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AirAsia aims to open 100 Santan Franchise stores by 1Q2022!

TIG Edwin
Publish date: Mon, 05 Oct 2020, 09:46 AM
Daily Update from our analyst

By Stella Goh

 

According to the Group Chief Executive Officer (CEO) Tan Sri Tony Fernandes, AirAsia Group is targeting to open about 100 Santan Franchise stores in Malaysia and abroad by the first quarter of 2022 and with the rapid expansion, Santan’s contribution to group earnings was expected to increase to 10% to 15% in next three years from about 2% as an inflight restaurant currently.

According to the Santan’s General Manager, Catherine Goh, the world’s first restaurant brand to offer inflight food on ground, was set for a rapid expansion in Malaysia with a minimum franchise fee of RM50,000 based on the size of the stores.

The Santan franchise brand received tremendous response, with about 1,000 applications received so far, and another 5 outlets were expected to be opened by year-end, providing hundreds of jobs from kitchen assistants to the management staff.

AIRAISA is confident the number of restaurants would hit 100 mark by Q1 2022, with the first outlet in East Malaysia targeted to open in Q1 2021. The group also was gearing up to expand abroad, targeting to open stores in China and the United Kingdom next year.

According to the CEO, Santan was one of Malaysia’s homegrown local businesses that had thrived even during these challenging times amid the Covid-19 pandemic, proving that the business model was sustainable. The company hope more local entrepreneurs will take up the franchise opportunity with Santan, which will not only boost local franchise businesses but increase franchise sales value by 2025.

 

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