2Research on Coffee ShopAssignment 2 – Comparative ResearchEnglish 2 (ENGL0205)Group Members:Cheong Siew Leong 0310845Yip Chin Seng 0311956Lee Yuan June 0311128Kelvin Chiew Kah Kheng 0311848
3Table of ContentsSection PageArtistic cover (Front) 1Cover page 2Table of content 3Research Proposal 4Research Paper 5-14Reference and citation 15-16Minutes of meeting 17-18Appendix 19-20Artistic cover (Back) 21
4The Research ProposalName: Cheong Siew Leong, Yip Chin Seng, Kelvin Chiew Kah Kheng, Lee Yuan JuneClass: English 2Period: Tuesday & WednesdayINTRODUCTION:Our research report is about the coffee shop businesses in Penang and Kuantan. Otherthan that, it is mainly concerned about the concept and style of the coffee shop.RESEARCH QUESTIONS:1. Origin or family history of the business that we are studying.2. The products are marketed to international or local businesses? Who are themain customers? Why will the products attract these groups of people?3. How does the business advertise and does it advertise? Are the productsdistributed to various places and where are the places? Why are they distributedin this manner?4. Who is their business enemy? How are they threatening the trade? Whatstrategies are used to counter the threats or competition?5. What trade policies have been put in place by the government so far? What aretheir impacts?6. How does technology affect the trade? Which technology has the biggestimpact? What are the positive and negative impacts?7. What is the future of the trade? Is the industry growing or stagnating? What areplanning for the next 10 years?8. What have they experienced in the past to achieve these goals? What is themost important aspect in building this business?9. What is their business concept and what are their business principles?10. What are the extra services provided to the business?METHODOLOGY:Each of us will talk respectively.1. Greet them politely.2. Show evidence that we are coming from Taylor’s University Lakeside Campus.3. Ask permission to interview them.4. Talk in a soft voice tone.5. Request to take photos with them and their shop.6. Thank them for being cooperative with us.CONCLUSION:We expect that they will cooperate with us so that we can interview them. Besides, wetry not to annoy them in the process of interview. Moreover, we hope that we can obtaininformation such as historical background of their businesses and the method they usedto achieve their goals. Other than that, we also try to gain permission to take photos withthem and their shops.
5Research PaperFirst of all, this research paper is about the coffee shops that we haveinterviewed on our study trip to Penang and also coffee shop from Kuantan, Pahang.We chose to do interviews on coffee shops as instructed by lecturer. Coffee shops arealso known by most of the people in Malaysia as “Kopitiam”. Coffee shop culture inMalaysia is very famous among the Malaysians where they will enjoy chatting with theirfriends on weekend and business partners on weekday while enjoying their coffees. Thetype of coffees are generally separated into two types which are the local coffee andforeign coffee. Local coffee is coffee that is locally brewed such as Ipoh White Coffeewhereas foreign coffee is referred to non-locally brewed coffee, for example Starbuckscoffee. Coffee is originated from Arab and then it is spread to the Europe. TheEuropeans are the main contributors to the wide spread of coffee around the world. TheBritish brought in the coffee into Peninsular Malaysia during their colonization and theygrew it in large scale as coffee was one of the most profitable trade products at that timeand so it is today. There are many ways to drink coffee, for local Malaysians, we preferthe “Kopi-O-Kao” which also means saturated black coffee in Hokkien while others willmost probably choose to put sugars and cream if they cannot stand the bitter taste oforiginal coffee. As for non-local coffee, one can enjoy the coffee in varieties of way. Themost well-known ways are probably the ice-blended or iced and Espresso based coffee.Follow on, for both types of coffees, some of the coffees are presented in artistic waysby incorporated patterns on the coffees. These have made the coffee not only tasty todrink but also as an art piece as good skills are needed to create a nice and flawlesspattern.
6Secondly, the first coffee shop that we have interviewed is a non-franchisewestern styled coffee shop. The name of the shop is 42 La Boheme and it is located atJalan Sri Bahari Road which is a side road beside the renowned Penang Road. It wasopened by a married couple at about 2 years ago (2011). From our interview, we foundout that the reason the married couple chosen to open the coffee shop is to earn a livingas they already have a small child. The husband is a pastry chef and he isaFrench. Hetold us that he have graduated at 16 years old from school and after that he started tolearn how to make pastries. Then, he knew her wife while he was on a trip. Besidesselling their pastries at their shop, they also have customers from others coffee shops tobuy their products to sell but it is just in minimum amount. Their main customers are stillcustomers that visited their shop. Follow on, we have been informed that most of theircustomers on weekday are working class people whereas on weekend are families.Besides that, as their shop is located at the heart of Georgetown which is also awardedby the UNESCO as one of the world heritage sites, this has attracts a lot of travelersfrom others countries as well as the Malaysians. This in turn will give the shop anopportunity to have more customers and so they are basically targeting bothinternational and local market.Thirdly, the owners of the coffee shop will do their promotion by having goodconversation with their customers face-to-face. The customers are the main promotersof their coffee shop. Nevertheless, they have Facebook page too which will provide theirpotential customers important information such as the location and business hour.Follow on, a lot of similar coffee shops have opened in Penang at the rate of about oneevery two months and this has posed a serious threat to their coffee shop. Some of the
7competitors have big modal and so they can have a better equipped shops in betterlocations. In order to survive, they face the competitors by doing their best in operatingthe shop and not planning to compare with others as that might affects their overallmorale. In addition, they are facing threat from high rent too, so in order to save money,they do not employ anyone to help in the coffee shop and they chose to open their shopin a more affordable location which is a shop that is staying outside of main road.Besides, they cut down the cost of operating the business by using recycled furnitureand to our surprise, most of the furniture they have collected are in pretty good shapes.After that, through our interview, we also found out that no government policy ishelping the business and the business environment is getting tougher and tougher asthe rent is climbing. Furthermore, the prices of materials are rising too even thoughsome of them such as sugar and flour are subsidized by the Malaysian government.Next, the technology of internet has played a big part in their business as it has helps topromote their coffee shop through social website such as Facebook and also throughfood blogs. Last but not least, the owners think that their business will be able to survivefor the next ten years and the industry will keep on growing especially in Penang whichis a famous tourism location.Next is about an interesting coffee shop named Moontree47. Moontree47 is aprivate established café and has 3 years of operating history since 2010. The shop islocated in Muntri Street Penang which is under Local Heritage coverage to keep theoriginal appearance of the building which is also an old house. As it is only in the earlydevelopment of its business, it does not include any origin or family history in the past.The café only closed on Wednesday and its operating hours are from 9am till 10pm.
8This business only markets its products to local people while its target customers arepeople ranges from 20 years old and above, tourists are also one of the targeted groupsbecause Moontree47 has been listed as a heritage building in Muntri Street. Thisattracts them because it is a unique café that it combines Italian cafe, art gallery andhomestay together while also keeping the vintage of the old shop.On the other hand, in term of advertisement, the business uses both old and newways to promote their coffee products, which is through the traditional mouth-to-mouthmethod and the trending Facebook advertisement way, where Moontree47 posts theupcoming and experimental coffee on their page. Besides, they have no productsdistributed to any external seller such as supermarkets and shopping malls but it is onlyavailable for walk-in customers to have a taste on the homemade Italian coffee. While inthe aspect of business enemy, there are no specific competitions stated that havethreatened their café business, but the owner rather has a lot of friends around inGeorgetown that have involved in coffee shop businesses with different styles and thathe would like to share experience with them to produce better coffee for the customers.By the way, government policy has no any impact or any advantage on the businessitself.Technology has affected the trade as people tend to take photos before orderingthe coffee themselves, these technologies including photo sharing websites and socialnetworks which allow people to post their photos and share it to others. However, thesetechnologies have its advantage and disadvantage, which the benefit is it is able topromote their coffee for free and introduce the café to the people as well, while theweakness is it allows a person to judge a product based merely on its appearance
9without having a try on it, and that they may post their opinions under the photos whichmay affect the others. In addition, the future vision of this trade is to promote thehandmade culture in Penang. It is set as the main target for the café because it is one ofthe traditional arts of Penang and the state currently has no proper handicraft in thebusiness industry. Nonetheless, it is also viewed as a rich and tough culture by theowner because of its delicateness and is presently a growing industry in this state. Inthe case of handicraft, the owner likes to repair or make his café chairs and tableshimself and involves a lot of old type decorations such as the fan and old pictures in hisshop to create an old-fashioned style.The owner stated that he has a tough life experience in order to achieve what hehas today. This includes that he has studied several times on graphics design coursesbefore changing to Italian coffee career. But as a result of his study, he owns an artgallery in Penang and thus he combined all of his experiences together and establishedthis café which includes the two essences as well as the old house in Muntri Street,which is capable to make it as a homestay. He clarifies that hiring people is the hardestpart in constructing his business and he has done many things on his own includingrepairing the furniture as stated before. Other than that, Moontree47’s concept is toconserve the vintage of the old house or shop while combining the essences as well,whilst its principle is to provide suitable coffee for each group of its customers in order toguarantee their satisfactions. The café provides extra services such as free Wifi for thevisitors and guest for their homestay, while the bicycle rental is for the tourists’convenience to sightsee the state, Penang.
10Furthermore, we not only visited coffee shops that are locatedin Penang but wehave also visited a coffee shop in Kuantan which named New HupLekKopitiam. NewHupLekKopitiam is a business which started by a family and they actually moved froman old shop to a new shop which is located in Taman Timur. Besides that, their familybusiness already have 20 years’ time and now the coffee shop is a self-own shop andcontinued by the old owner’s son. Also, most of their workers are from home(housemaid) or hired outside with salary about RM2000. Their business day is fromMonday to Saturday from 8am to 3pm, and they have one day off which is Sunday.NewHupLekKopitiam is selling some foods in their business such as nasilemak, curry mee,dry mee and so on. Not only the foods are they selling in their business, they alsoselling drinks in their business, the most famous drink in their business is their milk tea,which we call “Teh C” in Malay. Besides that, their business is a local business becausemost of their customers are local citizen. Also, most of their local customers are adult,most of them are male with the age about 20 to 40, it is because most of them arebusiness man and they will go to New HupLekKopitiam for their breakfast. In ourresearch, the reasons why peoples went to New HupLekKopitiam are because of theworkers service and effectiveness of the workers, the workers are nice and friendly, andthey served their foods and drinks very fast. Not only the service, customers also saidthat the New HupLekKopitiam’s milk tea is the best in town.For the promotion, they mostly promote their foods and drinks through thecustomers and they have no distribution to other places, they sold their products only atthe business premise. They have told us that they need more customers to promotetheir products, it is because the area that they starting their business have many
11competitors who also selling the same products, examples of the competitors areLembingKopitiam, Old Forest Cafe, Lai YienKopitiam and so on. The competitors arequite threatening because most of the coffee shops are the old business in the area,and most of the old citizens will go to the other coffee shops to enjoy their food. Also,some of the competitors are new businesses but their shops have provided Wi-Fiservice to their customers and New HupLekKopitiam does not provided Wi-Fi, thereforetheir business are quite threatening by the competitors. So, the only way they canattract more customers to the shop is to upgrade their products and the worker’seffectiveness.The owner also told us that the government does not help them much with thegovernment policies; it is because the prices of the ingredients have risen over theyears. Besides that, the technology nowadays does not affect their business; it isbecause they do not use any of the technology such as promoting their products viaFacebook page. They said that they wanted to continue their business with traditionalway so the new generation will know more about the traditional things.Lastly, the owner has told us that he is not planning to open more shops becausethis is their family business and he should not let outsider to continue their business. Healso said that he hopes to earn more money in the next 10 years because of theinflation; he also planned to hand over his business to the next generation after heretired.After that, we have been able to identify one of the similarities between three ofthe coffee shops which is the serving type of the waiters in the coffee shop. The serving
12type of the shops are not self -services but are all well-served by the waiters of thecoffee shop. The waiters there will make sure that the foods and drinks ordered by thecustomers are all being sent to them on time and none of the orders will be forgotten.Besides that, the ordering systems of the three coffee shops are also the same. Theorders are all in hand-written by communicating face to face between the waiters andthe customers. None of the orders are recorded using machine or computerized toavoid any problems that may occur during the ordering process.The business types of those three coffee shops are all private limited companies.Private limited company is a type of company that offers limited liability, or legalprotection for its shareholders but that places certain restrictions on its ownership(BusinessDictionary.com). There are some differences between the business tactics ofthe three coffee shops from the aspect of shop location; the 42 La Bohemeand NewHupLekKopitiam are using their own houses to run their businesses, which mean thattheir houses are also their shops. On the other hand, the Moontree47 coffee shop isseparated. Nevertheless, all of them rented for shop lots to run their businesses.Furthermore, there are also no Wifi services for 42 La Boheme and NewHupLekKopitiam. Two of these coffee shops do not provide Wifi services because theshops were built a long time ago and at that time there are no Wifi being used. For theMoontree47 coffee shop, there is Wifi service because the shop has been modifiedrecently. This is a tactic that being used to attract young customers. We have alsointerviewed the owners’ background from 42 La Boheme, New HupLekKopitiam andMonntree47. The owner of 42 La Boheme is a French, the owner of the Moontree47 isfrom Italy whereas for New HupLekKopitiam is a locally Malaysian.
13For the foods and drinks that they sell, since the owners of 42 La Boheme andMoontree47 are both from Western country, the foods and drinks of the shops aremostly westernized. The coffee is all imported from foreign countries. Besides, they arenot offering any set meal. Examples for the coffee made in their coffee shops arecappuccino and latte. Moreover, the foods that they sell are mostly pastries. As for NewHupLekKopitiam, the coffee is locally brewed coffee. This coffee shop doesn’t offer anyset meal too but they sell some local foods such as fried rice and fried noodles that arejust the same with most of the Kopitiam in Malaysia.Next is the design of the coffee shops, we found out that 42 La Boheme andMoontree47 are both in British Colonial style. The shops are designed in this stylebecause both of the shops are old shops that being built during the British colonization.Whereas for New HupLekKopitiam, it is just an old shop lot similar to the shop lots ofMalaysia. The employees of 42 La Boheme and Moontree47 are all their familymembers, none of them are employed. For New HupLekKopitiam, the waiters are allemployed from foreign countries such as Bangladesh. Follow on, 42 La Boheme andMoontree47 are using technology for their advertisements. They publicize their productsby using Facebook where they create a page for their shops and they promote theirfoods and drinks on the Facebook page. For New HupLekKopitiam, the shop alreadyhas about 20 years of operational history so they do not use any technology and also donot have any advertisement. They got free advertisement by being promoted by thecustomers that have patronized their coffee shop. For the customers of three of thecoffee shops, 42 La Boheme and Moontree47 are mostly local and foreigners whereasNew HupLekKopitiam is mostly patronized by locals only. This is because the 42 La
14Boheme and Moontree47 are located in a very famous tourist location which is Penangwhile New HupLekKopitiam is located in Kuantan which does not have that manytourists.In conclusion, from our visits to 42 La Boheme, Moontree47 and NewHupLekKopitiam, we have identified that 42 La Boheme and Moontree47 are operatingtheir businesses in 21stCentury way where they are both using communicationtechnology such as Facebook to help in promoting their shops. Moreover, they areusing heritage buildings to attract tourists too. But this is not the case for NewHupLekKopitiam as they are still operates in the same way since the day they openedthe shop. So, we can say that the tight competitions between businesses in Penanghave lead them to innovate new ways in order to survive while coffee shop in Kuantan isstill operate in a traditional way. And of course, despite the differences between thePenang coffee shops and Kuantan coffee shop, they are still selling coffees that try tosatisfy their customers. We hoped that the traditional local coffee shop will survive for aslong as possible while the modern coffee shop will continue to invent new way ofoperating business.
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17Team Meeting29/5/20135pmLibrary Third FloorMeeting called by: Cheong Siew Leong Type of meeting: DiscussionNote taker: Cheong Siew LeongAttendees: Lee Yuan June, Kelvin Chiew, Yip Chin SengMinutesAgenda item: Research Paper Presenter: Cheong Siew LeongDiscussion: Format for the research paper and work distributionConclusions: Format for research paper was set and works are distributed to each of the group membersAction items Lee Yuan June will work on the Similarities and Differences Cheong Siew Leong will do the introduction, conclusion, compiler andcoffee shop 1. Edwin Yip Chin Seng and Kelvin Chiew will work on their own coffeeshop which is coffee shop 2 and 3.
18Team Meeting 231/5/20137pmCarpenter WorkshopMeeting called by: Cheong Siew Leong Type of meeting: DiscussionNote taker: Cheong Siew LeongAttendees: Yip Chin Seng, Kelvin Chiew and Lee Yuan JuneMinutesAgenda item: Research Paper Presenter: Cheong Siew LeongDiscussion: Collection and examine of workConclusions: Everyone have did their works and handed to Cheong Siew LeongAction items Lee Yuan June finished and handed in Similarities and Differences Cheong Siew Leong finished the introduction, conclusion and coffeeshop 1. He will do the compilation work. Edwin Yip Chin Seng and Kelvin Chiew finished and handed in theirworks on coffee shop 2 and 3 respectively.