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SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN
FOUNDATION IN NATURAL BUILD ENVIRONMENT
REPORT TITTLE: RESEARCH ASSIGNMENT REPORT (CHICKEN RICE SHOP)
NAME ID NO.
KOK KA SHING 0323553
PUI CHUN SHIAN 0323470
CRYSLYN TAN ZHIA LYN 0324249
KIMBERLEY FAY BERNARD LO 0324237
ADAMWONG 0322520
RANDALL MARTIN GUSTAF 0323276
PRINCIPLE OF ECONOMICS (ECN30205)
LECTURER: MS. TAY SHIR MEN
SUBMISSION DATE : 19th JANUARY 2016
2
Table of Contents
Title Page No.
Cover Page 1
Table of Contents 2
Key Summary 3
Research Report
1. BriefBiography ofThe Business
- Brief Descriptionof the Business
- SimilaritiesandDifferencesof Both
Businesses
2. Comparative Analysis
- Numberof Competitors
- Brief Descriptionof Competitors
- CompetitionStrategies
- Obstacles FacedbyNewFirms
- Nature of the Market
- Comparative AnalysisSummary
Table
- Conclusion
4
10
Recommendation 17
Appendices 19
References 34
3
Key Summary
For thisassignment,we were askedtoformgroupsof 5-6 people byourlecturerto collect
data and thenproduce a reportof twosimilarbusinessesindifferentgeographical locations.The aim
of thisassignmentistostudywhichbusinessamongthe twoismore successful intermsof revenue,
commerciallyandcompetitively. We decidedtogowithchickenrice restaurantsasit isa favourite
amongMalaysians.The two chickenrice businessesthatwe choose were KarHeongRestaurant
situatedinSS14, PetalingJayaandSingapore ChickenRice inKuching,Sarawak.Lastly,we wentto
the two locationstoconductand interview tocollectmore informationabouttheirbusinessesto
write ourreport.
4
Brief Description of Kar Heong Restaurant
Kar HeongRestaurantone of the famousrestaurantknownforpreparingonof its main
productswhichischickenrice.Theyare locatedat 60, Jalan SS14/2, Ss 14, 47500 SubangJaya,
Selangor,Malaysia.Throughthe interview thatwe have conducted,we gottoknow that their
restaurantrunsundera familybusinessthathas beenongoingfor10 yearssince the year 2006. The
founderof the businessMr.Tan Eng Aik.Hismotive tostart thisbusinessistomake a livingbecause
at that periodof time the economywasat a recessionhence,Mr.Tanfeelsthatstartinghisown
businessismuchbetterandmore profiatable comparedtoworkingforothers.
5
Kar Heongcurrentlyhas3 brancheswhichare locatedinSS4,SetiaAlamand SS14 whichis
the mainbranch. Accordingto the owner,eachbranch hasapproximatelyhas20 employees.Their
mainproductsare ChickenRice aswell asIpoh Hor FunSoup. The restaurantisknownto be always
packedwithcustomersregardlessof theirage.Accordingtoourinterviewee,AuntyHelen,she
statedthat theydonot have any developmentastheystrive tomaintainthe taste of the food
accordingto theiroriginal recipe tokeepholdof theirloyal customers.
6
Brief Description of Singapore Chicken Rice
Singapore ChickenRice isthe one of the largestchickenrice industryinEast-
Malaysia.The foundersof the businessare Mr.JimmyTan,Mr.JohnsonTan whoare brothersinthe
businessandMr. William.Itwasthe foundedinthe year1987 withitsfirstbranchlocatedinJalan
SongThian Cheok,Kuching,Sarawak,Malaysia. The mainmotive of startingthe businesswas
because theywantedtoenterthe businessof chickenrice due toitspopularityamongstthe
community. The mainheadquartersislocatedatLot7488-7489,Ground Floor.Block16,Taman
Timberland,3rd
Mile,93200, Kuching,Sarawak,Mlayasia.Singapore ChickenRice currentlyhas52
branches inclusive of 12franchisesall aroundEast-Malaysia.There are 20 employeesthatcan be
foundineach branch.
7
The main productsprovidedbySingapore ChickenRice are theirchickenrice whichhastwo
differentflavourconsistsof roastedandsteamchickenrice.DuringpeakhoursSingapore Chicken
Rice is packedwithcustomers of differentage range.Theirbusiness’mostrecentdevelopmentis
‘Value-MealRestaurant’,thisconceptenablesthemtoreduce the costof theirproduct without
jeopardisingthe quality of it.Singapore ChickenRice alsoreducedthe volumeof eachdrink, for
example from450ml to 350ml, whichsave the cost price of theirproduct.The pricesof all items
were increasedlastyeardue tothe implementationof GST.The companytargetsto release atleast
one productmonthly,butit isbasedon the approval of the Director’sTeam, or theirso called‘In-
House Team’.Until the qualityof the foodisaccepted,the release of the productwill be delayed.
8
Similarities and Differences of Chong Kok Kopitiam & Tous Les Jours
SIMILARITIES
Restaurant Kar Heong Similarities Singapore Chicken Rice
Reasonable and affordable Prices Reasonable and affordable
Advertised using newspapers Advertising
Media
Advertised using newspapers
High Shop cleanliness High
Chicken Rice Main product Chicken Rice
9
DIFFERENCES
Kar Heong Restaurant Differences Singapore Chicken
Rice
One Number of founders Three
Selangor Location Kuching
3 Number of shops 52
To work for the
family’s expenses
What prompted them to start the
business?
At that period of
time, there was a
recession so starting
a business was more
profitable than
working as an
employer
20 workers Employees per shop 10 workers
Monday to Friday
9.00am-9.00pm
Saturday and Sunday
9.00am-8.30pm
Business Hour Monday to Sunday
10.00am-10.00pm
Approximately
RM500k
Annual Revenue Approximately
RM1.8 mil
More than 100
customers per day
Number of Customers More than 200
customers per day
They want to leave it
to the future
generation
Future Plan They want to go
international
No Halal Yes
10
Comparative Analysis between Kar Heong Restaurant and Singapore Chicken Rice
I. Numberof Competitors
Kar HeongRestaurant doeshave multiple competitorswithintheirareabutthose
competitorsare notin the chickenrice industry.The intervieweetheydonotfocusontheir
competitorsandinsteademphasizesqualityof theirfoodbymaintainingthe originalitytaste
of theirrecipe.
As forSingapore ChickenRice,theyonlyhave 1maincompetitor whichisSugarBun.
. Sugarbunisa companythat specializes insellingfriedchicken,butalsoside dishessuchas
chickenmushroomsoup,‘nasi lemak’andmanyothers.Sugarbuncanbe saidto be one of
the famousfastfoodrestaurantin Kuching
II. BriefBios of Competitors
a) Kar HeongRestaurant has 0 competitors
b) Singapore ChickenRice has 1 competitor
1. SugarBun
Sugarbunisa companythat specializesinsellingfriedchicken,butalsoside dishessuchas
chickenmushroomsoup,‘nasi lemak’andmanyothers.Sugarbuncanbe saidto be one of the
famousfastfoodrestaurantinKuching.
11
III. CompetitionStrategies
Kar Heong Restaurant Name of Shop Singapore Chicken Rice
Maintaining the quality of
their food. According to the
interviewee, she said that
they do not really focus on
their competitions and
insteadthey try to maintain
or Improve the originality
taste of their recipe.
How do the businesses
compete with their
competitors?
Singapore Chicken Rice also
introducedanotherconcept
which is the ‘Value-Meal
Restaurant’. This concept
reduces the cost of their
products.For example,they
reduce the volume for each
drinks such as from 450ml
to 350ml.
Besides that, Singapore
Chicken Rice also
introduced new concepts
which provides different
variety of food such as
Vietnam, Thai and Indian
food. This attracts different
social groups of people
which consists of students,
adults, elder citizen and
many more others.
12
IV. Obstacles Faced by New Firms
Kar Heong Restaurant Name of Shop Singapore Chicken Rice
Kar Heong Restaurant is located
in ss14. The rental expense in
that any area in Selangor would
actually reduce the revenue of
the business, which then cause
problems in earning more
profit.
The parking space is also limited
at that location. It is usually
very packed with cars and it
may cause jams and
inconvenience for others
especially during peak hours.
Obstacles faced by new
businesses who wish to
enter their markets
today? Are they easy or
difficult to overcome?
As stated by the interviewee,
chicken rice is a common and
famous food in East Malaysia.
There are many other chicken
rice business in Kuching which
will increase the competition
rates, which in turn reduces the
profitability of the business.
Since the business has
franchises, it is hard to keep the
reputation of the business intact.
To maintain the reputation,
more expenses will be required
to provide trainings and other
services which will also reduce
the amount of profit earned.
13
V. Nature of the Market
Kar Heong Restaurant Name of Shop Singapore Chicken Rice
Perfectly competitive as the
location suggests that there are
many shops selling food and
beverages around. The prices
do not affect much because it is
already very reasonable and
affordable
The demand of the customers
are looked into, for example: -
taste and quality, price and
affordability.
What is the nature of
the market?
Very oligopoly due to the food
types sold. There are actually a
variety of foods with different
kinds of styles such as oriental
and western.
The proximity of the locals to the
shop plays an important role to
regulate their routine there as a
lunch and dinner spot.
14
Comparative Analysis Summary Table
Competitive Traits Kar Heong Chicken Rice
Restaurant ( Subang Jaya)
Singapore Chicken Rice
(Kuching)
1. Number of
Competitors
10-20 Less than 5
2. Barrier to Entry Weak barrier to entry.
Entering the market of
foods and bevarages in
Subang Jaya is easy due to a
few factors:
1. Low rental fee.
2. Less competitors
around the area.
3. Subang Jaya, SS14 is
a busy area.
4. Not much choices of
foods around there.
Strong barrier to entry.
Entering the market of foods
and beverages in Kuching is
difficult due to few factors:
1. High rental fees at
certain areas.
2. Kuching is a small
city.
3. Many variety of
foods.
3. Differentiated or
Standardized Products
Standardized products Differentiated products
4. Pricing Power Price taker. They have the
feeble valuing power in
light of the fact that the
organizations have no
capacity to charge a higher
cost than the business
sector cost irrationally. This
will make alternate clients
to swing to different
contenders.
Price taker. They have the
feeble valuing power in light
of the fact that the
organizations have no
capacity to charge a higher
cost than the business sector
cost irrationally. This will
make alternate clients to
swing to different
contenders..
15
5. Other Characteristics Kar Heong Chicken Rice
Restaurant focuses on a few
dishes. For example
roasted chicken, steam
chicken, roasted pork,
barbeque pork. They also
selling Ipoh ‘Hor Fun’ and
other side dishes.
Singapore Chicken Rice has a
variety of dishes with a
fusion of both oriental and
western style. For example,
chicken rice, Cantonese
‘Kueh Tiaw’, Sandwiches,
Chicken chop rice and
others.
6. Verdict Perfect Competition Oligopoly
16
Conclusion
Basedon our analysis,SingaporeChickenRice ismore successful because ithasmore
branches.Itis alsoknownwidelyinMalaysiacomparedtoKarHeongRestaurant.Besidesthat,
Singapore ChickenRice hasexpandedthroughoutthe whole East Malaysiawhile KarHeong
Restauranthas onlyexpandedinto3brancheswhichare all withinthatsmall area.Singapore
ChickenRice hasalso12 franchisesandispursuingto expandtill itisinternationallyrecognisedwhile
Kar HeongRestaurantdoesnothave any franchisesandcurrentlyisnot planningonexpanding
anytime soon.Since Singapore ChickenRice hasbranchesinthe whole of EastMalaysia,the number
of customersvisitingSingaporeChickenRice isdefinitelygreaterthanKarHeongRestaurant.
Singapore ChickenRice isalsomore hi-techthanKarHeongRestaurantbecause theyuse
computerizedcashierequipment.
17
Recommendation
1. Kar HeongRestaurant
KitchenUpgrade
The ownerof Kar HeongRestaurantshouldexpandtheirkitchenasitcurrentlyhasnot
enoughspace forall theiringredientsstorage andalsoforthe workerstoworkmore comfortably
and more efficiently.Besidesthat,theyshouldalsoupgrade the kitchenequipment’sasitisalso
quite old.The kitchenutensilsshouldalsobe changedassome of themare veryoldand dirty.
Advertisementsandpromotions
Theyshouldhave more advertisementstoattract more customersandin returncouldalso
increase theirrevenueandalsopopularityaroundthe areaandalsootherplaces.Notonlythat,they
couldalsohave some promotionslike alunchhourspecial toreel inmore customerslike students
and alsoworkersaroundthe area as theywouldbe lookingforcheapandtastyfoodto eat.
18
2. Singapore ChickenRice
CustomerService
Theyshouldimprove ontheircustomerservice qualityasthere are some reviewsonthe
internetsayingthatthe service qualityisbadandthiscouldruintheirreputationastheyare alsoa
franchise.Theyshouldprovide propertrainingtothe new staffssothat theyknow how the
restaurantoperates.Notonlythat,theyshouldalsotrainthe oldstaff as well toupdate their
knowledge onhowtoserve customersbetter.
Food Quality
Theyshouldalsoprovide trainingtothe chefscookinginthe restaurantsasthere are also
complaintsaboutthe foodqualitybeingnotconsistentall the time.Besidesthat,theyshouldalso
hire more localsto be the chefsinsteadof foreigners.Thisisbecause localsunderstandourculture
more that the foreigners.
19
Appendices
Appendix1: InterviewQuestions
Intro
1. Can youintroduce yourself,yourname,jobposition,office phone number?
2. Whenwas the businessstarted?
Details
3. Who are the keyfounders?
4. How manybranchesare there?
5. How manyfranchise are not franchise?
6. Why the founderwanttostart the business?
7. So inthisbusiness,whatisthe mainproductand otherservices?
8. Can yougive an example of Ala’carte?
9. How muchcapital is requiredtostartthisbusiness?
10. What knowledge doyouneedtostartthisbusiness?
11. Who are yourcustomers,forexample theirage group,income andeducationinfo?
12. What isthe businessannual revenuefigure?
13. So,is there anyrecentdevelopmentinyourbusiness?
14. Who are yourtop 3 competitors?
15. Thenwhat strategiesyouhave tocompete withyourcompetitors?
16. How bigisyour marketshare as well?
17. So isit easyor difficulttoenterthiskindof business?
18. How oftendoyourelease the new product?
19. So whatwas the latestproductof business?
20. Do have any ideaof your nextnew product?
21. How doyou setyour prices?
22. Is itgoingto be betterif yousetyour price lower?
23. So doesthe pricingof your productactuallyaffectyourcustomerandcompetitors?
24. Where wasthe firstbranch?
25. Whenyour businessfirststarted,wasitahawkerstore or a restaurant?
26. How longthat the companytake to openanotherbranch?
27. Whichbranch do youthinkisthe mostsuccessful?
28. How longhave youbeenworking?
20
Appendix2: InterviewQuestionsand Answers
Kar HeongRestaurant
1) What is your name?
Ms. Helen
2) What is your positionin the business?
There isno specificpositiondisregardingthe normal workersbecause the companyisrun
basedon a familybusiness
3) Whenwas the branch opened?
2006
4) Whostarted the business?
Her brotherinlaw(Mr Tan)
5) What’sthe purpose of this business?
Because,wayback intime,the economywasbadand thisbusinesswastosupportthe
family’searningsforthemtohave a comfortable living.
6) How many branches do you have currently?
3
7) Estimate the number of workers perbranch?
We have around13 to 14 workersforthe otherbranches,20 forthe main branchwhichis
inSS14.
8) Where are the other branch locatedother than SS14?
SS4 and SetiaAlam.Theyall holdthe same name ‘Kar Heong’
9) What do you sell inthis business?
Ipohchickenrice and Ipohkuew teow.
21
10) Whoare your customers?
We have all typesof customers,butonlytothose whocan eatnon-halal foodsasour
foodshave pork.We’ll have mostlystudentsduringthe weekdaysandfamiliesduringthe
weekends.
11) What are you working hours?
Weekends9am to 8.30 pm
Weekdays9 am to 9 pm
12) What is your annual profit?
More than 500k ringgits
13) Has the businessinvestedonimprovementsfor the company?
Notmuch, because we don’twantto expandthe family’sbusinesstooquicklyaswe want
to focusmore on qualityratherthanquantity.
14) Do you compete withany otherbusiness?Rivals or some sort?
We don’treallycare aboutour competitorsbecause we’dratherfocusmore onthe
qualityof ourproducts andto worry aboutcompetition.
15) What is the necessaryknowledge to start this business?
You have to knowbasichospitalityskills,basicaccountingforthose handlingthe cashflow
and goodunderstandingof cookingskillsforthe cooks.
16) Is the barrier of entry for the businesshighor low?
It’swas reasonable butnotreallyhardto overcome.
17) Where was the first location for this business?
SS19. We didn’thave a shopbut we startedoutas a hawkerstall.
18) What was the first products you sold?
IpohKuewTeow.
22
19) How was the performance ofyour shopback then?
It didn’tperformwell atfirstbecause of the lackof customers.Afterawhile,loyal
customersstartedto come bitby bit.Thiscouldbe said forthe foreignersandlocal
celebrities.
20) How do you setthe price for your products?
The prices of foodsare set 30% more than the price of the materialsusedtomake the
products.
21) Will the price increase ifthere is any form of inflation?
Yes,because if inflationoccurs,pricesof the materialsneededincreasestoo.
22) Are you satisfiedand happy with the business?
If my customersare happy,that makesus happytoo.
23) How long did it take for the businesstoupgrade from a hawker stall to a lot shop?
2 years
24) Back then whenyour businessjust started,did you face any difficulties?
Yes definitely.Itwasveryhardto gainthe workforce because employingpeoplewashard
at the time andall of the familymemberswere todothe hard labor.
25) Do you consider your businessto be successful?
I can’t say we’re fullysuccessful butwe are stable interms inprofitgains.
23
Singapore ChickenRice
1) Hi, can you introduce yourself,your name,job position,office phone number?
Welcome toAsiaOffice,myname isMichael Sim, soI am the General Manager while in
charge of the operationdepartment.So,ouroffice businesscontactnumberis0823322, this
isour huntingline actually.
2) Whenwas the businessstarted?
SCR wasstartedin the year of 1987
3) Whoare the key founders?
Initially,Iwill saythattheyare a groupof Kuchingbusinessman,shared withsocalled
Johorian.Sothisguy can leadthe Kuchingteaminthe year of 1987.
4) How many branches are there?
If includingall of the scale outprogramme,I wouldsayinclusivefranchisingmore orless
about52 outlets.
5) How many franchise are not franchise?
ThisthingI will update withthe personincharge.There’saround12 outletsfew monthsago
fromSarawak.So from that figure youminusout,itshouldbe around40. Butaccording to
the programme that I mentionedearlier,Januarynextyearmaybe will stand againstthe
marketscenario.
6) What was the motive of the founders to start the business?
The founderas far as we understands.He realizedthatchickenrice isa verycommonfood.
Whoeverinthismarketregardlessof religionscanaccepts itand secondly,chickenrice food
isthe mostpopularfoodinKuching.
24
7) So in this business,whatis the main product and other services?
SCR isknownas our signature dishes,soone ischickenandsecondisrice.Andthe other
one,we knownas Ala’carte.
8) Can you give an example ofAla’ carte?
Our side disheswe categorizedinnoodlesitemslikemee andkueytiow.Thirdlyare western
items.Andof course not forgettingsome Ala’carte vegetables,beancurd.Thisone also
consideredasAla’carte.
9) How much capital isrequiredto start this business?
Accordingto our planning,Iwouldsaywe have a badge markour standard. To be more
appropriate,Iwouldsaythat a unitof shoplotwith2,400 sqft, that mayrequire a capital
RM350, 000 minimum.
10) What knowledge doyou needto start this business?
The importantthingisour Five Departmental Functions.Investorsmustknow how torun
thisfive department.Numberone isthe kitchen.Numbertwo,isbrainstorm.Numberthree,
isthe chickenstalk.Numberfour,isthe cashercounter.Numberfive,isthe management
team. They are the five areas.
11) Whoare your customers,for example theirage group, income and education info?
In the earlystage since 1997 until the late 90’s. SCRfor cast for familyactuallyconcept
because asyou can see our sloganor take thisas our familiesbasedrestaurant.Duringthe
late 90’s, we noticedthe youngstercomingup.Theygofor more fusionstyle.Meaningthat
the table wear,the colouringandeventhe food,some westernmixed withorientedstyle.So
lately,the expressgroupmore onthe youngsters.Two differentgroupof people
25
12) What is the businessannual revenue figure?
We have our owntarget,talkingabouteveryrestaurant,shouldbe able toachieve monthly
salesof 150 thousand.Due tothe fallingdownof market,ourmonthlysalesslightlydropped
down20 to 30 percent.
13) So, is there any recent developmentin SCR?
Yes,we have.We’ve done ittwoto three monthsago,we calleditthe valuedmeal
restaurant.Meaningthat we try to bring downourcost, our perheadwithoutbeing
interrupted.Lowerdownourmanpower.Secondly,we review ourdrinksvolume.For
examples,from400ml we go downto 320ml. Thisis importantforcost saving.
14) Obviouslyyour businesshave a lot of competitors.So who are your top 3 competitors?
In Kuching,we docarry up thissurveylike SugarBuntheyhave the equivalentcomparedto
the international foodlike KFCorMCD theyhave differentconceptandmenu.Iwouldsay
not manycompetitoratthe same of the level butIwouldsaynow the markettrendis going
downI can see that the consumersourroyal customertheyswifttheirchoicesto‘kopitiam’
standard.That is verytrue.Theymove downtocheapersource of food.
15) Then what strategiesyou have to compete with your competitors?
First,we have to bringdownour operationcost,byminimizingunnecessarymanpower.We
try to improve ourstaff productivity,meanthatwe improve ourfoodqualitytoregainour
mostwantedmarketduringthisdifficult time.
16) How big is your market share as well?
Thisis a verygreyarea, Kuchingpopulationhardlytoreach1 million,meanthatpeople at
the city duringdaytime Iwouldsayisaround330 thousand, fromthatpopulationsisvery
hard to justify.There’salotof people theygohome forlunchanddinner.Isnot easyto
justifythe figure.
26
17) So is it easy or difficultto enterthis kind ofbusiness?
I wouldsaythe verycompetitive andthe problemwe are facingnow.Inthe areaof
businessesIwouldsayit’sa verygoodindustry.Aslongas youcan solve yourhuman
resource problem.
18) How often do you release the newproduct?
We targeteverymonthat leastone new product.WE mightalsodelaythe new productto
the followingmonthuntil the qualityisacceptedbythe eighthouse team.
19) So what was the latestproduct of SCR?
Thismonthwe takingabout promotion, there’sisn’tanynew productbecause the school is
reopeningandChinses NewYearsoon.New productonlylaunchduringbigseasonmostof
the times.
20) So, you do have any idea ofyour nextnew product?
Yes,we are still waitingforourR&D departmenttosubmitthe listandwe goingto have our
foodtaste.
21) How do you setyours prices?
It isa standardformulatoset our prizing. Regardlesswhatproductsthe costingworthitout
let’ssayit RM5 we go for RM10 to RM10.50. That isour sellingprice.
22) Is it going to be betterifyou setyour price lower?
It goesinboth ways,numberone youneedtoknow the itemtheyare selling. Let’ssayyou
are buyinglowmaterial Rm2.50,so if you’re lookingfor50% profitit isgoingto be RM 6.
That is the rightway to dobusiness,we are notdoingcharity.
27
23) So doesthe pricing of your product actually affect your customer and competitors?
Yes, definitely ourcustomerfeel thatistoohigh,notworth to eat,it mayaffectour entire
businessrestaurant.Sometime Idocommendonotherrestaurant,I commendtothe coffee
shopboss.At the same time, people feel thatitisworthto eat.People feelit’scleanand
delicious.
24) Where was the first branch?
In 1987 itstartedin JalanSongHeng Chok.
25) WhenSCR first started, was it a hawker store or a restaurant?
It was a coffee shopwithoutairconditioningsellingchickenrice.
26) How long that the company take to openanother branch?
Withintwoyearstheyopenanother branch.
27) Whichbranch do you think isthe most successful?
At the time,itisveryhard to justifybecause the crowdalwaysmovesaround.
28) Previouslythere was a Singapore ChickenRice at Jalan Song but it has changed to a shop
calledSingapore food Street,is that one of your new strategies?
Yes,we provide more varietyof foodsuchas Thai food, IndianFoodandVietnamfood.
29) Wouldyou say it is a success?
It isstill on going, butcurrentlywe are earningprofit.
28
30) How long have you beenworking?
I’ve beenhere 8years
29
Appendix
Thisappendix includesacompilationof interviewdocumentsandphotosof the twocoffee
shopsshowingthe contrastbetweenthe oldendayandmoderndaycoffee shop.Italsoincludes
informationof theirrespectivecompetitorsthatwere recordedinthe processof investigating,
analysingandcomparingbothbusinesses.
A. Kar HeongRestaurant
Exterior of Kar Heong Restaurant
Interior/Ground Floor
30
Interior/First Floor
Exterior View of Kitchen
31
Variety of Food Served
32
B. Singapore ChickenRice
Exterior view of SingaporeChicken Rice
Interior View
33
Main Type of Food Served
Variety of Food Served
34
Reference
Boon Chuan (2013). Retrieved From Website. http://tummyfull.blogspot.my/2013/04/kar-heong-
restaurant-ss14-subang-jaya.html
HUNGRY GO WHERE (24 November 2014). Best chicken rice in Klang Valley. The Malaysian Insider.
Retrieved From Website
http://www.investopedia.com/terms/p/perfectcompetition.asp
Jack Wong (30 August 2010). Singapore Chicken Rice to set up 15 outlets in M'sia. The Star Online.
Retrieved From Website
Jack Wong (28 May 2012). SCR Corp to go regional with franchise. The Star Online. Retrieved From
Website
Jimmy Tan, personal communication. 4 January 2016
Richard G.Lipsey and K.Alec Chrystal (1999). Principle of Economics. United Kingdom: Oxford
University Press; 9th Revised edition
SCR Corp to expand in Sabah and Indonesia. The Star Online. Retrieved From Website
Thomas Sowell (2014). Basic Economics. United States: Basic Books; Fifth Edition
Yvonne Tuah (22 July 2013). SCR targets 100 outlets by year 2018. Borneo Post Online. Retrieved
From Website

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Econs final report

  • 1. 1 SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN FOUNDATION IN NATURAL BUILD ENVIRONMENT REPORT TITTLE: RESEARCH ASSIGNMENT REPORT (CHICKEN RICE SHOP) NAME ID NO. KOK KA SHING 0323553 PUI CHUN SHIAN 0323470 CRYSLYN TAN ZHIA LYN 0324249 KIMBERLEY FAY BERNARD LO 0324237 ADAMWONG 0322520 RANDALL MARTIN GUSTAF 0323276 PRINCIPLE OF ECONOMICS (ECN30205) LECTURER: MS. TAY SHIR MEN SUBMISSION DATE : 19th JANUARY 2016
  • 2. 2 Table of Contents Title Page No. Cover Page 1 Table of Contents 2 Key Summary 3 Research Report 1. BriefBiography ofThe Business - Brief Descriptionof the Business - SimilaritiesandDifferencesof Both Businesses 2. Comparative Analysis - Numberof Competitors - Brief Descriptionof Competitors - CompetitionStrategies - Obstacles FacedbyNewFirms - Nature of the Market - Comparative AnalysisSummary Table - Conclusion 4 10 Recommendation 17 Appendices 19 References 34
  • 3. 3 Key Summary For thisassignment,we were askedtoformgroupsof 5-6 people byourlecturerto collect data and thenproduce a reportof twosimilarbusinessesindifferentgeographical locations.The aim of thisassignmentistostudywhichbusinessamongthe twoismore successful intermsof revenue, commerciallyandcompetitively. We decidedtogowithchickenrice restaurantsasit isa favourite amongMalaysians.The two chickenrice businessesthatwe choose were KarHeongRestaurant situatedinSS14, PetalingJayaandSingapore ChickenRice inKuching,Sarawak.Lastly,we wentto the two locationstoconductand interview tocollectmore informationabouttheirbusinessesto write ourreport.
  • 4. 4 Brief Description of Kar Heong Restaurant Kar HeongRestaurantone of the famousrestaurantknownforpreparingonof its main productswhichischickenrice.Theyare locatedat 60, Jalan SS14/2, Ss 14, 47500 SubangJaya, Selangor,Malaysia.Throughthe interview thatwe have conducted,we gottoknow that their restaurantrunsundera familybusinessthathas beenongoingfor10 yearssince the year 2006. The founderof the businessMr.Tan Eng Aik.Hismotive tostart thisbusinessistomake a livingbecause at that periodof time the economywasat a recessionhence,Mr.Tanfeelsthatstartinghisown businessismuchbetterandmore profiatable comparedtoworkingforothers.
  • 5. 5 Kar Heongcurrentlyhas3 brancheswhichare locatedinSS4,SetiaAlamand SS14 whichis the mainbranch. Accordingto the owner,eachbranch hasapproximatelyhas20 employees.Their mainproductsare ChickenRice aswell asIpoh Hor FunSoup. The restaurantisknownto be always packedwithcustomersregardlessof theirage.Accordingtoourinterviewee,AuntyHelen,she statedthat theydonot have any developmentastheystrive tomaintainthe taste of the food accordingto theiroriginal recipe tokeepholdof theirloyal customers.
  • 6. 6 Brief Description of Singapore Chicken Rice Singapore ChickenRice isthe one of the largestchickenrice industryinEast- Malaysia.The foundersof the businessare Mr.JimmyTan,Mr.JohnsonTan whoare brothersinthe businessandMr. William.Itwasthe foundedinthe year1987 withitsfirstbranchlocatedinJalan SongThian Cheok,Kuching,Sarawak,Malaysia. The mainmotive of startingthe businesswas because theywantedtoenterthe businessof chickenrice due toitspopularityamongstthe community. The mainheadquartersislocatedatLot7488-7489,Ground Floor.Block16,Taman Timberland,3rd Mile,93200, Kuching,Sarawak,Mlayasia.Singapore ChickenRice currentlyhas52 branches inclusive of 12franchisesall aroundEast-Malaysia.There are 20 employeesthatcan be foundineach branch.
  • 7. 7 The main productsprovidedbySingapore ChickenRice are theirchickenrice whichhastwo differentflavourconsistsof roastedandsteamchickenrice.DuringpeakhoursSingapore Chicken Rice is packedwithcustomers of differentage range.Theirbusiness’mostrecentdevelopmentis ‘Value-MealRestaurant’,thisconceptenablesthemtoreduce the costof theirproduct without jeopardisingthe quality of it.Singapore ChickenRice alsoreducedthe volumeof eachdrink, for example from450ml to 350ml, whichsave the cost price of theirproduct.The pricesof all items were increasedlastyeardue tothe implementationof GST.The companytargetsto release atleast one productmonthly,butit isbasedon the approval of the Director’sTeam, or theirso called‘In- House Team’.Until the qualityof the foodisaccepted,the release of the productwill be delayed.
  • 8. 8 Similarities and Differences of Chong Kok Kopitiam & Tous Les Jours SIMILARITIES Restaurant Kar Heong Similarities Singapore Chicken Rice Reasonable and affordable Prices Reasonable and affordable Advertised using newspapers Advertising Media Advertised using newspapers High Shop cleanliness High Chicken Rice Main product Chicken Rice
  • 9. 9 DIFFERENCES Kar Heong Restaurant Differences Singapore Chicken Rice One Number of founders Three Selangor Location Kuching 3 Number of shops 52 To work for the family’s expenses What prompted them to start the business? At that period of time, there was a recession so starting a business was more profitable than working as an employer 20 workers Employees per shop 10 workers Monday to Friday 9.00am-9.00pm Saturday and Sunday 9.00am-8.30pm Business Hour Monday to Sunday 10.00am-10.00pm Approximately RM500k Annual Revenue Approximately RM1.8 mil More than 100 customers per day Number of Customers More than 200 customers per day They want to leave it to the future generation Future Plan They want to go international No Halal Yes
  • 10. 10 Comparative Analysis between Kar Heong Restaurant and Singapore Chicken Rice I. Numberof Competitors Kar HeongRestaurant doeshave multiple competitorswithintheirareabutthose competitorsare notin the chickenrice industry.The intervieweetheydonotfocusontheir competitorsandinsteademphasizesqualityof theirfoodbymaintainingthe originalitytaste of theirrecipe. As forSingapore ChickenRice,theyonlyhave 1maincompetitor whichisSugarBun. . Sugarbunisa companythat specializes insellingfriedchicken,butalsoside dishessuchas chickenmushroomsoup,‘nasi lemak’andmanyothers.Sugarbuncanbe saidto be one of the famousfastfoodrestaurantin Kuching II. BriefBios of Competitors a) Kar HeongRestaurant has 0 competitors b) Singapore ChickenRice has 1 competitor 1. SugarBun Sugarbunisa companythat specializesinsellingfriedchicken,butalsoside dishessuchas chickenmushroomsoup,‘nasi lemak’andmanyothers.Sugarbuncanbe saidto be one of the famousfastfoodrestaurantinKuching.
  • 11. 11 III. CompetitionStrategies Kar Heong Restaurant Name of Shop Singapore Chicken Rice Maintaining the quality of their food. According to the interviewee, she said that they do not really focus on their competitions and insteadthey try to maintain or Improve the originality taste of their recipe. How do the businesses compete with their competitors? Singapore Chicken Rice also introducedanotherconcept which is the ‘Value-Meal Restaurant’. This concept reduces the cost of their products.For example,they reduce the volume for each drinks such as from 450ml to 350ml. Besides that, Singapore Chicken Rice also introduced new concepts which provides different variety of food such as Vietnam, Thai and Indian food. This attracts different social groups of people which consists of students, adults, elder citizen and many more others.
  • 12. 12 IV. Obstacles Faced by New Firms Kar Heong Restaurant Name of Shop Singapore Chicken Rice Kar Heong Restaurant is located in ss14. The rental expense in that any area in Selangor would actually reduce the revenue of the business, which then cause problems in earning more profit. The parking space is also limited at that location. It is usually very packed with cars and it may cause jams and inconvenience for others especially during peak hours. Obstacles faced by new businesses who wish to enter their markets today? Are they easy or difficult to overcome? As stated by the interviewee, chicken rice is a common and famous food in East Malaysia. There are many other chicken rice business in Kuching which will increase the competition rates, which in turn reduces the profitability of the business. Since the business has franchises, it is hard to keep the reputation of the business intact. To maintain the reputation, more expenses will be required to provide trainings and other services which will also reduce the amount of profit earned.
  • 13. 13 V. Nature of the Market Kar Heong Restaurant Name of Shop Singapore Chicken Rice Perfectly competitive as the location suggests that there are many shops selling food and beverages around. The prices do not affect much because it is already very reasonable and affordable The demand of the customers are looked into, for example: - taste and quality, price and affordability. What is the nature of the market? Very oligopoly due to the food types sold. There are actually a variety of foods with different kinds of styles such as oriental and western. The proximity of the locals to the shop plays an important role to regulate their routine there as a lunch and dinner spot.
  • 14. 14 Comparative Analysis Summary Table Competitive Traits Kar Heong Chicken Rice Restaurant ( Subang Jaya) Singapore Chicken Rice (Kuching) 1. Number of Competitors 10-20 Less than 5 2. Barrier to Entry Weak barrier to entry. Entering the market of foods and bevarages in Subang Jaya is easy due to a few factors: 1. Low rental fee. 2. Less competitors around the area. 3. Subang Jaya, SS14 is a busy area. 4. Not much choices of foods around there. Strong barrier to entry. Entering the market of foods and beverages in Kuching is difficult due to few factors: 1. High rental fees at certain areas. 2. Kuching is a small city. 3. Many variety of foods. 3. Differentiated or Standardized Products Standardized products Differentiated products 4. Pricing Power Price taker. They have the feeble valuing power in light of the fact that the organizations have no capacity to charge a higher cost than the business sector cost irrationally. This will make alternate clients to swing to different contenders. Price taker. They have the feeble valuing power in light of the fact that the organizations have no capacity to charge a higher cost than the business sector cost irrationally. This will make alternate clients to swing to different contenders..
  • 15. 15 5. Other Characteristics Kar Heong Chicken Rice Restaurant focuses on a few dishes. For example roasted chicken, steam chicken, roasted pork, barbeque pork. They also selling Ipoh ‘Hor Fun’ and other side dishes. Singapore Chicken Rice has a variety of dishes with a fusion of both oriental and western style. For example, chicken rice, Cantonese ‘Kueh Tiaw’, Sandwiches, Chicken chop rice and others. 6. Verdict Perfect Competition Oligopoly
  • 16. 16 Conclusion Basedon our analysis,SingaporeChickenRice ismore successful because ithasmore branches.Itis alsoknownwidelyinMalaysiacomparedtoKarHeongRestaurant.Besidesthat, Singapore ChickenRice hasexpandedthroughoutthe whole East Malaysiawhile KarHeong Restauranthas onlyexpandedinto3brancheswhichare all withinthatsmall area.Singapore ChickenRice hasalso12 franchisesandispursuingto expandtill itisinternationallyrecognisedwhile Kar HeongRestaurantdoesnothave any franchisesandcurrentlyisnot planningonexpanding anytime soon.Since Singapore ChickenRice hasbranchesinthe whole of EastMalaysia,the number of customersvisitingSingaporeChickenRice isdefinitelygreaterthanKarHeongRestaurant. Singapore ChickenRice isalsomore hi-techthanKarHeongRestaurantbecause theyuse computerizedcashierequipment.
  • 17. 17 Recommendation 1. Kar HeongRestaurant KitchenUpgrade The ownerof Kar HeongRestaurantshouldexpandtheirkitchenasitcurrentlyhasnot enoughspace forall theiringredientsstorage andalsoforthe workerstoworkmore comfortably and more efficiently.Besidesthat,theyshouldalsoupgrade the kitchenequipment’sasitisalso quite old.The kitchenutensilsshouldalsobe changedassome of themare veryoldand dirty. Advertisementsandpromotions Theyshouldhave more advertisementstoattract more customersandin returncouldalso increase theirrevenueandalsopopularityaroundthe areaandalsootherplaces.Notonlythat,they couldalsohave some promotionslike alunchhourspecial toreel inmore customerslike students and alsoworkersaroundthe area as theywouldbe lookingforcheapandtastyfoodto eat.
  • 18. 18 2. Singapore ChickenRice CustomerService Theyshouldimprove ontheircustomerservice qualityasthere are some reviewsonthe internetsayingthatthe service qualityisbadandthiscouldruintheirreputationastheyare alsoa franchise.Theyshouldprovide propertrainingtothe new staffssothat theyknow how the restaurantoperates.Notonlythat,theyshouldalsotrainthe oldstaff as well toupdate their knowledge onhowtoserve customersbetter. Food Quality Theyshouldalsoprovide trainingtothe chefscookinginthe restaurantsasthere are also complaintsaboutthe foodqualitybeingnotconsistentall the time.Besidesthat,theyshouldalso hire more localsto be the chefsinsteadof foreigners.Thisisbecause localsunderstandourculture more that the foreigners.
  • 19. 19 Appendices Appendix1: InterviewQuestions Intro 1. Can youintroduce yourself,yourname,jobposition,office phone number? 2. Whenwas the businessstarted? Details 3. Who are the keyfounders? 4. How manybranchesare there? 5. How manyfranchise are not franchise? 6. Why the founderwanttostart the business? 7. So inthisbusiness,whatisthe mainproductand otherservices? 8. Can yougive an example of Ala’carte? 9. How muchcapital is requiredtostartthisbusiness? 10. What knowledge doyouneedtostartthisbusiness? 11. Who are yourcustomers,forexample theirage group,income andeducationinfo? 12. What isthe businessannual revenuefigure? 13. So,is there anyrecentdevelopmentinyourbusiness? 14. Who are yourtop 3 competitors? 15. Thenwhat strategiesyouhave tocompete withyourcompetitors? 16. How bigisyour marketshare as well? 17. So isit easyor difficulttoenterthiskindof business? 18. How oftendoyourelease the new product? 19. So whatwas the latestproductof business? 20. Do have any ideaof your nextnew product? 21. How doyou setyour prices? 22. Is itgoingto be betterif yousetyour price lower? 23. So doesthe pricingof your productactuallyaffectyourcustomerandcompetitors? 24. Where wasthe firstbranch? 25. Whenyour businessfirststarted,wasitahawkerstore or a restaurant? 26. How longthat the companytake to openanotherbranch? 27. Whichbranch do youthinkisthe mostsuccessful? 28. How longhave youbeenworking?
  • 20. 20 Appendix2: InterviewQuestionsand Answers Kar HeongRestaurant 1) What is your name? Ms. Helen 2) What is your positionin the business? There isno specificpositiondisregardingthe normal workersbecause the companyisrun basedon a familybusiness 3) Whenwas the branch opened? 2006 4) Whostarted the business? Her brotherinlaw(Mr Tan) 5) What’sthe purpose of this business? Because,wayback intime,the economywasbadand thisbusinesswastosupportthe family’searningsforthemtohave a comfortable living. 6) How many branches do you have currently? 3 7) Estimate the number of workers perbranch? We have around13 to 14 workersforthe otherbranches,20 forthe main branchwhichis inSS14. 8) Where are the other branch locatedother than SS14? SS4 and SetiaAlam.Theyall holdthe same name ‘Kar Heong’ 9) What do you sell inthis business? Ipohchickenrice and Ipohkuew teow.
  • 21. 21 10) Whoare your customers? We have all typesof customers,butonlytothose whocan eatnon-halal foodsasour foodshave pork.We’ll have mostlystudentsduringthe weekdaysandfamiliesduringthe weekends. 11) What are you working hours? Weekends9am to 8.30 pm Weekdays9 am to 9 pm 12) What is your annual profit? More than 500k ringgits 13) Has the businessinvestedonimprovementsfor the company? Notmuch, because we don’twantto expandthe family’sbusinesstooquicklyaswe want to focusmore on qualityratherthanquantity. 14) Do you compete withany otherbusiness?Rivals or some sort? We don’treallycare aboutour competitorsbecause we’dratherfocusmore onthe qualityof ourproducts andto worry aboutcompetition. 15) What is the necessaryknowledge to start this business? You have to knowbasichospitalityskills,basicaccountingforthose handlingthe cashflow and goodunderstandingof cookingskillsforthe cooks. 16) Is the barrier of entry for the businesshighor low? It’swas reasonable butnotreallyhardto overcome. 17) Where was the first location for this business? SS19. We didn’thave a shopbut we startedoutas a hawkerstall. 18) What was the first products you sold? IpohKuewTeow.
  • 22. 22 19) How was the performance ofyour shopback then? It didn’tperformwell atfirstbecause of the lackof customers.Afterawhile,loyal customersstartedto come bitby bit.Thiscouldbe said forthe foreignersandlocal celebrities. 20) How do you setthe price for your products? The prices of foodsare set 30% more than the price of the materialsusedtomake the products. 21) Will the price increase ifthere is any form of inflation? Yes,because if inflationoccurs,pricesof the materialsneededincreasestoo. 22) Are you satisfiedand happy with the business? If my customersare happy,that makesus happytoo. 23) How long did it take for the businesstoupgrade from a hawker stall to a lot shop? 2 years 24) Back then whenyour businessjust started,did you face any difficulties? Yes definitely.Itwasveryhardto gainthe workforce because employingpeoplewashard at the time andall of the familymemberswere todothe hard labor. 25) Do you consider your businessto be successful? I can’t say we’re fullysuccessful butwe are stable interms inprofitgains.
  • 23. 23 Singapore ChickenRice 1) Hi, can you introduce yourself,your name,job position,office phone number? Welcome toAsiaOffice,myname isMichael Sim, soI am the General Manager while in charge of the operationdepartment.So,ouroffice businesscontactnumberis0823322, this isour huntingline actually. 2) Whenwas the businessstarted? SCR wasstartedin the year of 1987 3) Whoare the key founders? Initially,Iwill saythattheyare a groupof Kuchingbusinessman,shared withsocalled Johorian.Sothisguy can leadthe Kuchingteaminthe year of 1987. 4) How many branches are there? If includingall of the scale outprogramme,I wouldsayinclusivefranchisingmore orless about52 outlets. 5) How many franchise are not franchise? ThisthingI will update withthe personincharge.There’saround12 outletsfew monthsago fromSarawak.So from that figure youminusout,itshouldbe around40. Butaccording to the programme that I mentionedearlier,Januarynextyearmaybe will stand againstthe marketscenario. 6) What was the motive of the founders to start the business? The founderas far as we understands.He realizedthatchickenrice isa verycommonfood. Whoeverinthismarketregardlessof religionscanaccepts itand secondly,chickenrice food isthe mostpopularfoodinKuching.
  • 24. 24 7) So in this business,whatis the main product and other services? SCR isknownas our signature dishes,soone ischickenandsecondisrice.Andthe other one,we knownas Ala’carte. 8) Can you give an example ofAla’ carte? Our side disheswe categorizedinnoodlesitemslikemee andkueytiow.Thirdlyare western items.Andof course not forgettingsome Ala’carte vegetables,beancurd.Thisone also consideredasAla’carte. 9) How much capital isrequiredto start this business? Accordingto our planning,Iwouldsaywe have a badge markour standard. To be more appropriate,Iwouldsaythat a unitof shoplotwith2,400 sqft, that mayrequire a capital RM350, 000 minimum. 10) What knowledge doyou needto start this business? The importantthingisour Five Departmental Functions.Investorsmustknow how torun thisfive department.Numberone isthe kitchen.Numbertwo,isbrainstorm.Numberthree, isthe chickenstalk.Numberfour,isthe cashercounter.Numberfive,isthe management team. They are the five areas. 11) Whoare your customers,for example theirage group, income and education info? In the earlystage since 1997 until the late 90’s. SCRfor cast for familyactuallyconcept because asyou can see our sloganor take thisas our familiesbasedrestaurant.Duringthe late 90’s, we noticedthe youngstercomingup.Theygofor more fusionstyle.Meaningthat the table wear,the colouringandeventhe food,some westernmixed withorientedstyle.So lately,the expressgroupmore onthe youngsters.Two differentgroupof people
  • 25. 25 12) What is the businessannual revenue figure? We have our owntarget,talkingabouteveryrestaurant,shouldbe able toachieve monthly salesof 150 thousand.Due tothe fallingdownof market,ourmonthlysalesslightlydropped down20 to 30 percent. 13) So, is there any recent developmentin SCR? Yes,we have.We’ve done ittwoto three monthsago,we calleditthe valuedmeal restaurant.Meaningthat we try to bring downourcost, our perheadwithoutbeing interrupted.Lowerdownourmanpower.Secondly,we review ourdrinksvolume.For examples,from400ml we go downto 320ml. Thisis importantforcost saving. 14) Obviouslyyour businesshave a lot of competitors.So who are your top 3 competitors? In Kuching,we docarry up thissurveylike SugarBuntheyhave the equivalentcomparedto the international foodlike KFCorMCD theyhave differentconceptandmenu.Iwouldsay not manycompetitoratthe same of the level butIwouldsaynow the markettrendis going downI can see that the consumersourroyal customertheyswifttheirchoicesto‘kopitiam’ standard.That is verytrue.Theymove downtocheapersource of food. 15) Then what strategiesyou have to compete with your competitors? First,we have to bringdownour operationcost,byminimizingunnecessarymanpower.We try to improve ourstaff productivity,meanthatwe improve ourfoodqualitytoregainour mostwantedmarketduringthisdifficult time. 16) How big is your market share as well? Thisis a verygreyarea, Kuchingpopulationhardlytoreach1 million,meanthatpeople at the city duringdaytime Iwouldsayisaround330 thousand, fromthatpopulationsisvery hard to justify.There’salotof people theygohome forlunchanddinner.Isnot easyto justifythe figure.
  • 26. 26 17) So is it easy or difficultto enterthis kind ofbusiness? I wouldsaythe verycompetitive andthe problemwe are facingnow.Inthe areaof businessesIwouldsayit’sa verygoodindustry.Aslongas youcan solve yourhuman resource problem. 18) How often do you release the newproduct? We targeteverymonthat leastone new product.WE mightalsodelaythe new productto the followingmonthuntil the qualityisacceptedbythe eighthouse team. 19) So what was the latestproduct of SCR? Thismonthwe takingabout promotion, there’sisn’tanynew productbecause the school is reopeningandChinses NewYearsoon.New productonlylaunchduringbigseasonmostof the times. 20) So, you do have any idea ofyour nextnew product? Yes,we are still waitingforourR&D departmenttosubmitthe listandwe goingto have our foodtaste. 21) How do you setyours prices? It isa standardformulatoset our prizing. Regardlesswhatproductsthe costingworthitout let’ssayit RM5 we go for RM10 to RM10.50. That isour sellingprice. 22) Is it going to be betterifyou setyour price lower? It goesinboth ways,numberone youneedtoknow the itemtheyare selling. Let’ssayyou are buyinglowmaterial Rm2.50,so if you’re lookingfor50% profitit isgoingto be RM 6. That is the rightway to dobusiness,we are notdoingcharity.
  • 27. 27 23) So doesthe pricing of your product actually affect your customer and competitors? Yes, definitely ourcustomerfeel thatistoohigh,notworth to eat,it mayaffectour entire businessrestaurant.Sometime Idocommendonotherrestaurant,I commendtothe coffee shopboss.At the same time, people feel thatitisworthto eat.People feelit’scleanand delicious. 24) Where was the first branch? In 1987 itstartedin JalanSongHeng Chok. 25) WhenSCR first started, was it a hawker store or a restaurant? It was a coffee shopwithoutairconditioningsellingchickenrice. 26) How long that the company take to openanother branch? Withintwoyearstheyopenanother branch. 27) Whichbranch do you think isthe most successful? At the time,itisveryhard to justifybecause the crowdalwaysmovesaround. 28) Previouslythere was a Singapore ChickenRice at Jalan Song but it has changed to a shop calledSingapore food Street,is that one of your new strategies? Yes,we provide more varietyof foodsuchas Thai food, IndianFoodandVietnamfood. 29) Wouldyou say it is a success? It isstill on going, butcurrentlywe are earningprofit.
  • 28. 28 30) How long have you beenworking? I’ve beenhere 8years
  • 29. 29 Appendix Thisappendix includesacompilationof interviewdocumentsandphotosof the twocoffee shopsshowingthe contrastbetweenthe oldendayandmoderndaycoffee shop.Italsoincludes informationof theirrespectivecompetitorsthatwere recordedinthe processof investigating, analysingandcomparingbothbusinesses. A. Kar HeongRestaurant Exterior of Kar Heong Restaurant Interior/Ground Floor
  • 32. 32 B. Singapore ChickenRice Exterior view of SingaporeChicken Rice Interior View
  • 33. 33 Main Type of Food Served Variety of Food Served
  • 34. 34 Reference Boon Chuan (2013). Retrieved From Website. http://tummyfull.blogspot.my/2013/04/kar-heong- restaurant-ss14-subang-jaya.html HUNGRY GO WHERE (24 November 2014). Best chicken rice in Klang Valley. The Malaysian Insider. Retrieved From Website http://www.investopedia.com/terms/p/perfectcompetition.asp Jack Wong (30 August 2010). Singapore Chicken Rice to set up 15 outlets in M'sia. The Star Online. Retrieved From Website Jack Wong (28 May 2012). SCR Corp to go regional with franchise. The Star Online. Retrieved From Website Jimmy Tan, personal communication. 4 January 2016 Richard G.Lipsey and K.Alec Chrystal (1999). Principle of Economics. United Kingdom: Oxford University Press; 9th Revised edition SCR Corp to expand in Sabah and Indonesia. The Star Online. Retrieved From Website Thomas Sowell (2014). Basic Economics. United States: Basic Books; Fifth Edition Yvonne Tuah (22 July 2013). SCR targets 100 outlets by year 2018. Borneo Post Online. Retrieved From Website