Ani Sup Utara

Little Cash (M) Sdn Bhd is the franchisor of Ani Sup Utara franchise restaurants, the most established soup-based restaurant chain in Malaysia. It has been established since 13th June 2005. The company is wholly owned by Bumiputra, which is found by the dedicated and ambitious entrepreneurs of Mr Hasanuddin Ibrahaim and his wife, Mrs. Rohani Abu, who have strategically developed the company to its stage today. The company is currently managing up to its 28 owned-restaurants and 31 franchisees’ in just 5 years.

The corporate office is located at Wisma Ani Sup Utara, TTDI Jaya, Shah Alam, Selangor and the central kitchen is located at the Kompleks Kilang SME Bank, TTDI Jaya, Shah Alam, Selangor. The main activity of the company is to develop its 28 owned- restaurants and 31 franchisees. The company constantly provides training and supervision to all its 28 owned restaurants and 31 franchisees.

The company’s vision is to be the finest and the most affordable Malaysian soup based food delicacies provider to peoples of the world. Meanwhile, its mission is to provide duplication enable restaurant system with hygiene and Halal conscious. Ani Sup Utara tagline is “Ingat Sup, Ingat Ani Sup Utara”. The main course served in Ani Sup Utara restaurant is based on the ”Northern Recipe” soup based menus, with stringent hygienic control and fully compliance to Halal standard. With the mixture of their 14 secrets herbs and spices, their soup is very delicious and healthy to consume. The best part is their soup based products are free from cholesterol and fats proven and certified by Consolidated Laboratory (M) Sdn Bhd.

Therefore, Ani Sup Utara is very carefully in selecting the prospect franchisees. Their success or failure reflects Ani Sup Utara very much. Basically, in selecting the prospect franchisees, Ani Sup Utara considers the prospect franchisees’ financial capability, experience and management skills, demographic characteristic, and attitude towards business. According to one of the interviewees, Mr. Sharidzan, it doesn’t matter if the prospect franchisees do not have business experience or not, as long as they have working experience because Ani Sup Utara perceives those have working experiences, they are more matured and potentially good in decision making.

In the meantime, two of the interviewees, Mr Sharidzan and Mr. Syauqie agreed that Ani Sup Utara prefers to recruit young franchisees. The rationale of selecting young franchisees Ani Sup Utara requires energetic franchisees since being a restaurant owner is tiring. They are required to pro-actively being involved in management and operation whereas they can’t rely on the staff only. Furthermore, Ani Sup Utara would like to see they run business over a long time frame and do not easily give up due to tiring or hectic schedule. Besides, all of three interviewees agreed that Ani Sup Utara considers the prospect franchisees’ personal and education background equally in the selection process. Mr. Sharidzan has explained further the prospect franchisees those have more working experience particularly in food industry, no problem if they have minimum SPM of education background. Otherwise, the company prioritizes degree holders to venture Ani Sup Utara business. He also explained the rationale of Ani Sup Utara determines the working experience and education background of prospect franchisees. Mr. Naquib explained the prospect franchisees are also expected of showing innovativeness, desire for personal development, seek work-related challenges, personal commitment to business and business risk-taking. In other words, they supposedly to have the real entrepreneurs’ characteristics to be a franchisee of Ani Sup Utara. They can’t rely on the franchisor alone to success.

The open- ended exchange within franchisor and its franchisees and supplier will provide the opportunity to improve their business and achieve their objectives. Mr. Sharidzan provided an example Mr. Hasanuddin, the founder of Ani Sup Utara, concerns the franchisees very much. He always keeps in touch with the franchisees not for the purpose of to follow up the royalty fees solely but also to update their performance financially and non financially. For instance, if anyone among them produced low sales, he’ll be personally giving a motivation to them as well as investigating the cause of the problem prior to ask the management to find the outcome. In the mean time.

Mr. Sharidzan was explained further that, Ani Sup Utara luckily has engaged with the suppliers those share their business knowledge of core business process with its key personnel. For instance, the beef suppliers even welcome Ani Sup Utara’s key personnel to visit their premises and personally visualize their operation such as slaughtering of cow or chicken. In addition, Ani Sup Utara and its suppliers always exchange information that helps establishment of respective business planning. If Ani Sup Utara established, that means its demand on the raw materials from suppliers will consistent for long period. Other than that, Ani Sup Utara and the suppliers frequently keep each other informed about events or changes that may affect the other partners. For instance, the beef supplier will inform Ani Sup Utara it has shortages of beef due to number of cows fall sick and not able to be slaughtered.

Meanwhile, Mr. Naquib revealed that the founder of Ani Sup Utara, Mr. Hasanudin does even tolerate with all franchisees with regards to the monthly royalty fees. Whenever the franchisees do not financially perform well thus difficult to pay the monthly royalty fees (5% of the total sales), they will personally communicate with Mr. Hasanudin and he’ll consider positively. Afterwards, he even will visit these particular franchisees at their franchised restaurant to communicate face-to-face with them. Mr Syauqie explained it is impossible Ani Sup Utara never had problems with franchisees or suppliers. However, an effective communication with them always helps in coming out with good solution. Most of the times, the management of Ani Sup Utara will conduct official meeting with suppliers or franchisees whenever there are issues aroused and need to resolve together. That proves Ani Sup Utara practices an effective communication with its franchisees and suppliers since it is very significant to its success.

According to the interview, Mr. Syauqie and Mr. Naquib agreed that training programs for franchisees influence the success factors of Ani Sup Utara. The training program is essential for the franchisee to understand Ani Sup Utara business concept and system. Basically, the company provides hands-on training to all franchisees. The hands on training is conducted in ten days are more towards operation management particularly how to cook the fixed ingredients and mixture measurement as well. Mr. Syauqie explained that by attending the training prior to start the operation, the franchisees can equip themselves with both knowledge and skill to operate and manage their franchised restaurant of Ani Sup Utara. Otherwise, they won’t even get clear picture how to operate and manage Ani Sup Utara franchised restaurant.

 

Mr. Sharidzan explained that the franchisees those do not attend training won’t show good performance financially and non financially. However, there are some of the franchisees attended the training but still failed to perform. He assumed this group of franchisees might not serious in the training session. In the mean time, he admitted some of the franchisees are not performing well. There were cases in Kota Bharu and Putrajaya whereas the franchisees failed to produce soup according to the standard. The management had investigated such problem and found out they purposely refused to comply with the given guidelines in preparing the soup. They didn’t use the appropriate pail in fixing the water level. Consequently, the taste of soup turned into curry flavor, in other words the liquidity of the soup was less.

 

Mr. Syauqie and Mr. Sharidzan also indicate that experience and the management skills of employees influence the success of Ani Sup Utara. A good and effective manager will be the key personnel to the company to ensure the business are in the right direction towards the objectives and achieve business success. In Ani Sup Utara there are three key personnel including Mr. Sharidzan and Mr. Syauqie who previously have been working with McDonald, Malaysia.

 

They were in purchasing and marketing department and they adapt whatever they learnt and experienced in McDonald into Ani Sup Utara particularly with regards to the operation practice. Mr. Syauqie revealed that Ani Sup Utara’s operation practices are more less follow to the McDonald’s operation practices which is quite good. He further explained similarly like McDonald, Ani Sup Utara relies on at least 90% of system and the rest of 10% on human or employees. He perceived without such a great system in Ani Sup Utara, employees won’t perform well as system ‘directs’ them in doing the given tasks. Only Mr. Sharidzan was explained that the cost advantage influences the success of Ani Sup Utara. According to him, Ani Sup Utara achieves a fundamental cost advantage through lower overhead and freight charges. Ani Sup Utara is lucky because it has been engaging with the steady suppliers those provide low freight charges as well as better value of money. For instance, the suppliers deliver the raw materials as per ordered such as meat, rice, eggs, etc in timely manner.

 

Besides, according to Mr. Sharidzan, in sourcing the materials from suppliers, Ani Sup Utara is given options of early payment, discount period, credit period and financial charges for late payment. Frequently, Ani Sup Utara is much preferred to engage with suppliers those offer lower price and longer credit terms. The rationale of doing that is to have more cash in hands (to satisfy account payable) and to offer the best possible price to customers. Higher costs can lead to more intense competition and yet the lower cost is necessarily beneficial for the competition. However, he explained the quality matter is not neglected at all by Ani Sup Utara.

 

Similarly, only one interviewee which was Mr. Sharidzan explained the strategic purchasing influence the success of Ani Sup Utara as well. Ani Sup Utara continuously motivates its employees those working in the purchasing department to work an ethically. Ani Sup Utara always hopes its employees particularly those involve in purchasing functions to keep loyal to the company, justice to the suppliers and faith in their profession. Among Ani Sup Utara principles and standards of ethical supply management conduct, one of them is the purchasing executives should avoid the intent and appearance of unethical or compromising practice in dealing with suppliers. For instance, they are not allowed to disclose a detail of one supplier’s quotation to another supplier. They are also warned to do not involve in the bribery, receiving something from suppliers and select them to become company’s supplier. Otherwise, the purchasing functions in Ani Sup Utara won’t turn into strategic. In addition, it will affect the franchisees as well since they source some raw materials (meat, chicken, etc) and all semi-cooked materials (salted eggs, sambal belacan, etc) from the Central Kitchen of Ani Sup Utara. Ani Sup Utara closely monitors its purchasing department. The employees those working in the purchasing department are encouraged to play an integrative role in the purchasing function.

That means, all personnel are encouraged to closely work together in the team to ensure the department’s objective can be achieved hence will helps Ani Sup Utara accomplish its goals. Besides, Ani Sup Utara requires its purchasing department to always ready with such a great planning to overcome any challenges that might arise such as tremendous price increment of goods or services particularly when oil crisis takes place. However, Mr. Sharidzan revealed Ani Sup Utara’s purchasing department informally writes long range plan of the purchasing function. Even though it formally writes purchasing plan, it has to be restructured to let them relate with the current situation, for instance, the purchasing plan has to be relevant with the current economic condition.