Papa John's fare will be available by year-end

Berjaya Pizza estimates that RM800,000 to RM1 million will be spent on the first Papa John's restaurant at Berjaya Times Square, Kuala Lumpur

BERJAYA Pizza Co Sdn Bhd will open its first Papa John's Pizza franchise in Malaysia by year-end, with a target of 100 outlets within 10 years.

Yesterday, US-based Papa John's International Inc signed a franchise-development agreement with Berjaya Corp's unit as the master franchisor for six Southeast Asian countries.

The master franchise is for an initial 10 years with an option to extend for a further 10 years, Papa John's vice-president (international) Myles A. Felt said.

"Not only are we going to develop and operate Papa John's restaurants in Malaysia, but Berjaya Pizza has also been given the first right of refusal by Papa John's International to expand Papa John's business to Vietnam, Singapore, Thailand, Indonesia and the Philippines," its executive director Datuk Francis Lee told reporters at the signing ceremony in Kuala Lumpur yesterday.

Lee estimates that RM800,000 to RM1 million will be spent on the first outlet at Berjaya Times Square, Kuala Lumpur.

On the menu prices at Papa John's are being compared with other established eateries, Lee said: "We are still working on pricing. We will offer competitive menu prices."

"Should costs go up, our competitors will have to increase prices too, so again we will be on a level playing field," he added.

Felt said the difference between Papa John's pizza and other pizzas in the market is that the former provides traditional pizza with superior quality ingredients.

It uses fresh-sliced vegetables, hand tossed-dough and vine-ripened tomato sauce for its pizza.

Apart from pizza, Papa John's menu includes pastas, soups, salads and appetizers.

Meanwhile, Lee said that it is currently in negotiations with three parties in the food and beverage industry in the US to obtain franchise for openings here.

At least one partnership signing is expected to materialise by the end of next year.

Berjaya's food and beverage franchise include Starbucks, Kenny Rogers, Wendy's and Crispy Cream.

On the impact of the fuel price increase on these businesses, Lee said that sales at Kenny Rogers have grown, while Starbucks has experienced a slight decline.

"We think that consumers will resume their normal (spending) habits within the next three to six months," he said, suggesting that business at Starbucks will soon pick up.