New-gen food hall that is an incubator and venture builder for F&B entrepreneurs
RexKL is a reimagined food hall and retail hub, based at Jalan Sultan in Kuala Lumpur. We are established with the purpose of serving as a platform for local F&B businesses to set up their business and launch their brands in the heart of KL. In particular, the site on Jalan Sultan serves as a blend of 'cloud kitchen' and venture builder/accelerators to provide a platform for F&B entrepreneurs to extend their customer reach in a prime KL area.
In the past 12 months, RexKL has achieved the following:
Rejuvenated economic viability to Jalan Sultan: Transformed REX Cinema into RexKL within 6 months, attracting > 200,000 visitors + 20 new F&B businesses + > RM 1M total sales generated for businesses in RexKL
Created a retail platform for F&B incubation: With its flagship Food Hall "The Back Ground Marketplace", RexKL has helped over 20 new businesses launched on its site (incl. business expansion for a 4th-gen brand called Bun Choon) through its start-up model which allowed businesses to be competitive.
Empowerment to local enterprises: over 50 social enterprises, 100+ exhibitions, and events: Its versatile space allowed for live events, award shows, concerts, art exhibitions, and fashion shows. To date, it has staged over 100 events and also hosted > 50 social enterprises, empowering these communities to showcase their talents in the heart of KL.
In the current climate, launching an F&B business or a restaurant can be daunting. There are a number of factors to be considered when doing so:
- High investment needed to set up the kitchen: A business owner needs to put in the upfront investment to set up the kitchen, including any capital expenditure and renovation that would to into realizing his vision.
- Location is crucial to attracting foot traffic: As a newcomer into the F&B industry, the location of the business is important for the owner to ensure there is footfall to generate revenue and increase awareness to the public.
- Long return of investment due to high upfront cost: Since there is plenty of investment committed to setting up the business, the owner will need to operate it for a long period of time before any breakeven of investment.
REXKL'S SOLUTION: EMPOWER F&B ENTREPRENEURS THROUGH VENTURE BUILDING
REXKL uses a hybrid of the 'cloud kitchen' and 'venture builder' model to empower F&B entrepreneurs. By leveraging on RexKL's existing F&B license and kitchen infrastructure, entrepreneurs immediately get access to:
1. Lower barriers of entry to market: Aspiring entrepreneurs can immediately gain access to RexKL's infrastructure and F&B licenses to begin its operations and launch their business in the heart of KL. By doing so, can lower their startup cost by at least 60%.
2. Launching as business partners: RexKL will launch the business together with the entrepreneurs as business partners so that both can invest in customer acquisition and brand awareness.
3. Scale and grow through an overall ecosystem: Through bulk purchasing, RexKL can obtain competitive prices for any sourcing of ingredients. In addition, entrepreneurs are joining an ecosystem of like-minded F&B veterans to grow their brands. In-house services of marketing, menu styling, R&D, and e-commerce are available.
A. Rejuvenated a landmark in 6 months to unlock economic opportunities
REX Cinema is an iconic cinema located in the heart of KL since the 1950s. Upon taking over REX Cinema in end-2018, the team spent the next 6 months redesigning and repurposing the landmark into RexKL. In total, over 40,000 sqf of space was revived and transformed into retail marketplace, event areas and business spaces.
B. Reinvented Food Hall marketplace as a platform for F&B ventures
‘The Back Ground marketplace” marketplace is not your typical food hall. F&B businesses are established in partnership with RexKL, incentivizing both the entrepreneurs and RexKL to grow the business together.
C. Expansion of retail spaces for social enterprises and retail outlets
By bridging the financial gap for social enterprises to showcase their talents and earn a living, RexKL has offered the opportunity to over 50 social enterprises in the past year to exhibit at RexKL.
WHAT IS OUR BUSINESS MODEL AND WHY WE ARE DIFFERENT
Our business model is a hybrid between 'cloud kitchen' and 'venture builder. We serve as an F&B business enabler and accelerator to aspiring entrepreneurs.
As of 31st October 2020
- Over RM 1 million sales generated for businesses
- Over 20 F&B businesses incubated
- Over 250,000 visitors since opening
- 200+ events and exhibitions curated
The F&B and retail market in Malaysia reached a value of over RM 500 billion in 2019. It is expected to continue growing in the next few years, particularly as businesses innovate during the new normal.
Currently, we are focused on serving Klang Valley, with an eye to expand to the rest of Malaysia in the next 3 years. With the right opportunity, we will work with strategic partners to expand our presence to the ASEAN region.
We believe that this blend of 'cloud kitchen' and 'venture builder' business model is unique, and will gain traction in the next 3 years. Within Malaysia, the market is huge enough for multiple players to thrive due to the broad spectrum of opportunities. We are confident that we have a revolutionary business model equipped with a strong team to serve the market.
Proceeds raised from this round will be used by the RexKL team to further invest into RexKL. We are looking to:
1. Introduce RexKL 2.0: Add another 10,000 sqf to our space to attract more F&B entrepreneurs and create more economic opportunities
2. Expand "The Back Ground": Expand our venture builder program to invest in local entrepreneurs, giving them a popular platform to succeed
3. Expand into Malaysia: We are currently in discussions with several partners to potentially introduce our model to other sites, with a focus on 'placemaking' to maximize our investment returns
As an incentive to PitchIN investors, we are also committing to provide a preferential right of dividends. 60% of profits earned by RexKL will be allocated to pay back the investment amount. Thereafter, we are committed to paying at least 5% dividends for 5 years. Depending on the stage of investment, a PitchIN investor can earn up to 2x dividend from RexKL as ROI.
The founders have over 10 years of experience in F&B ventures, both in the international and local scene.
We are honored to count prominent figures as investors and advisors, including Kong Heng (the company behind the successful Kong Heng square development in Ipoh) and also Kamil Merican (CEO and Founder of GDP Architects)
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2020 Quarterly Business Performance
RexKL 2020 quarterly business performance.
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