Integrated project report

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Module: English 2 [ELG 30605]
Assignment: Comparative Analysis of 2 Businesses of Similar Industry in Different
Geographical Locations
Report Title: Comparative Analysis of 2 Local Chinese Coffee Shops in Klang Valley and
Ipoh, Perak.
Group members:
Lecturer: Ms. Cassandra Wijesuria
Teoh Jun Xiang (0322099)
Yee Jyh Lin (0322408)
Lim Woo Leon (0322180)
Ow Xun Cong (0321997)
Lee Lin Hui (0322797)
Shreya Maria Wilson (0322173)

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Table of Contents
No. Title Page
number
1 Cover Page 1
2 Table of Contents 2
3 Key Summary 3
4 Methodology 4
5 History of the Business- History of the local Chinese coffee shop
business
-Defining ‘Kopitiam’
-Timeline of local Chinese coffee shops
5-7
7
8-9
6 Brief Description of the Businesses:
A) Restoran Jing Quan (Klang Valley)
B) Restoran Hillview (Ipoh, Perak)
10-16
17-23
7 Comparative Analysis of the Businesses’ Competitive Traits:
C) Nature of Markets
D) Similarities and Differences
E) Which Business is More Commercially Successful?
24-29
30-34
35
36-38
39
7 Conclusion 40-41
8 Recommendation 42-43
9 Bibliography 44
10 Appendices -Appendix 1 (Interview questions for Klang and Ipoh)
-Appendix 2 (Interview questions with answers)
-Appendix 3 (Photo Documentation)
-Appendix 4 (Documentation)
-Appendix 5 (Minutes of the Meeting)
45-47
48-61
62-73
74-75
76-81
11 Attachments
12 References

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Key Summary
This report is a comparative analysis of two local Chinese coffee shops situated in two
different geographical locations which have been operating for 10 or more than 10 years. The
selected local Chinese coffee shops are Restaurant Jing Quan which is situated in Puchong,
Klang Valley and Restaurant Hillview which is situated in Ipoh, Perak.This report is divided
into a few sections, namely the key summary of the report, the methodology, the description
of the history of the local Chinese coffee shop business and its definition, the brief
description of the two businesses selected, the comparative analysis of the businesses’
competitive traits, recommendations, bibliography, appendices, attachments as well as
refernces. Interviews have been conducted in each of the respective local Chinese coffee
shops in order to obtain further information of both businesses. The collected information
have been analysed carefully and justified with reliable reference sources.
Restoran Jing Quan (Klang Valley) Restoran Hillview (Ipoh, Perak)

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Methodology
In a group of 6 six members, we were required to select two businesses within the same
industry for research purposes. After several group discussions which were held in the library,
we decided to choose the local Chinese coffee shop business as our research target. The two
local Chinese coffee shops selected are Restoran Jing Quan, which located in Klang Valley
and Restoran Hillview, which is located in Perak, Ipoh. One week prior to the interviews, we
contacted both the owners of the respective local Chinese coffee shops to select a suitable
time to conduct the interviews as well as the on-site observations. The entire process took us
approximately two weeks to complete.
Data Collection
On the 6thof November 2015, our group made a visit to Restoran Jing Quan which is located
in Klang Valley and an interview was conducted with the owner of the business. The
interview took us about one and a half hours to complete. Our group members conducted on-
site observations and took pictures of the facilities and the surroundings of the premises using
a DSLR camera. The interview was also recorded using the DSLR camera. We also observed
and took pictures of the competitors near the respective coffee shop. The same procedure was
repeated during our visit to Restoran Hillview on the 7thof November 2015. Before the visits
were made to both of the local Chinese coffee shops, we conducted careful and analytical
research on relevant information about the local Chinese coffee shop business. This enabled
us to formulate the relevant interview questions to obtain more detailed answers from the
owners which benefited the preparation of this report.
Data Presentation
The final goal of this assignment was to produce a report andto present the content of the
report through a 25 to 30 minutes verbal presentation. To increase the productivity of the
group, the group leader delegated the tasks among the group members effectively. Members
of the group were required to conduct further research based on the tasks given to them and
the initial data formulated were compiled together. After the compilation of the report was
made, our group did finishing touches to the report to identify the grammatical errors present
and to ensure that the report was prepared in the correct format. At the same time, some of
the members prepared the presentation slides and edited the interview videos to be submitted
together with the report. Lastly, before the group presentation, we conducted practice
sessions to rehearse our individual lines and to ensure that the presentation was conducted
smoothly.

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History of the local Chinese coffee shop business
The origins of local Chinese coffees shops, also known as the kopitiams, are closely
related to the early Hainanese migrants. The Hainanese came to South East Asia as migrants
in the 1850s. At that time, other Chinese migrants such as the Hokkiens and Teochews were
well rooted in the agricultural field, commercial field and the trading industry. Thus, the
Hainanese were forced to find employment and job opportunities among less lucrative traders.
As fate would have it, the Hainanese people discovered a niche for themselves in the
service sector, primarily, the food and beverage sector. Some of the Hainanese migrants also
worked as cooks, waiters or servants in local hotels, restaurants, bakery shops and bars. Some
of them also worked as cooks or domestic servants for wealthy European and Peranakan
households. Later, more and more Hainanese people were involved in the kopitiam or ‘coffee
shop’ business as stall holders or assistants. In fact, the Hainanese community has been
credited with introducing the kopitiam culture into Malaysia and Singapore.
Nowadays, local Chinese coffee shops can be divided into two types, namely the
traditional kopitiams and the modern kopitiams. The traditional kopitiams embrace a feeling
of culture, time, tradition and permanence while the modern kopitiams, also known as
branded coffee houses, operates the local Chinese coffee shops in accordance to the modern
society’s desire to move forward without letting go of too much of the past.
This picture shows an old owner preparing
black coffee for his customers.Image taken
from
http://www.flickriver.com/photos/liyin/sets/72
157606505074171/
This picture shows customers in a typical
traditional Chinese coffee SHOP. Image taken
from
http://www.malaysianflavours.com/2013/03/yut-
kee-kopitiam-
%E9%8E%B0%E8%A8%98%E8%8C%B6%E9%
A4%90%E5%AE%A4-jalan-dang-wangi.html

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Most old-fashioned kopitiams are steeped in tradition, with its own unique history.
The atmosphere in a local Chinese coffee shop is uniquely Malaysian, meaning that it blends
several different cultures into one to form a unique identity of its own. One similarity which
can be found in all local Chinese coffee shops is the use of coffee shop table and chairs. In
general, the tables are rounded and marble-topped whereas the chairs are made of wood with
rounded backs. Traditional kopitiams are often family-owned and handed down from father
to son from one generation to the next. In fact, in the 1960’s about 90% of the local Chinese
coffee shops in Malaysia were operated by operators of Hainanese origins. However, for
many old-fashioned local Chinese coffee shop owners, their craft ends at the moment when
they retire. This is because most of their children are educated and are not willing to inherit
the family business.
The traditional kopitiams serve as social nucleuses, where everybody knows your
name, and the ‘Ah-Soh’ (owner) prepares your day’s caffeine fix in the good old-fashioned
manner. The local Chinese coffee shops are reminiscent of Old Malaya and still remains as an
important part of our culture where we spend hours socializing with our friends and families
over a hot drink. Besides sipping a hot cup of freshly brewed ‘kopi o’, the local Chinese
coffee shop is also a haven for savouring a variety of local delights. The coffee shop’s menu
typically features half-boiled eggs, toast with kaya as well as hot beverages such as coffee
and tea.
Currently, branded coffee houses – modern kopitiams have emerged. The emergence
of these new local Chinese coffee shops evolves the humble kopitiam with modern
characteristics. This is an age whereby a new breed of local Chinese coffee shops has
emerged, which aims to offer classical food and drinks as well as modern conveniences such
as piped-in music, air conditioning, intricate interior designs and the 21st century necessity –
the WiFi.
The revival of the old kopitiam culture started in the early 2000s with the introduction
of new kopitiams. These new local Chinese coffee shops are similar to fast-food outlets
which resemble old kopitiams in terms of decor, but are usually located in more hygienic
settings such as shopping malls or commercial areas rather than in traditional shop houses,
catering mainly for a wider scope of customers. However, many modern kopitiams still
retain the old-fashioned marble-topped tables, wooden chairs and chunky crockery.
As for the menu, the new kopitiams serve usual local delicacies. However, they
feature more extensive menu choices which includes a variety of Western-styled cuisines.
Modern kopitiams such as OldTown White Coffee, offers authentic local coffee brews and
they introduce extended menus where local breakfast, lunch and dinner meal sets are offered.
To tap into the sizeable Muslim market, these kopitiams usually serve food that is halal
(permissible for consumption by Muslims) unlike the traditional Chinese coffee shops house.
Modern kopitiams aim to serve the nostalgic food and drinks of the past while catering for the
demands of modern society. Thus, you will easily find that many of these modern kopitiams
emphasize on comfort while maintaining reasonable prices in between of local Chinese
coffee shops and coffee giants.
This is how the Malaysian kopitiam culture evolved from the traditional Chinese
coffee shops that were haunts of our grandparents, which have now become branded coffee

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houses that are favorited by youths in today’s modern society. However, these local Chinese
coffee shops still remain truly Malaysian.
Defining ‘Kopitiam’
The word ‘kopitiam’ is derived from the Malay word for coffee, ‘kopi’, and the
Hokkien term for shop, ‘tiam’. When they are placed together, the phrase literally refers to
the meaning of a coffee shop.
A kopitiam is to some extent a cross between a coffee shop and a breakfast restaurant
in Southeast Asia, predominantly in Malaysia, Singapore and Indonesia. Kopitiams usually
have a short menu of different dishes, but the choice of food that are constantly present in the
menus are half boiled eggs, toast, tea and definitely coffee.
Kopitiams are often said to have originated in Malaysia and are present numerously in
the city of Penang. However, Malaysians who migrated to Singapore in the 1940s, took
theculture and tradition of kopitiams along with and hem the popularity of kopitiams in
Singapore grew to be even greater than that of Malaysia.Kopitiams are commonly found in
almost all residential areas as well as some industrial and business districts in Malaysia. They
often appear as an aggregate of small stalls or shops whereas some may be more reminiscent
of food courts. All kopitiams share a similar appearance and are steeped in tradition and
nostalgic memories of the past.

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Timeline of localChinese coffee shops:Pastto present
19th – 20th Century
Traditional kopitiams normally open early in the morning, at around 6am, and serve
the morning crowd who would like to get a quick breakfast before going to work. The
kopitiams normally have circular tables that allow 4 to 8 customers to sit together and enjoy
their meals. Therefore, regular patrons of a traditional Chinese coffee shop will generally be
friends to one another as they normally sit together.
The local Chinese coffee shops serve as a place to take a break and enjoy freshly
brewed coffee while reading the newspapers or chat idly with friends. In the late morning,
you will find many elderly folks (predominantly men) sitting in the premises talking away,
quite often with the shopkeepers as well.
Both pictures above showa father and his son preparing coffee or bread for customers. They
still prepare coffee in the traditional way. In the second picture, the old man is preparing a cup
of thick coffee, strained through a cloth sock several inches long and packed with teaspoons of
sugar and sweet condensed milk. This process takes less than 30 seconds.
A woman and her grandson having
traditional hard-boiled eggs, toast and
coffee at Chin Mee Chin Confectionery,
a traditional Chinese coffee shop.
Credits to Edwin Koo for The New
York Times

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Tables with white topping surfaces,
patterned wall and floor tiles are the
symbols of tradition kopitiams.
Image retrieved from garmin.com.sg
21st Century
OldTown White Coffee is one of the biggest kopitiam chains in Malaysia. It retains most
of the characteristics of traditional Chinese coffee shops such as wide mirrors on walls,
round tables and local delicacies.
It also provides elegant and presentable
menus as its strategy is to allow its
customers to select and order food more
easily, especially illiterate people or
foreigners who visit the shop.

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Brief descriptions of the businesses
Basic details
Restoran Jing Quan is owned by Mr. Chong Heng Loong aged 44 years-old and his wife.
They single handedly operated this business for the past 13 years. Their business mainly
focuses on a Chinese-styled coffee shop and the spaces around the shop are rented to hawkers
to operate small hawker stalls. At night, the premise will be rented to a small-scaled Chinese
restaurant to operated their business at night.

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Current location
Address: 10, Jalan BK2/11, Bandar Kinrara, 47180 Puchong,Selangor
Mr. Chong and his wife did their research before they chose this very location to operate their
business. They realized that the residential areas around the shop lots are big and populated
with an organized structure. Moreover, the majority of residents living there were Chinese
and opening a Chinese-styled coffee shop may provide a high chance of success. As there
was only one competitor at that time, they decided that the location was suitable to start their
own business.

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More about the founder
Mr. Chong Heng Loong and his wife were the key founders of the shop. Before setting up his
own business, Mr. Chong Heng Loong graduated from high school with SPM examination
qualifications. He worked in electronic factories in Singapore and produced electrical parts
for computers as well as hard discs. In addition, he helped to repair and maintain electrical
parts. As Mr. Chong works as the owner of Restoran Jing Quan, he prepares the beverages as
well as other products to be sold to the customers. In addition to that, he looks after the
business and manages the entire performance of his business single handedly.
Business origin and its name
The business was founded on the 20th of August 2003. At first, there was a local Chinese
coffee shop which operated its business at the very location. As the business was performing
badly, the owner decided to sell his business. Seeing this as an opportunity, Mr. and Mrs.
Chong decided to give the local Chinese coffee shop business a try as they had some savings
to be used as the capital for the business. When asked about the reason for naming the shop
as RestoranJing Quan (井泉)，he said the term Jing Quan (井泉) is a combination of two
Chinese words, namely well (井) and stream (泉). Both these Chinese words mean the source
of water and also a place to store water. In Chinese culture, the Chinese tend to associate
flowing water as a sign of prosperity and a source of wealth. As such, the term Jing Quan was
used to indicate the owner’s desire to have a good business as well as to have a good source
of wealth and income.
Main motive for this business
Life back then was very tough and the money earned while working in the electronic
factories was insufficient to lead a good and well maintained life. As such, Mr. Chong and his
wife decided to open a local Chinese coffee shop to earn some money and pay their life
expenses. As both Mr. Chong and his wife did not have any talents or skills, they knew that
operating a small business would be the simplest way to earn a living. Moreover, both of
them had limited educational experiences and finding a job during that time was hard.
Business start-up plan
As Mr. Chong had a relative in Cheras who operated a well-to-do local Chinese coffee shop
business, he stood beside the workers of the shop and observed how they prepared the
beverages for 10 days. As Mr. Chong was not allowed to have hands on experience, he
learned the techniques and skills of preparing beverages through observation. Mr. Chong
would also let his wife taste the beverages he made to know what to improve in the
future.The capital required to start the business was RM 100, 000. The financial background
of the business was terrible when it first started. Luckily, the owner did not face any losses.

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Hardships faced during start-up
The business did not have anything special to attract customers to visit the shop when it first
opened to the public. Moreover, as there were little connections with the customers, only a
few people knew of the existence of the shop. In addition, the hawker stalls posed some
problems to the business as well. One of the hawker stalls was having a good business and
eventually, the hawker decided to operate his own business to gain more profit. The hawker
left with only a week’s notice which was against the rules set, which states that the hawkers
should give a month’s notice before moving out of the premises. As such, the owners could
not cope with the sudden change.
Another problem faced was the disturbance caused by the gangsters in the residential area.
They frequently showed up to collect “protection fees” from the owners. Luckily, as time
goes by, the chances of facing the same problem decreased.
Main products sold
As Restoran Jing Quan is a local Chinese coffee shop, its main products sold are coffee,
bread, steamed buns and small Dim Sum dishes.
Picture Description
Hainanese bun which is whipped with sweetened
coconut jam (kaya) and salted butter. It is pillow soft,
which is an ideal quality of Hainanese bread.
Moreover, the bun can be squeezed and dipped into a
cup of coffee or milo.
Wheat bread is another hot selling product of the
shop. It is whipped with kaya and butter to be served
to the customers. The bread is best consumed when
hot and fresh, making it irresistible. The texture is
soft and fluffy, which explains why it is a hot selling
product of the shop.

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Other products sold
Most of the spaces in the shop are rented to hawkers to operate their hawker stalls on a daily
basis. There are a total of 10 hawker stalls in the shop which operates on a daily basis. The
hawkers sell local Chinese delicacies to the customers, which includes the Penang fried
kueyteow, chicken slice hor fun noodles, chicken rice, fuchokfishball noodles, bitter guard
noodles, pan mee, cheecheong fun, tom yam noodles, pork noodles, fried Hokkienmee,
Wantan noodles, claypot noodles, Sarawak Kolo noodles, fried rice, yeemee and many more.
Canned products, such as carbonated drinks, bottled
water and soya milk are also sold in the shop if
customers want a change in taste.
The claypot noodles hawker stall sign The Sarawak Kolo noodles hawker stall sign
The pan mee hawker stall sign

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More on hawker stalls
The rent of each stall is between RM 20 to RM 30 per day. The amount of space utilised by
the hawkers is also taken into consideration when determining the rent of each stall.The
successful hawker stalls in Restoran Jing Quan are the pan mee, fried Hokkien noodles and
Wantan noodles hawker stalls. There are a set of criteria’s given by Mr. Chong to the
hawkers before they run their businesses in the shop. One of those criteria is that the Chinese
hawkers must operate their stalls at all times and their foreign workers cannot operate their
stalls alone. Secondly, he attitude of the hawkers must be polite and the taste of their food
must be good as well.
Beverage department and pricing
The owner puts his heart and soul into the beverages and products sold in his shop. He and
his wife supervise the preparation of the beverages tightly to ensure that the quality of their
beverages and products are maintained. According to Mr. Chong, the taste and quality of
their products is what determines the success of the business. Moreover, the owners observe
and conduct research on the price of the beverages and products in the market before setting a
reasonable price for the products sold in the shop. Mr. Chong and his wife are always
cautious and aware of the effects of the price on their customers’ emotions. This is because
the customers are a valuable asset of the business.
Effective use of the premises at night
As Mr Chong’s business starts early in the morning and ends in the afternoon, the premises
will not be occupied for the rest of the day. As such, the shop is rented to a small-scaled
Chinese restaurant which operates its business at night. By doing so, Mr. Chong is able to
share the burden of the rental payment between him and the owner of the small-scaled
Chinese restaurant. Since the day they started their business 13 years ago they have been
renting the area to the small-scaled Chinese restaurant to operate their business at night.
The Wantan noodles hawker stall sign
The pork noodles hawker stall sign

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Employees
In total there are approximately 40 staffs that works in the shop, including the hawker stalls
staff. Those staffs mostly consist of female workers than of male. The male workers look
after the stalls and do most of the cooking work.As for Mr. Chong’s beverage department, he
has 5 foreign workers to help him prepare beverages and to serve the beverages to the
customers.
The owner maintains good communication with the staff to ensure that they are not facing
any kind of troubles. Whenever they make mistakes, the owners confront them directly to
allow them to understand their mistakes immediately. This was done to ensure that the same
mistakes do not repeat themselves and to ensure that the business runs smoothly.
Customers
In average, Restoran Jing Quan has more than 1000 customers per day.The customers are
mainly from the residential areas nearby. Most of them are Chinese customers with a small
percentage of Indian customers. University students account for 10 per cent of the overall
profit of the business and the age category for their main customers ranges from 30 to 40
years-old.In terms of food, the customers mostly prefer pork noodles, pan mee and also
fuchokfishball noodles. As for drinks, the customers mostly prefer coffee, tea and Milo.
Effect of the increase of residents in the residential area
According to Mr. Chong, the business still retained much of its original form since the first
day he started this business. As the population of the residential area nearby is growing at a
very fast pace, the amount of customers grew and this situation contributed a lot to the
performance of the shop. In fact, the profits earned by Restoran Jing Quan increased by 20-
30%.
Future development
The business will most probably be sold to other interested owners who want to venture into
the local Chinese coffee shop field in the future. According to Mr. Chong, his children are
unwilling to take over the business and as such, the business may not be passed down to the
second generation.

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Basic details
Restoran Hillview is owned by Mr. Low Kong Bin who is 48 years old and his wife. They
have been operating the business by themselves for 10 years. Their business is a local
Chinese coffee shop, in which their main products are generally drinks and snacks while the
remainder space is rented to small hawker stalls to sell more substantial meals.
Current location
Address: Hala Medan Legenda 1, Ipoh, Perak

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The location of the business was brilliantly picked by Mr. Low and his spouse.
Quintessentially, the shop is facing an important main road, JalanDr.Nazrin Shah which
connects Downtown Ipoh to the highway and it is the main artery of Ipoh. In addition, they
examined that there was a newly developed residential area behind the shop lots, whereas
there would be a hard labour worker laden industrial area nearby. Moreover, the majority of
residents living there were Chinese and opening a local Chinese coffee shop may provide a
high chance of success. In addition, as the previous owner decided to sell the entire business
to Mr. Low, everything including the furniture, utensils and equipment was already available,
thus he decided it was the ideal location for him to start his business.
More about the founder
Mr. Low Kong Bin and his wife are the key founders of the shop. Before stepping into this
business field, Mr. Low left school at Form 1 to start making money and he was particularly
active in the transportation industry for 20 years. Mr. Low lived a moderately unstable life
where he had to rely on inconsistent available works up until he decided to settle down with
his family. That was when he decided to start his business as a local Chinese coffee shop
owner. As the owner, he acts as the overseer of the business. He prepares the beverages as
well as other products to be sold to the customers. In addition to that, he looks after the
business and manages the entire performance of his business.

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Business origin and its name
The business was founded on the 5th of July 2005. Before that, similar to our case study in
Klang, there was a local Chinese coffee shop that was performing rather mediocre than its
competitors at the very location, thus resulting in the owner’s decision to sell the business to
prospective buyers. Hoping to make a transition in their lives, Mr. and Mrs. Chong decided to
give the local Chinese coffee shop business a try as they heard from close friends that the
business is simple yet profitable. When asked about the reason for naming the shop Hillview,
he replied that the shop faces the majestic façade of the Gunung Rapat Mountains, thus
resulting in the name, Hillview.
Main motive for this business
Prior to this, life was particularly hectic and unstable for Mr. Low and his family, as he had to
rely on unusual shifts, pocketing in inconsistent pays from his transportation job, thus they
decided to start their own Chinese coffee shop to earn some money and pay their life
expenses. As both Mr. Chong and his wife did not have any sharpened skills, they decided
that operating a small business would be the simplest way to earn a living. Moreover, both of
them had limited education experience and finding a job during that time was hard.
Business start-up plan
Mr. Low had a brother who was also a local Chinese coffee shop operator in Ipoh, thus he
had some prior knowledge as to how he should operate a kopitiam business. And hearing
from friends that a local Chinese coffee shop close to home was preparing to bail out due to
bad business, he immediately contacted the owner to express interest in taking over.
The capital required to start the business was RM 25, 000.The financial background of the
business was terrible when it first started. Fortunately, the business was able maintain
gradual growth with new residents moving in to the newly developed residential area.
Hardships faced during startup
The business went through a bad spell at the beginning of its operation as it does not offer
anything different from its competitors that is located footsteps away. The locals were also
very sceptic of Mr. Low’s business as the previous local Chinese coffee shop did not offer
any food or drinks which were appealing to them. Moreover, seeing that the business was just
in the starting phase, government officials came in frequently to conduct cleanliness and
license checkups, and fines were sometimes issued when they fail to comply with standards,
thus resulting in an amount of stress for Mr. Low and his wife.

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Main products sold
As Restoran Hillview is a local Chinese coffee shop, their main products sold are coffee,
bread, steamed buns and eggs.
Picture Description
The traditional white coffee of Ipoh. The coffee
beans are roasted with locally abundant palm oil
margarine and is served with condensed milk.
Cigarettes are also offered to customers who wants
one or two cigarettes after a long coffee break at the
shop.
Canned products or packet drinks are provided to the
younger generations or other customers who require
a change of taste.

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Other products sold
As Restoran Hillview is a typical local Chinese coffee shop, hawker foods are also sold to
satisfy the taste buds of its customers. Mr. Low seeks well-established hawkers and brings
them into his shop to improve his business. There are 4 hawker stalls which operates in the
premise with an area of 33 meter square, namely the curry noodles stall, the pan mee stall, the
chicken rice stall and the Wantan mee stall. Known for its exceptional taste, the curry mee
stall has the most successful business among all the other hawker stalls, and it is also one of
the key factors that maintains customer loyalty to Mr Low’s Chinese coffee shop.
This picture shows the chicken
rice hawker stall
This picture shows the curry noodles
hawker stall
This picture shows the pan mee
hawker stall

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More on hawkers stall
The hawker stalls that were allowed to operate their business in the shop are mainly of
Malaysian Chinese cuisine. This choice was made to appeal to local customers, most of
which are local Chinese residents.For Mr. Low, the main criteria when selecting the type of
hawker stalls to operate its business in his premises is that the hawkers must be moderately
popular in the local food scene. This wise decision was made to attract and maintain
customers in the shortest time frame as the individual stalls already had strong customer
loyalty. The rent of each stall is RM 13 per day and the number of stalls operating in the shop
is 4 due to limited space.
Beverage department and pricing
Mr. Low masterminds the beverage department. Hepersonally prepares beverages that are of
the right taste for each of his customers. This is done by observing and listening to the
customers’ comments on their preference of the taste of their beverages. Mr. Low never
compromises on quality for quantity and because of this, his business is remarked by locals as
one of the top 3 Chinese coffee shops in the Song Choon Garden area. Moreover, Mr. Low
and his wife observe and conduct research on the price of the beverages and products in the
market before setting a suitable price. Whenever his competitors adjust the price of their
beverages, Mr. Low assesses the situation and adjusts accordingly to maintain customer
satisfaction.
Employees
There are approximately 8 staffs, including the hawkers that are working inside the premise.
Most of the male staffs are involved in cooking and operating the stall while the female staffs
work as assistants or waiters. As for Mr. Low’s beverage department, he has 2 workers,
which are a local and a foreign worker, who help him prepare drinks to be served to the
customers.
Mr. Low often observes his customers’ reactions and listens to their
commentswholeheartedly in order to prepare the best beverage possible. Moreover, his staff
and the curry meestall owner act as a bridge to maintain good communication with the
customers. The customers’ comments are then relayed back to Mr. Low to ensure that the
customers can enjoy the best experience in his shop. Whenever the staffs make mistakes, the
Mr. Low’s wife will step in to notify them of their mistakes and directs them on using the
right methods immediately so that the shop’s performance is not hindered.
Customers
Restoran Hillview has approximately 300 customers per day. The number of customers is
significantly lower than its competitor, which is Restoran The Little Ipoh, which has
approximately 1000 customers per day mostly due to its shop size. However, Restoran
Hillview remains mostly full during breakfast and lunch hours. New customers are brought in
mostly by recommendations from satisfied customers. The customers are mainly from the

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residential areas nearby or industrial workers working further down the residential area. They
are mostly Chinese customers with a miniscule percentage of foreign customers walking in
from nearby tourist destinations, such as the Guan Yin Caves. The age category for their
main customers ranges from 50 to 60 years-old and most of them are senior citizens who
have retired from their jobs.
In terms of food, the customers mostly prefer curry mee and it accounts for more than 50% of
the customers’ orders. The curry mee is the main factor that entices customers to come back
over and over again. As for the beverages, the customers prefer coffee, milk tea and Milo.
Future development
The shop retained its original state since the day of the takeover. The business grows
simultaneously with the increase of the population of the residents living in newly developed
areas of Taman Song Choon. The new influx of customers from the early to middle stages of
Restoran Hillview were mostly past loyal customers of the Chinese coffee shop next door,
Restoran Kim Lai. The customers were drawn in by the quality of the food and beverages
offered in Restoran Hillview.

24
Comparative Analysis of the Businesses’ Competitive Traits
i) Number of competitors in their respective geographical markets
Restoran Jing Quan is a local Chinese coffee shop located in BK 2, a small yet densely
populated residential area of Bandar Kinrara, Puchong. Located near the residential areas of
BK 2 and BK 3, Restoran Jing Quan mainly serves the needs of the customers in both the
areas. As there is only one shop lot area in each of the residential areas, the number of
restaurants and kopitiam shops is limited, resulting in a fierce competition between the
businesses present at the two areas. There are altogether 4 competitors of Restoran Jing Quan,
which includes Restoran Leng Lam and Restoran Puchong Batu 14 Yong Tau Fu in BK 2 as
well as Kafe Syiok Kopitiam and Restoran Ameer Ehsan in BK 3.

25
ii) Brief bios of the business’ top 3 competitors
Restoran Leng Lam
Restoran Leng Lam is 10 years older than Restoran Jing Quan and is located at 1, Jalan K
2/11, Bandar Kinrara 2, 47100, Puchong, Selangor. Similar to Restoran Jing Quan, it is also
located at the corner of the shop lots, allowing the customers to notice the shop easily. Being
a local Chinese coffee shop as well, the shop offers a variety of Chinese hawker food, the
most famous being its Penang prawn mee as well as the roasted chicken rice. The opening
hours of this shop is similar to Restoran Jing Quan, which is from morning till noon time. As
there are no other local Chinese coffee shops in the area except for Restoran Jing Quan, this
shop is considered a major competition by the owners of Restoran Jing Quan.
Restoran Puchong Batu 14 Yong Tau Fu
Located just behind Restoran Jing Quan at 9, Jalan Bk 2/11, Bandar Kinrara 2, 47100,
Puchong, Selangor, the shop is considered quite new compared to the other shops present in
the area. As the name suggests, the shop specializes in selling yong tau fu, a Hakka Chinese
food consisting primarily of tofu that has been filled with either ground meat mixture or fish

26
paste. Contrary to the other local Chinese coffee shops present at the area, this shop only
starts its business at 10 am. Additional food sold are chee cheong fun, chicken slice hor fun
noodles, bee hoon as well as noodles in both soup and dry editions. Curry chicken, rendang
chicken and steamed fish heads are sold as well to provide a variety of choices for the
customers to choose from.
Kafe Syiok Kopitiam
Kafe Syiok Kopitiam is located at 9, Jalan BK 3/2, Bandar Kinrara 3, 47100 Puchong,
Selangor. Although this shop is located in BK 3, it is able to provide strong competition to
the restaurants in BK 2. Contrary to local Chinese coffee shops, the food and beverages sold
in this shop mainly consists of Western-styled meals, such as fish and chips, chicken chops
and pasta. In addition of that, the shop introduces different set meal options for the customers
at different meal times to satisfy the needs of the customers. As the shop is fully air-
conditioned and provides Wi-fi connections, it allows customers to relax and enjoy their meal
in a quiet and serene atmosphere. However, the price of the products sold are generally more
expensive compared to the other restaurants in BK 2.

27
iii) Strategies employed to compete with competitors
a. Service
The owners, Mr. and Mrs. Chong always possess a friendly attitude towards others. They will
serve their customers wholeheartedly as they see them as valuable assets to their business.
For example, if the customers do not have a place to sit, the owners will look around to find a
suitable spot for them to sit and enjoy their meal. Moreover, Mr. and Mrs. Chong always
have casual and friendly conversations with the customers to know their thoughts and
opinions and to maintain a strong relationship with his customers. The owners treat the
customers like their friends and family. For example, they will put notices on the walls to
inform the customers that they will not be around for particular days. This is to avoid
confusion and trouble when the customers are unaware of the off-days of the business. The
owners retain their customers in their shop through friendly and thoughtful service because
they prioritize the pleasure of the customers at their premises. This rare attitude which is
constantly lacking among servants is the main factor that allows the couple to retain strong
customer loyalty.
b. Pricing
The owners observe and conduct research on the price of the beverages and products in the
market before setting a suitable price. Mr. Chong and his wife are constantly cautious and
aware of the effects of the price on their customers’ emotions as the customers will
sometimes tell them about the price of beverages and other products sold in the competitor’s
shop. Generally, the price of the beverages and products are reasonable and sometimes they
are considered cheap. One good example is the price of the products sold due the
implementation of GST (Government Service Tax). At first, some customers are unhappy
but they are later accustomed to the situation knowing that the beverages and products sold in
This picture shows Mr. Chong
chatting casually with his customers
This picture shows the notices pasted on
the walls of the shop to inform the
customers about the off-days of the shop

28
Restoran Leng Lam is higher than Restoran Jing Quan even though the Government Service
Tax is not added to the price of the beverages and products.
c. Control
Effective management skills were implemented by Mr. and Mrs. Chong since the day the
business started. They monitor the business’ performance to ensure that they meet the
customer’s expectations. Immediate corrective actions are taken if the actual performance of
the business is not satisfactory. The owners will listen to the customers’ complaints open-
heartedly through their normal daily conversations to know what to improve. Whenever a
customer complains about the taste and quality of the food, the owners will immediately
rectify the problem by advising the hawkers on what to improve. The hawkers will
immediately rectify the problem to retain the loyalty and trust of their valued customers.
Another perfect example is that the owners maintain good communication with the staff.
Whenever they make mistakes, the owners will correct and teach them immediately to ensure
that the same mistakes do not repeat themselves.
d. Quality of products
Mr. Chong selects the raw materials to prepare his beverages and products strictly and
carefully. The considerations taken when choosing which products to buy are the price and
also the quality of the raw materials. As Mr. Chong puts it, he would rather spend more of his
money on the materials with higher pricing than to purchase poor quality materials. This is
because the customers themselves are the ones who are going to assess the overall quality of
his beverages and products.
e. Advertisement
Although the owners do not promote their business through the social media, his business is
advertised via word of mouth. The customers who are satisfied with the quality and taste of
the beverages and food will inform their friends about the existence of the shop. The process
continues through this method which draws in more and more customers.
f. Effective use of the premise
As the owner only rents the shop, the rental payment for each month could be a big burden to
his business. To lessen his own burden, Mr. Chong allows a small-scaled Chinese restaurant
to rent the premise at night. Through this method, both the owners of the Chinese coffee shop
business and the Chinese restaurant shares the rental payment of each month. The benefits of
this decision is that Mr. Chong is able to increase the popularity of his business at night. As
the other owners in the area do not operate their businesses at night, the premise which is
brightly lit at night still draws the attention of customers to dine in the premise, thus allowing
them to know the existence of the Chinese coffee business which operates in the morning.
This is killing two birds with one stone.

29
iv) Obstacles faced by the businesses who wish to enter their markets today
According to Mr. Chong, the most obvious barriers to entry for new kopitiam shops to
get started in the market would be customer loyalty. Mr. Chong explained: “As there were
little connections with the customers, only a few people knew of the existence of the shop.”
This obstacle can only be overcome once the business is on the right track and the business
has been operating for some years. Without customers who are “loyal” to the shop, there will
be no source of income and the business may eventually suffer from failure.
Secondly, the ability to meet the demands of the customers can also be an obstacle.
Mr. Chan explained that at first, there were only 5 hawker stalls operating in his premises and
the amount of hawker stalls was insufficient to meet the customers’ demands. Moreover,
another local Chinese coffee shop at the back of the shop lots had operated for 10 years and
they had strong customer loyalty. Customers tend to also compare the two shops. This clearly
reflects the obstacle faced as the variety of products offered can give confidence to customers
as well as to satisfy their needs to indulge in different cuisines. Businesses with low abilities
to meet the customers’ demands will definitely deter customers from visiting the shop again
as there are only limited number of stalls to cater the needs of large number of customers.
Thirdly, uniqueness of a Chinese coffee shop is another obstacle as not all coffee
shops are able to develop their own unique style of operating their shop. Mr. Chong claimed
that his business did not have anything special to attract customers to the shop in the very
beginning. This is a very difficult problem to be solved as authenticity of a particular local
Chinese coffee shop cannot be attained in one or two days, as the saying goes: Rome was not
built in a day. Moreover, with the intense competition posed by other similar local Chinese
coffee shops, it is a must for a Chinese coffee shop to find something unique about them that
can attract customers to their business.
Finally, the last obstacle, according to Mr. Chong, is dedication and passion. Mr.
Chong learned that by giving his heart and soul into his business, the performance of his
business will improve as his diligence is the key to his success. He also learned that the ones
who have passion in everything they do will definitely succeed in the end. Mr. Chong
explains in great detail, “To be an owner, we must ask ourselves whether we have the
patience to manage an entire business for long hours. This is because we have to understand
that it requires great patience and dedication in order for a particular business to be successful.
There are no annual and medical leaves as well as public holidays for this business.” This is
very true, considering that the current generation does not have passion or patience
comparable to the previous generations. The success of everything is associated with a
person’s attitude as well as passion.

30
i) Number of competitors
Restoran Hillview is a local Chinese kopitiam shop which is located at Hala Medan Legenda
1, Ipoh, Perak has many competitors situated at the same shop lot area. Strong competition is
evident among the local Chinese coffee shops as they are situated close to one another.
However, there are only 3 distinct competitors of Restoran Hillview, which are Restoran The
Little Ipoh, Kedai Makanan Taman Song Choon and Restoran Kim Lai.

31
ii) Brief description of competitors
Restoran The Little Ipoh
Restoran The Little Ipoh is a corner lot coffee shop located in 69 & 71, Medan Lagenda 1,
Lapangan Permai, 31350 Ipoh, Perak, Malaysia. It opens from 6.30 am to 10.00 pm daily and
their working hours are much longer than that of Restoran Hillview. The food sold in this
coffee shop is has a bigger variety than Restoran Hillview, which includes Chinese and
Indian dishes to satisfy their customers’ needs. As the size of the premise is larger than that of
Restoran Hillview, more tables and chairs can be placed in the premise to allow more
customers to enjoy their meals in the shop. Besides, Restoran The Little Ipoh is also widely
known as they have applied the use of publicity and advertising through social medias and
online food reviews to attract more customers.

32
Restoran Kim Lai
Restoran Kim Lai is also located at a corner shop lot but comparatively smaller in size than
Restoran The Little Ipoh. It is located in Hala Medan Lagenda 1, Taman Lapangan Permai,
31350 Ipoh, Perak, Malaysia. Restoran Kim Lai is also one of Restoran Hillview’s top
competitors as they are placed beside each other. Although the style of both businesses may
be the same, the type of foods sold is different. Moreover, Restoran Kim Lai has more
hawker stalls operating in its premise compared to Restoran Hillview. Restoran Kim Lai had
been well established longer than Restoran Hillview and as such, the business has strong
customer loyalty.
Kedai Makanan Taman Song Choon
Kedai Makanan Taman Song Choon is also one of Restoran Hillview’s top competitors. It is
located in 40, Hala Rapat Jaya Tambahan 20, Taman Song Choon, 31350 Ipoh, Perak,
Malaysia and it is a few blocks away from Hillview Coffee Shop. Similar to Restoran The
Little Ipoh, this local Chinese coffee shop is also located at the corner of the shop lots. As
such, the coffee shop has a larger interior space to house large number of customers. The
number of stalls operating in this coffee shop is higher compared to Restoran Hillview, which
consists of steamed buns, roti canai, bak kut the and many more.

33
iii) Strategies employed to compete with competitors
a. Quality of raw materials
The owner of Restoran Hillview, Mr. Low, purchases raw materials of higher quality and
taste to produce beverages which are tastier and more satisfying. This encourages the
customers to revisit his shop. The owner purchases raw materials of different quality and
taste compared to the ones used in other local Chinese coffee shops which allows him to
produce beverages and products of higher standards and quality.
b. Product
The owner, Mr. Low, allows stalls which obtained wide popularity and recognition to set up
their businesses in his shop after they are introduced by someone else. This further improves
the performance of the business as the well established hawker stalls already had strong
customer loyalty before setting up their businesses in Restoran Hillview.
c. Pricing
The owner observes and sets the price of his beverages and other products according to the
standard prices in the market. He ensures that the price of the products sold in his shop are
reasonable to achieve customer satisfaction.
This picture shows the pricing sign in
Restoran Hillview

34
iv. Promotion and advertising
Generally, the business is “promoted” to other customers by word of mouth of loyal
customers. The customers who are satisfied with the taste of the beverages and food will
inform their friends about the existence of the shop. The process continues to draw in more
customers. Moreover, the well-established hawker stalls also prompts more and more
customers to taste the food sold by the famous hawkers.
iv) Obstacles faced by new businesses who wish to enter their markets today
Mr. Low explains that the main problems faced by the business are the problems involving
payments and fees. Government officials tend to inspect the shop frequently and they often
demanded the owner to pay huge amount of fees including rubbish management fees and also
license fees. Although the location of Mr. Low’s coffee shop is strategic, the location is quite
obvious and exposed and they are prone to be the target of government officials. As a result,
they have to work harder to address these unnecessary problems. As such, it can be
concluded that new Chinese coffee shops in the market may also deal with the same situation
and it requires great patience and experience to cope with these predicaments.

35
C) Nature of the Market
The nature of the market for Restoran Jing Quan and Restoran Hillview is perfect
competition. Their nature is classified as perfect competition because their products, which
are the hawker food, are all similar in nature and, as a result, many substitutes are available
in the market. Perfect competition means that there are few, if any, barriers to entry for new
businesses to venture into the market and prices of products sold are determined by supply
and demand. Thus, consumers in a perfectly competitive market are subject to the prices
determined by the market and do not have any leverage. For example, in a perfectly
competitive market, should a single hawker stall decide to increase the price of its products,
the consumers can just turn to the nearest competitor for a better price, resulting in any
hawker stalls or coffee shops that increases its prices to lose profits.

36
D) Similarities and Differences of Both Business
Similarity
Restoran Jing Quan, Klang Similarities Restoran Hillview, Ipoh
Chinese style Style of Business Chinese style
Local Chinese Coffee Shop Type of Business Local Chinese Kopitiam Shop
Married Couples Owners Married Couples
Residential Area Location Residential Area
Local Residents and Senior
Citizens
Customers Local Residents and Senior
Citizens
Morning to Afternoon Working Hours Morning to Afternoon
Taking over from previous
owners
Establishment Taking over from previous
owners

37
Differences
Restoran Jing Quan, Klang Differences Restoran Hill View, Ipoh
13 Years Years of Establishment 10 Years
 Most probably sold to
other interested owners
who want to venture into
the field
 Children of owner
unwilling to take over the
business at the moment.
Future Developments of the
Business
 The shop may face a
transition from Chinese
kopitiam shop into a
bakery shop
 Son of owner is currently
studying as pastry chef.
Handmade Style of Coffee Making Coffee brewed using
coffee machine
All from foreign lands
(Indonesia)
Nationality of Staffs All local Chinese
134 meter square Surface Area of Premise 33 meter square
At corner lot of shop lots Location In between shops with a
small alley at the side of the
shop
10 Number of Hawker Stalls
in the Shop
4
40 Number of Staff Working
in the Shop (including
hawkers)
8
4 Number of Staff Working
Under the Owner
2
4 Number of Competitors 3

38
1000 Number of Customers Per
Day
300
RM 500, 000 Annual Revenue Figure RM 292, 000
More than RM 500 Estimated Expenditure to
Maintain the Shop Per Day
RM 600 to RM 700 per day
Work 24/7 with occasional
one or two days break in a
month
Working Days of Owners Works from Monday to
Saturday and rests on Sunday
 Tidy (Cheerful and happy
environment)
 Lighting is brighter
 Better ventilation
 Cleaner
 Spacious
Environment
 Messy
 Gloomy and dark
 Poor ventilation
 Dirtier
 Claustrophobic

39
E) Which business is more commercially successful?
In conclusion, Restoran Jing Quan located in Klang Valley is more commercially
successful than Restoran Hillview of Ipoh.
Firstly, Restoran Jing Quan’s annual revenue figure is RM 500, 000. If we deduct the
total working expenditures of RM 182, 500 based on the expenses needed to maintain his
shop for a day, a gross profit of RM 317, 500 will be obtained. Restoran Hillview’s annual
revenue figure is RM 292, 000. If we deduct the total working expenditures of RM 214,900, a
gross profit of RM 77, 100 will be obtained. The gross profit of Restoran Jing Quan is
significantly higher than Restoran Hillview.
Secondly, the number of customers visiting Restoran Jing Quan per day is
approximately 1000 people whereas the number of customers visiting Restoran Hillview per
day is approximately 300 people. It can be concluded that the source of income for the local
Chinese coffee shop in Klang is higher than the one located in Ipoh, Perak.
Lastly, the number of hawker stalls in Restoran Jing Quan is 10 stalls whereas the
number of hawker stalls in Restoran Hillview is 4 stalls. It can be concluded that the local
Chinese coffee shop located in Klang Valley has more variety of products to be sold
compared to the one located in Ipoh.

40
Conclusion
Based on the comparative analysis, it can be concluded that Restaurant Jing Quan in
Klang Valley is more commercially successful compared to Restaurant Hillview in Ipoh,
Perak. This statement has been supported by few evidences obtained through research and
analysis.
Firstly, Restaurant Jing Quan was found to have higher annual revenue figure and
gross profit. The annual revenue figure of Restaurant Jing Quan is RM 500,000. After the
annual revenue figure was deducted with the estimated overall working expenses of RM
182,500, the gross profit obtained is estimated to be RM317, 500. However, Restaurant
Hillview has an annual revenue figure of RM 292,000. With the estimated overall working
expenses of RM214, 900 deducted, a gross profit of RM 77,100 is obtained. The significant
difference in both annual revenue figures and gross profits is due to the number of customers
that visit the shop per day. Our data showed that the number of customers per day of the local
Chinese coffee shop in Klang Valley is approximately 1000 people while the kopitiam in
Ipoh, Perak has approximately 300 customers per day, which concludes that a higher number
of patrons often leads to a higher income to earned by the business.
Moreover, another surprising discovery obtained from our research is that the variety
of food sold in local Chinese coffee shops affects the income of the business. The number of
hawker stalls present in the local Chinese coffee shop in Klang Valley is 10, whereas there
are only 4 hawkers stalls present in the local Chinese coffee shop in Ipoh, Perak. Restoran
Jing Quan provided its customers with a larger variety of food choices and this situation
attracted more customers to visit the shop. In addition, the customers are able to select and
order hawker food according to their preferences instead of being bounded by limitations
with only 3 to 4 options. Hence, it is concluded the higher number of customers of the local
Chinese coffee shop in Klang Valley creates more business opportunities compared to the
Chinese coffee shop in Ipoh, Perak.
In conclusion, Restaurant Jing Quan is more commercially successful than Restaurant
Hillview. This statement can be justified with the supporting reasons as stated as above,

41
which includes a higher number of gross profit and annual revenue figure, higher number of
customers that visits the shop per day as well as a wider variety of hawker food provided.

42
Recommendations
After completing the case study, we were convinced that these businesses were lacking in
specific areas, which limits their ability to unleash their full potentials in the market. The
following are the 3 different recommendations provided for each business.
A) Restaurant Jing Quan (Klang Valley)
i. Location & Accessibility
As the shop is located in the densely populated residential areas, it can be difficult for new
customers to find its specific location. As such, it may be more difficult for people who are
non-local and unfamiliar with the conditions of the residential area to search the exact
location of the shop. This obstructs the potential of the business to expand in its market.
ii. Marketing Strategy
Advertisement is one of the most important strategies for a business as people opt for stores
which are well-known online. One of the best ways to advertise the business is by giving out
simple and low-cost brochures to allow more people to know about the business. In addition,
online promotions would be another good strategy to be used as they are free, quick and able
to reach a wider audience in the shortest amount of time. For example, the owner, Mr. Chong,
can promote his business on social medias such as Facebook or Instagram. In addition, digital
apps such as FoodRice or Foursquare would be another good option to consider as this can
help the business achieve publicity and also to allow customers to write the reviews about the
shop online. Online reviews will benefit the business as good comments or ratings will
provide confidence for other customers to try.
iii. Hygiene
The owner should emphasize more on hygiene of the shop. Regular cleanliness checks should
be conducted frequently at the kitchen area and he owner should ensure that all the workers
and hawkers wear gloves when preparing the food and beverages. This can further improve
the hygiene of the shop and give confidence to customers.

43
B) Restaurant Hillview (Ipoh, Perak)
i. Restaurant Layout Design
The ambience of a restaurant is very important as it gives a good first impression to the
customers. This recommendation is highly recommend for Restaurant Hillview due to various
reasons. When our group first entered the coffee shop, we discovered that the atmosphere of
the shop was pretty dull and as a result, the shop does not look like a kopitiam at all. These
unpleasant feelings were due to insufficient lightings in the store. The owner should change
the original fluorescent light tubes to LED light tubes as they reduce the usage of electricity
and provide greater lighting that brightens up the shop easily. Moreover, proper ventilation
with sufficient amount of fans has to be included for the shop to create a nice environment for
the customers. As there weren’t a lot of space for the customers to move about in the shop,
the cashier counter, kitchen and hawker stalls should be separated and placed properly to
make the shop look spacious. As such, Mr. Low needs to plan the interior space of the shop
more effectively.
ii. Restaurant Cleanliness
As the shop was messy and unclean when the on-site observations were carried out, it can be
concluded that the owner of the shop did not clean his premise frequently and effectively. As
such the owner himself should prepare cleaning schedules for his workers to clean the
premise on a regular basis. Mr. Low himself should also clean his premise diligently to set a
good example for his workers. If possible, it is recommended that the shop undergoes an
extensive renovation to replace old and dirty facilities and to improve the overall cleanliness
and appearance of the shop’s interior. By doing so, the overall cleanliness and look of the
premise can be enhanced to attract more customers into the shop.
iii. Attitude
Throughout the interview session, we found out that the owner lacks effective
communication skills. As the owner of a Chinese coffee shop, Mr. Low should be more
proactive and outgoing to portray a friendly characteristic to his customers. Basic interactions,
such as friendly conversations should be carried out confidently with his customers to enable
him to build a stronger customer loyalty. It is very important for the owner of a restaurant, in
this case a local Chinese coffee shop, to entertain his or her customers confidently to build
friendly relationships and attract them to revisit the shop again and again.

44
Bibliography
1) B Plans. (2015). Coffee Shop Business Plan Sample - Executive Summary | Bplans.
Retrieved from
http://www.bplans.com/coffee_shop_business_plan/executive_summary_fc.php
2) Mccan, J. (1995, March). The Nature of Marketing. Retrieved from
http://people.duke.edu/~mccann/m-nature.htm
3) CC BY-SA 4.0. (2015). The Function and Nature of Markets. Retrieved from
https://www.boundless.com/economics/textbooks/boundless-economics-
textbook/principles-of-economics-1/interaction-of-individuals-firms-and-societies-41/the-
function-and-nature-of-markets-148-12246/

45
Appendices
i) Appendix 1- Interview questions for Klang and Ipoh
1. When was the business founded? (Specific date and time)
2. Who are the key founders?
3. Which generation is currently maintaining the business?
4. What prompted the founders to start this business?
5. What was the reason for naming the business by the name Jing Quan 井泉 / Hillview
山景 ?
6. What type of business are you currently running?
7. What is your role in this business?
8. How did you start this business?
9. How did you get the background and skills necessary to run this type of business?
10. What are your main products? (Please list them down)
11. What was the financial background of the company when it first started its business?
12. Why do you choose this location to set up your business?
13. What is the business’ annual revenue figure?
14. How much is the expenditure to maintain the shop per day?
15. How many branch offices/ stores do you have?
16. Can you provide us a brief history of your business?
17. What were the hardships faced when starting this business?
18. What was your reason/ motive (s) to start this particular business?
19. What were the recent developments/ accomplishments/ changes that have occurred to
this business over the past 3-5 years? Over the past years since the start of this business?
20. Are there any interesting stories that had happened to this shop?
21. How many hawker stalls are present in your shop?
22. What do these hawker stalls sell? (Please list them down)
23. Which stall draws the most customers into the shop?
24. What are your criteria when deciding whether a particular stall can operate their
businesses in your premises?
25. May we know the monthly rent for each stall?
26. What is the number of staff that works in your shop?

46
27. What is the number of staff that works under you in the beverage department?
28. What is the estimated number of customers that visits your shop per day?
29. Who are your main customers?
30. What are the age categories of your main customers?
31. Where are your main customers from?
32. What is the preference of hawker stall food and beverages of these main customers?
33. How do the primary and secondary schools nearby benefit or cause disadvantages to
your business?
34. How does the rainy or unpleasant weather affect your business?
35. How do you overcome these problems?
36. When is the peak and non-peak season of your business?
37. What are the effects if there is a school or public holiday? Does the long year end
school break affect your business?
38. Where do you get your supplies to make your beverages and other products?
39. Do you have any special recipes or methods to produce your beverages and other
products?
40. What makes your beverages and other products superior compared to the ones sold in
other shops nearby?
41. Is there any specialized field of knowledge needed to start this business?
42. What makes your business stable over the past 13 years in this very location?
43. How do you make use of the profits gained from your business?
44. How do you manage the hawkers in your shop?
45. How do you manage the staff working under you?
46. Whom do you seek advice from for business related questions and problems?
47. What are the biggest issues and problems faced when operating your business?
48. How do your customers know about your business? How do you promote or market
your business? Do you carry out any marketing strategies?
49. Who are your competitors? Who are your top 3 competitors?
50. What strategies have you used to compete with your competitors?
51. Can you briefly describe how you utilize your premises after operating your business
from morning to noon?
52. When did you start renting your premises to the Chinese restaurant to operate at night?

47
53. How did the renting of the premises to the Chinese restaurant benefit your business?
54. Do you conduct regular checks on the Chinese restaurant at night?
55. How do you set the price of the beverages and other products in your shop?
56. Are your pricing strategies determined by your competitors?
57. Do you think you have a competitive edge compared to your competitors? If so, why?
58. After operating this business for the past 13 years, did you gain any additional
knowledge? Did you mature more? If yes, how?
59. Do you plan to expand your business outside of this area? If yes, where would be the
preferred location?
60. Do you have any intended changes you want to make for your business in the future?
61. Where do you see your business in the next year? In the next five years? The next ten
years? What are your visions for your business?
62. Are you satisfied with your business so far? Why?
63. Will the newly constructed LRT station help with your business?
64. Are you going to pass the business to your children when they grow up?
65. Are there any advises you would like to give to those who wish to start this kind of
business?
66. What are the effects of GST to your business?

48
ii) Appendix 2- Interview questions with answers
Date: 8th Nov 2015
Time: 3.00pm – 3.45pm
Location: 10, Jalan BK2/11, Bandar Kinrara, 47180 Puchong, Selangor
Interviewee: Mr. Chong Heng Loong
Job Position: Owner of the business
Operating Years of the Business: 13 years
Q: When was the business founded? (Specific date and time)
A: 20th of August 2003
Q: Who are the key founders?
A: Mr Chong Heng Loong and his wife
Q: Which generation is currently maintaining the business?
A: The first generation
Q: What prompted the founders to start this business?
A: Life back then was tough. To lead a good and well maintained life, they decided open a
kopitiam shop to earn some money and pay their life expenses.
Q: What was the reason for naming the business by the name Jing Quan 井泉?
A: The term Jing Quan 井泉 is a combination of two Chinese words, namely well (井) and
stream (泉). Both these Chinese words mean source of water and also a place to store water.
In Chinese culture, the Chinese tend to associate flowing water as a sign of prosperity and a
source of wealth. As such, the term Jing Quan was used to indicate the owner’s desire to
have a good business as well as to have a good source of wealth and income.
Q: What type of business are you currently running?
A: Chinese-styled kopitiam shop
Q: What is your role in this business?
A: The owner works as the boss of the business. He prepares the beverages as well as other
products to be sold to the customers. In addition to that, he looks after the business and
manages the entire performance of his business
Q: How did you start this business?
A: At first, there was a kopitiam shop which operated its business at the very location. As the
business was performing badly, the owner decided to sell his business. Seeing this as an
opportunity, Mr and Mrs Chong decided to give the kopitiam business a try as they had some
savings to be used as the capital for the business.

49
Q: How did you get the background and skills necessary to run this type of business?
A: As Mr Chong had a relative in Cheras who operated a well-to-do kopitiam business, he
stood beside the workers of the shop and observed how they prepared the beverages for 10
days. As Mr Chong was not allowed to have hands on experience, he learned the techniques
and skills of preparing beverages through observation. Mr Chong would also let his wife
taste the beverages he made to know what to improve.
Q: What are your main products? (Please list them down)
A: Coffee, bread, steamed buns and small Dim Sum dishes
Q: What was the financial background of the company when it first started its business?
A: The financial background of the business was terrible when it first started. Luckily, the
owner did not face any losses. The capital required to start the business was RM 100, 000.
Q: Why do you choose this location to set up your business?
A: Mr Chong and his wife did their research before deciding to open their business at the
very location. They realized that the residential area beside the shop lots is big and populated
with an organized structure. Moreover, the majority of residents living there were Chinese
and opening a Chinese-styled kopitiam shop may provide a high chance of success. As there
was only one competitor at that time, they decided that the location was suitable to start their
business.
Q: What is the business’ annual revenue figure?
A: More than RM 500, 000
Q: How much is the expenditure to maintain the shop per day?
A: More than RM 500
Q: How many branch offices/ stores do you have?
A: None
Q: Can you provide us a brief history of your business?
A: Times were hard when they started the business. At first, there were only 5 hawker stalls
operating in their premises and the amount of hawker stalls was insufficient to meet the
customers’ demands. Moreover, another kopitiam shop at the back of the shop lots had
operated for 10 years and they had strong customer loyalty. Customers tend to also compare
the two shops.
Q: What were the hardships faced when starting this business?
A: The business did not have anything special to attract customers to the shop. Moreover, as
there were little connections with the customers, only a few people knew of the existence of
the shop. In addition, the hawker stalls posed some problems to the business as well. One of
the hawker stalls was having a good business and eventually, the hawker decided to operate
his own business to gain more profit. The hawker left with only a week’s notice which was
against the rules, which states that the hawkers should give a month’s notice before moving
out. As such, the owners could not cope with the sudden change.

50
Another problem faced was the disturbance caused by the gangsters in the residential area.
They frequently showed up to collect “protection fees” from the owners. Luckily, as time
goes by, the chances of facing the same problem decreased.
Q: What was your reason/ motive (s) to start this particular business?
A: As Mr Chong and his wife did not have any talents or skills, they decided that operating a
small business would be the simplest way to earn a living. Moreover, both of them had
limited education experience and finding a job was hard.
Q: What were the recent developments/ accomplishments/ changes that have occurred
to this business over the past 3-5 years? Over the past years since the start of this
business?
A: As the population of Bandar Kinrara grew, the amount of customers grew as well. This
improved the business’ performance and the profits increased by 20-30%
Q: Are there any interesting stories that had happened to this shop?
A: There was one particular incident that happened years ago. One of the stalls had a conflict
with the owner and eventually the hawker decided to move away from the premise. The
hawker sprayed red paint onto the walls of the shop and broke the glass of other hawker
stalls. The particular hawker claimed that the entire incident was caused by Mr Chong. Some
customers also thought that the owner ran up debts with shark loans due to the red coloured
paint stains on the walls. Eventually, the problem was solved when they had a peaceful
conversation right after.
Q: How many hawker stalls are present in your shop?
A: 10
Q: What do these hawker stalls sell? (Please list them down)
A: Penang fried kuey teow, Chicken slice hor fun noodles, chicken rice, fu chok fishball
noodles, bitter guard noodles, pan mee, chee cheong fun, tom yam noodles, pork noodles,
fried Hokkien mee, Wantan noodles, claypot noodles, Sarawak Kolo noodles, fried rice, yee
mee and many more
Q: Which stall draws the most customers into the shop?
A: Pan mee, fried Hokkien noodles and Wantan noodles
Q: What are your criteria when deciding whether a particular stall can operate their
A: The main criteria are that the Chinese hawkers must operate their stalls at all times and
their foreign workers cannot operate their stalls alone. The attitude of the hawkers must be
polite and the taste of their food must be good as well.
Q: May we know the monthly rent for each stall?
A: The rent of each stall is between RM 20 to RM 30 per day. The amount of space used by
the hawkers is also taken into consideration.

51
Q: What is the number of staff that works in your shop?
A: There is approximately 40 staff that works in the shop, including the hawkers
Q: What is the number of staffs that work under you in the beverage department?
A: 5 foreign workers
Q: What is the estimated number of customers that visits your shop per day?
A: More than 1000 customers per day
Q: Who are your main customers?
A: The customers are mainly from the residential areas nearby. They are mostly Chinese
customers and also a small percentage of Indian customers. University students account for
10 per cent of the overall profit.
Q: What are the age categories of your main customers?
A: 30 to 40 years old
Q: Where are your main customers from?
A: Local residents
Q: What is the preference of hawker stall food and beverages of these main customers?
A: In terms of food, the customers prefer pork noodles, pan mee and also fu chok noodles. In
terms of drinks, the customers prefer coffee, tea and Milo.
Q: How do the primary and secondary schools nearby benefit or cause disadvantages
to your business?
A: The schools nearby affect the business a little. Some of the parents who sent their kids off
at the primary school may have their breakfast in the shop before they go to work. The
government primary and secondary schools do not contribute to the business’ profit.
Q: How does the rainy or unpleasant weather affect your business?
A: The rainy weather affects a lot as they may waste their resources and time. In the end,
they may not generate income for a day. The haze also affects the business as the customers
would opt to take their food away instead of eating in the shop as they were worried about
the hygiene of the food and their health. Profits decreased by 10 % due to the haze.
Q: How do you overcome these problems?
A: The problems cannot be solved as it all depends on luck.
Q: When is the peak and non-peak seasonof your business?
A: The business is relatively stable all year round. Holidays are the peak and non-peak
season in two conditions. If the holidays are on separate days, then they will become the
peak seasons of the business. However, if the holidays are long, the performance of the
business will drop as the residents may travel back to their hometowns or to other places.
This is because majority of the residents nearby migrated from other places.

52
Q: What are the effects if there is a school or public holiday? Does the long year end
A: The holidays don’t really affect the business that much.
Q: Where do you get your supplies to make your beverages and other products?
A: Suppliers will enter the shop and promote their products to the owner. The considerations
in choosing which products to buy are the price and also the quality of the materials.
Q: Do you have any special recipes or methods to produce your beverages and other
products?
A: No
Q: What makes your beverages and other products superior compared to the ones sold
in other shops nearby?
A: The owner puts his heart and soul into the beverages and products sold. He and his wife
supervise the preparation of the beverages tightly to ensure that the quality of their beverages
and products are maintained. They never relax as the taste and quality of their products is
what determines the success of the business.
Q: Is there any specialized field of knowledge needed to start this business?
A: The most important form of knowledge is attitude. It all depends on how they maintain a
good relationship with customers. The owner and his wife are very sincere when serving
their customers as they see them as friends and family. As such, they are determined to give
their customers the best.
Q: What makes your business stable over the past 13 years in this very location?
A: Attitude towards others. They always have casual and friendly conversations with the
customers to know their thoughts and opinions. The owners treat the customers like their
friends and family. For example, they will put notices on the walls to inform the customers
that they will not be around for particular days. This is to avoid confusion and trouble when
the customers are unaware of the off-days of the business.
Q: How do you make use of the profits gained from your business?
A: The profits will be used for renovations of the shop and are also invested to gain more
profits.
Q: How do you manage the hawkers in your shop?
A: The owners will listen to the customers’ complaints open-heartedly to know what to
improve. Whenever a customer complains about the taste and quality of the food, the owners
will immediately rectify the problem by advising the hawkers on what to improve.
Q: How do you manage the staff working under you?
A: The owner maintains good communication with the staff as well. Whenever they make
mistakes, the owners will correct and teach them immediately to ensure that the same
mistakes do not repeat themselves.

53
Q: Whom do you seek advice from for business related questions and problems?
A: The owners will seek advice from their friends who also operate their own businesses in
other places.
Q: What are the biggest issues and problems faced when operating your business?
A: There aren’t any main problems faced by the business. As mentioned before, the problem
of the stalls leaving and also the collection of “protection fees” from gangsters are some of
the problems. Luckily, they were helped by many people along the way.
Q: How do your customers know about your business? How do you promote or market
your business? Do you carry out any marketing strategies?
A: Word of mouth is the only type of promotion of the business. The customers who are
satisfied with the quality and taste of the beverages and food will inform their friends about
the existence of the shop. The process continues through this method.
Q: Who are your competitors? Who are your top 3 competitors?
A: As there are limited number of restaurants nearby, the only competitors of the business
are Restoran Leng Lam, Puchong Batu 14 Yong Tau Fu and also Kafe Shiok Kopitiam
situated approximately 500 meters away.
Q: Is the business constantly facing strong competition from the competitors? What
strategies have they used to compete with you?
A: Although there are 3 main competitors, the main competition comes from Restoran Leng
Lam at the back of the shop lots. This is because Restoran Leng Lam and Restoran Jing
Quan are the only Chinese-styled kopitiam shops in the residential area. No particular
strategies were used to compete against the owners.
Q: What strategies have you used to compete with your competitors?
A: The owners faced strong competition from Restoran Leng Lam when they first opened
their shop. This is because Restoran Leng Lam operated their business 10 years ahead of the
owners. To cope with the competition, the owners improved the taste and quality of their
beverages from time to time. Moreover, they increased the number of hawker stalls in their
shop to ensure that they have everything the other kopitiam shop has. This in turn provides a
variety of sources for the hawker stall foods as customers now have the choice of purchasing
the same hawker food from 2 different kopitiam shops.
In addition, the owners try their very best to retain their customers in their shop through
friendly and thoughtful service. They will serve their customers wholeheartedly. For
example, if the customers do not have a place to sit, the owners will look around to find a
suitable spot for them to sit and enjoy their meal.
Q: Can you briefly describe how you utilize your premises after operating your
business from morning to noon?
A: A small-scaled Chinese restaurant rents the shop at night.

54
Q: When did you start renting your premises to the Chinese restaurant to operate at
night?
A: Since the day they started their business 13 years ago.
Q: How did the renting of the premises to the Chinese restaurant benefit your business?
A: By doing so, Mr Chong is able to share the burden of the rental payment between him and
the owner of the small-scaled Chinese restaurant.
Q: Do you conduct regular checks on the Chinese restaurant at night?
A: No. This is because the premise does not belong to him.
Q: How do you set the price of the beverages and other products in your shop?
A: The owners observe and conduct research on the price if the beverages and products in
the market before setting a suitable price.
Q: Are your pricing strategies determined by your competitors?
A: Yes. This is because the customers will sometimes tell Mr Chong about the price of
beverages and other products in the competitor’s shop. Mr Chong and his wife will be
cautious and aware of the effects of the price on their customers’ emotions.
Q: Do you think you have a competitive edge compared to your competitors? If so, why?
A: At first, Restoran Leng Lam has a better competitive edge as they are situated near the
main road of the shop lots and there was heavy traffic flow into the shop lots’ area. However,
as time passes by, the owner’s business has a better competitive edge as the heavy flow of
traffic near Restoran Leng Lam causes traffic congestions. As such, more and more
customers opt to eat in the owner’s shop as the traffic conditions near his shop is smoother
and there are more parking spaces available.
Q: After operating this business for the past 13 years, did you gain any additional
knowledge? Did you mature more? If yes, how?
A: Yes, the owner became more matured. Mr Chong learned that by giving his heart and soul
into his business, the performance of his business will improve as his diligence is the key to
his success. He also learned that the ones who have passion in everything they do will
definitely succeed in the end.
Q: Do you plan to expand your business outside of this area? If yes, where would be the
preferred location?
A: Not at the moment. However, the owner did think of this idea before. The preferred
location will definitely be near the first shop as it will be easy for him to monitor and
supervise his business. However, the idea is currently invalid as the lack of manpower and
also stamina to monitor to businesses at the same time prevents him from doing so.
Q: Do you have any intended changes you want to make for your business in the future?
A: No.

55
Q: Where do you see your business in the next year? In the next five years? The next
ten years? What are your visions for your business?
A: The owner hopes that the business will achieve greater heights.
Q: Are you satisfied with your business so far? Why?
A: Currently the owners are satisfied as the business is on the right track and they are able to
retain a large number of loyal customers. More and more residents know the existence of the
shop and are willing to revisit the shop.
Q: Will the newly constructed LRT station help with your business?
A: Not really. This is because the passengers rarely stop by his shop to eat before they go for
work or to other destinations. If more and more passengers park their cars in front of the
premises, it may result in a lack of parking spaces for other customers as the passengers may
not necessarily enter his shop and eat.
Q: Are you going to pass the business to your children when they grow up?
A: The future generation is unwilling to inherit the business. However, to solve this problem,
the owners thought of selling the business to another owner who is willing to take over the
business as there are some people in the market who are willing to venture into this field.
Q: Are there any advises you would like to give to those who wish to start this kind of
business?
A: To be an owner, we must ask ourselves whether we have the patience to manage an entire
business for long hours. This is because they have to understand that it requires great
patience and dedication in order for a particular business to be successful. There are no
annual and medical leaves as well as public holidays for this business.
Q: What are the effects of GST to your business?
A: The price of the beverages and products in this shop are inclusive of GST since its
implementation. At first, some customers are unhappy but they are later accustomed to the
situation knowing that the beverages and products sold in the kopitiam shop at the back is
higher than this shop even though the Government Service Tax is not added to the price.

56
B) Restaurant Hillview (Ipoh, Perak)
Date: 9th Nov 2015
Time: 2.30pm – 3.15pm
Location: Hala Medan Legenda 1, Ipoh, Perak
Interviewee: Mr. Low Kong Bin
Job Position: Owner of the business
Operating Years of the Business: 10 years
Q: When was the business founded? (Specific date and time)
A: 3rd July 2005
Q: Who are the key founders?
A: Mr. Low Kong Bin
Q: Which generation is currently maintaining the business?
A: The first generation
Q: What prompted the founders to start this business?
A: As the owner worked as a lorry driver in the transportation sector, he was tired of his busy
and hectic life and wanted to settle down. As he heard that the kopitiam business is a
profitable business, he decided to change his job and undergo a transition from the
transportation field into the food and beverage field.
Q: What was the reason for naming the business by the name Hillview 山景?
A: As the owner’s kopitiam shop is located just opposite of the famous Kwan Yin Cave
Temple, the premise faces the majestic Gunung Rapat. As such, the name Hillview was used
to indicate that the shop allows its customers to have a good view of the majestic hills and
mountains opposite the road.
Q: What type of business are you currently running?
A: Chinese-styled kopitiam shop
Q: What is your role in this business?
A: As any owner of a kopitiam shop, Mr. Low prepares beverages to be served to his
customers. Besides, he is also the cashier of the business and he personally manages the
entire performance of his business.
Q: How did you start this business?
A: Before starting his own kopitiam business, Mr. Low heard others say that the job of
preparing beverages is an easy profit-making business. However, after venturing into the
kopitiam shop business field, he only realized that the truth is not what it seemed as the
business posed quite some challenges to himself.

57
Q: How did you get the background and skills necessary to run this type of business?
A: The owner learned the skills required to prepare beverages from his brother who also
owns his own kopitiam business. After acquiring the necessary skills, he took over another
person’s business and retained the same type of beverages and food sold to the customers as
well as the arrangement of furniture inside the shop.
Q: What are your main products? (Please list them down)
A: Beverages such as coffee, tea and Chinese herbal drinks are sold in the shop. Food such
as kaya bread and half boiled eggs are also available in his shop.
Q: What was the financial background of the company when it first started its business?
A: The financial status of the shop was very dissatisfying at the very beginning. No
customers were willing to visit the shop as they tend to opt for other established kopitiam
shops located near the shop.
Q: Why do you choose this location to set up your business?
A: The location of the shop is very strategic as it faces the main road, which is Jalan Raja Dr.
Nazrin Shah. The road is constantly busy with heavy traffic flow. In addition, before the
owner took over the business from another person, readily available equipment and
personnel prompted the owner to set up his own business.
Q: What is the business’ annual revenue figure?
A: RM 292, 000
Q: How much is the expenditure to maintain the shop per day?
A: RM 600 to 700 per day
Q: How many branch offices/ stores do you have?
A: None
Q: Can you provide us a brief history of your business?
A: The performance of the shop was very dissatisfying at the very beginning as no customers
were willing to visit the shop and even at peak hours. However, the situation became better
as the number of customers who visited the shop gradually increased.
Q: What were the hardships faced when starting this business?
A: The main problems faced by this business are the problems involving government
officials. Government officials tend to inspect the shop frequently and they often demanded
the owner to pay huge amount of fees including rubbish management fees and also license
fees.
Q: What was your reason/ motive (s) to start this particular business?
A: As the owner, Mr. Low was bored of his original job as a lorry driver, he wanted to
change his working environment and settle down. As his friends introduced him to the
kopitiam business field, he thought that it was easy for the kopitiam business to generate
profits. As such, he decided to start his own kopitiam business.

58
Q: What were the recent developments/ accomplishments/ changes that have occurred
to this business over the past 3-5 years? Over the past years since the start of this
business?
A: Over the past 10 years, there weren’t any changes made to the business. This is because
the owner tries to retain the original structure and style of the previous business. However,
he did allow some well-established hawker stalls in that area to operate their stalls in his
premises. This decision increased the business’ profits drastically.
Q: How many hawker stalls are present in your shop?
A: 4
Q: What do these hawker stalls sell? (Please list them down)
A: Pan mee, chicken rice, curry noodles, wantan noodles and a variety of noodles
Q: Which stall draws the most customers into the shop?
A: Curry noodles
Q: What are your criteria when deciding whether a particular stall can operate their
A: The owner does not have any specific criteria when deciding whether a particular stall can
operate their businesses in his premises. He allows stalls which obtained wide popularity and
recognition to set up their stalls in the shop after they are introduced by someone else.
Q: May we know the monthly rent for each stall?
A: RM 13 per day
Q: What is the number of staff that works in your shop?
A: 8 staffs including the hawkers
Q: What is the number of staff that works under you in the beverage department?
A: 2 staffs
Q: What is the estimated number of customers that visits your shop per day?
A: Normally there are more than 100 customers that visit the shop per day.
Q: Who are your main customers?
A: Loyal customers from nearby residential areas are the main customers. In addition to that,
factory workers from nearby industrial areas are also the main customers of the business.
Q: What are the age categories of your main customers?
A: As the main customers are mostly senior citizens, their ages range from 50 to 60 years old
Q: Where are your main customers from?
A: The main customers are local residents.

59
Q: How do the tourist destinations nearby benefit or cause disadvantages to your
business?
A: The tourist destinations do not affect the business.
Q: How does the rainy or unpleasant weather affect your business?
A: The weather does not affect the business.
Q: When is the peak and non-peak seasonof your business?
A: The business is generally stable and performing well all year round. As such, there are no
peak and off-peak seasons for the business.
Q: What are the effects if there is a school or public holiday? Does the long year end
A: The business is not affected by the holidays.
Q: Where do you get your supplies to make your beverages and other products?
A: Some of the suppliers include F & N and Yeo’s
Q: Do you have any special recipes or methods to produce your beverages and other
products?
A: Yes
Q: What makes you beverages and other products superior compared to the ones sold
in other shops nearby?
A: The main reason why the beverages and other products are superior compared to the ones
sold in other shops is the selection of raw materials. The owner purchases raw materials of
different quality and taste compared to the ones used in other shops which allows him to
produce beverages and products of higher standards and quality.
Q: How do you make use of the profits gained from your business?
A: The owner does not utilize the profits gained that much as the amount of profits earned
are only sufficient to maintain the conditions of the shop.
Q: How do you manage the hawkers and staff working in your shop?
A: The owner supervises the performance of the hawkers and staffs and ensures that they are
meeting his requirements.
Q: Whom do you seek advice from for business related questions and problems?
A: The owner does not seek any help or advice as he tends to settle his problems by his own.
If the problems could not be solved, he would accept the situation whole-heartedly.
Q: What are the biggest issues and problems faced when operating your business?
A: The problems posed by government officials are the main problems of the business till
this date.

60
Q: How do you promote or market your business? Do you carry out any marketing
strategies? How do your customers know about your business?
A: Word of mouth is the only type of promotion of the business. The customers who are
satisfied with the quality and taste of the beverages and food will inform their friends about
the existence of the shop. The process continues through this method. Moreover, the good
reputation of the hawker stalls also prompts more and more customers to taste the delicacies
sold by them.
Q: Who are your top 3 competitors?
A: Restaurant The Little Ipoh, Restaurant Song Choon, Restaurant Kim Lai
Q: Is the business constantly facing strong competition from the competitors? What
strategies have they used to compete with you?
A: The competitors generally have premises with larger spaces to accommodate larger
number of customers visiting the shops. In addition to that, the competitors’ premises have
higher number of hawker stalls operating their businesses which provides a wider variety of
products sold compared to the ones in Mr. Low’s shop.
Q: What strategies have you used to compete with your competitors?
A: The owner purchases raw materials of higher quality and taste to produce beverages
which are tastier and more satisfying. This encourages the customers to revisit his shop.
Moreover, the owner allows stalls which obtained wide popularity and recognition to set up
their stalls in the shop after they are introduced by someone else. This further improves the
performance of the business.
Q: How do you set the price of the beverages and other products in your shop?
A: The owner observes and sets the price of his beverages and other products according to
the standard pricing in the market. He ensures that the price of the products sold in his shop
are reasonable.
Q: Are your pricing strategies determined by your competitors?
A: The owner adjusts the price of the beverages accordingly when his competitors increase
or decrease the price of the beverages to ensure that his business is not disadvantaged
compared to the rest.
Q: Do you think you have a competitive edge compared to your competitors? If so, why?
A: The owner believes that his business is better than the other shops. Although the size of
his shop is smaller, his business still survives till today due to the quality and taste of the
food and beverages sold in his shop.
Q: Do you plan to expand your business outside of this area? If yes, where would be the
preferred location?
A: In the meantime, the owner does not intend to expand his business. This is because his
business will face too many competitions and it may be an disadvantage to manage two
businesses at the same time. However, if the owner really has the capital to do so, he would
opt to expand his business at a location near his residence.

61
Q: What are your visions for your business?
A: Being a humble person, the owner’s wish is to maintain the business as well as its current
state.
Q: Are you satisfied with your business so far? Why?
A: Yes. This is because the number of customers and profits earned are constantly increasing.
Q: Are you going to pass the business to your children when they grow up?
A: The owner sates that it all depends o his children’s decision. If his son, who is a pastry
chef-to-be, is willing to inherit the business, the owner may consider to change the shop into
a cake shop in accordance to his son’s profession.
Q: Are there any advises you would like to give to those who wish to start this kind of
business?
A: The kopitiam business is not an easy job as it seems. This is because one must be fully
prepared emotionally and physically in order to ensure that his or her business is on the right
track.

62
iii) Appendix 3 – Photo Documentation
1. Details of the Business
Front view of the shop
Interior settings of the shop
Hawker stalls that operate in the shop

63
The place where Mr. Chong prepares the beverages
The cashier counter in the shop. Bread, candies as well as cigarettes are also being sold
to the customers.
Pricing sign offoods and drinks that are sold
in the shop.
A notice pasted on the wall to inform their
customers oftheir day off.

64
2. Some of the popular products sold in the coffee shop
Iced coffee with Hainanese bread
A steamer machine that is used in the shop to heat the paos (buns) as well as the siu mai
(Dim Sum delicacies)
Yee mee stall in the shop Economy rice stall in the shop

Integrated project report

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Integrated project report