Nineteen O One expects 15pc turnover growth

 

The growth in the halal market, especially for healthy food low in fat, will sustain the hot dog brand franchisor’s revenue growth in the future, says its CEO

DUBAI: Malaysian hot dog brand franchisor, Nineteen O One Sdn Bhd, is confident of a 15 per cent growth in turnover this year.

This is based on its focus in the Middle East market and business expansion at home.


Despite the global economic crisis, Nineteen O One, is confident of sustaining revenue growth even though it has to be more cautious in overseas expenditure, said Chief executive officer Tengku Rozidar.

"We used to experience a 40 per cent annual growth previously. But with the current economic situation, there may be some adjustments in terms of revenue although things still look positive for the company," she said during the Malaysia Services Exhbition (MSE) which ended in Dubai recently.

She said the growth in the halal market, especially for healthy food low in fat, will sustain the company’s revenue growth in the future.

She also emphasised that to succeed in the franchise business, strong entrepreneurial skills and innovation are vital factors.

"In Malaysia, the franchise business is still in its infancy," she said.

Nineteen O One was one of the exhibitors at the MSE.

For this year, according to Tengku Rozidar, the company planned about 20 more outlets in Malaysia.

"Currently, we have 80 outlets in the country, of which 67 are franchisee owned. The rest are owned by Nineteen O One directly," she said.

As for its overseas operations, Tengku Rozidar said there are four outlets each in Indonesia and Singapore respectively.

"There is one outlet in Beijing. The frachisee has committed to open more outlets within the next three years," she highlighted.

Nineteen O One entered into a memorandum of understanding (MoU) with Alkanaah Trading Corporation, incorporated in Saudi Arabia, as a master franchise for that country during the MSE.

This is Nineteen O One's third master franchise agreement signed after Singapore in 2004 and Beijing last year.

"Alkanaah is planning to open 15 hot dog outlets all over Saudi Arabia, especially in Jeddah, Riyadh and Makkah, within seven years of the master franchise period," Tengku Rozidar said.

Nineteen O One, she added, is also targeting the Australian market.

"To ensure the success of overseas operations, it is important to ensure, strong brand profile is maintained. It is important to find the right partner to carry our the strong branding," she said.

Nineteen O One strongly believes in its corporate social responsibility (CSR).

"While we may be successful, it is also equally important to remain committed to our social cause to society," Tengku Rozidar said.

Nineteen O One has a strong brand culture called "food for friendship".

The company's passion for CSR sees it reaching out to the hungry and homeless on the streets.

"Every Wednesday, rain or shine,the company's staff have been actively working the the streets in Kuala Lumpur to provide free food for the homeless while providing them with counselling and attending to their other needs," Tengku Rozidar said.

"We hope more companies will follow in our footsteps as we cannot leave everything to the government. We need to address the issue of urban poverty, especially with the growing number of jobless people and those who are old and weak," she added. –- Bernama