BERA: The Government will not franchise the KR1M brand for the Kedai Rakyat 1Malaysia chain as it would increase operational costs of retailers.
“Franchising the concept would mean KR1M retailers would have to pay royalty or certain fees to the franchisor.
“This would increase their operational costs,” Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri told reporters here yesterday.
The KR1M retail chain is expected to increase from the current 25 outlets to 85 by the end of the year.
At the same time, some 190 retail shops are also selling KR1M products. “This would increase to about 500 by the end of the year,” said Ismail Sabri.
The minister said entrepreneurs could open a KR1M outlet with RM500,000, which would cover the start-up capital and premise renovations, adding that the Government had allocated RM40mil as loan for the purpose.
On a related matter, the minister said about 1,200 restaurants were now offering the 1Malaysia menu.
He said there would be at least 1,800 more 1Malaysia restuarants by the end of this year.
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