Bornoil To Expand Sugarbun Outlets In Sabah – Raymond Teo

KOTA KINABALU: Borneo Oil Bhd (BornOil) has ambitious plans to further expand its food and beverage business with a new micro concept called the ‘Broasted by SugarBun’ kiosk.

In an interview with BorneoToday, its executive director Raymond Teo explained that the company had recently obtained approval from the domestic and consumer affairs ministry for the kiosk concept.

Teo said that the company has plans to open another 20 kiosks in Sabah and five in Sarawak.

“We are also currently assessing various locations throughout West Malaysia for the rollout of our new concept kiosks,” he said, adding that the areas under consideration include townships in Pahang, Perak and Johor with a target of 15 new outlets throughout the peninsular.

“This rapid expansion follows closely on the heels of the first ‘Broasted by SugarBun’ outlet opening in September last year. Right now, there are a total of six outlets in Malaysia and one in Brunei,” said Teo.


The ‘Broasted by SugarBun’ kiosk is a scaled down version of BornOil’s flagship SugarBun restaurant.

“The kiosks will offer an opportunity for middle-income entrepreneurs to leverage on what has become a largely successful brand,” said Teo.

“There are many advantages to the kiosk concept which we’re introducing, especially for small business owners. Primarily, the kiosks require less space starting from around 400 square foot, which makes it easier to secure locations and reduce setup costs,” he added.

Overall, franchise ownership for a kiosk is extremely affordable, estimated at below the RM300,000 range. The small footprint and simplified menu also means that operational overheads is much reduced.


In addition to the kiosks, BornOil is also looking to capitalise on the food truck trend to increase its market reach. The first SugarBun food truck was launched recently in Johor as a pilot project.

“People today are forever on the go, so we’re making SugarBun available on the go too! After all, we serve the market and where there’s a demand, we’ll always look to fill it. Food trucks are popular and convenient and fits our brand very well indeed,” says Teo.

The SugarBun parent brand is reaching its 40th year and has been successful, especially in East Malaysia.

BornOil also expects to look towards greater expansion in smaller towns to give those areas a wider variety of choice.

“A move towards smaller towns will not only allow us more market share but also provide for underserved markets while increasing commercial viability,” explained Teo.

SugarBun currently has 92 franchised restaurants, most of them in major townships and outskirts in Sarawak. There are also SugarBun outlets across Brunei, Bangladesh and Australia.

Aside from the SugarBun brand, BornOil also owns the Pezzo brand in East Malaysia and Brunei. Pezzo offers a wide-market ‘Pizza by the Slice’ concept. There are currently 47 Pezzo outlets in East Malaysia and coming soon to Brunei.

BornOil is engaged in investment holding with interests in four segments, namely restaurant, franchising and head office operations; general trading; management and operations of properties; and oil, gas and energy-related businesses.