Pappa Rich @The Gardens Mall

- October 02, 2011

Do you have RM1 million right now? What will you do with it? Even by travelling around the world, I doubt you are able to finish off all the money. The fastest way to use up all your one million apart of "showing hand" on the gambling table at Genting Casino, another way is to throw all your RM1,000,000 to this one of the famous franchise in Malaysia which is called Pappa Rich. What are you paying for?

Franchise fee for 5 years contract
Manpower inclusive staff training
Standard interior design like you will see in every Pappa Rich
Rental of a corner lot location
3% of monthly gross sales for promotion & advertising
5% of monthly gross sales for royalty fee
Others miscellaneous fees and admin fees.

Direct competitors for Pappa Rich are Old Town Kopitiam, Station 1 Cafe, Old Taste Kopitiam, Georgetown White Coffee, Hailam Kopitiam, Bangi Kopitiam and Kluang Station. Pappa Rich has the most variety of foods and drinks compare with other cafe. However, the more varieties they have the more quality issues they need to maintain. Nowadays, Pappa Rich is one of the famous franchise in Malaysia which you can find them at anywhere! With that much amount that you need to spend, is it worth it? Is it really making money? Let's have a simple calculation here:

In order to break even your initial investment, you need to have at least an average gross income of RM35k-40k a month for 3 years. YES, I MEAN 3 YEARS!!! In another words, you have no salary in this 3 years. You will start to enjoy your salary in the 4th and 5th year. So here are the BIG questions:

1) Can you hang on for 3 years without any income?

2) What if Pappa Rich does not wish to renew the contract with you after the 5th year?

As I always said, always think positively. So hope for:

1) A gross income of at least RM100k a month to shorten the break even years to less than a year.

2) Have additional capital to hang on through the waiting years

In my opinion, sound like having our own business but if think thoroughly...actually it is the same like working for Pappa Rich.

Okay, let's forget about the franchise business and get into our main topic as always which is...FOOD.

Roti Bakar @RM4.80 ++

Outlook: 4/5
Creativity: 4/5
Taste: 4/5
Price: 2/5
Overall: 3/5 - This is their signature dish. D.I.Y your own bread but charging so high.

Iced Teh Tarik with Teh Tarik Ice Cream @RM10.90++

Outlook: 4/5
Creativity: 4/5
Taste: 3/5
Price: 2/5
Overall: 3/5 - A teh tarik ice cream?? This drink really catch my attention. After tasted, it was just like a normal teh tarik but the price almost can buy 5 cups at ordinary kopitiam.

Hot Organic Soya Milk @RM7.90++

Outlook: 4/5

Creativity: 4/5

Taste: 4/5

Price: 2/5

Overall: 3/5 - Really truly organic soya milk. Very fresh. But I think those vans which sells organic soya milk @RM1.50 is more reasonable.

Egg Pudding @RM6.50++

Outlook: 4/5
Creativity: 4/5
Taste: 2/5
Price: 3/5
Overall: 3/5 - The taste of soya bean curd mixed with egg pudding just don't blend.

With such an expensive foods and drinks, I do believe achieving RM100k per month is not impossible if the location is right. There are still a lot of peoples love to hangout at Pappa Rich which they feel the environment is clean, food/drink is not bad and with UniFi for high speed online. Without a doubt, it is really a great place to hangout with friends.

Total Damage: RM44.00
Ambiance: 4/5
Service: 3/5
Food Serving Speed: Slow
Will I Revisit?: Conveniently will