Franchise success come down to a matter of taste

Franchise success come down to a matter of taste

While consistency and familiarity is seen as very important
for Bakerzin, for Cavana Chicken diversity in taste and adapting
to the local tastebuds is considered an important requirement for
success.

"Every country we set our foot in is different. That clearly
explains why we are constantly doing our R&D to customize and
localize each taste," said Pancy Ho, business development
manager of Cavana.

Indonesian are particular in their array of taste. They do
have a preference towards a sweeter, spicier and salty taste.
Bearing in mind, it has to be easy operationally and fuss-free.
That is the vital key ingredient."

Only recently Cavana Chicken established another outlet in
Kelapa Gading Mall in East Jakarta. While dining there with a
friend, I noticed the portions were somewhat smaller but tastier
compared to the ones served in Singapore. There was also lots of
dining space which is seen as another advantage of localization
of franchises in Indonesia. But the ambience and the atmosphere
reminds one of dining out in Singapore.

Fish & Co was founded by Ricky Chew and Lambert Yeo in
Singapore in 1998. In less than six years there are 8 outlets in
Singapore, five in Malaysia, three in Indonesia and one each in
the Middle East and Australia. They wanted to start an affordable
seafood eatery that would appeal to diners internationally.
According to Joleen Siew, deputy marketing director of Fish & Co,
there was a lot of market research involved in the roll out of
the franchises overseas.

"Customers in Indonesia however were hooked on first bite
since they liked the fresh taste of fish and other seafood. So it
blended in very well with the Indonesian palette and Henky Rusli,
who runs a few successful businesses in Indonesia, snapped up the
opportunity to represent Fish & Co as the master franchiser in
Indonesia," she said.

It was a difficult choice picking the right business partner
and Fish & Co used a franchise appraisal system to select the
most suitable business partner that lived up to their
expectations. But it was worth the due diligence process, Siew
said, as they managed to get a business partner that understood
the corporate culture of Fish & Co.

"The Fish and Chips" and the seafood platter became a instant
hit in Indonesia while prices were pegged lower at 20 percent
compared to prices in Singapore. Although the Indonesian
operation contributes less than 5 percent of the total revenue of
corporate Fish & Co in Singapore, Joleen was hopeful that over
time Indonesia would contribute a larger chunk of its total
revenue.

While the franchising fever remains in vogue, Roger Tambingon,
the general manager of Oxygen Communications, an advertising
company based in Jakarta, was hopeful that more franchises from
Singapore would make their way into Indonesia.

"I am personally interested in looking at successful
franchises from abroad coming into Indonesia. The Singapore
market is too small compared to Indonesia where we have more than
230 million Indonesians. Even targeting 10 percent of the
population is more than sufficient to bring long term rewards to
the franchiser. As long as there is a consistent brand image and
conscientious dedication by the franchisee in Indonesia, expect
the franchising boom to continue," he said. -- Tony Sitathan