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Ramly Franchise Costs, Profit & Requirements For 2024

by Nick

Ramly’s most iconic product is the Ramly Burger, a street food staple in Malaysia. These burgers are commonly found at roadside stalls, night markets, and food courts across the country. The brand’s burgers are popular for their distinctive taste, which comes from a special seasoning mix. The burgers are made using Ramly’s own beef and chicken patties, ensuring consistency in flavor and quality.

Aside from burgers, Ramly also produces a wide range of other meat products, including sausages, nuggets, and meatballs.

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These products are widely used in Malaysian households and are also supplied to restaurants, hotels, and catering services.

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Ramly has established itself as a brand that Malaysians trust, not just for its delicious taste, but also for its commitment to food safety and hygiene.

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Ramly Brand Introduction

Ramly is a well-known brand in Malaysia, famous for its range of processed meat products, especially burgers. The brand was established by Haji Ramly Mokni in 1984 and has since grown into a household name in Malaysia and several other countries. Ramly products are synonymous with quality and affordability, making them a favorite among locals and visitors alike.

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The success of Ramly has led to the expansion of its business model, including the opportunity for entrepreneurs to own and operate their own Ramly franchises. This expansion has allowed the brand to grow even further, reaching more customers and establishing a strong presence in the fast-food industry.

see also: Chaynaya Lozhka Franchise

Ramly Franchise Cost

Starting a Ramly franchise involves various costs that potential franchisees need to consider. These costs can vary depending on the type of franchise, location, and other factors. Here’s a breakdown of the typical costs associated with a Ramly franchise:

Franchise Fee: The franchise fee is a one-time payment made to Ramly for the rights to use its brand name and business model. This fee usually covers initial training, support, and the use of the Ramly brand. The franchise fee for a Ramly outlet typically ranges from MYR 10,000 to MYR 20,000, depending on the location and type of outlet.

Setup Costs: Setting up a Ramly franchise involves several expenses, including leasing or purchasing a location, interior design, and purchasing necessary equipment. These costs can vary widely based on the size and location of the outlet. On average, the setup costs can range from MYR 50,000 to MYR 150,000. This includes the cost of building or renovating the outlet, installing kitchen equipment, and furnishing the dining area.

Equipment Purchase: A Ramly outlet requires specific equipment, such as grills, fryers, refrigerators, and POS systems.

The cost of equipment is usually included in the setup costs but can also be considered separately. For a typical Ramly outlet, the equipment costs can range from MYR 20,000 to MYR 50,000.

Initial Inventory: Stocking up on Ramly products, such as burger patties, sausages, buns, and sauces, is essential for starting operations. The initial inventory cost typically ranges from MYR 5,000 to MYR 10,000, depending on the size of the outlet and the expected customer volume.

Working Capital: Working capital is needed to cover operational expenses during the initial months of operation. This includes staff salaries, utilities, and marketing expenses. It is advisable to have working capital of around MYR 20,000 to MYR 50,000.

Ongoing Fees: Franchisees are usually required to pay ongoing fees, such as royalty fees and advertising fees. These fees are typically a percentage of the outlet’s gross sales and are used to support the brand and provide continuous support to franchisees. The royalty fee for a Ramly franchise is generally around 5% of gross sales, while the advertising fee is around 2% of gross sales.

In total, the initial investment for a Ramly franchise can range from MYR 105,000 to MYR 280,000, depending on the location, outlet size, and other factors.

Ramly Franchise Conditions

Ramly has set specific conditions for individuals interested in becoming franchisees. These conditions are designed to ensure that the franchisee can successfully operate the business and maintain the standards of the Ramly brand. Here are the key conditions for owning a Ramly franchise:

Financial Capability: Prospective franchisees must demonstrate financial stability and the ability to invest in the franchise. This includes having sufficient funds to cover the initial investment and the working capital needed to sustain the business until it becomes profitable.

Commitment to the Brand: Ramly franchisees are expected to uphold the values and standards of the Ramly brand. This includes maintaining product quality, adhering to operational guidelines, and providing excellent customer service.

Franchisees must also be committed to following the brand’s business model and maintaining consistency across all outlets.

Experience in the Food and Beverage Industry: While prior experience in the food and beverage industry is not mandatory, it is highly recommended. Experience in managing a food business can be beneficial in running a Ramly franchise, especially in handling daily operations, managing staff, and ensuring customer satisfaction.

Location Approval: The location of the franchise is critical to its success. Ramly has specific guidelines for selecting a suitable location, which includes factors such as foot traffic, visibility, and accessibility. The chosen location must be approved by Ramly before the franchise can be established.

Training and Compliance: Franchisees are required to undergo training provided by Ramly. This training covers all aspects of running a Ramly franchise, including food preparation, customer service, and business management. Compliance with Ramly’s operational standards is mandatory for all franchisees.

Marketing and Promotion: Franchisees must participate in Ramly’s marketing and promotional activities. This includes contributing to national advertising campaigns and implementing local marketing strategies as guided by the franchisor.

Franchisees are also expected to uphold the brand’s image and reputation in all marketing efforts.

By meeting these conditions, franchisees can ensure that they are well-prepared to operate a successful Ramly outlet and contribute to the brand’s growth.

Ramly Franchise Process

The process of becoming a Ramly franchisee involves several important steps. These steps are designed to ensure that both the franchisee and the franchisor are a good fit for each other and that the new outlet is set up for success. Here’s an overview of the Ramly franchise process:

Initial Inquiry: The process begins with an initial inquiry, where interested individuals express their interest in the Ramly franchise. This can be done through Ramly’s website or by contacting the franchise department directly. During this stage, potential franchisees can ask questions and learn more about the franchise opportunity.

Application Submission: After the initial inquiry, interested parties are required to submit a formal application. This application typically includes personal information, financial details, and a brief business plan outlining the applicant’s intentions and vision for the franchise.

Review and Interview: Once the application is submitted, the Ramly team reviews it to ensure the applicant meets the necessary criteria. If the application is approved, the potential franchisee is invited for an interview. This interview is an opportunity for both parties to discuss expectations, ask questions, and ensure mutual compatibility.

Franchise Disclosure Document (FDD): Upon successful completion of the interview, Ramly provides the potential franchisee with a Franchise Disclosure Document (FDD). This document contains detailed information about the franchise, including fees, obligations, and the franchisor’s responsibilities. It is essential to thoroughly review the FDD before proceeding.

Signing the Franchise Agreement: If the potential franchisee decides to move forward, the next step is signing the franchise agreement. This legally binding document outlines the terms and conditions of the franchise relationship, including the rights and responsibilities of both parties.

Location Selection and Approval: After the agreement is signed, the franchisee begins the process of selecting a suitable location for the outlet. The chosen location must be approved by Ramly to ensure it meets the brand’s standards and has the potential for success.

Training: Before the outlet opens, the franchisee and their staff must undergo training provided by Ramly. This training covers everything from food preparation to customer service and business management. The training is designed to equip franchisees with the knowledge and skills needed to operate the franchise successfully.

Outlet Setup: With the location secured and training completed, the next step is setting up the outlet. This involves designing the interior, purchasing equipment, and stocking inventory. The franchisor usually provides guidance during this stage to ensure consistency across all outlets.

Grand Opening: Once everything is in place, the outlet is ready for its grand opening. Ramly typically supports franchisees during the opening with marketing and promotional activities to attract customers.

Ongoing Support: After the grand opening, the franchisee continues to receive support from Ramly. This includes regular updates, operational assistance, and marketing support to ensure the ongoing success of the franchise.

Ramly Franchise Profit

Understanding the profit potential of a Ramly franchise is crucial for prospective franchisees. While profitability can vary based on location, management, and other factors, Ramly franchises have shown promising profit margins, making them an attractive investment opportunity.

Revenue Streams: A Ramly franchise generates revenue primarily through the sale of Ramly burgers and other meat products. Many Ramly outlets also offer additional menu items, such as fries, drinks, and snacks, which can significantly boost overall revenue. The availability of different revenue streams allows franchisees to cater to a wide range of customer preferences, enhancing profitability.

Cost Control: Effective cost management is key to maximizing profit. Ramly franchisees benefit from the brand’s established supply chain, which ensures consistent product quality at competitive prices. By controlling costs related to inventory, staffing, and operations, franchisees can improve their profit margins.

Customer Loyalty: Ramly has a strong brand presence and a loyal customer base. Many Malaysians recognize and trust the Ramly brand, which drives repeat business and word-of-mouth referrals. This customer loyalty translates into steady sales, contributing to the franchise’s profitability.

Profit Margins: The profit margins for a Ramly franchise can be quite favorable, particularly in high-traffic locations. On average, franchisees can expect profit margins of 15% to 25% of gross sales, depending on factors such as location, operational efficiency, and marketing effectiveness.

Return on Investment (ROI): The return on investment (ROI) for a Ramly franchise is another important consideration.

While the initial investment can be substantial, many franchisees find that they can achieve a positive ROI within two to three years of operation, depending on the success of their outlet.

Conclution

In conclusion, owning a Ramly franchise offers a lucrative opportunity for those interested in the fast-food industry. With a well-established brand, comprehensive support, and the potential for strong profits, investing in a Ramly franchise can be a rewarding venture for the right entrepreneur. By carefully considering the costs, conditions, and process involved, prospective franchisees can make an informed decision and set themselves up for success in the competitive world of fast food.

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