English 2 assignment 2 submission 13 jan (1) (1)
- 2. 2 SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN FOUNDATION IN NATURAL BUILD ENVIRONMENT PRESENTATION TITLE: BAK KUT TEH GROUP MEMBERS: Names Presentation Roles Ng Hong Bin 0319735 Description of Business- Ah Cham Bak Kut Teh Chong Yu Xuan 0317950 Summary Table and Conclusion Welson Lum Wei Jiunn 0319514 Comparative Analysis of the Business Yong Sing Yew 0318766 Introduction and Recommendation Kong Zhen Chung 0319528 Description of Business- Sun Fong Bak Kut Teh Chong Wai Loon 0319745 Obstacles Faced By New Business ENGLISH II / ENGLISH 2 (ELG 30605 / ENG 0205) LECTURER: CASSANDRA WIJESURIA SUBMISSION & PRESENTATION DATE: 13 JANUARY 2015, Tuesday
- 3. 3 TABLE OF CONTENTS 1. Key Summary 4 2. Description History of the Business 5-6 3. Brief Bio of the Business 7-10 4. Comparative Analysis of the Business 11-13 5. The Competitors 14 6. Obstacles Faced By New Businesses 15-16 7. The Nature of The Markets 17 8. Summary Table 18-19 9. Analysis 20 10. Recommendation 21 11. Appendix 1 (Pictures) 22-23 12. Appendix 2 (Interview Questions) 24-29 13. Appendix 3 (Minutes of Meeting) 30 14. Bibliography 31 15. References 32
- 4. 4 The Key Summary In this English research assignment, we compared 2 business of similar industry in different geographical locations. In a group of 6 which are Ng Hong Bin, Chong Yu Xuan, Welson Lum Wei Jiunn, Yong Sing Yew, Kong Zheng Chung and Chong Wai Loon,we decided to do a research on Bak Kut Teh, which is one of the famous traditional Chinese food in Malaysia. We choose a home-based Bak Kut Teh restaurant which is Ah Cham Bak Kut Teh in Klang, Selangor and a commercial Bak Kut Teh restaurant which is Sun Fong Bak Kut Teh in Bukit Bintang, Kuala Lumpur. Both of these restaurants have been operating for more than 10 years. After interviewing the 2 respective restaurants, we concluded that Sun Fong Bak Kut Teh is more commercially successful than Ah Cham Bak Kut Teh.
- 5. 5 Description History of the Business Ah Cham Bak Kut Teh The first ‘Bak Kut Teh’ restaurant that we choose called Ah Cham Bak Kut Teh located at Jalan Meru, Klang. This restaurant only has one generation and doesn’t have any branches yet. The main product of this restaurant is Bak Kut Teh which serves with soup or sauce. The business was founded by an old lady called Ah Cham, and her eldest son in 1995. The reason of starting this business is because during the early years, Ah Cham and her family were extremely poor. Ah Cham was very good in making Bak Kut Teh so she started the Bak Kut Teh business to support her family. For their recent development, Ah Cham’s business recently is not as good as past few years as there are more competitors in Jalan Meru. In addition, she doesn’t have any future plan for her business yet because she wants her children and grandchildren to find better occupations and it’s not easy to find successor to continue this business.
- 6. 6 Sun Fong Bak Kut Teh The second “Bak Kut Teh” restaurant that we choose is called Sun Fong Bak Kut Teh located at Jalan Medan Imbi, Kuala Lumpur. This restaurant was pass down from father to son for 2 generations and now have 4 branches which 2 are located in Malaysia and another 2 located in Jakarta. The main product of Sun Fong Bak Kut Teh is Bak Kut Teh which is served with or without soup. They also serve other dishes like fried noodle, fried rice, porridge and other delicacies. Sun Fong Bak Kut Teh established since 1971 by Mr Low Kok Cheng which is the current owner’s father. The business starts from a small stall into a restaurant. It serves a variety of Chinese cuisines with Bak Kut Teh. The main essence of Sun Fong Bak Kut Teh is derived from its secret soup recipe. The reason of starting this business is because the founder wants more peopletaste and experience the real traditional Bak Kut Teh, he is planning to expand his business to other country like Macau, China and Australia. In their recent development, the current owner wants to open one more franchise in Jakarta possibly March this year if his business goes well. The current owner’s future plan is to expand his business to countries like Macau, China or Hong Kong.
- 7. 7 Brief Bio of the Business Ah Cham Bak Kut Teh Sun Fong Bak Kut The Location 2, Persiaran Pulau Pinang, Off JalanMeru 41050 Klang, Selangor Darul Ehsan No.35.37.39.41.43, Jalan Medan Imbi, 55100 Kuala Lumpur Number of branches and employees It doesn’t have current branches and only has one employee which serves as waiter. It has 4 branches. There are 2 branches in Kuala Lumpur, Malaysia and the other 2 branches in Jakarta, Indonesia. Each of the branches has more than 10 employees include the chefs and waiters. Main products or services sold The main product sold is “Bak Kut Teh”. There are two different types of style, which is Bak Kut Teh serves with soup or sauce. Ah Cham is the founder and current owner of her shop. The main product sold is “Bak Kut Teh” which serves with different style which are soup or sauce. It has already been selling for two generation. It has also other dishes which are porridge, fried dishes, seafood and others. Who are the customers Customers who visit her restaurant are mostly Chinese Customers who visit his restaurant are mostly local and
- 8. 8 and India. Some of the customers come from different states in Malaysia such as Johor, Melaka, Negeri Sembilan and many more. Besides, the customers of different occupations such as teachers, headmasters and doctors also come to her restaurant tourists from Hong Kong, Taiwan, Singapore. There are also many celebrities from Hong Kong and Taiwan came here to taste Bak Kut Teh. There are photos of them stickled to the wall of the restaurant. Estimated current number of customers There will be more customers from 8am until 12.30pm. Estimated number of customers is around 150 during weekdays. Although her restaurant is quite small and old, it is often crowded because many customers love to eat her delicious Bak Kut Teh. There would be more customers during weekends. There will be more customers in the morning until afternoon. During dinner time around 7pm, there will be more customers. Estimated number of customers is around 250 during weekday. For weekend, there will be more customers. The amount will be changed due to certain circumstances, for example: rainy day, economic in bad shape and etc.
- 9. 9 When were the businesses started It is first started during the year, 1995. Ah Cham has been in this business for 20 years in Klang. This business was founded since 1971 which had already been passed down by two generation until now. It started from a small stall to a bigger restaurant and has a few branches now. Who are the founders The key founder of this shop is an old lady called Ah Cham and her eldest son. The key founder of this business was Low Kok Cheng which is the father of the current owner. What was their motive(s) for starting the business In 1995, Ah Cham and her family were extremely poor. Since Ah Cham had the techniques of making Bak Kut Teh, her family supported her to open this restaurant in order to search for prosperity. This business was successful and helped them escape from poverty. The founder wanted to let more people to taste the traditional “Bak Kut Teh” even for different countries such as Indonesia, Macau and Australia. Other than that, the founder also wants to earn money for better a life.
- 10. 10 Their recent development According to Ah Cham, her business recently is not as good as past few years as there are more competitors in Jalan Meru. In addition, she doesn’t have current branches and any future plan for her business. This is because she wants her children and grandchildren to find better occupations and does not have a successor to continue this business. They decided to sell seafood and also build a VIP room in their restaurant because sometimes some popular celebrities eat there. Since they already have two branches in Jakarta, so if their business getting better over there, they will expand their business to other countries which are Macau or China. They also decided to have one more branch in Jakarta this year.
- 11. 11 Comparative Analysis of the Business Shops Ah Cham Bak Kut Teh Sun Fong Bak Kut Teh Number of competitors Approximately 500-1000 of Bak Kut Teh shops in Klang. Jalan Imbi has only 3 Bak Kut Teh shops. Top competitors Restaurant Hon Ki Bak Kut Teh Restaurant Hon Ki sells Bak Ku Teh and has good tasting food,but it doesn’t provide free additional soup. Restaurant Ah Her Bak Kut Teh Restaurant Ah Her is fairly new so it is clean and hygienic, but it has less choice of food. The owner of the shop does not have enough experience compare to other Bak Kut Teh shops. Restaurant Bak Kut Teh Yu Yi Restaurant Bak Kut Teh Yu Yi is located not far from our interviewee. The product they sell is also Bak Kut Teh and the price of their product is between Rm11- 20 which is cheaper and its operating hours are 6am to 9pm. Restaurant Ah Hee Bak Kut Teh Restaurant Ah Hee is also located in Medan Imbi. Bak Kut Teh is also their selling
- 12. 12 products and their business opening hours only Monday to Friday from 5:00a.m to 2:00pm. Business strategies employed The owner of Ah Cham Bak Kut Teh opens her shop early in the morning at 6:00 a.m. so that the office workers can have their breakfast there. Ah Cham Bak Kut Teh has more than 10 years of experience to cook Bak Kut Teh so its customers are used to eating their foods. The good thing about Ah Cham Bak Kut Teh is the owner is generous as she will provide free additional soups to her customers when needed. She does not do any advertising to promote her restaurant as her customers help her to promote it through social Sun Fong Bak Kut Teh opens at 5:00 a.m in the morning to make sure people around Jalan Imbi have something to eat at that time. Sun Fong Bak Kut Teh has become the most popular Bak Kut Teh in Jalan Imbi because it was established since 1971. Sun Fong Bak Kut Teh has 4 branches where 2 of them is restaurants in Malaysia and the other 2 restaurants is in Jakarta, Indonesia. The purpose of having branches at different places is to raise the reputation of Sun Fong Bak Kut Teh. The owner also advertises his Bak Kut Teh
- 13. 13 media such as Facebook, Twitter and Instagram. through the Air Asia’s magazine, Tiger Airlines and Singapore Airlines.
- 14. 14 The Competitors Ah Cham Bak Kut Teh’s competitors Hon Ki Bak Kut Teh Ah Her Bak Kut Teh Sun Fong Bak Kut Teh’s competitors Ah Hee Bak Kut Teh Yu Yi Bak Kut Teh Obstacles Faced By New Businesses Financing Problems
- 15. 15 To start a business, a large sum of capital is needed. The capital includes rental, renovation and money to buy furniture and appliances. According to the owner of Sun Fong, an estimated 200k is needed. Even after the business started, money is also needed for maintenance and ingredient supplies. Finance remains the biggest problem for people that want to start a new business. Market Competitions Klang is a place that is famous for its Bak Kut Teh, there are more than 500 shops selling the same product. It would be very challenging to enter this market and compete will all the existing shops which has been around for much longer time that possess more experience and their own loyal customers. Quality of the foods The communication with the food suppliers must be good so that the pork suppliers will always supply fresh ingredients. The quality of food products sell must always maintain their originality as well as coming out with their own signature taste. The shop must maintain their quality to attract and keep its customers. If the food of the restaurant does not have quality, it will slowly lose all its customers and eventually go out of business. Getting Customers
- 16. 16 A new business often doesn’t have any customers at the start, the owner have to advertise his business to let people know his restaurant. To attract customers, a lot of effort must be placed in creativity to produce some special features which are different from others. The Nature of the Markets
- 17. 17 The nature market of Ah Cham Bak Kut Teh is that they have a perfect competition which is due to the market represented by a fairly large number of market. This is because Klang is a place that is famous with its Bak Kut Teh. Monopolistic Competitive have a relatively weak barriers to entry means that the new firms can enter the market and exit the market easily. Sun Fong Bak Kut Teh has a nature market which is Oligopoly. Oligopoly is a market that dominated by only few sellers. There are only 3 shops of Bak Kut Teh located in Jalan Imbi and Sun Fong Bak Kut Teh is one of them. The barriers to entry the market is very strong because Sun Fong Bak Kut Teh has already settle down at Jalan Imbi since 20 years ago and getting more famous day by day. Summary Table
- 18. 18 Name of business Ah Cham Bak Kut Teh Sun Fong Bak Kut Teh Similarities 1) Both of them sell the same product --Bak Kut Teh. 2) Both of the restaurants do not rise their price at will because they have their own regular customers. Differences Menu 1) The restaurant does not provide a proper menu. 1) The restaurant provides a nicely designed menu. Advertising 2) The restaurant does not advertise in any form. 2) The restaurant advertises through social media, internet and also in airplane catalogue at certain months. Current Branches 3) The restaurant does not have any separate branches. 3) The restaurant currently has 4 branches, 2 in Malaysia, 2 in Jakarta, Indonesia. Price 4) The product price of the restaurant for a single person is RM13. 4) The product price of the restaurant for a single person is RM15. Future plan 5) The restaurant does not have any future plans. 5) The restaurant is planning to expand to Macau or
- 19. 19 China if the business goes well this year. Shop Characteristic 6) The restaurant seating is located outdoor with a shade build above it and it does not have air conditioning. 6) The restaurant is separated into 2 parts, air conditioned indoor rooms and outdoor. Analysis
- 20. 20 Based on our group analysis on the two Bak Kut Teh restaurants we interviewed, Sun Fong and Ah Cham, we have concluded that Sun Fong Bak Kut Teh is more commercially successful then Ah Cham Bak Kut Teh in Klang. The main reason is Sun Fong has a larger market because it owns several branches whereas Ah Cham does not have any branches. Sun Fong has a strategic location which is near to tourist hotspots like Pavillion and KLCC compared to Ah Cham which is located in Klang, the place where Bak Kut Teh is very famous. Other than that, Sun Fong had been in business since 1971 longer than Ah Cham which started in 1995. Recommendation
- 21. 21 Based on the analysis of the two restaurants we interviewed, both them still have a lot of potential to improve. The first Bak Kut Teh restaurant that we interviewed which is Ah Cham Bak Kut Teh has to improve the skills and strategies in managing the business so that they can compete with other markets and won’t suffer from loss easily. Other than that, it also has to provide a proper menu for the customers so they can clearly know what it serves. It should also serves different types of foods like vegetables, fried dishes, seafood and etc so customers have more choices to choose on when having their meal. In addition, it also need to renovate to become more comfortable. For example, set up air-conditioning, change new tables and chairs, and etc. Currently, Ah Cham has only one shop in Klang. To enable people from other places to taste this delicious food, the owner has to expand to other states and countries. With new branches at different places, the customers will eventually increase too, the profit and the reputation will bloom as well. It may cost a lot to expand but it may show results and the owner can make more money in the long run. Furthermore, the owner should also make some advertisements to promote the restaurant so that more people know about it. The owner can advertise her business through social media such as Facebook, newspaper, magazines, TV channel and etc. For Sun Fong Bak Kut Teh, it is a higher class restaurant compare to Ah Cham Bak Kut Teh. To make it better, the owner should build some VIP rooms for celebrities because Hong Kong and Taiwan celebrities often visit and eat there. In addition, Sun Fong Bak Kut Teh can expand more branches to other countries, especially western country so that western people can know more about Bak Kut Teh and taste it in future.
- 22. 22 Appendix 1 (Pictures) Ah Cham Bak Kut Teh The interior view of Ah Cham Bak Kut Teh A one person clay pot Bak Kut Teh (Dry) at RM 14.00 A three person clay pot Bak Kut Teh (Soup) at RM 39.00 Chinese Donuts (油条) at RM 1.00
- 23. 23 Sun Fong Bak Kut Teh Group photo after the interview The interior view of Sun Fong Bak Kut Teh A two person clay pot Bak Kut Teh (Soup) at RM 28.00 A two person claypot Bak Kut Teh (Dry) at RM 30.00 The menu of Sun Fong Bak Kut Teh
- 24. 24 Appendix 2 (Interview Questions) INTERVIEW Q&A OF AH CHAM BAK KUT TEH Q: When was the business founded? A: It is first started during the year, 1995. I’ve been in this business for 20 years in Klang. Q: Who are the key founders? A: The key founders of this shop are me and my eldest son. Q: Who prompted the founders to start this business? A: My family prompted me to start this business as we were extremely poor during the early years and we wanted to earn money. Q: What are your main products or services? A: The main product sold is “Bak Kut Teh”. There are two different types of style, which are Bak Kut Teh serves with soup and sauce. Group photo after interview
- 25. 25 Q: Who are your customers? A: The customers are mostly Chinese and India. Some of them come from different states in Malaysia such as Johor, Melaka, Negeri Sembilan and many more. Besides, they also come from different occupations such as teachers, headmasters, doctors and many more. Q: What is the business’ annual revenue figure? A: The monthly and annually revenue of my restaurant are RM10, 000 and RM100, 000 respectively. Q: How many branches and employees do you have? A: Currently, I don’t have any branches and only have one employee who serves as waiter. Q: Can you provide us a brief history of your business and its most recent developments? A: It was first started during the year, 1995. During that year, my family and I were extremely poor. Since I had the techniques of making Bak Kut Teh, my family supported me to open this restaurant in order to search for prosperity. This business was successful and helped us escaped from poverty. I’ve been in this business for 20 years in Klang. My business recently is not as good as past few years as there are more competitors in Jalan Meru. Q: Do you have many competitors? Who are they? A: I have some competitors which are Hon Ki and Ah Her restaurants which are located a stones’ throw away from my restaurant. Q: How much capital is required to start this business? Do you need any knowledge or skills to run this business?
- 26. 26 A: The capital is RM18, 000. To run a Bak Kut Teh restaurant, you need to know the techniques of making Bak Kut Teh and use some ingredients which are wolfberries, dried dates, dried chilies, dried squid and many more to make it scrumptious. Q: What are the obstacles faced by your business? A: There are some obstacles to run this business. For example, there are no customers sometime and the leftovers cannot be reused. This really wastes our money as some of the ingredients like pork is very expensive. Besides, during H1N1 pandemic, many customers don’t dare to eat pork and this affects our business negatively. Q: What strategies do you employ to promote your product? A: I don’t have any strategies because most of my customers help me to promote my restaurant. Some of them promote my restaurant through social media such as Facebook, Instagram and Twitter. Q: What is the future plan for your business? A: I don’t have any future plan for her business. This is because I want my children and grandchildren to find better occupations and it’s not easy to find successor to continue this business.
- 27. 27 INTERVIEW Q&A OF SUN FUNG BAK KUT TEH Q: When was the business founded? A: This business is start since from 1971.I’ve been in this business for 45 years in Kuala Lumpur. Q: Who are the key founders? A: This business is founded by my beloved father, Low Kok Cheng. Q: What prompted the founders to start this business? A: My family prompted me to start this business as we wanted to earn money for a better life. Q: What are your main products or services? A: We sell Bak Kut Teh which serves in different styles which are soup and sauce. Besides, we also sell seafood, fried dishes and porridge. Q: Who are your customers? A: The customers that come to my restaurant is local people and tourist. Q: What is the business’ annual revenue figure?
- 28. 28 A: Sorry, I cannot answer this question, it is not available to let you all to know. Q: How many branches do you have? A: So far I have 4 branches include this restaurant. 2 branches at Malaysia and 2 branches is at Jakarta, Indonesia. Q: Can you provide us a brief history of your business and its most recent developments? A: Sun Fong Bak Kut Teh established since 1971 by Mr Low Kok Cheng which is my father. At first this business was starting from a small stall until a restaurant now. We serve a variety of Chinese cuisines with their special “Bak Kut Teh”. The main essence of my restaurant is derived from the secret soup recipe. The reason of starting this business is because my father wanted to let more people taste the real traditional Bak Kut Teh even expand to other countries like Macau, China, Australia and etc. Q: Do you have many competitors? Who are they? A: Yes, there are two Bak Kut Teh restaurants around my restaurant which is Yu Yi Bak Kut Teh and Ah Hee Bak Kut Teh. But we have our own customers, because different people have different taste. It depends on the taste of the customers. Q: How much capital is required to start this business? Do you need any knowledge or skills to run this business? A: To start a business I think we need at least RM 200k to 300k to renovate the restaurant. Q: Generally, do you feel it is easy or hard to enter this market? Why? A: It’s hard when starting and I’m not sure that whether the business will be successfulas there are too many restaurants in Kuala Lumpur. Besides, it also depends on the location.
- 29. 29 Q: What strategies do you employ to promote your product? A: We promote our restaurant on the Air Asia magazine at Malaysia and Indonesia. We also promote on the Singapore airline magazine. Q: What is the future plan for your business? A: In the future I will open some branches at Jakarta, Indonesia again and maybe we will open some branches at Macau or China. In the future we will build a VIP room for celebrities.
- 30. 30 Appendix 3 (Minutes of Meeting) MINUTES OF THE MEETING DATE: 8/1/2015 9/1/2015 10/1/2015 TIME: 11am – 2pm 12pm – 6pm 12pm – 4pm VENUE: E 6.13 & Library Discussion Room 3.2 Library Discussion Room 3.2 Library Discussion Room 3.1 NAMES OF GROUP MEMBERS TUTORIAL GROUP ROLE ATTENDANCE Chong Yu Xuan Tuesday Comparative Analysis (All), Photographer Present Yong Sing Yew Tuesday Brief Bio of business (Sun Fong), Appendix 1, Note Recorder Present Kong Zhen Chung Tuesday Brief Bio of business (Sun Fong), Recommendation, Interviewer Present Welson Lum Wei Jiunn Tuesday Comparative Analysis (All), Key Summary, Note Recorder Present Ng Hong Bin Tuesday Brief Bio of business (Ah Cham), Appendix 2, Interviewer, Artistic Cover Present Chong Wai Loon Thursday Appendix 2, Note Recorder Present NO. ACTIVITY ACTION TAKEN BY 1. Decide on which shop to interview and what the question. All Members 2. Decide specific tasks to each member. All Members
- 31. 31 Bibliography 1) DonaldE.Lundberg.(1994) The Hotel AndRestaurantBusiness.NY. 2) TiffanyLambert.(2003) Restaurantpromotionandpublicity.Ocala,Fla. 3) KarenE.Silva,DebraM.Howard.(2006) Hospitality&Tourism.NY.
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