Names Presentation Roles

Marcus Chua Kai Wen (0318593) Background Information of Cheong Foh Cafe

Sherlyn Ang Tse Yun (0317977) Background Information of Geographer Cafe

Chan Yi Qin (0315964) Analysis of Geographer Cafe

Woo Shir Ley (0317732) Analysis of Cheong Foh Cafe

Tristan Yu Tze-Xien (0317729) Comparison & Recommendation of Geographer Cafe

Loh Wei Shuen (0317896) Comparison & Recommendation of Cheong Foh Cafe

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SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN

FOUNDATION IN NATURAL BUILD ENVIRONMENT

""PRESENTATION TITLE: A Comparative Analysis of Geographer Cafe and Cheong Foh Cafe

GROUP MEMBERS:

ENGLISH 2 (ELG 30605)

LECTURER: CASSANDRA WIJESURIA

SUBMISSION & PRESENTATION DATE: 2nd December 2014

""

Title Page No.

1. Artistic Cover"

2. Cover Page 1

3. Table of Contents 2

4. Key Summary 3

5. Research Report" a. Description of the history of trade" b. Description of the business" c. Comparative Analysis"

"4 - 5"6 - 9 "

10-15

6. Recommendation" 16-19

7. Appendices 20-29

8. Conclusion 30

9. Bibliography and References 31

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Table of contents

"Key Summary!""In this assignment, an analysis for the food and beverages business industry both in and out of Klang Valley had been made. We visited cafes in Klang Valley and Malacca. In a group of 6, we interviewed Cheong Foh Cafe which is located in Klang which is one of the many famous and well known one around the area. As for Malacca, we interviewed Geographer Cafe located in the heart of Malacca, Jonker Street. Both of the cafe has been operating for more than 10 years. The two food and beverages outlet were analyzed, compared and contrasted in various aspect such as in terms of business descriptions, background history of trade, comparative analysis of the businesses and also recommendation for future development of the particular business.

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"Research Report!""a. Description of the history of trade!""In the earliest point of its history, coffee houses were already so popular that ideas born from there have been a source of political forums and discussions ever since. During the 17th century when coffee was introduced to Europe, the popularity of cafes followed the same pattern as most coffee houses around the world. It quickly became a venue for people to congregate, exchange views, write poems, plays, and political testaments, conduct business transactions, participate in cultural exchange and often relax with a good book.""A typical coffeehouse shares a common characteristic with a bar or a restaurant. They differ in that a coffeehouse focuses on serving coffee, teas and snacks. In some countries, however, a coffeehouse does serve hot meals, deserts, sandwiches, soups, and alcohol, aside from bakery products. Depending on the country and region, coffeehouses have adopted variations. ""In the United States, coffeehouses or cafes may offer a variety of coffee styles, hot chocolate and teas served as well as light snacks while others serve full menus. Alcoholic beverages may also be offered. The popularity of cafes in France, especially Paris, gave way to subtle coffeehouse variations like the brasserie where single dish meals are typically served, and the bistro. ""Whereas in Malaysia, coffee is called as ‘Kopi’. It was said to be introduced by an English military officer during the period of British colonization. Coffee culture in Malaysia was said to be started with ‘Kopitiam’ (which means coffee shop in Hokkien dialect). The ‘Kopitiams’ were generally run by the Malaysians of Hainanese and Hokkien descendants in the early days. Malaysian coffee is special in a way that it's roasted with butter and sugar, while coffee in the rest of the world is only roasted with sugar. It's made by pouring boiling water through a cloth filter rather than brewing, which is worldwide practice of making coffee. Also, ‘kopi’, in general refers to coffee with condensed milk in Malaysia. Black coffee with sugar is called Kopi-O (which means black coffee in Hokkien dialect), and extra strong and dense coffee is called Kopi-Kau, and extra strong and dense black coffee, Kopi-O-Kau.""""""

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The ‘kopitiam’ (coffee shop) culture is refer by many as a Malaysian legacy. It is a melting pot of culture that defines our multi-racial society.  Malaysian of all ages patronizes the ‘kopitiam’ (coffee shop) for various reasons.  Besides sipping a hot cup of freshly brewed “kopi-o” and savoring a variety of local delights. The kopitiam is a popular venue for casual chatting for people from all walks of life.""Coffee soon entered the everyday life of Malaysians and became a part of social circle. It's was a harmonic scene where all races gathered in a ‘kopitiam’ (coffee shop) talking to each other and enjoying the same coffee. The coffee culture started to mushroom and made its appearance in city cafes. It too became the in-thing of the younger generations. Then many modern cafe such started to appear. The modern cafe slowly became a regular hang out spot for many teenagers and also many young adults.

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"b. Description of the business!"Brief Description: Geographer Café!

"Geographer Café, regarded as a geo-focal point or a must stop for many a wanderer, is conveniently located in a conspicuous corner pre-war shop house right in the heart of Chinatown, Old Malacca. Opened in August 9th, 1999, Geographer Café is welcome to all, both local and foreign. A group of youngsters, Peter and friends, filled with hope, dreams, courage, teeming with creativity and full of unorthodox notions, challenge themselves to bring the streets of Malacca back to life. The street where the cafe is located carried great historical significance to Malacca and Malaysia. However, at that time, the surrounding area had an eerie atmosphere as it was surrounded by funeral parlors, casket shops and dilapidated shop houses. The unit chosen to start this cafe was also in a wretched condition. The founders had wanted to attempt to restore their hometown to their former glory. It was an opportunity, a personal mission and a challenge.""Formerly it was a worn-out pre-war structure and a humble dwelling of five Chinese families who shared a style of living from the olden days, a ‘communal living-style’ where the rental outstanding of a room was a meager RM50 per family. The cheap rent was courtesy of the Rent Control Ordinance which prohibited owners from increasing rentals and which was finally abolished in 1999. The building was also once a traditional Chinese coffee house – famous for its Chinese satay run by an elderly Chinese couple."

"Geographer Café has become a landmark sustained by the old building itself and which has brought ad agencies to shoot commercial and film producers as well attracted by the architectural charm. A commercial advert shooting of a new Toyota Camry model was done there and next came the award by PAM (Malaysian Architects Association) under the ‘Color on Building’ category in 1999. From then on, there’s no stopping Geographer Café, as awards, commendations and praises were heaped year after year. "

"There are two sections in the Café – first, is the old familiar coffee-shop ambience and a ‘dining corner’ and the other is ‘the upstairs’ which has been conserved to retain much of its old structure. During Jonker Walk nights (Fridays till Sundays), the café is literally packed to the brim – be it downstairs or upstairs where open-ledged windows overlook the street drowned by verbal din, cacophonies and music blazing from all ends. "

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"The opening hours of the Café are from 10am to 1am daily. This café has 15 workers, typically hiring local youngsters. In a normal day the café serves around 500 customers, most of them being foreigners. During Jonker Walk nights (Fridays till Sundays), the café is literally packed to the brim. Besides, food items vary from Asian menu, some western menu and a wide variety of vegetarian dishes. All of their meals are prepared without MSG and without the usage of microwave oven as they'd like to promote healthy food. Aside from that, Geographer Café also offers a wide range of beverages: juices, beers, espresso-based coffee, tea, cocktails and spirits. The menu is catered to a wide range of customers from beer drinkers to coffee drinkers to vegetarians.""Apart from serving an excellent variety of Asian and Western food, there’s also ‘live’ entertainment performed by ‘Mr. Burns’ who plays the guitar and keyboards which at times draw couples to dance and cha-cha away. So whether one were to drop in for just a cup of coffee, a slice of cake or for a meal, Geographer Café never seems to fail to appeal and relax one’s mind and this owes much to the warm ambience, architectural renovation and preservation and above all, to its strategic geographical spot-cast within an historical site."

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"Brief Description: Cheong Foh Coffee Shop!

"Cheong Foh Coffee Shop, listed as the best coffee shop in Klang, gained its popularity from their unique taste of strong double roasted coffee, as well as savored hot toasted bread with kaya and butter. Cheong Foh was founded in 1950 by Mr. Chong York Lee, with the notion of running a business different from his peers, who were set on running business dominated by Chinese culture, such as hardware store, jewelry trading etc. Eventually the business was passed down to his son. Unfortunately, 9 years later his son was critically ill and had passed away in 2002, the business was therefore run by Chong York Lee’s daughter in law, Mdm. Goh Shw Hui, the current owner. She was a teacher by profession, but had decided to quit her job to take over the coffee house. The ‘iron lady’ herself, started from scratch and learnt as she went. After years of hard work and determination, Mdm. Goh had eventually acquired one of the shop lots. To this date she has handled the coffee house for 17 years. "

"Cheong Foh’s first shop was originally situated at Jalan Taiping, Klang. After relocating 3 times amidst the past 60 years, Mr. Chong York Lee had chosen Lorong Gopeng, Port Klang which is not far from Jalan Taiping as its final niche. The new location, as compared to the old sites, is a more strategic place where human converge; it’s a combination of two shop lots in a double-story building with extended roof and premise. To certify optimal ventilation in the hot humid weather, the café is punctuated with an air well in the middle hall that facilitates air circulation. Its ceiling is moreover comparatively tall and installed with sufficient number of ceiling fans. All of the above mentioned are to ensure that the customers can enjoy the delicacies in an absolutely comfortable ambience. "

"Typically, coffee shop only opens in the morning up to noon, but Cheong Foh opens throughout the day until 6pm. This café has 10 workers and all of them including the senior barista are foreigners, most of the guys are from Vietnam whereas most of the ladies are from Indonesia. Each and every one of them are given RM5 per day for lunch. Most of the workers started working here since the late Mr. Chong founded the business. The approximate number of customers per day is around 500 to 600 due to its strategic location at the town’s heart. It’s continually crowded especially in the morning and the afternoons are even busier. All of the workers are therefore always busy early and late. Due to this, Mdm. Goh’s son and nephew would press into service when the shop is busy to alleviate her burden. The only moment that they could snatch a little leisure from the rush of business is between 11am to 12pm, due to the fact that economic rice is not available in Cheong Foh."

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"Having the title of ‘serving the best coffee in Klang’, of course, the Hainanese coffee is definitely one of the main draws here; aside from the ever pleasant crispy toasts with butter and handmade kaya (egg and coconut jam), or the Apollo bun (round-shaped, soft bun with a slightly burnt and crisp exterior) with the same fillings. Add a half-boiled egg or two, if you will. Their target of market ranged from young adults to their loyal old customers. Besides local food lovers, the restaurant also attract patrons from outstation, thanks to the ubiquity of internet, whereby coffee shop connoisseurs’ high recommendations leave their traits in the viewer’s hearts. Furthermore, due to large amount of customer’s demand, they produce coffee in small packets for sale in the beginning of this year."

"Under the sweat and blood of Mdm. Goh and her son, they finally opened up a new branch at Jalan Kim Chuan around Klang area. Mdm. Goh and her son took turns to manage their two shops. She managed the headquarters for 3 days while her son managed the new branch for 3 days and vice versa. When her son managed the headquarters, her daughter-in-law took care of the new branch. 7 years after the opening of the new branch, they are planning to open up another shop. This time, they are planning to open a modern coffee house, which will be named ‘C U Latte’. "

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c. Comparative Analysis!

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Recommendation for Geographer Cafe!""Future plans!"Compared to Cheong Foh Café, the owner is fully concentrate on allowing their employees go through training and recognition first before they work. Recruit ,hire and train baristas and store managers to screen and train through programs,and also to ensure the best food preparation technique of its own and well services provided. The owner also willing to take a step forward to invest its profit to increase the expert employees satisfaction while providing stable increase in their salaries. ""I would also recommend to change the business model. By doing similar things differently. This means offering similar value propositions in an entirely new way of setting up new stategy. For example, new strategy offers a value proposition that is very similar to other café and bar. However, its business model allows it to promote this cafe through the :"a. use of advertisements, signs, events and so forth; in order for this idea to work different from others."b. and also make its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying the food and coffee or espresso and pastry in town. And be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, freindly customer service, and products of consistently high quality. This has extremely low variable costs and enables it to change the store ambience to attract more customers. Its business model offers the same thing, but differently because it uses different resources, needs different competencies, and uses different distribution channels."c. Focused differentiation"-serve customers better than rivals. "-customers have distinctive preferences, requirements or needs that meets their satisfaction"-have unique capabilities to serve needs of target customers"-big enough to be profitable and offers good growth potential" - have certain ways of resources and capabilities to effectively serve an attractive to customers""Expansion!"1. Domestic store expansion - they can expand through locate another new branch maybe outside from Melaka to carry its cafe shop name to elsewhere to expand their chain at other place which include for example secret receipe hascevolved to become one

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of the fastest growing lifestyle cakes and café chain in the region with over 300 café outlets to date. can be found in prime urban locations and shopping malls in major cities in the region."2. Café design that will be both visually attractive to customers, and design for fast and efficient operations"3. can harness the power of social media. Develop a Facebook page for your company and frequently update it with information. By diversifying the mediums that you use to speak to your audience, you are giving yourself a better chance of success.""Sustain business!"Value Offer. The overall view of the bundle of products and services offer"Key Activities. The arrangement of the activities and resources I use to make and provide my products and services."Partner Networks. The outside partners and alliances that help me make or sell my products or services."Cost Structures. The sum of the monetary approaches and cost methods I use to run my business model."Customer Relationships. How I keep what I make in sync with what my target customers want or need."Feedback from customers - It is wise to ask them for feedback on the company and the products that you make from time to time. Doing so means that you might get a fresh look or perspective at the improvements you could make for even greater levels of success""Industry and competitive analysis!Capabilities(area of competitiors’ strengths and weaknesses)"-product"-dealer/distribution"-financial strength"organization & managerial ability that retain the satisfaction from customers"-marketing strategies aimed to build a solid base of loyal customers, aswell as maximizing the sales of high margin products, such as espresso drinks""Market research - As the owner of this business, you need to be aware of what is going on in the market. Are the competitors currently making products that are better or more accessible than yours are? Is the market for this particular good coming to an end, meaning that you need to revamp your current product? You cannot just have a business and be unaware of what is going on in the larger domain; staying on top of this type of information helps you to stay afloat."""""

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"Recommendation for Cheong Foh Cafe!""Future plan!

Compared to Geographer café, Cheong Foh Cafe has since grown to two franchises in Klang and their third franchise will be opening soon. The third franchise named “C U Latte” is a modern coffee shop which its target is young adults. It provides a more relaxed and comfortable environment compared to Cheong Foh. The owner of Cheong Foh not only fulfills the needs of this generation and also takes a longer-term view by introduces a modern style coffee shop for the younger generations."

The owner also advertise the shop branches by printing some flyers to attract people. The flyer introduces their well-known products such as coffee, teh c special and homemade kaya. They also provide overall view of the bundle of products and services offer. Such as they also serve breakfast set which includes teh c special (or coffee), toast and half- boiled egg. "

"Expansion of Cheong Foh "

The coffee in Cheong Foh is differed from others because their coffee powders are all local and blended by themselves. They tend to retain their originality of the coffee and kaya taste. As Cheong Foh is famous with their unique coffee and kaya in Klang, they could consider launch their products and promote them in whole Klang Valley or Malaysia. "

Most of the coffee shops would have economy rice stalls to attract people to there for lunch. It is because economy rice is cheap, convenient and fast. So, the owner could consider to sell economy rice as well because it will brings the customer to their coffee shop. "

"SUSTAIN !

Keep a great relationship with customers. To keep what her target customers want or need. "

Partner Networks. The outside partners and alliances that help me make or sell my products or services."

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"Industry and competitive analysis!

Capabilities(area of competitiors’ strengths and weaknesses)"

-product"

-dealer/distribution"

-financial strength"

organization & managerial ability that retain the satisfaction from customers"

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Appendices 1!"Photos of Geographer Cafe

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The downstairs area is perfect for people

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Quirky decorations and antiques from a few decades ago

The upstairs dining area is cosy and cozy

"""Photos of Cheong Foh Cafe!!

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Best-selling half-boiled egg

Homemade Kaya

Kopi-O

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Teh-C SpecialOne of their products- Coffee Powder

Best-selling toasted bread

Appendices 2: Survey Questionnaire & Results!""Geographer Cafe! !(E-mail from the manager of Geographer Cafe, Kristine Tang)""First and foremost, I'd like to apologize as I won't be able to meet up with you guys tomorrow as I have some personal matters to attend to. However, feel free to visit our cafe and tour around if you like. I'll try my best to answer your questions posted here to the best of my knowledge of the outlet. I've only worked here for 3 years, and this outlet has been around for almost 15 years so I'm afraid some of my answers are pretty limited to the knowledge I have of the outlet.""1) When was the business founded?!Somewhere in August 1999.""2) Who are the key founders?!My boss is a bit discreet about this so I'm only allowed to answer "Peter and some friends"""3) What prompted the founders to start this business?!The street where the cafe is located carried great historical significance to Melaka and Malaysia. However, at that time, the surrounding area had an eerie atmosphere as it was surrounded by funeral parlors, casket shops and dilapidated shophouses. The unit chosen to start this cafe was also in a wretched condition. The founders had wanted to attempt to restore their hometown to their former glory. It was an opportunity, a personal mission and a challenge.""4) What are your main products?!Food items vary from Asian menu, some western menu and a wide variety of vegetarian dishes. All our meals are prepared without MSG and without the usage of microwave oven as we'd like to promote healthy food. Aside from that, we also offer a wide range of beverages: juices, beers, espresso-based coffee, tea, cocktails and spirits. Our menu is catered to a wide range of customers from beer drinkers to coffee drinkers to vegetarians.""5) Who are your customers?!Most of our customers are tourists (both local and foreign) as our cafe is located in the middle of Melaka's heritage zone, as well as a busy tourist area. Some locals love to spend the weekend at the cafe as we have back to back life performance at night (our performers take turns with the opposite pub's singer to perform, so our customers love to sit in the area in between both outlets)."""

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"6) What is the business’ annual revenue figure?!This is private and confidential, not at my disposal to disclose.""7) Can you provide us a brief history of your business and its most recent!developments?!Geographer Cafe was established in August 1999. During that time, the area had not been as popular with tourists as it is in recent times. The surrounding areas are also not as well developed. In the initial years of the cafe, it was quite a struggle to stay afloat. Fortunately, things worked out well and Melaka has also developed into a popular tourist destination.""8) Do you have many competitors?Who are they?Who are your top 3 competitors?!In F&B, there is always competition. Most of the time, they're outlets near your location or of the same genre. But competitors are not necessarily a bad thing as long as it's a healthy competition.""9) Is the business constantly facing strong competition from other competitors?What!strategies have they used to compete with you?!There are several pubs along the road which are also selling beers so they do try to use product pricing to make their place more attractive. We focus on providing a good environment and quality product served to our customers.""10) How much capital is required to start this business?What, if any, specialized field of knowledge do you need to run this business?!It's been a long time ago since we established the cafe, we don't really have the figures nor am I able to freely disclose this information."A proper knowledge of accounting is vital in any business. Aside from that, knowledge in the product served is also vital. Any outlet should be willing to invest in training their staff properly to serve any products they'd like to sell in their outlet.""11) Generally, do you feel it is easy or hard to enter this market?Why?!F&B is a very big industry with a very big market. However, your customers can be quite unforgiving should you not be able to deliver up to standards. Service with a HUGE passion and good principal is vital to keep the customers running. Armed with passion, determination, hard work, good training (and most importantly a good team of staff), you'll have no problem in the industry.""12) How do you compete with your competitors i.e. what strategies do you employ to divert customers away from your competitors?!"Treat your customers how you'd like to be treated as a customer yourself. If you won't drink this drink you just made, don't ever serve it to your customers. Same goes for food." - These are among the things I constantly remind my staff during service. Also, to make

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sure customers are comfortable and well served. One of our strategies is to offer a variety of food and drinks that are able to cater to a wide audience, as well as a very flexible operating hour (we are opened at least 362 days/year, from 10am-1am.)""13) How often do you release a new product (this assumes the business sells differentiated products?!Every 2-3 months.""14) Are your pricing decisions strongly affected by your competitors?!Not necessarily"__________________"Kristine Tang Yin Hui

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Appendices 3: MINUTES 1 !" !

""CHOICE OF BUSINESS TO COMPARE!""

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DATE NOVEMBER 8, 2014

TIME 12PM - 2PM

VENUE TAYLOR’S UNIVERSITY LAKESIDE CAMPUS "

MEETING CALLED BY Tristan Yu

NOTE TAKER Marcus Chua

ATTENDEES Chan Yi Qin, Loh Wei Shuen, Marcus Chua, Sherlyn Ang, " Tristan Yu, Woo Shir Ley

DISCUSSION

- Discuss about the type of business that we would like to compare.

- Research on the businesses which has been operating for 10 - 15 years in Malacca and Klang Valley.

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CONCLUSION

- We chose to compare Traditional Kopitiam and Modern Kopitiam.

- The chosen Kopitiams that we would like to compare were Geographer Cafe in Malacca and Cheong Foh Cafe in Klang Valley.

MINUTES 2!""

""DISCUSSION ON QUESTIONNAIRE!""

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DATE NOVEMBER 15, 2014

TIME 1PM - 3PM

VENUE TAYLOR’S UNIVERSITY LAKESIDE CAMPUS "

MEETING CALLED BY Loh Wei Shuen

NOTE TAKER Woo Shir Ley

ATTENDEES Chan Yi Qin, Loh Wei Shuen, Marcus Chua, Sherlyn Ang, " Tristan Yu, Woo Shir Ley

DISCUSSION

- Discuss interview questions about the businesses in Malacca and Klang Valley.

- Discuss date and time that we are going to interview both of the kopitiams.

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CONCLUSION

- Each of us has contributed some ideas on the questionnaire about the history, key founder, main product, challenges of business and future plans of the kopitiams.

- We came out with some questions and further developed them with the questions that provided by Miss Cassie.

MINUTES 3!""

""DIVIDE OUR TASKS!""

"

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DATE NOVEMBER 29, 2014

TIME 2PM - 5PM

VENUE TAYLOR’S UNIVERSITY LAKESIDE CAMPUS "

MEETING CALLED BY Chan Yi Qin

NOTE TAKER Sherlyn Ang

ATTENDEES Chan Yi Qin, Loh Wei Shuen, Marcus Chua, Sherlyn Ang, " Tristan Yu, Woo Shir Ley

DISCUSSION

- Analyze the information and writing of the report.

- Divide our tasks into small parts, including video editing, making of slides and compilation of report.

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CONCLUSION

- Tasks were divided equally among group members.

- Tristan will edit the video, Wei Shuen will make the slides, Marcus will work on the history of trade, Yi Qin will work on comparative analysis of the business, Shirley will work on recommendation on improving the competitiveness of each business and Sherlyn will further develop all the findings and compile the report.

""Conclusion!"Based on our analysis, we all agreed that Geographer Café definitely has more business potential. Due to its historical background, creative ideas, their own unique theme, which makes it more outstanding compared to their nearest competitors. Cheong Foh focus mainly on Hainanese coffee, breakfast meals, whereas Geographer Café focuses mainly on a healthier alternative, spicing up their menu with new set of choices and signature dishes every three months. Cheong Foh Café closes shop at 6pm, while Geographer Café opens till late, which attracts foreigners and the younger generations to have a beer, enjoy the atmosphere while listening to a live band back to back daily. This proves to be a strong advantage. Although Cheong Foh was recommended by Trip Advisor and local bloggers, Geographer Café has been interviewed by local program such as Ho Chak. Furthermore, it has already gained their popularity in the world. Tourists who visit Jonker Street will most definitely have a meal at Geographer Café. Therefore, it is safe to conclude that Geographer Café is apparently more commercially successful compared to Cheong Foh Café."

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"Bibliography!""Mahmood, A. (2005). Historical Melaka : 600 years of Living History. Kuala Lumpur: Amber Pacific Sdn. Bhd.""Wee, B. (2009). Malacca: A World Heritage Site. Kuala Lumpur: Purple Productions & PR Consultants (M) Sdn. Bhd."""References!"Anderson, C. (2013). The History of Coffee Houses. Retrieved November 29, 2014, from Food Editorials Beverages Guide: http://www.streetdirectory.com/food_editorials/beverages/coffee/the_history_of_coffee_houses.html""Stellar (October 2012). Geographer Cafe in Melaka: Misleadingly Funky. Retrived November 29, 2014, from blogspot.com : http://youhadyourlunch.blogspot.com/2012/11/geographer-cafe-in-melaka-misleadingly.html?view=flipcard""Interview via E-mail"Structure: Ms. Kristine Tang. (2014, September 14). Interview via E-mail ""Personal Interview "Structure: Mrs. Goh Shw Hui. (2014, November 25). Personal Interview"

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