China Fried Chicken Burger Franchise Allace Going Places In Malaysia 65 Outlets And Counting

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THE rise and rise of Chinese fast-food brands and cafes which are seemingly sprouting up overnight like wild mushrooms has certainly caught the eye of many.
The latest to make inroads into Malaysia is AllAce Burger & Chicken (formerly Wallace). In just a short space of time, the franchise has opened 65 outlets across Malaysia.

The chain’s rapid expansion grabbed the attention of digital creator Umar (@umarmaggi) who exclaimed on X that it had a brilliant business model.
The co-founder of Mokky’s Pizza further exclaimed that the affordability of its items has fuelled its fast growth.
The poster started by giving a brief over view of the company by highlighting that the business which was founded by the Hua siblings in 2000 has over 20,000 outlets in China.

Towards end-2023, the company– then known as Wallace – established its first outlet outside China in Bandar Sungai Long, Selangor. This was quickly followed with another outlet in Setapak, Kuala Lumpur.

In just 18 months, the chain now operates 65 outlets with a re-branding exercise to better chime with the local market. Already, 15 outlets have been certified halal with the rest underway.

Displaying solid operational backend, the brand opened 25 more outlets in April of this year alone.

This is when the poster went on to highlight the business model which was different from other brands.

Key to the model’s success was giving staff a share in the business which ensures better employee performance.

Such business model which departed from the norm of relying on bank borrowings has enabled AllAce to scale faster than its competitors though the poster is unsure if the same model is applied in Malaysia.

The super lowball pricing was also highlighted as a reason for its success – RM19 for a whole fried chicken was astounding value.
Though the price is now RM25, it is very affordable, according to Umar. This allowed the brand to position itself as a “budget-friendly sharing meal brand”.

Assuming each outlet brought in RM90,000 in profits a month, this works out to be close to RM6 mil/month from all its outlets!

Undeniably, the key to AllAce successfully penetrating the Malaysian market was obtaining halal certification which will allow it to market to a much larger demographic.

Fast, focused, frugal and scalable – those were the main factors behind their rapid expansion.

Of course, there were plenty of comments on the taste of AllAce products but suffice to say, most were down to individual preferences.
It does not detract from the fact the brand has managed to conquer a large slice of the fast food landscape in just a short space of time.
Perhaps local franchises such as DarSa Fried Chicken can learn a thing or two from it. Not with regard to taste but to business models and operational know-how.
If local companies don’t buck up, they are liable to be swallowed up wholesale by these fast-growing brands.
Time to toughen up and face the competition. –  Focus Malaysia

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