Fujian-based fast food chain Wallace (华莱士), previously known as CNHLS, has opened its first overseas outlet in Malaysia. The company has opened its first outlet at Bandar Sungai Long, close to Universiti Tunku Abdul Rahman (UTAR) in Kajang, Selangor, and it is the first of several stores planned for the country. The second store will be located in Setapak in Kuala Lumpur.
Wallace operated over 15,000 fast food outlets in China as of 2020, rising to 20,065 in June 2023, with most outlets in lower-tier cities. As a comparison, KFC opened its 10,000th outlet in China on 15 December 2023. This local fast food chain competes with KFC and McDonald’s on price to deliver a strong perception of value. Its flagship product is roasted whole chicken, ideal for sharing with family and friends.
Wallace is replicating the same successful formula in Malaysia with price and is heavily promoting its roasted whole chicken. Consumers can purchase the spring chicken for RM 28 with a choice of fried or honey-roasted options without needing a preorder.
So far, leading local fast food outlets in Malaysia are not offering whole chicken as a permanent menu even though KFC has provided it as a limited-edition product priced at RM 49.99, including one whole chicken and one coleslaw or whipped potato. However, in KFC’s case, consumers must preorder at least one day earlier.
In Malaysia, Wallace needs to upgrade the taste and the value perception of its other menu items in order to successfully compete with the other entrenched players in the local market.
