Notes on Banana Bro Presentation

Overview

• Revenue in 2023: Just shy of 70 million RM.
• Co-Founder: Tony Lim, co-founder of Banana Bro, a banana leaf restaurant chain.
• Establishment: Founded in 2018, with over 30 outlets nationwide and ongoing expansion.

Background on Tony Lim

• Previous Ventures:
  • Started Boat Noodle in 2013.
  • Established a Cha Time franchise in Cambodia in 2011.
• Transitioned from a family trucking business into F&B.
• Grew up in Kedah, transitioned to KL, recognized market gaps in food service.

Concept of Banana Bro

• Banana Leaf Dining: Recognized lack of accessible banana leaf restaurants outside Kuala Lumpur and Petaling Jaya.
• Aimed to make banana leaf dining accessible across Malaysia, targeting Halal market.
• Focused on the overall experience rather than just the food.

Co-Founders and Team

• Co-Founders:
  • Chef David: Culinary expertise, brought authenticity to recipes.
  • Aaron: Former banker, joined to help with business management.
• Importance of team dynamics and clear roles.

Growth and Expansion

• First outlet opened in Berjaya Times Square; faced initial challenges with customer traffic.
• Key Milestones:
  • Growth from 30 to 35 outlets in 5 years.
  • Focused on mall locations (90% of outlets) for higher foot traffic but also exploring shop lots.
• Revenue per restaurant: Estimated between 1.5 to 2 million RM.

Financial Insights

• Funding: Initially self-funded; later utilized government-backed loans for SMEs during COVID.
• No equity financing raised yet, primarily relying on debt financing from banks.
• EBITDA Margins: Targeting 15-20% net margins.

Challenges and Risks

• Market Competition: Acknowledges potential revenue decline as competition increases.
• Quality Control: Managing consistency across multiple outlets using standard operating procedures (SOPs).
• Recognizes risks of growing too quickly and the need for proper company structuring.

Future Aspirations

• Targeting 60 outlets by 2027.
• Plans for potential overseas expansion in places like Singapore.
• Interested in exploring master franchising models.
• Aiming for 150-200 million RM in revenue longer term.

Brand Positioning and Marketing

• Recent engagement with marketing agencies to strengthen brand visibility and market positioning.
• Focus on social media and collaborations for marketing campaigns.

Exit Strategy and Growth Potential

• Potential for IPO in the future; learning from other F&B brands.
• Open to strategic partnerships to facilitate faster growth globally.

Key Takeaways

• Authenticity in experience is central to Banana Bro's brand identity.
• The importance of team dynamics and clear operational processes in managing a growing restaurant chain.
• Acknowledgment of competitive pressures and a strategic approach to managing growth.