Singapore Exchange-listed Envictus International Holdings Ltd, the operator of Texas Chicken in Malaysia, is accelerating its expansion in Malaysia as it aims to grab a bigger slice of the fried chicken business in the country.
Texas Chicken aims to have 100 outlets in the country by end-2023 from 94 currently. It also plans to double to 200 stores by 2030.
This year, it plans expansion in Peninsular Malaysia with expansion in East Malaysia (Sabah/Sarawak) in the following year.
Texas Chicken Malaysia has been making losses during the Covid-19 pandemic, and it now aims for an improvement in its top-line sales and margin in the post-pandemic period amidst other challenges like rising operating costs.
Some of Texas Chicken’ best-performing stores are 24-hour drive-through restaurants located in Kelantan, Terengganu and Kedah. The top items on its menu are Spicier Spicy Chicken, signature Honey-Butter Biscuits, and the flavourful Mexicana Wrap amongst others. The sales of chicken and biscuits accounts for almost half of its total products sold on a daily basis.
In July 2012, Envictus signed a 10-year agreement with US-based Cajun Global LLC for the exclusive rights to develop and operate Texas Chicken restaurants in Malaysia and Brunei. The agreement was renewed in May 2022 for another 10 years. In Malaysia, all the Texas Chicken outlets are developed and operated by Envictus.
According to Statista, the retail value of fast-food or limited-service restaurants in Malaysia last year was an estimated US$2.66 billion from a total of 7,720 outlets, up from US$2.2 billion in 2021. By 2026, the sales value of the fast-food restaurants in Malaysia is expected to reach US$4.35 billion with an estimated 9,720 outlets. Texas hopes to get a bigger chunk of this growing market.