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Business Strategies for OIC* Markets
  
 
Oct 2009: Shawwal/Dhul-Qi'dah 1430: Issue 30
 

 

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'1901 Hotdog' CEO Tengku Rozidar on Franchising


By Maria Zain
Posted, July 16, 2008

 

Tengku Rozidar Tengku Zainal Abidin, affectionately known as the "Hotdog Lady," opened the first pushcart outlet offering Malaysian hotdogs (with an America image) to consumers who had never been to the States. Years later, 1901 Hotdogs was awarded "Most Promising Franchisor of the Year for 2000/2001" by the Malaysian Franchise Association and "Consumer Superbrands" status by the Malaysian Superbrands Council for 2003/2004.

1901 Hotdogs now has 74 outlets including 3 operating internationally.

The Importance of Franchise Branding

A well executed branding strategy is essential for speciality goods, especially for something as foreign as hotdogs to flourish, and even more so if the firm ventures out into a franchising line. The brand has to have a strong presence to allow franchisees (and in turn, the franchisor) to generate sales.

The franchisor-franchisee relationship is inter-dependant; one cannot do well without the other. Both parties are already straddled with high start-up costs, so an effective product or service must have a strong growth potential, and this is achieved through effective branding.

Tengku Rozidar had therefore injected alot of effort in designing 1901, not only as a hotdog, but as a franchise chain from the beginning.



Name: Tengku Rozidar Tengku Zainal Abidin
Title: Chief Executive Officer
Company: Nineteen O One Sdn Bhd (1901 Hotdogs)
Company Size: [Expected] MYR12 million (USD 4 mil) @ 2007
Growth Forecast: 20% this year and onwards
Website: www.1901.com
Industry: Food and Beverages
Number of outlets: Locally, 74 (majority operated by franchisees), 3 international outlets
Country: Malaysia
Education Background:

MA International Relations (UK); BA in English Literature (Canada); Bachelor in Education (Canada)

Company's Goals:

To achive multi-faceted success while considering

1. The effect of our products on the health and well being of our customers (and our staff),

2. The impact that our business practices and choices will have on the environment, and

3. The high quality of attitude, fairness, understanding, and generosity between management, franchisees as well as staff, customers, and vendors.

“It is an ongoing process for entrepreneurs as we are always seeking ways to improve in the industry. I have the joy of watching others grow successfully through my franchise programme,” she relays in an interview with a prime management institute.

The Costs of Setting up a Franchising Line

The Malaysian Franchise Association (MFA) advises potential franchisors to be prudent when venturing into the industry. Through a word of caution, MFA reiterates that “success in franchising takes time. The high up-front costs of franchising can mean a longer duration before profitability.”

Image: www.1901.com

A successful franchising system therefore requires flexibile franchising packages to attract franchisee candidates to the programme. 1901 has designed two packages with different start-up costs and comprehensive facilities that will continuously support their franchisees.

Similarly, Tengku Rozidar has collaborated with government-link authorities to promote franchisee management as an intergral form of entrepreneurship. These bodies are able to provide financial assistance and entrepreneur guidance to prospective franchisee applicants of 1901.

Franchising is a Continous Process

“The effects of a franchising system may wear off. Changes in consumer preference and technological advancements may necessitate adaptations in the system.” A successful franchising system is a flexible one. Tengku Rozidar has proven that 1901 is flexible to changes.

This year, after 11 years of operations, she revelead a whole new branding experience for her valued consumers – including 11 new outlets to be opened internationally.

The additional concerns in franchising are taking care of franchisees when changes occur. MFA reminds franchisors to “dedicate a team [for franchisees alone] and to be prepared to spend time on the road inspecting and helping franchisees.”


Image: www.1901.com

International expansion of markets is also part of the process. But branching out a franchising system into other countries may not always be feasible, without some adaptations to the model. “A thorough study will show successful prospects of transplanting products or services [to international franchisees]. What works in one country may not work in another country.” Tengku Rozidar’s presence through 1901 has already taken root in Indonesia and Singapore.

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1901 Hotdogs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Muslim Consumer Conference

Global Islamic Summit