Executive Summary

Sweet Forrest Café’ is joint venture company that involve in Food and Beverage industry and the
shareholder is Dato’ Alex Lum and Ng Eng Hock. The company is a Chinese mix western
cuisine but major product is Chinese food. Sweet Forest café’ headquarters is at Setapak, Kuala
Lumpur and another 3 branch is located at Kepong, Puchong and Sri Petalling and they offer 212
types of food and 66 types of beverage in the shop. They have about 80 workers and the working
time is from 11am. – 12am. Sweet Forest Café’s major challenge is to convert private limited
company to franchise in future time.

Company Background

History

Sweet Forest Café’ Sdn. Bhd was established in 2016. Before the company was established, it is
a mix rice shop that run by Alex Lum, but he realized that the market of the mix rice shop is
declining and the price of the ingredient was unstable. After that, he realized the trend of salted
egg is gradually occupied in Malaysia market by showing that the Salted egg chips that launched
in Singapore were selling hot in Malaysia and he felt that is the best opportunity by having an
own shop with his signature food which now was the best seller food in his café- Salted Egg
Chicken Chop.

About

Name of the Company Sweet Forest Café Sdn. Bhd.

Business Address No 21,

Jalan Bunga Kantan,
Taman P.Ramlee Setapak,
Kuala Lumpur Wilayah,
Persekutuan.
Operation hour Monday Closed
Tuesday 11AM-3PM, 6-11PM
Wednesday 11AM-3PM, 6-11PM
Thursday 11AM-3PM, 6-11PM
Friday 11AM-3PM, 6-11PM
Saturday 11AM-3PM, 6-11PM
Sunday 11AM-3PM, 6-11PM

Website https://www.facebook.com/Sweet-Forest-Cafe-
1630767177173603/

Phone no. 016-626 2177

Form of Business Limited by Shares Private Limited

Nature of Business Café Operator

Date of Commencement 27-05-2016

Date of Registration 27-05-2016

Registration Number 1189323-P

Vision & Mission

Sweet Forest Café’ established mission for their business that is to be a well- known café in all
over Malaysia, to provide affordable price of product to customer, high quality food and
beverage and a clean and comfortable environment. It’s vision it to expand the company to all
over Malaysia, giving better service to our customers and to provide freshness food to the
customer.

Organisation Structure

Manager

Supervisor

Staff

The branch of Sweet Forest Café’ in Kepong have 13 staff in the shop. Three of them is chef to
cook in the kitchen, two of them is bartender to do beverage, five of them is to serve customer,
one of them is the cashier. The manager and supervisor’s job is to manage daily operation of the
shop such as deal with the customer that have problems with the food or beverage and dealing
with supplier when out of stock.
Keys to Success

To succeed in the business Sweet Forrest Cafe：

 Offer varieties of food and beverage to customers that different with the rest of the
competitors.
 Do not increase price of the menu and implement different price in different place due to
different type of customers, for example in Setapak, KL have more college student of
Taruc they offer student price and the price is included GST, but at Kepong, they offer
standard price without include GST because the customer is based on family.
 Sell Products that using highest quality of ingredient, as well as making the customers
happy and satisfied.
Industry Analysis

Porter’s Five Forces

Threat of Substitutes

Sweet Forest Café experiences the strong force of the threat of substitute because there are many
competitors selling the similar products or services. There are external factors that influence the
Sweet Forest Café experiences the strong force, one of the external factor is the availability of
substitute products. This factor has a negative impact to Sweet Forest Café because their customer
will consider the price of the products or services which can satisfy them. If customers think that
the price of the products or services are too high and not worth it, customer can easily shift to the
substitutes. Due to the huge threat of substitutes, Sweet Forest Café provides good quality of
products in an acceptable price to attract customers.

Threat of New Entrants

The threat of new entrants of Sweet Forest Café was high because this industry is highly profitable,
less barrier to entry and low start-up cost compare to other industry. This industry was highly
profitable because everyone need to have 3 meals in a day. Due to this factor, many people are
trying to enter this industry to start their own business. However, it was difficult to provide a high
quality of foods and services. It is important to Sweet Forest Café to focus on the new entrants
because they might be a threat on future.

Rivalry Among Existing Firms

In this industry, there are many competitors selling similar products or services. Sweet Forest Café
also experiences the strong force of rivalry among existing firms. Competitions within industry
are all about the price and promotions because competitors are competing with the same customers.
When all restaurants are selling similar food, the customer will go to the restaurant which can
satisfy them in a good quality food and acceptable price. Sweet Forest Café in Setapak has
promotion such as student price and they paid goods and services tax for customer, this will attract
customers to have meal in their restaurant.
Bargaining Power of Suppliers

Bargaining power of suppliers do not has much impact to Sweet Forest Café. There are varieties
of suppliers in the market supply the similar products. Sweet Forest Café can change their supplier
easily if they are not satisfied with the price or quality. Sweet Forest Café would choose the
supplier that will provide them good quality of meat and acceptable price. They can compare the
price of all suppliers offer. They can easily switch to other suppliers as there is low cost of
switching.

Bargaining Power of Buyers

Bargaining power of buyers is very high that affecting Sweet Forest Café’s business. Customers
always have their right to go to Sweet Forest Café’s competitors to have their meals. Customers
are very important to every business because customers are the one who make the company
profitability. As the market has many substitutes of Sweet Forest Cafe, customer can easily shift
to substitutes. They can easily switch to substitutes as there is low cost of switching. Customers
demand for the high quality of foods, great services along with a acceptable price. Due to the
customers can easily switch to substitutes, bargaining power of buyers are always a threat to Sweet
Forest Café.

Qualities of Opportunity

¤ Attractive – The main attraction of Sweet Forest Café is the signature dish – salted egg
yolk chicken chop. The owner, Dato’ Alex Lum stated that they use real salted egg yolk
as the main ingredient for their signature dish because the real stuff attracts more
customers to come back for the dish. The first outlet of Sweet Forest Café is located in
Setapak which is very near to Tunku Abdul Rahman University College. Therefore, the
signature dish with real stuff in it becomes the main attraction for the students. Even
though the ingredient cost will be slightly higher, attractiveness is the main factor to keep
a café running well.
¤ Timely – It is a very right timing for Dato’ Alex Lum to decide on opening a café in
Setapak as he knows people especially the students will be attracted by new stuff. They
keep certain regular customers with their signature chicken chop and maintain high
quality of service. Besides, they have choose the right time to operate their shop and
serve different dishes as they know people will come at any time. They ensure every
customer can have many choices to choose with.
Marketing Plan

Product & Services

The restaurant layout, including the dining room, kitchen, bar and serving line. The place was
spacious so that it might not caused the fluctuation in customer traffic and peak meal period.

Our Signature dishes in Sweet Forest Café is Salted Egg Chicken Chop. This dish is made by
pure Salted Egg Yolk which is high quality due to the manager was emphasizing the quality of
the food by avoid using Salted Egg powder which will lost the original taste of the Salted Egg
Yolk. The crispy chicken chop dipped with the pure salted egg yolk sauce is the most welcomed
by the customers. Besides that, we have another special point which is our Salted Egg Chicken
Chop is large in size and the price is affordable. Salted Egg Chicken Chop is not only contain
chicken chop but it also contain side dishes which has French fries, bread and salad.

Other than that, of course we are not only selling Salted Egg Chicken Chop but we served with
Chinese-Western food indeed such as fried rice, spaghetti, noodles and so on. It has a lot of
choices in our menu and we might satisfy customer’s need with all level of ages with variety of
food.

For our services, we provide the best service for our customer because we believe service is the
second important things in food and beverage industry. After customer had made their order, we
will double confirm with them for the order to make sure no mistake in serving food. Besides
that, if customer have any question we are also willing to reply them with sincerity. We also
provide customer birthday celebration service which they can book the whole café to do their
birthday party and we provide buffet services for them.
Strategy

Promotion

Social networking is becoming increasingly inevitable for marketing professionals who want to
reach the widest audience possible. We are promoting our café through facebook share,
Instagram famous users or some personal blog, this is the lowest cost method and the most
effective way to promote our product. These websites are widely spread throughout the world
and the facebook and instagram users could share or mention the post to their friends and come
together. We did not spend much money on promoting our product but we believe in promoting
by word of mouth since our food was value by customer that our food as something exciting and
cannot wait to tell their friends and neighbours. Besides that, we might ask customer to sign up
our member card for free and offer them some promotion example, voucher or birthday threat.
This is the way we get repeated customer and how we promote our food.

Promotional budget:

We spent around RM2000-RM3000 in promoting our café through network and RM1500 for the
voucher and birthday threat for repeated customers.

Pricing

Our pricing strategy is positioned as "generic", meaning that RM19.00 is the average consumer
spending for ‘chop’ in most of the café. Leveraging the size of chicken chop and signature style
of salted egg sauces to be sold, we are serving the majority of Malaysia. We had pricing it
around Rm18-RM19 is because we do not want to destroy the market. The importance of the
price is rate as moderate because depend on the analysis, most of the customer more emphasize
the taste and quality of the food.

Proposed Location

We are located at Taman Setapak Indah Jaya, 53100 Kuala Lumpur, Federal Territory of Kuala
Lumpur where is the town busy all the day, for example it is near to the office, housing state and
school. It is convenient to find a parking due to we are providing car park for our customer
without any charges and the road is free from traffic jam. We equip the outlet with modern
furniture and aim for cleanliness and an open feeling and it can accommodates around 80
peoples.

Market Analysis

Understanding Pest factor;

Political – political is also refer to the government or the rule and regulations. It is also study
how the government and the rule and regulations affect a company’s ability such as company’s
profitability and successful.Issues in the political stability include tax policies such as GST, trade
regulations, social and environmental policy, and the change of government.(Business News
Daily, 2017)

Economic – refer to the external economic issues that affect the company’s success. Economic
issues include inflation and interest rates, unemployment rate and policies, and economic growth
and stability(Pestle Analysis, 2013)

Social – refer to the cultural, seasonal behaviours and demographics. Company can understand the
consumer demand by analyse the issue and make some adjustments to satisfy their expectations.

Technological – refer to how the company introduce its product and services to the marketplace
by technology. The technology factor included research and development and technological
advancement. Company must be aware if there is similar technologies in the industry by the
competitors. (Business News Daily, 2017)
Pest Analysis

Political

In 1 April 2015, the government had gazette that the company which sales is more than
RM500,000 in 12months have to register under GST. GST is good and service tax that will boost
the country economic. GST will affect the consumer’s willingness to buy because it will increase
the price of the product and it will affect the sales.

The minimum wages in 2018 is RM1000 for private sector in Peninsular Malaysia. Minimum
wages will reduce the income gap but it will increase the burden of the employer to hire workers.
This will affect the cost of the product and service by increasing the price to cover the cost.

Economy

The economy issues will affect the purchasing power of the consumer and the consumer
purchasing power is depend on the country’s economy. When the economy boom, the purchasing
power of the consumer will increase and the consumer is willing to spend more money in food and
beverage since that is the necessities in life.

The economy census the food and beverage services that there were 167,490 establishments
operated in food and beverage services.This service generated RM 66.4 billion of value of gross
output, increased by RM29.1 billion with annual growth 12.2 per cent. In line with value of gross
output, the value added recorded an increase of 11.2 per cent annually posted at RM28.0 billion.
The number of persons engaged in this industry with annual growth of 6.7 per cent. (Dosm.gov.my,
2018)

Technological advances

Technological factors form the production output and usefulness of the plant and operation. It will
impact the performance and activities of long-term business which is necessary to create packaging
or the production of food. Veteran corporation may be have more experience compare to newer
corporation. Nowadays, technology is a vital success factor to achieve and sustain competitive
advantages. It can be seen that it is highly effective for the employment of technology in food
industry. People considers competing technology development, global communication and
information, consumer buying mechanisms or technology, licensing, patents while assessing the
situation of technological. With technological advancing, people can order their food by using
tablet that showing the menu. This is easy for the consumer to order the food and beverage directly
to the system, is then prepared the food and beverage based on the system.

Social

Social factors refer to the pattern and trend of demand which generally occur due to the nationality,
religious or culture. As for food industry, local taste and preferences will decide the acceptance of
particular food products. In order to be successful local likings and disliking should be followed.
So a thorough understanding about local market is required to ensure successful business
(Oxbridge Graduates, 2013). The cultural and social influences on a particular business vary
country-wise. When a Socio-Cultural situation is analyzed lifestyle, consumer attitudes and
opinions, media views, brand, consumer buying patterns, role models, buying access and trends,
ethnic or religious factors, advertising and publicity, moralistic issues should be considered. To
input the family and young adult into their customer base, Sweet Forest Café are not only having
western food but also local food or Chinese food with their signature Salted Egg Chicken Chop.
Now, they have more choices for the consumer. They even have the clean and modern interior
look, soft lighting and wifi.

Competitor analysis

Our major competitor is 21 Sizzling & Grill which located in 21, Jalan Kuchai Maju 7, Kuchai
Entrepreneurs Park. Their product might get compete with us which they are having the same
signature with us which is Salted Egg Yolk Chicken Chop.

In food and beverage industry, we have variety restaurant and café around the world which
serving different type of food. This is why it is important that we must have our signature dish -
Salted Egg Yolk Chicken Chop. We expect a high degree of enthusiasm and offer a fun store
with friendly staff, that reflects the company's youthful and energetic culture.Our Chicken Chop
is made 100% fresh, compared to most café that fried with frozen chicken. This is the special
part for our café and could compared with other competitor. Based on the Special Product and
Good services, this is why we could gain the customers statisfying and get more and more
customers.

Factor Me Strength Weakness Competitor Importance

A for
customer
Products Salted Egg The sauce is We do not Salted Egg Chicken 5
Chicken made by have cheese Chop with cheese
Chop pure salted sauce
egg yolk compared to
competitor

Price RM 16.90 More Does not RM20.90 4

cheaper than including
competitor GST
Quality High High quality Arrangement Their quality is 5
by using of the dish slightly lower and
pure salted does not their arrangement of
egg yolk attractive dish also lack of
attraction
Factor Me Strength Weakness Competitor Importance
A for
customer
 semester
break.
Location Setapak Focus on Less Prima Setapak 3
student customer
market when it is
sem break

Service Good More Less Not clear about the 5

friendly responsive menu
during peak
hour
Appearance Attractive The The Old design of building 3
restaurant surrounding causing hard to catch
had of the café customer’s attention
renovation was slightly
last month dark caused
some
students
cannot study
at there.

My competitive advantages are our salted egg sauce is made by pure egg yolk due to we
emphasized the taste and quality of our food. Besides that, our pricing also being affordable for
all customer. We are located at place that near to school or college, so most of our customers are
students. We provide the best service for customer and our appearance is the most modern
design.
Target Market

Target market is the group of customer that the company are aiming to attract them to eat at their
shop. Identify the target market is important to the company for knowing that the actual and
potential customers in the market. So that the company can estimate the and compare the goods
and services with other competitors. It focus its marketing activities majority on reaching the
University students and faculty, people working in offices located close to the coffee bar and on
sophisticated teenagers.

Market segmentation

Sweet Forest Café’s company target market focus on :

Geographic Segmentation :

Sweet Forest Café’s company is offering the goods and services to individual and family. Sweet
Forest Café located in Jalan Genting Klang and Kepong which is always crowded. The place that
we choose Is nearby some housing area and educational institution such as Taruc, Prima Setapak,
Desa Jaya and Fortune Avenue Condo. The customer can each easily and just take about 15-30
minute to reach there. This is one of the ways to attract more customers. To execute our business
plan, we have decided to open our first company in Puchong, Selangor.

Demographic Segmentation :

Sweet Forest Café will focus more on student, family and non-muslim. This is because the food
that we offer is not ‘Halal’. The customers that we focus on student is age about 14-22 years olds
that is teenagers from secondary school and college student. This is because nowadays, those
teenagers like to enjoy in a café and restaurant with a good environment and with air
conditioning. Other than that, we also focus on family that salaries less than 4 thousand Ringgit
Malaysia and middle income levels. The customer will be attracted because of the quality of food
with the affordable prices and some of the family will lazy to cook and come to our shop to
dinner.
Management and organization

The supervisor plays an important role in manage the business on a day to day operation in the
Sweet Forest. He is the leader of workers. He improve the efficiency of workers by providing
them guidelines to achieve the objectives of the café and improve the motivation of workers and
ensure they understand their duties. For example, a supervisor makes every workers feel the
responsibility and importance of every position by dividing the task. A supervisor will also hire
and train new employees. He will receive complaints from the customer and solve the problem
that faced by the café such as take action if there is a customer going to complain about they
have been waiting too long. There are many similar café nearby so F&B is highly competitive.
Although there are highly competitive, the salted egg chicken chop in Sweet Forest Café is very
famous, the sauce of chicken chop is very special and delicious. If a supervisor lost or
incapacitated, there is a senior staff can replace the position of supervisor and the senior staff
should know the responsibility of supervisor.

Owner

General manager

Supervisor

Floor Bar Kitchen

manager manager manager

Bartenders,
Lead
barbacks
Cook

Servers, Cooks,
Lead server, Dishwasher,
Hosts Lead
Host Bartender Bussers
The manager is responsible to ensure the company’s goal achieved and motivates staff.
Responsibility of supervisor is to give instructions other staffs to achieve the objectives. Floor
manager is a leader of lead server, hosts and servers. Floor manager know the detailed
knowledge of food and beverage program. He is responsible for improving sales, training staff
and ensure the customer satisfaction and the cleanliness of restaurant. The function of bar
manager are to prepare an effective schedules to adjust staffing during peak hours. Bar manager
also can provide training to the staff. The leader of lead cook, cooks, dishwasher, and bussers is
kitchen manager. Kitchen managers purchase food and stock to maintain the inventory level and
ensure that food is cooked properly.