PETALING JAYA: Pan Malaysia Corp Bhd
(PMC) is cooking up plans for 2025 as the company focuses on expanding the A&W franchise after acquiring the remaining 49% stake from Inter Mark Resources Sdn Bhd in a related party transaction for RM69.45mil through a combination of RM41.67mil in cash and the issuance of 111.13 million new PMC shares at 25 sen per share in April 2024.
Initially involved in the manufacturing, export, distribution of chocolate and confectionery products, PMC’s focus shifted to the fast food industry following the acquisition of a 51% stake in the franchise for RM21.04mil in 2021.
Sharing the company’s future plans with StarBiz, PMC executive director and A&W chief executive officer George Ang said expansion, digitalising and customer-centric innovations would be front and centre in 2025.
“Currently, we have around 100 outlets in Peninsular Malaysia and four in Sabah. By next year, we aim to grow even further,” Ang said, adding that PMC targets opening 12 new outlets in 2025 as well as eyeing untapped markets in Sarawak and Brunei, with two to three outlets planned for Kuching by 2026.
Ang attributed the delay in entering Sarawak to logistical challenges. “In the fast food sector, you need to open several outlets to achieve scale. Previously, importing goods from one town to another was time-consuming, which made costs higher”.
Beyond regional growth, PMC is targeting high-traffic locations like airports and theme parks, citing strong customer footfall and high average restaurant sales (ARS) in these areas.
“So, we are trying to open more outlets in the airports. There are about eight to 10 airports that we can go into such as the Kota Kinabalu International Airport and Penang International Airport,” he added.
On the digital front, PMC is intensifying its efforts to enhance efficiency and reduce reliance on labour by upgrading its in-house mobile application, the A&W Ordering App, and installing digital kiosks in all outlets by the end of 2024.
As the time of writing, about 30% of A&W outlets have digital kiosks.
He also shared that the incorporation of the digital kiosk is done through a service subscription model, where the company pays about US$100 per kiosk monthly. “So, we do not actually pay in lump sum, and it doesn’t directly affect our earnings”.
In response to shifting consumer habits, the company plans to convert several outlets into 24-hour and drive-through formats. By 2025, 20 outlets will operate around the clock, with 12 offering drive-through services.
He noted that late-night demand, driven by food delivery orders, which accounts for 25% of A&W’s sales, has been a key factor in this decision.
Ang also hinted about potential mergers and acquisitions that may be announced in 2025.
“We are currently discussing with a few name brands, both local and international. We will announce it possibly by next year,” he added.
Despite Malaysia’s highly competitive fast food market, with over 2,000 outlets nationwide, Ang expressed confidence in A&W’s enduring appeal.
“Restaurants come and go. Five years ago, the market was competitive, but today it’s even more so. The good thing for A&W is that it has been around for more than 60 years, and we are still here,” he affirmed.
Ang attributed the brand’s resilience to strong local awareness and evolving consumer habits.
“In the old days, people would usually go to A&W and other fast food restaurants for special occasions. But nowadays – especially after the pandemic, people would go four to five days a week. So, I can say that the market has grown a lot bigger,” he said.
On the matter of consumer boycott – which has affected many fast food giants in Malaysia, such as KFC and McDonalds – Ang said response has been neutral for A&W.
“We have not seen a dip in sales, but we didn’t see a huge increase also,” he said, which he attributed to inflation instead. “I think we didn’t see a huge increase in sales because of inflation. People have been tightening their belts”.
He noted that the number of footfalls was consistent, however, the amount of items per order has slightly decreased as compared to the previous years.
Ang shared that A&W will be officially closing its oldest drive-through in Petaling Jaya, Selangor. This follows the land developers’ plan to build a hotel on the one-acre land, of which the A&W outlet sits. Initially scheduled for closure in 2020, the plan was cancelled due to the pandemic.
“But now plans are back in order, and finally it’s time to officially say goodbye to the Petaling Jaya outlet,” he said. Opened in 1965, the outlet was Malaysia’s first drive-through and the brand’s second location.
Following the acquisition of the Malaysian franchise, PMC posted a loss of RM11.52mil for the first quarter ended Sept 30, 2025 (1Q25) from a net profit of RM16.13mil in 1Q24. Ang explained that the disposal of the chocolate factory was the main factor behind the losses.
“Since we stopped our chocolate and confectionery business, there was no reason for us to keep the factory and we had to mark down that asset,” he said, and as the factory was initially bought in Singapore dollars and was sold in ringgit currency, translating to foreign exchange losses.
“Its a one time loss, so in the coming quarters there will be no translation losses. Plus, despite reporting losses, we are earnings before interest, taxes, depreciation and amortisation-positive for our A&W operations.
