Anyone who likes coffee in Malaysia will have heard of Old Town White Coffee. This is one of the oldest and probably most established name when it comes to coffee and snacks.
The main challenge in investing into this franchise is that Old Town White Coffee is almost found at most major shopping malls and commercial areas. Besides the cost involved, you must be prepared to go the extra mile to find a suitable location.
Strong heritage and proven success
Old Town White Coffee was established in 1999 but the history of white coffee in Malaysia actually dates older than that. It was in 1999 that Old Town White Coffee was incorporated as White Café.
The 3-in-1 white coffee mix was packaged and then sold at more than 1,400 outlets across Malaysia. It would then expand into Singapore and Hong Kong as well. To date, Old Town White Coffee has already grown to become a household name with over 240 outlets nationwide.
Capturing the coffee market
Have you ever wanted to own a coffee place? Is F&B your forte and you have been thinking about starting a business in this area? If you have, then Old Town White Coffee could well be your option.
Old Town White Coffee is among the leading café chain in Malaysia. Its outlets are very popular among locals and it has growing popularity in Singapore, Indonesia, China and most notably in Malaysia.
A successful locally-grown brand
As a home-grown brand, Old Town White Coffee is widely accepted among the people and has already been recognized by wining various awards and accolades. This includes winning the Platinum Award for Outstanding Malaysian Brand, the SME Brand Excellence Awards.
A unique opportunity
Should you decide to franchise Old Town White Coffee, you will be able to ride along with the experience and expertise of running a café. This is where you will be trained and guided in areas like operations and management.
Besides that, you get to enjoy some sound returns on investments too. This means you will be trained on requirements, profits and costing, among others. You will have to meet certain requirements in order to buy this franchise.
For starters, you need to have a strong financial background without any legal suits or bankruptcy issues. It would be good if you some experience in the food and beverage industry.
What do our experts say?
Ask any Malaysians today about Old Town White Coffee and chances are they would have heard or dined there at one time or another. This is one brand that needs no introduction as it is already very well established.
- Brand Reputation – Among the top and best in its segment.
- Initial Capital – One of the highest as you need between RM700,000 and RM1,000,000 to start this business.
- Return on Investment – This varies. To breakeven fast, you need a good location with a large space preferably a corner shop lot.
- Location – Very crucial. Convenience is key as well which means you need to be at places with a lot of parking spaces.
- Customer Segment – Families, working adults and millennials.
- Franchise Fees – RM80,000
- Royalty Fees – 5%
- Advertising Fees 3%
The Final Word
Old Town White Coffee, being a homegrown brand surely have come a long way since they started with ready-packed coffee. Today, it is a vibrant coffee and food place with signature items on its menu. This gives you a clear advantage when starting out.
The biggest challenge is in the maintaining of cash flow as you need a high capital to start the business. Overheads and staffing would be challenging as well. Reserves will be important to sustain this business especially during low-peak times.