Malaysia is a country that takes immense pride in its love for food, so it’s no surprise that the food and beverage (F&B) franchise industry is thriving. The quick-service restaurant (QSR) sector, in particular, has been one of the top six fastest-growing franchise categories in the nation.
If you’ve ever considered starting a business or investing in a food franchise in Malaysia, this article is for you. Let’s explore the local franchising landscape and what it takes to successfully run a food franchise in the country.
Why Choose a Food Franchise Model in Malaysia?
Opting for a food franchise model in Malaysia provides numerous advantages, including:
- Established Brand Presence – You gain an immediate foothold in the market by leveraging an already recognised brand with an existing customer base.
- Proven Business Model – Franchisors provide operational support, reducing the risks compared to starting a new business from scratch.
- Comprehensive Support and Training – Many food franchises offer training programmes, marketing resources, and supply chain management assistance to help ensure seamless operations.
- Reduced Business Risk – Franchises come with tested strategies and processes, minimising the uncertainty involved in entrepreneurship.
Types of Food Franchise Models in Malaysia
Malaysia’s diverse culinary heritage means there is a wide range of food franchise options to explore. Some of the common categories include:
- Fast Food Franchises – Burgers, fried chicken, pizzas, and more.
- Casual Dining Franchises – Full-service restaurants offering local and international cuisine.
- Café and Beverage Franchises – Specialty coffee chains, bubble tea chains, and smoothie bars.
- Bakery and Dessert Franchises – Pastries, cakes, ice cream, and specialty desserts.
- Specialty Food Franchises – Niche cuisines or dietary-focused concepts such as vegetarian or organic restaurants.
Top Food Franchises in Malaysia
The Malaysian food scene is dynamic, with trends constantly evolving. However, some franchises have remained strong over the years, including:
- Casual dining restaurants specialising in Hainanese chicken rice and other Malaysian favorites.
- Modern kopitiam-style franchises that offer traditional local coffee and breakfast sets or local cuisines with a contemporary twist.
- Specialty food franchises that focus on niche markets with a taste for international cuisines such as Japanese or Indonesian.
- Quick Service Restaurants (QSRs) like Marrybrown, a proudly Malaysian brand known for its fried chicken and local-inspired fast food menu.
One of the biggest concerns for potential food franchise owners in Malaysia is the initial investment cost. While food franchises do require a significant upfront investment, it’s important to see this as an opportunity rather than a setback.
For instance, Marrybrown’s franchise cost starts from RM800,000 – RM1,000,000, which covers equipment, training, premise setup, access to global resources, and everything else needed to launch your business. This investment paves the way for long-term profitability with the right strategies.
What to Consider When Opening a Food Franchise in Malaysia
1. Location
- Ensure your business is accessible to your target market.
- Consider foot traffic and competitor presence.
- Look at market demand trends in different areas.
- Some franchises, like Marrybrown, focus on suburban areas with high population density, as they target the mass market with an affordable product price range.
2. Cost
- Franchising fee.
- Equipment and inventory costs.
- Royalty and marketing fees.
- Legal and administrative expenses.
For example, opening a Marrybrown franchise requires an initial investment of RM800,000 to RM1,000,000. This starting amount gives you access to a range of resources that help you save time and streamline operations, from training and equipment to branding and marketing support.
3. Franchise Agreement
Understanding the key terms in your food franchise agreement is crucial here in Malaysia. Some important aspects to review include:
- Franchise Fees and Royalties – Recurring payments to the franchisor.
- Territorial Rights and Restrictions – Limitations on where you can operate.
- Duration and Renewal Terms – The length of the contract and conditions for renewal.
- Support and Training – Assistance provided to help franchisees succeed.
- Intellectual Property and Branding – Guidelines on how to use the franchise’s brand assets.
How to Choose the Right Food Franchise in Malaysia
1. Research the Franchise’s Reputation
Choose a reputable franchise with a solid track record. For example, Marrybrown, a proudly Malaysian brand established in 1981, has since expanded beyond our borders, earning consumer trust both locally and internationally.
2. Assess Training and Support
Ensure the franchisor provides comprehensive training and support. Marrybrown, for instance, offers franchisees on-going management and operational support, technical assistance, crew training, financial management and marketing, among other resources.
3. Analyse Market Demand
Study consumer preferences and trends. Marrybrown’s halal certification and extensive menu have made us a preferred choice for diverse customer demographics in Malaysia and beyond.
4. Consider Growth Opportunities
Look at a franchise’s expansion potential. To date, Marrybrown serves millions of customers in more than 500 restaurants across 16 countries.
5. Speak to Existing Franchisees
The best way to gain insights on opening a food franchise in Malaysia is to hear from those already in the business, as they can enrich you with firsthand experience, practical advice, and valuable industry knowledge.
If you’re interested in learning more about owning a Marrybrown franchise, feel free to reach out to us, and we’ll connect you with existing franchisees who can share their experiences.