Today: February 9, 2016, 5:00 pm

New C&M analysis: Consumer Foodservice (Malaysia) Starbucks Berjaya Coffee Co (M) Sdn Bhd Company Profile
Starbucks Berjaya Coffee Co (M) Sdn Bhd in Consumer Foodservice (Malaysia) - a new company profile report on 2014-03-18 22:27:01
Starbucks in Malaysia is operated by Berjaya Starbucks Coffee Company Sdn Bhd., a joint-venture between Starbucks Coffee Company and Berjaya Group Berhad. The company´s first store opened in Kuala Lumpur on the 17th December 1998 and the company has expanded outlets to Sabah and Sarawak and surpassed the 140 stores milestone in January 2012. The company has been in operations for a total of 15 years. In Malaysia, there was slightly slower value growth for consumer foodservice during 2012 than what was seen in 2011. Although economic conditions were improved in Malaysia, reflected in the opening of a large number of new consumer foodservice outlets, consumers in Malaysia remained cautious over their spending as a result of rising cost of living and food prices. Hence, some consumers preferred to scale back their dining out frequency, causing a slowdown in value growth during 2012 for the overall consumer foodservice market. Besides the reduction in frequency of dining out, an increase in consumer foodservice players participating in online coupon deals at promotional prices, for example Popeye´s Louisiana Kitchen offering a 50% discount to consumers with their Groupon Malaysia deals, also caused value growth to slow down.

In conjunction with the rising number of health-conscious Malaysians, consumers who eat out are constantly looking for healthier food and drinks offerings from foodservice operators in order to maintain a healthy lifestyle. For instance, PappaRich offered its signature drinks with stevia which are suitable to be consumed even by diabetic patients and those who are watching their level of sugar consumption. Besides, Beyond Veggie, a meatless vegetarian and non-vegetarian full-service restaurant was also launched by Secret Recipe in 2012. Lastly, organic food stores such as BMS Organics were also expanding their operation by including foodservice operations to provide healthy organic food and drinks to their customers with seating areas provided in the stores.

International fast food chains like KFC and McDonald´s led consumer foodservice in Malaysia within 2012 by showing strong sales performance. International brands remain popular in Malaysia with strong brand establishment achieved in both the international and local arena. However, domestic consumer foodservice operators such as Secret Recipe Cakes & Café, White Café and Marrybrown Fried Chicken are competing against international players with their respective brands of Secret Recipe, Old Town White Coffee and Marrybrown. These brands are showing significant sales improvement and gaining value shares as a result of their aggressive expansion strategy.

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