This document is a presentation comparing two Bak Kut Teh businesses in Malaysia - Ah Cham Bak Kut Teh in Klang and Sun Fong Bak Kut Teh in Kuala Lumpur. It finds that Sun Fong is more commercially successful due to having multiple branches across Malaysia and Indonesia, strategic locations near tourist areas, longer operating history since 1971 compared to Ah Cham starting in 1995. The presentation provides details on the history, operations, customers, competitors and analyses of each business. It recommends ways for Ah Cham to improve through expanding locations, renovating facilities, diversifying menus and doing more advertising.

1. SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN
FOUNDATION IN NATURAL BUILD ENVIRONMENT
PRESENTATION TITLE: BAK KUT TEH
GROUP MEMBERS:
Names Student ID Number
Welson Lum Wei Jiunn 0319514
Yong Sing Yew 0318766
Kong Zhen Chung 0319528
Chong Wai Loon 0319745
Principles of Economics ECN30205
LECTURER: Mr. Chang Jau Ho
SUBMISSION: 25th January 2015

2. 2
TABLE OF CONTENTS
1. Key Summary 3
2. Description History of the Business 4-5
3. Brief Bio of the Business 6-9
4. Comparative Analysis of the Business 10-12
5. The Competitors 13
6. Obstacles Faced By New Businesses 14-15
7. The Nature of The Markets 16
8. Summary Table 17-18
9. Analysis 19
10. Recommendation 20
11. Appendix 1 (Pictures) 21-22
12. Appendix 2 (Interview Questions) 23-28
13. Appendix 3 (Comparative Analysis Summary Table) 29
14. References 30

3. 3
The Key Summary
In this English research assignment, we compared 2 business of similar industry in Klang Valley.
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.

4. 4
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.

5. 5
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.

6. 6
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

7. 7
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.

8. 8
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.

9. 9
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.

10. 10
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

11. 11
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

12. 12
media such as Facebook,
Twitter and Instagram.
through the Air Asia’s
magazine, Tiger Airlines and
Singapore Airlines.

13. 13
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

14. 14
Obstacles Faced By New Businesses
Financing Problems
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.

15. 15
Getting Customers
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.

16. 16
The Nature of the Markets
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.

17. 17
Summary Table
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.

18. 18
Future plan 5) The restaurant does not
have any future plans.
5) The restaurant is planning
to expand to Macau or
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.

19. 19
Analysis
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.

20. 20
Recommendation
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 of 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.

21. 21
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
Group photo after the interview

22. 22
Sun Fong Bak Kut Teh
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
Group photo after interview

23. 23
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.
Q: Who are your customers?

24. 24
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?

25. 25
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.

26. 26
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?

27. 27
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.

28. 28
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.

29. 29
Appendix 3(Comparative Analysis Table)
Competitive Traits Business A
(Ah Cham’s Bak Kut Teh)
Business B
(Sun Fong’s Bak Kut Teh)
1.Number of competitors
Approximately 800 shops of
Bak Kut Teh.
2 to 10 Bak Kut Teh shops
2.Barrier to entry
Have a weak barrier to
entry.This is because Klang is
a place that famous with Bak
Kut Teh and the market have
unlimited number of Bak Kut
Teh Shops
Have a strong barrier to entry.
This is because in Jalan Imbi
there are only few close
substitute products.
3.Differentiated or
standardized products Sell standardized product Sell differentiated products.
For example, sea foods, fried
dishes, and porridges.
4.Pricing power
It has a weak pricing power.
This is because most of the
customers treat the Bak Kut
Teh in Klang is the same so
they will only go to the shop
with the lowest price of Bak
Kut Teh. Therefore they have
a weak pricing power.
It has a strong pricing power.
This is because in Jalan Imbi
there are only 3 shops of Bak
Kut Teh. So the products sell
in Sun Fong Bak Kut Teh’s
products have no close
substitutes. Therefore they
have a great pricing power.
5.Other characteristics Although Ah Cham Bak Kut
Teh do not have a great
pricing power but they strive
to differentiate their products
like they provide a good
customer service so that the
customers will come back
again and introduce the shop
to their friends.
It have a constant advertising
which Sun Fong Bak Kut Teh
will advertise their products
through Air Asia Airlines and
Singapore Airlines.
6.Verdict
Perfect Competition Oligopoly

30. 30
References
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bak-kut-teh-bukit-bintang-kuala-lumpur/88278
2) A. Cham(personal communication,December13, 2014)
3) D. Low (personal communication,December5,2014)
4) 新峰肉骨茶.(n.d.).Retrievedfrom
http://you.big5.ctrip.com/food/kualalumpur45/4927395.html
5) SunFoong Bak KutTeh at Imbi.(n.d.).Retrievedfrom http://kyspeaks.com/2010/10/27/sun-
foong-bak-kut-teh-at-imbi/
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