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PRETTYFOODCOURTS
GOODFOODCOURTS
Factors that Affect the
Success and Failures of
Food Establishments in
Malaysia
2
contents
About the Research
Food Court Typologies
Outdoor Case Study: Tapak Urban Street Dining
Indoor Case Study: Selera Street
	Location
	 Food Variety
	 Food Quality
	 Seating Plans
	 Design and Ambiance
	Numbers
Things to Ponder
Conclusion
References
3
4
7
8
9
10
11
12
14
16
17
18
19
3
about the research
Perhaps the most identifiable characteristic of the Malaysian culture
is its association with the local food. Malaysians are proud of their
local cuisines that it often becomes the main attraction for tourists
to visit the country. Food forms the very fabric of the community due
to its ability to bridge social gaps in Malaysia. It is no surprise then,
that food establishments such as 24-hour restaurants, food courts,
food trucks and fast food chains are ubiquitous in Malaysian cities
especially within the Klang Valley.
The success rate of food establishments in Malaysia however, are
mixed. Some outlets seem to prosper beyond expectation with
customers lining up just to get a place to sit whilst others may
struggle to pull in even 10 customers a day.
The purpose of this research is to explore the factors that affect
the success or failure of food establishments in Malaysia, based
on hypotheses relating to the ambiance of a food outlet as well as
the quality of food served. The research will look into which factor
affects the success of a food establishment more, assuming that
other variables such as economics and demographics are constant.
3
4
Open Outdoor Indoor Air-Conditioned
The first parameter
in the research is the
typology of the food court.
In Malaysia, there are mainly
two typologies for food courts;
the outdoor, hawker-style food area,
and the modern, air-conditioned, indoor
food courts normally found in shopping malls.
The typology affects:
•	 the ambiance
•	 comfort
•	 cleanliness
•	 variation of food outlets
•	 customer demographics
•	 quality of food
•	 price
food court
typologies
4
5
outdoor
typology
a
bc
d
a: semi open or completely open roof
b: basic stalls, height of human scale
c: open to traffic
d: “lepak” culture
6
a
b
c
indoor
typology
a: air-conditioned and decorated finishing
b: standardised signage
c: clean floors
7
outdoor
food court
case study:
tapak urban street dining,
jalan ampang
6pm - 12 am daily
24 food trucks
2,879.91 m²
Operating Hours
No. of outlets
Floor Area
8
indoor
food court
case study:
selera street,
sunway putra mall
10am - 10 pm daily
35 food outlets
2,027.81 m²
Operating Hours
No. of outlets
Floor Area
9
Jal
anAmpang
location
JalanKinabalu
KLCC
PWTC
Tapak
Selera
Street
Location
Crowd
Location
Crowd
Verdict: Tapak
10
food variety
Local Local
Foreign
Verdict: TieD
Foreign
Overall Overall
selera street,
sunway putra mall
tapak urban street dining,
jalan ampang
Although there is relatively less variety in terms of food choices at Tapak, the set up as a food truck
gives it flexibility to refresh the food offerings every few weeks, which is an advantage over fixed food
courts like Selera Street
11
food quality
Local Local
Foreign Foreign
Overall Overall
selera street,
sunway putra mall
tapak urban street dining,
jalan ampang
Since Selera Street’s restaurant operators were curated from a list of established
F&B companies, they offer better food quality in terms of taste and presentation.
Verdict: Selera Street
12
Advantages
Disadvantages
TapakUrban
S
treet Dining
open
seating
plan
•	 More available seats
overall
•	 Freedom to mix and
match purchases
•	 Can accommodtate
larger groups
•	 Some tables not
cleaned
•	 More competition
for tables & table
hoarding
•	 Less privacy
12
13
Selera
Street
closed
seating
plan
Advantages
Disadvantages
•	 Each store can
customise the look and
layout of tables
•	 Ability to make
reservations
•	 Cleaner tables
•	 Inability to mix
food from different
restaurants
•	 Less seats in general
•	 Less space for large
groups to hangout
13
14
design &
ambiance
a
c
b
a
b
c
a: impressive view of the city
b: practical decorative lighting
c: simple, authentic stalls
a: superficial / extensive decoration
b: established f&b outlets
c: limited walking space to maximise 		
floor area of food outlet 14
15
design &
ambiance
Inviting? Inviting?
Superficiality Superficiality
Overall Overall
selera street,
sunway putra mall
tapak urban street dining,
jalan ampang
Tapak’s location in the city centre, as well as its open floor space and unpretentious
furnishings gives it a more inviting vibe.
Verdict: Tapak
16
numbers
Approx. Daily Crowd
Approx. Monthly Revenue Per Outlet
520
RM23,400
300
*
RM13,950
* on a working day
Note: Approximation was based on research
with at least 2 vendors on daily turnover rates
and average price of items. Assumptions
include average spending of RM30 per
person and that every stall receives similar
number of customers daily. Verdict: Tapak
16
17
Things
toPonder
Are food trucks just a hype?
are typical mall food courts dying?
What would be the next trend?
18
How to create a successful food Court?
Location Spatial
Planning Ambiance
conclusion
Location can be the main
generator of crowd for
a food establishment.
A good location should
consider accessibility,
traffic flow, culture and
demographics of the
customers.
Effective spatial planning
directly impacts the
customers overall
satisfaction with food
courts, as it affects
turnaround time, ease of
circulation and comfort.
The overall ambiance of
a food court is generally
the “cherry on top” to
help food operators gain
loyal customers and
establish the company
brand for the longevity of
the business.
18
1919
references
Wan Mohamed Radzi, Che Wan Jasimah et al. Food Intake In Malaysian Culture And Society: Focus On
The Younger Generation. Kuala Lumpur, Department Of Science And Technology Studies, Faculty Of
Science, University Of Malaya, 2015, https://umexpert.um.edu.my/file/publication/00003939_60280.pdf.
Craving Success: Introduction To Critical Success Factors In The Restaurant Industry & An Overview Of
Two Successful Restaurateurs. 2008, http://arrow.dit.ie/cgi/viewcontent.cgi?article=1037&context=dgs.
Food And Beverages Industry - Key Success Factors. Pefindo Credit Rating Agency, 2017, http://www.
pefindo.com/index.php/fileman/file?file=314.
20
FIN.
by Nik Ahmad Munawwar Nik Din
0325167

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fnc a5 research booklet

  • 1. 1 PRETTYFOODCOURTS GOODFOODCOURTS Factors that Affect the Success and Failures of Food Establishments in Malaysia
  • 2. 2 contents About the Research Food Court Typologies Outdoor Case Study: Tapak Urban Street Dining Indoor Case Study: Selera Street Location Food Variety Food Quality Seating Plans Design and Ambiance Numbers Things to Ponder Conclusion References 3 4 7 8 9 10 11 12 14 16 17 18 19
  • 3. 3 about the research Perhaps the most identifiable characteristic of the Malaysian culture is its association with the local food. Malaysians are proud of their local cuisines that it often becomes the main attraction for tourists to visit the country. Food forms the very fabric of the community due to its ability to bridge social gaps in Malaysia. It is no surprise then, that food establishments such as 24-hour restaurants, food courts, food trucks and fast food chains are ubiquitous in Malaysian cities especially within the Klang Valley. The success rate of food establishments in Malaysia however, are mixed. Some outlets seem to prosper beyond expectation with customers lining up just to get a place to sit whilst others may struggle to pull in even 10 customers a day. The purpose of this research is to explore the factors that affect the success or failure of food establishments in Malaysia, based on hypotheses relating to the ambiance of a food outlet as well as the quality of food served. The research will look into which factor affects the success of a food establishment more, assuming that other variables such as economics and demographics are constant. 3
  • 4. 4 Open Outdoor Indoor Air-Conditioned The first parameter in the research is the typology of the food court. In Malaysia, there are mainly two typologies for food courts; the outdoor, hawker-style food area, and the modern, air-conditioned, indoor food courts normally found in shopping malls. The typology affects: • the ambiance • comfort • cleanliness • variation of food outlets • customer demographics • quality of food • price food court typologies 4
  • 5. 5 outdoor typology a bc d a: semi open or completely open roof b: basic stalls, height of human scale c: open to traffic d: “lepak” culture
  • 6. 6 a b c indoor typology a: air-conditioned and decorated finishing b: standardised signage c: clean floors
  • 7. 7 outdoor food court case study: tapak urban street dining, jalan ampang 6pm - 12 am daily 24 food trucks 2,879.91 m² Operating Hours No. of outlets Floor Area
  • 8. 8 indoor food court case study: selera street, sunway putra mall 10am - 10 pm daily 35 food outlets 2,027.81 m² Operating Hours No. of outlets Floor Area
  • 10. 10 food variety Local Local Foreign Verdict: TieD Foreign Overall Overall selera street, sunway putra mall tapak urban street dining, jalan ampang Although there is relatively less variety in terms of food choices at Tapak, the set up as a food truck gives it flexibility to refresh the food offerings every few weeks, which is an advantage over fixed food courts like Selera Street
  • 11. 11 food quality Local Local Foreign Foreign Overall Overall selera street, sunway putra mall tapak urban street dining, jalan ampang Since Selera Street’s restaurant operators were curated from a list of established F&B companies, they offer better food quality in terms of taste and presentation. Verdict: Selera Street
  • 12. 12 Advantages Disadvantages TapakUrban S treet Dining open seating plan • More available seats overall • Freedom to mix and match purchases • Can accommodtate larger groups • Some tables not cleaned • More competition for tables & table hoarding • Less privacy 12
  • 13. 13 Selera Street closed seating plan Advantages Disadvantages • Each store can customise the look and layout of tables • Ability to make reservations • Cleaner tables • Inability to mix food from different restaurants • Less seats in general • Less space for large groups to hangout 13
  • 14. 14 design & ambiance a c b a b c a: impressive view of the city b: practical decorative lighting c: simple, authentic stalls a: superficial / extensive decoration b: established f&b outlets c: limited walking space to maximise floor area of food outlet 14
  • 15. 15 design & ambiance Inviting? Inviting? Superficiality Superficiality Overall Overall selera street, sunway putra mall tapak urban street dining, jalan ampang Tapak’s location in the city centre, as well as its open floor space and unpretentious furnishings gives it a more inviting vibe. Verdict: Tapak
  • 16. 16 numbers Approx. Daily Crowd Approx. Monthly Revenue Per Outlet 520 RM23,400 300 * RM13,950 * on a working day Note: Approximation was based on research with at least 2 vendors on daily turnover rates and average price of items. Assumptions include average spending of RM30 per person and that every stall receives similar number of customers daily. Verdict: Tapak 16
  • 17. 17 Things toPonder Are food trucks just a hype? are typical mall food courts dying? What would be the next trend?
  • 18. 18 How to create a successful food Court? Location Spatial Planning Ambiance conclusion Location can be the main generator of crowd for a food establishment. A good location should consider accessibility, traffic flow, culture and demographics of the customers. Effective spatial planning directly impacts the customers overall satisfaction with food courts, as it affects turnaround time, ease of circulation and comfort. The overall ambiance of a food court is generally the “cherry on top” to help food operators gain loyal customers and establish the company brand for the longevity of the business. 18
  • 19. 1919 references Wan Mohamed Radzi, Che Wan Jasimah et al. Food Intake In Malaysian Culture And Society: Focus On The Younger Generation. Kuala Lumpur, Department Of Science And Technology Studies, Faculty Of Science, University Of Malaya, 2015, https://umexpert.um.edu.my/file/publication/00003939_60280.pdf. Craving Success: Introduction To Critical Success Factors In The Restaurant Industry & An Overview Of Two Successful Restaurateurs. 2008, http://arrow.dit.ie/cgi/viewcontent.cgi?article=1037&context=dgs. Food And Beverages Industry - Key Success Factors. Pefindo Credit Rating Agency, 2017, http://www. pefindo.com/index.php/fileman/file?file=314.
  • 20. 20 FIN. by Nik Ahmad Munawwar Nik Din 0325167