This article first appeared in The Edge Financial Daily, on July 21, 2016.

KUALA LUMPUR: DBE Gurney Resources Bhd is targeting to open up to 1,000 HARUMi fried chicken kiosks in the next 12 months by offering franchise opportunities to entrepreneurs who are keen to start a business in the food and beverage (F&B) industry, according to DBE Gurney group managing director Datuk Alex Ding Seng Huat.

He was speaking to reporters after the group’s wholly-owned unit DBE Poultry Sdn Bhd inked a joint-venture (JV) agreement yesterday, with Distinct Legacy Sdn Bhd (DLSB) and private investor Tengku Faizwa Tengku Razif, to jointly establish an entreprenuer development programme that involves the establishment of HARUMi retail outlets via licence arrangements.

“To date, we have established more than 100 kiosks across Malaysia, and we are on track [to] achieving our target of 500 kiosks by [the] end of this year through this JV business,” said Ding.

Its HARUMi brand, touted as Malaysia’s first halal-certified local fried chicken brand, was launched just in April, via a collaboration with some Taiwanese F&B experts.

DLSB chairman Datuk Dr Ahmad Ramzi Mohamad Zubir said: “With just a minimum of RM3,500, with no royalty fee, entrepreneurs will be provided all the necessary tools and equipment, such as fryers, kiosks, frying tools and packaging materials, then attend a half-day training by the company and business can begin immediately.”

According to Ahmad Ramzi, sales per kiosk are projected to reach an average of RM300 per day, with a profit margin of around 40%.

Both Ding and Ahmad Ramzi are convinced that the joint effort is strategic and offers valuable synergies.

Under the JV, DLSB will market the programme to interested entrepreneurs and assist them to obtain financing for their participation, while DBE Poultry provides ready-to-operate kiosk sets and supplies marinated chicken products to licensees under the programme.

Ahmad Ramzi also said DLSB had been talking to six government agencies to take up to 1,000 HARUMi kiosks, such as Mara, Koperasi and Angkasa.

“Upon the completion of this corporate exercise, we will set up a new special purpose vehicle (SPV), with a paid-up capital of RM100,000, to facilitate the HARUMi Entrepreneur Programme. DBE Gurney and DLSB will each hold 40% in the SPV,” said Ding. The remaining 20% will belong to Tengku Faizwa.