Opening a restaurant franchise in Malaysia is a great way to step into the F&B industry with a strong brand name behind you. It can be a profitable venture – but it’s important to go in with the right expectations, especially when it comes to cost.
Which franchise is best in food?
Fast food franchises, in particular, remain one of the most popular and profitable choices thanks to their consistent demand and wide customer base. But how much does a restaurant franchise cost in Malaysia? Let’s break it down.
Common Costs to Expect
Before opening your doors, you’ll need to prepare for these common expenses:
- Franchise fee – A one-time payment to use the brand name.
- Outlet setup – Equipment, furniture, signage, and renovation.
- Initial stock – Your first batch of food, packaging, and supplies.
- Training – For you and your team to learn the brand’s systems.
- Working capital – To keep the business running until you turn a profit.
The exact figure depends on the brand, size of outlet, and location – but on average, if you’re wondering how much does a restaurant franchise cost, it can range from RM30,000 to RM1,000,000, depending on the brand you choose to work with.
What About Ongoing Costs?
The upfront cost is just the beginning. Ongoing expenses include:
- Royalty fees – A percentage of your monthly revenue paid to the franchisor.
- Marketing fees – Contributions to national advertising or local promotions.
- Staff salaries and operations – Your day-to-day running costs.
- Maintenance – For equipment, utilities, and upkeep.
These are key when considering how much does a restaurant franchise cost over time – not just at launch.
Are There Hidden Costs?
Some costs aren’t always obvious at the start. These can include:
- Licensing and permits
- Insurance coverage
- Unexpected repairs
- Seasonal marketing spend
It’s always smart to have a buffer in your budget to avoid surprises.
Can I Finance It?
Yes. Many franchisees use a mix of personal savings and business loans. Some banks in Malaysia offer SME loans specially designed for franchise businesses. If you’re asking how much does a restaurant franchise cost and how to afford it, don’t worry – there are financing options available, and some franchisors offer guidance too.
Cheapest Options Available?
Not every restaurant franchise requires a full-sized dine-in setup. Kiosks, food trucks, or delivery-only kitchens can be lower-cost options. But remember, while cheaper upfront, they may generate less income compared to full-scale restaurants. It’s all about what fits your budget and long-term goals.
Going Beyond the Initial Cost
Aside from knowing how much does a restaurant franchise cost, it’s just as important to consider the other factors that can influence your profitability over time.
Let’s take a closer look!
Operational Efficiency and Management
In the fast food industry, speed and consistency are everything. A well designed system will ensure that your customer gets their meal quickly and correctly.
- Smooth Daily Operations: Fast food requires precise coordination – managing peak-hour sales, minimising wait times, and ensuring a smooth kitchen flow. Smart labour planning, real-time inventory tracking, and proactive prep routines are key to reducing downtime and avoiding waste.
- Brand SOP Adherence: Maintaining the same great taste, look, and quality at every outlet is non-negotiable. Our Standard Operating Procedures (SOPs) guide every step, from food prep to service, ensuring customers enjoy the same Marrybrown experience wherever they go.
- Technology Integration: A reliable POS system, delivery platform integration (like GrabFood or Foodpanda), and CRM tools help improve order accuracy, track sales, and streamline customer interactions. Digital tools also make staff training, scheduling, and inventory management more efficient.
- Franchisee Skills: Leadership makes the difference. Franchisees who are proactive in staff training, budgeting, and handling day-to-day challenges tend to grow their business faster. Financial literacy, people management, and the ability to problem-solve under pressure are essential traits for long-term success.
Revenue Generation & Customer Experience
Customers patronise a restaurant for more reasons than just a quick bite – most times, they’re looking for a great experience, whether it’s through taste or service. To truly maximise your revenue, you’ll also want to consider:
- Localised Marketing Campaigns: Tapping into local culture through marketing campaigns helps build stronger customer trust and engagement. This could include introducing limited-time menu items inspired by local favourites, or running promotions that use familiar local slang and humour. These small but thoughtful touches make your brand feel closer to home.
- Loyalty Programmes: Offering rewards or discounts for repeat visits helps drive frequency. A simple stamp card or digital app-based system can encourage customers to return more often.
- Upselling & Cross-selling: Training your team to suggest add-ons like drinks, desserts, or larger meal upgrades can significantly increase the average order value without additional marketing spend.
- Menu Localisation: One of Marrybrown’s strengths lies in local flavours. Offering items like Nasi Lemak or Sambal burgers appeals to Malaysian taste buds and builds emotional connection with your customer base.
- Customer Service & Feedback Handling: Fast service is important – but so is friendliness and problem resolution. Whether it’s a dine-in complaint or a late delivery, responding quickly and sincerely helps build long-term trust.
- Ambiance & Cleanliness: Even fast food diners care about where they eat. A well-maintained, welcoming environment – from bright, inviting colours to clean toilets – can influence customer satisfaction and the likelihood of their return.
- Strategic Pricing: Set your menu prices competitively while still maintaining profitability. Consider bundling items, offering value sets, and watching your competitors’ pricing to stay relevant and appealing.
- Outlet Location: High visibility, easy parking, and foot traffic matter. Malls, colleges, petrol stations, and commercial hubs are often ideal for fast food franchises. Choosing the right location can make or break your outlet’s performance.
These operational and customer-facing strategies are just as critical as the initial setup cost. So while it’s natural to ask how much does a restaurant franchise cost, the bigger question is – how can you maximise your returns once you open?
Marrybrown’s Proven Support System
At Marrybrown, we believe in setting our franchisees up for success from day one.
Here’s what you’ll typically need to factor in:
- Franchise fees
- Outlet setup costs
- Royalty and marketing contributions
- Staff and inventory planning
Our tried-and-tested formula has helped our franchisees launch their businesses smoothly and grow sustainably. This is where knowing how much does a restaurant franchise cost meets understanding what it takes to run it profitably.
Your F&B Venture Awaits!
Understanding how much does a restaurant franchise cost is only half the picture—planning how to make it profitable is where success lies.
Running a restaurant franchise isn’t just about capital – it’s about commitment. But with the right brand, support system, and business plan, it can be a fulfilling and profitable venture.
If you’ve been wondering how much does a restaurant franchise cost, Marrybrown is here to give you the answers and the support you need to make your business dream a reality.
Think you’re ready to take up the challenge? We’ll be right there with you! Reach out to our team today and learn more about our franchising opportunities here.