Future challenges foresee for Wing Zone

There are a few challenges that can be foreseen for the Wing Zone in the near future.
One is the weak currency exchange rate of other countries relative to the US Dollar. Wing
Zone currently has two branches in Malaysia. Wing Zone will find it hard to open up more
branches in Malaysia as the Malaysia economy is not progressing smoothly, making future
profits and growth unlikely. The costs to open a new franchise will be even more expensive
than it was previously, making prospective franchisers hesitant about commencing business
in Malaysia. Recently it has been reported that the ringgit had dropped to its lowest level in
16 years. According to the Financial Times, there is a possibility of the Malaysian ringgit
sinking even lower than the current rate (3.801) by the end of 2015. Hence, although many
parties have expressed interest in opening up new franchises, the current exchange rates has
put a stop to these activities.
Besides, maintaining its existing branches will be another challenge. As new flavours
and varieties will attract more customers, Wing Zone will have to create new flavours
frequently in order to grab the publics attention. All Wing Zone branches are required to use
products approved by the US headquarters. Hence, the materials used by Wing Zone
Malaysia are all imported goods. As headquarters comes up with a new flavour, overseas
branches will only receive them once or twice every quarter. In todays competitive world,
this may not be quick enough for customers, who expect to taste new flavours frequently.
This may lead to decreased customer share. Moreover, there is also the question of suiting the
flavours to local taste buds. In order to introduce a new flavour in Malaysia, the local Wing
Zone outlets will have to order direct from the US headquarters, where the minimum order
consists of 20 boxes where 1 box costs around RM200. With GST and customs duties levied
on them, it will be a big loss to Wing Zone if the flavour ordered does not favour local
preferences. From the previous times till the current times it would not have been so obvious
but in the future as the economy is unpredictable, Wing Zone might even have to shut down
their premises in Malaysia to recoup losses.
A standard meal at the current time for the adults in Wing Zone costs about RM 15.90.
Due to GST (government services and tax) the price of all meals including beverages has
been increased. If the economy continues to perform badly in the future, Wing Zone might
have to increase the price of their meals even more to cover their cost of production. This will
be a great challenge to the future of Wing Zone because the public might not want to pay that

much for a standard meal. This will result in grievous losses, which may even cause them to
go out of business.