Malaysian cafe chain crosses borders

Malaysian lifestyle cafe chain Secret Recipe is gearing up to expand into India and Cambodia, according to a report in The Sun Daily newspaper.

The chain, which serves gourmet cakes and fusion food in a service environment, will open six outlets in Cambodia and 10 in India by the end of 2013.

“To cater to taste and needs of Cambodian consumers, our products will see 10 per cent to 15 per cent localisation. For Indian consumers, there will be no beef products and more vegetarian choices will be offered,” said CEO Datuk Steven Sim.

Secret Recipe will be partnering with franchisees Faba Global Group Cambodia and Secret Recipe South India for operating the planned overseas outlets, which will costs about RM60 million in total.

The two franchisees were given the rights to develop sub-franchising and brand development in their countries.

“As franchise penetration to overseas markets is expected to grow between 10 per cent and 25 per cent next year especially among Asian countries, developing countries in high gear like India and Cambodia are both on the radar screens of global companies and businesses looking for expansion,” said deputy minister of International Trade and Industry Datuk Mukhriz Mahathir.

Sim said 100 outlets will also be added to Malaysia’s current 212-strong Secret Recipe chain. Overseas, Secret Recipe has also presence in Philippines, Singapore, Brunei, Thailand, Indonesia, Australia and China. It was founded in 1997. 

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.