nInternational Pte Ltd, has decided to add a brand new chapter to
\nthe art of eating kaya toast. He currently runs 15 outlets in
\nSingapore, out of which eight are actually franchised out while
\nseven of them are corporate owned. Not content with Singapore, in
\nless than one year, together with his Indonesian counterpart, he
\nmanaged to open six franchise chains in Indonesia.<\/p>\n
Although the portion of the Indonesian sales currently only
\naccount for 5 percent of its annual revenue, he expects this
\nfigure to increase over time. He is also looking to expand
\nregionally into Malaysia, Taiwan, South Korea, Japan and Hong
\nKong. He also revealed that before he made a foray into Indonesia
\nhe was assisted by IE (International Enterprise) Singapore.<\/p>\n
He was given grants claiming up to 70 percent of the total fee
\nincurred for the feasibility country-wide study. He was also
\nreassured by the fact that several Singaporean franchises have
\nstarted to mushroom in Indonesia. Tung Lok, Coffee Club,
\nPastaMania, Crystal Jade were some of the first few successful
\nmarket entrants.<\/p>\n
Like all newcomers he also faced his fair share of challenges.<\/p>\n
\"I had to educate the locals of our core product -- the kaya.
\nThe other challenge was finding the same or similar ingredients
\nwe currently use in Singapore to ensure product quality and
\nconsistency,\" he added.<\/p>\n
His ultimate vision is to establish Ya Kun as a household
\nname.<\/p>\n
For Daniel Tay, the chef and managing director of Daniel Tay
\nBakerzin, a well known confectionery and dessert cafe similar to
\nexclusive hallmark bistros in Europe, believes very strongly in
\nthe dessert culture that is slowly creeping up on Asians. He is
\nso impressed with the entrepreneurial culture in Indonesia he
\nsays without blinking that Indonesians are a lot more
\nenterprising than Singaporeans and where true entrepreneurs are
\nmade rather than born.<\/p>\n
\"The Indonesians have a basic concept where you do business to
\nbe rich, not to work for someone else. And that is something that
\nthey learn when they are young.\"<\/p>\n
When he ran his business in Singapore, and needed money to
\nexpand his Singapore operations, his existing master franchisee
\nfrom Indonesia, Kusnadi Radhaja, was so impressed and convinced
\nof the dessert culture that was fast emerging in Asia, he decided
\nto buy a stake in the holding company, Pacific United Holding.<\/p>\n
Bakerzin is found in Thailand, Malaysia, Indonesia and
\nSingapore with plans to enter the U.S. market. And all his
\nfranchisees' overseas, even in Thailand and Malaysia, are owned
\nby Indonesians.<\/p>\n
As a chef, his eye for uncompromising quality is well known
\namong those that know him personally. When the Indonesian kitchen
\nonce ran out of imported chocolates that is used as a main
\ningredient for the collection of cakes and could not stock up on
\ntime, the chef from Indonesia had to fly down to Singapore to
\nstock up on exclusive Valrhona Chocolates from France and fly
\nback the same day.<\/p>\n
This eye for quality and consistency is seen as a necessary
\ntrademark to his cakes that is well known for its rich taste and
\nis seen as the heart of his craft. In Indonesia, the hottest
\nselling item is in fact the Sop Buntut (Oxtail Soup) besides his
\nsignature cakes.<\/p>",
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