restaurant business plan in malaysia

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Starting a Restaurant Business in Malaysia

• Starting a Restaurant Business in…

Snapshot of Advantages of a Restaurant Business

Though starting a restaurant business is a hard and expensive process, there are advantages you can get when running a restaurant business. As restaurants are in huge demand, a good restaurant will always be filled with customers- that means it will generate revenues. The probability of earning big profits (and encounter less loss) is high in opening a restaurant business. In other words, the right restaurant at the right location can be a lucrative business.  

Things to Consider Before Starting a Restaurant Business in Malaysia

Having a business plan is crucial to success. A carefully planned business plan will steer the direction of your restaurant business thus ensure lucrative return. Let us dive in to have a look at what you should know before starting a restaurant business in Malaysia.

1. Concept:

Know and determine your restaurant’s concept before you launch it. If you are unsure, you can always run some research; consult the professionals to streamline your idea. Generally, the concept is like the road map that includes your restaurant’s menu, investment’s capital, and source of financial aids, expected profit, and marketing plan.  

2. Location:

The location of your restaurant business will affect its success nearly as much as the menu. As such, you may want to research an ideal location with high traffic, easy access, and good visibility. Other factors that could determine your restaurant’s location is the target market of your business as well as the competitors nearby.

The menu of a restaurant is another big consideration when you are planning a restaurant business. When you are deciding what to include in the menu, the first thing you should know is the target market, the current food trend and what do you plan to serve. A good restaurant menu is the key to any restaurant’s marketing plan.

4. Marketing:

Marketing plan is a plan of how to get the word out about your new restaurant. Nowadays the marketing plan sees a lot of variety when you can take advantage of the many social media platforms. Think it through with brilliant ideas will actually help your restaurant to succeed and generate huge profits.

5. Licensing and permits:

Before you can open the doors to your restaurant, you need to make sure you apply for the proper licenses . In Malaysia, a Malaysia business license is issued on various terms depending on whether the investor is local or foreign. For restaurant business, a Signboard License, Alcohol License (if you are planning to sell alcohol in your restaurant), Halal License (if applicable) MACP and PPM (for restaurant where they will play music in the premises). If the restaurant is a foreign-owned restaurant, an approved Wholesale, Retail Trade License is needed. Please note that such license is only granted for restaurant with unique concept (like Arabian restaurant, French cuisine) and a minimum space of 1,500 sq. ft.

6. Incorporate your restaurant business:

Another step is to incorporate your business . You can either incorporate a local company or register your foreign company in Malaysia

If you are starting a restaurant business and you need professional assistance, 3E Accounting is always here to help you to start your business from scratch! Please do not wait a second to contact us !

How to Start Restaurant Business in Malaysia

Most foreigners would like to start a restaurant business in Malaysia being their first choice. It looks very lucrative simply because people generally love eating and eating… The culture same throughout the world where people just love eating! 

This explains why the first business that comes into mind for everyone, including foreigners in Malaysia is to start a food and beverage business!

It is said there are more than 1,000 restaurants or café owned by foreigners in Kuala Lumpur alone! Some enterprising foreigners, they started successful chain restaurant or café brands such as Chat Time (owned by Taiwanese), Café Bene (owned by Koreans)! Their concept brings a new wave of eatery lifestyles into Malaysian culture.

Depends on your preference, some foreigners would like to introduce their food culture from their homeland to Malaysians and tourists. Malaysia is one of the top ten countries in the world for tourism! These unique restaurants are usually exclusive in nature. Some examples of exclusive restaurants in Kuala Lumpur are Bombay Place(Indian), Al-Almar (Lebanese cuisine), Naab (Persian food), Fong Lye(Taiwanese), Lafite(French), Shogun (Japanese) and many more…

While anybody can and like to start a restaurant business in Malaysia, it takes a truly hard-working, dedicated and discipline entrepreneur to open and operate a successful restaurant.

Once you decided on the concept of the business, these are a few main things you need to complete:

1) Location of the Restaurant – This is the key to the future of your business, the location must be suitable for good traffic and provide a convenient parking space. Traffic by foot and by cars as well as other means is important. Determining the traffic numbers in both these areas as other is very important for future business reasons.

2) Concept, layout, and design- This can make or break some businesses in the restaurant industry depending on their competition and consumer demand. Some areas expect a certain level of quality in service or food or variety in food selection. Other areas demand a layout that is unique and appealing or beneficial for movement. You would need to do intensive research and gathering info from nearby stores.

3) Menu – One of the most important things may be the menu selection of foods and beverages. A well-defined menu that able to accentuate the customers and word of mouth about the best food you have in your chosen specialty. Size of the menu is also important in consideration of your costs and the types of foods you want to serve and or mix using basic ingredients. The proposed menu need to match the available ingredient’s supplies in the market.

4) Staffing – can be a very challenging task to be able to find workers with dedication, principal and good ethics. Good staffs will be able to display a good image of your restaurant, hence able to serve the customers well which will bring onward referral or business. You may want to save your time for this function by engaging the outsourcing service of human resource company would be beneficial.

6) Business and Operating Systems – You will definitely need a restaurant system where a good one will give you smooth operation daily without much headache! The advantage of running a restaurant under the franchise, the system are usually very clear and is set up ready.

The other steps to do after you decided the right restaurant concept and ready to start, you will need to:-

1. Incorporate a Malaysian company Sdn Bhd with 100% foreign ownership available with a minimum paid up capital RM1 million

2. Apply for necessary Business License   for Signboard License, Alcohol License (if applicable), Halal License (if applicable) MACP and PPM (if you want to play music in your premise)

For 100% foreign-owned company, you will need to apply for Wholesale, Retail Trade License to approve your entity. Such license will only be granted to a restaurant of “unique'” concept and with size minimum 1,500 sq ft. Unique concept means dishes where Malaysian expertise is hard to find an example: Chinese Cafe, French cuisine, an Arabic restaurant, etc. 

3. Apply for DP10 2-years Work Permit  for you and family after all the above licenses are obtained. The approval of DP10 work permit processing is fast, approval often within 1 month.

At MalaysiaBizAdvisory, we are able to assist you the complete services (business profiling and plan, company documentation due diligence, registration of company, licenses and work permit applications) plan of helping you to start a restaurant business in Malaysia fast and without a hassle! Check it out with us! We “simplify your business investment” in Malaysia.

Begin to Start Your Restaurant Business in Malaysia with hassle-free service from A to Z. Fill in the following form today!

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How To Start a Restaurant in Malaysia 

Nowadays, many modest roadside booths have gone viral owing to the originality and variety of the cuisine itself, with customers eager to line up to buy it. We would recommend for sellers that wish to grow their business from enterprise to Sdn Bhd. It is an excellent chance for your company's future. Have you made the decision to operate a restaurant in Malaysia as your next big project? There are many things to plan and accomplish, but first it's necessary to understand what's involved and what to expect. Let's figure out the next step together!

• Strategies your business plan
• Secure your funding
• Register your company/Company Incorporation
• Locate your best site
• Recruit your core team
• Get ready to get into business.
• Promote your restaurant

1. Strategies your business plan

The greatest thing you can do before launching a restaurant or any other food company is to have a detailed strategy that outlines all of your business-critical components. The food and beverage sector is not only fast-paced, but also incredibly competitive, and entering the scene without a solid plan is a definite way to fail. You must be prepared by having a solid strategy that covers the most critical aspects, such as:

• Business operations
• Financial predictions
• Restaurant branding and market fit
• Marketing strategy approach
• Staffing needs and recruiting rules
• Service standards and compliance 

2. Secure your funding

It's a truism that no firm can exist, let alone thrive, without money. To get your restaurant off the ground, you must first get money.From a financial standpoint, here is what you should know when starting a restaurant in Malaysia:

• The expense of starting and running a food business.
• What the costs include you must write down exactly what you need money for, such as rent, employees, and equipment.
• Your preferred method(s) of obtaining the required capital loans, investors, self-funding, and so on.

3. Register your company/Company Incorporation

Before you may start a restaurant in Malaysia, you must first register and incorporate your business. When you are going to register your company, you need to choose a name, a name that can represent your business activities and does not exist yet. Next is to decide which business entity that you want to register, you can read more for the type of business entity. For more details about company incorporation services and company secretarial services, you can contact us here. 

4. Locate your best site

When developing marketing plans and strategies to effectively sell to their target audience, business owner typically consider the 4Ps. One of it is “Place” which is very crucial to business owner to have proper location in order to start a restaurant business in Malaysia. Whether you have a dine-in restaurant or merely offer delivery, here are the variables to consider when determining where to set up shop:

• Which neighbourhood or location has the highest commercial potential?
• Who is your intended audience?
• How many rivals currently operate in that market?

5. Recruit your core team

Aside from having a decent site, a company firm must also employ people to run their business with competent management so that the process runs smoothly and without dispute or complaint later on. That's because your company's service, devotion, quality, and commitment to providing a great experience are all given to your customers by your employees. That is why assembling the correct team is crucial. Not to mention that staffing is a significant portion of your operational expenditures. Here are some of the most important staffing-related considerations to consider before approaching this critical step:

• How many personnel will your restaurant require?
• Which jobs are most important to the restaurant's success?
• How will you teach your employees, and what will it entail?

6. Get ready to get into business.

Finding the proper location and witnessing the elements of a new restaurant in Malaysia come together is quite thrilling! But you still have a lot of issues to work out before you can open for business. The following are the critical issues that must be resolved: Insurance - When you operate a restaurant or other food company, you take on a lot of liability risk, so having proper insurance is critical. Anything may go wrong in a variety of areas, so be sure you're covered. Renovations , it's likely that the site you've chosen isn't ideal for your business. Whether it is a renovation or a redesign of the interior design (or both), it will require time and money to complete before your food company can serve consumers. Equipments opening your doors for business isn't an option unless you have all of the necessary equipment to create and cook the delectable foods you're promising to serve. Make sure you're properly prepared for your first order, from storage through preparation and delivery. Suppliers, you'll need to find suppliers you can rely on to supply the quality and quantity of ingredients you want in the period you specify. This should be taken care of before you open your doors to the general public. Licenses - To operate a restaurant in Malaysia, many licences are required, including:

Business license/Signboard license  

These can be applied from local authority such as DBKL (Dewan Bandaraya Kuala Lumpur) or MBPJ (Majlis Bandaraya Petaling Jaya), depending where your restaurant is located. The requirements and cost of license may vary according to each local authority. The usual documents may be required are:

• For Company/Sdn Bhd- relevant statutory forms - Certificate of incorporation Sec 17, Superform Sec 14 and etc
• Copy of food handling certificate.
• Copy of Typhoid injection card given by the doctor.
• List of all employee’s names.
• Photo of grease traps in your establishment.
• Pest control service agreement contract certificate.
• Supporting document from the local Fire & Safety department
• Copy of fire extinguisher permit/receipt
• Sample of signboard indicating design and colour (if applicable); and
• Photos showing the location of signboard (if applicable)

Food Handling License

Anyone who works with food must finish a food handling course taught by a Ministry of Health-approved training school,as stipulated in the Food Hygiene Regulation 2009 issued by the Ministry of Health Malaysia.

Other licenses

• Liquor license: If you intend to offer any type of liquor, whether beer or hard liquor, you must obtain the necessary license from your local town council. The Beer House License, in particular, will be suited for the use of alcohol on premises. (at the date of this article, Ministry of Financehas directed the Customs Department not to proceed with the enforcement of licensing on the sale of alcohol in restaurants and coffee shops)
• Halal license: If your restaurant will not offer pork or alcohol, you may want to obtain a Halal licence from Jabatan Kemajuan Islam Malaysia (JAKIM). - you may visit https://www.halal.gov.my/ for more information
• Music Authors' Copyright Protection Berhad License (MACP): if you want to play music of any kind in your restaurant, you must apply to the MACP.- you may visit https://macp.com.my/take-licence/ for more information
• Composite License: governs when and where you dispose of your waste.
• Wholesale and Retail Trade License: required for foreigners who want to conduct this type of business in Malaysia.The minimum capital investment in terms of shareholders’ funds, which include paid-upcapital and reserves is RM1 million

7. Promote your restaurant

• Website - ensure that your food company website is user-friendly, visually appealing, and prominently shows your menu; make it simple for clients to view the delicacies you provide and place an order.
• Online marketing entails being active on social media in addition to having a well-optimized website.
• Offline marketing consists of menu flyers and booklets, advertising boards, and so forth.
• Soft launch - spread the word to attract clients through promotions, deals, food sampling, special events, and so on.

Are you ready to get started? Now that you understand the procedure of operating a restaurant in Malaysia, let's get started on your restaurant ownership and adventure your company incorporation straight now with Altomate. Contact us now for company incorporation services.

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Writing your Business Plan

GETTING DOWN TO BUSINESS

If you're looking to form an Sdn. Bhd. in Malaysia, or have any other questions on starting your business, contact the team at Altomate. Why not check out our service for Company Incorporation too? We're here to answer any questions, provide resources, and give you the exact answers you need to get your business to the next level. We thank you for reading this article and hope it gave you some new thoughts and business ideas to move forward with.

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GECB Restaurant Business Consultants is professional restaurant consulting and management division that provides comprehensive solutions to food & beverage operators of all sizes, for startups, turnaround and/or operational needs. For so many years, our restaurant business plan solutions have assisted many food & beverages operators, from new restaurant development, restaurant branding, menu engineering and operational improvement to restaurant turnarounds, restaurant feasibility studies and restaurant handbook creation.

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10 Essential Things You Need in Your Restaurant Business Plan

Whether you’re opening a new restaurant or an industry veteran, a good business plan is essential for success.

Creating the Perfect Restaurant Business Plan

When opening a new restaurant , or even when looking to improve on an existing F&B venture, creating a good business plan can yield amazing results. Not only does it force restaurant owners to think critically about the important factors that create business success, but it can also help to flag any potential pitfalls and errors that could cripple an otherwise successful eatery down the line. In this article, we’ll go over ten essential things you need in your business plan, and why they’re so important.

1. Theme, Concept and Style

Having a strong restaurant concept is key in helping your business stand out from other competitors. Factors such as the décor, the type of food served and service style should be clear and consistent throughout every aspect of your restaurant and its operations. 

The way your restaurant looks on the inside is one of the first and most important impressions you will imprint on your target audience. When deciding on the type of interior décor you’re after for your restaurant, try setting up a mood board. You’ll want to consider things like how vibrant you want your design, what sort of art you might put up, how strong the lighting is, how spaced apart the tables are and if you’ll have any fun, themed washrooms. 

2. Stellar Service 

Service can make or break a restaurant. How customers experience your business is often defined by the type of service they experience. It’s therefore important to have a clear plan of what type of etiquette you expect your staff to conduct themselves with. Should they be courteous and formal, cheerful and friendly, or perhaps just get the job done as quickly as possible? Based on whether you’re running a fast food or table service establishment, you’ll have very different requirements of your staff. 

3. Identify Your Target Market

Different types of food appeal to totally different demographics of people. Is your restaurant trying to target an older, more sophisticated crowd, are you going after hip youngsters or those looking for a quick meal on the cheap? Either way, you’ll want to research how to appeal to your target demographic, find out where they usually congregate and research how to tailor your menu to fit their budget.

5. Financials

It's important to understand your budget and plan on getting the most important things you need first. Sometimes, first-time restaurant owners get carried away and focus on buying things like expensive decorations, which are not the most essential thing when setting up a new business. Instead, focus on what you really need to run your business and then, if you have cash left over, splurge on some other items that might help your restaurant pop. For more budgeting information, check out our article on how to avoid falling into the trap of making financial mistakes and losing money .

6. Brand Image

Deciding on a logo may be a little tricky as it tends to be the focal points of a lot of restaurants and businesses. If you’re struggling with creating a compelling logo, maybe decide on your restaurant’s color schemes, social media aesthetic, what types of things you want to avoid and even on a catchy slogan. Having those things sorted can make it easier to design or decide on a suitable business logo.

Make sure to also create an online presence, be it through social media, SEO practices, creating a website or putting up blog posts. Getting your brand to have a strong digital footprint will make it easier for new customers to find your business. 

7. Food Pricing

Crafting a compelling menu doesn’t just depend on the dishes you serve, but also on how affordable said dishes are to your target customers. Make sure you price dishes according to what your target audience can afford and will find suitable to pay for. 

You should also consider your ingredient costs and factor that into the final pricing of your menu items. As a general rule of thumb, your ingredient costs per dish should be 30-35% of what you eventually charge customers. 

8. Industry Evaluation

Before going into business, it’s key to do an overview and evaluation of the restaurant industry and its position in your region. If the restaurant sector in your country isn’t doing well, make sure you have identified the problems plaguing the industry and construct plans for how you will overcome these challenges. 

You should also take into consideration how saturated the restaurant industry is where you plan to operate. If you have a lot of competitors (and even if you don’t) take the time to plan out how you will differentiate your restaurant and draw in more customers than your competition.

9. Staff and management

Putting together a great management team and group of staff is one of the most important steps to ensuring the overall success of your business. One great way to assign tasks to your staff is to list out each of their skills, specialties and past experience. This will help you decide who will thrive in the roles you need to fill and how they can best utilize their unique skills and abilities to the fullest. 

10. What Tech Do You Need?

The technology your company needs to reach its full potential is extremely important to plan out in advance. Your restaurant will definitely need a POS (point of sale) system to keep track of daily transactions. However, based on the type of restaurant you are running, you may need additional bits of technology like an mPOS (mobile point of sale), KDS ( kitchen display system ), queue ticket kiosk , PhotoMenu , CFD ( customer facing display ), eSignage and more. 

Having all your tech work together under one system is also key to ensuring that you can keep control of your entire business in the most efficient manner possible. There’s nothing worse than having all this great tech but no way for each component to communicate with one another. Plus, it would just be a huge waste of time to train your staff to learn how to use multiple unrelated systems.

Plan For Success

Hopefully by this point, you will have the relevant knowledge to create a fantastic business plan that will help you guide your restaurant in a successful direction. Remember to take your time with each part of the business plan and be meticulous in your planning. If you have all these ten bases covered, you’ll be well on your way to setting up a restaurant that’ll outperform the competition. 

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How to start restaurant business in Malaysia

Let discuss how to start restaurant business in Malaysia, how to register a restaurant business in Malaysia, how to get license of restaurant business in Malaysia, how to buy restaurant in Malaysia? Everyday huge number of tourist visit in Malaysia from different countries of the world for enjoying holidays, business purpose, working, meeting and many other reasons. Malaysia is an intense country of Asia considering economy, human behavior, business place, working station and other reasons. However, every visitors wish to make plan to re-visit in Malaysia for roaming, setup a business and/ or working.

Important tools to start restaurant business:

Budget: There is no good business that is startup without single investment. To start restaurant business investors should have budget with other planning. Small or medium investors make plan to start a restaurant business in Malaysia being easier and daily cash dealing business.  New investors do not have idea of investment capital when start restaurant business in Malaysia. Let guess minimum budget of RM 20,000 to RM 40,000 may need to establish a restaurant business. Provided that, budget vary upon business location.

Location: Location is the most important for starting a restaurant business. Many investors start restaurant business but wind up later on due to falling business and one of the main reasons is customer unavailability . Place of restaurant should be near or beside of market, high raises office building, college, university, historical place, tourism place & industrial place.

Staffs: Hiring good staffs are major reason of successful business. Let say, number of staffs can be start from 4 to 10 and multi cultural staffs are valuable for attraction of customers. Customers feel comfort to speak with who knows their native language.

Food Supply:   Fresh meat, fish, green market, oil, wheat and other goods are supplied by other party to the restaurant caring them by own vehicle of the company at early morning.  Drinks, alcohol and other liquid goods are supplied at any time. So, restaurant owners do not have to waste time to purchase them from market. Restaurant owner will keep contact and make good relation with the suppliers.

Food display center:   Chinese, Indian, Pakistani, Bangladeshi, Arabian, Americans, European, Australian, Africans and other regional peoples have different food habit . Multiple cooked foods should display to attract the customers so that they can find their local foods. Some common foods like fishes, meats, noodles, deserts can helpful for the businessmen to attract the customers. All foods should be displayed with clear dishes and clear place.

Cooking space: There is a separate place keep beside or back of restaurant for cooking foods.  Space should be decorated when rent a shop for restaurant.

Furniture:   Different looks attract the customers.Chair, table, cash desk, shop corner, drink corner should be decorated considering customer attraction point of view.

Shop corner: Keeping small shop corner beside of restaurant looks good and customer can buy other foods or goods those are necessary in daily life.   Moreover, chocolate, ice cream, bear, soft drinks can be displayed.

Sign board: Separate license sign board apart from pvt limited company may need to be visible for the customers.

Halal License: Displaying and preserving foods Halal license can be having for restaurant business.

Alcohol license: Keeping alcohol in restaurant shall have to be additional license for it.

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Writing a Restaurant Business Plan for Success

Considering that a business plan is something that stays with you and helps you through the startup process, you’ll probably want to really put your heart and soul into it. You’ll need to think of all the questions you’d like to ask all the people who will be working in your restaurant, conduct interviews and gather information. The form that your restaurant business plan will take is supposed to be formal, and in line with the professional format usually recommended for such purposes. Your plan will need a businesslike writing style, graphs and charts in exactly the right places, and useful information throughout.

The restaurant business plan is supposed to start with a proper business description. This part concentrates on what gives the business its unique selling proposition, what makes it particularly well-suited to taking advantage of it, and such details as the name of the business, the market it intends to tap, and its name. A business description also has a lot to say about the people involved behind the scenes, people such as yourself. Right after the business description, comes the part where your restaurant business plan proves why it has a compelling profit-making idea – in the market analysis section. The market analysis talks at length about the products intended, the customer demographic, evidence of what the demographic usually finds of interest, and a description of how the restaurant plans to deliver to it. A successful market analysis usually makes the case for why a business should exist in the first place – in light of the kind of competition that the restaurant will face in the area.

Not to leave out the most important part of the successful restaurant business plan – a thorough description of what the company’s finances will look like. To prove that your restaurant will be financially viable, you’ll probably need to provide a business projections study for the first three years that the restaurant will stay in business. An explanation of what the cash flow will look like and the kind of return on investment an investor can expect will also go into the laying out of a great financial plan. Your business plan to should start out with a thorough summary of everything that is to be found over the rest of the document.

Does all of this sound like it has nothing to do with the excitement that he imagined being a chef would bring you? Owning the restaurant is a business first; there’s lots of creative people discover, that turning a talent into a moneymaking business requires that you find ways to be talented all around. That’s what makes money – not being a one trick pony.

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Malaysian Restaurant Business Plan

Looking for ideas to create the perfect Malaysian restaurant business plan?

A business plan outlines a business and serves as a guide to successfully run a business. It defines the goals of your business and how exactly you wish to accomplish them. With a complete business plan, you are always equipped to effectively deal with challenges and ensure that your plans are feasible. Besides, with a convincing business plan, you can attract investors and convince them about the potential of your business.

Developing a well-structured and realistic business plan requires in-depth knowledge and research. If you are a new entrepreneur and need help in creating a strong business plan, we are here to simplify it for you. At BusinessPlans, we specialize in crafting plans that clarify your ideas, figure out potential problems and help you set short and long-term goals. You get a clear understanding of the structure and purpose of your business and translate the objectives of your company to measurable goals.

A good business plan offers a number of advantages by enabling you to devise and implement successful strategies. Whether you are starting a new business or planning to expand your existing business, we can help you build the perfect plans.

Avoid the dreaded ‘Blank Page Syndrome’ and do the smart thing by starting your plan with one that’s almost complete. The Malaysian restaurant business plan is a 16-page document written for an actual Australian business applying for bank finance. We have sensitised the plan and made it more generic to make it suit a wider range of businesses. All that is left to do is to follow what we have written and customised the content to reflect your business.

Why waste time trying to write a business plan from scratch, time is money. Get in touch with us today to discuss your requirement and create an effective restaurant business plan. We just don’t present what you tell us, if we think the matter can be improved we let you know and discuss it with you.

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How to Write a Restaurant Business Plan in 2024 (Step by Step Guide with Templates)

A restaurant business plan is a framework that guides you to plan and forecast every element of restaurant management and operations.

This includes anything from your restaurant's menu design , location, financials, employee training , and a lot more.

Creating a solid business plan is important, as it helps:

• Transform your restaurant ideas into reality.
• Boosts entrepreneurial success by 16% (Harvard Business Study) .
• It equips you to navigate challenges before they arise.
• Attracts potential investors.

Planning is key to restaurant success. Without a plan, you're more likely to join the 26% of restaurants that fail within a year.

Create a business plan to set yourself up for success.

Here's how to get started. 

What is a restaurant business plan? 

Before writing a business plan, it is important to understand its fundamentals.

It serves as a roadmap for starting and running your restaurant , making it easy for outside parties, such as investors, to understand your objectives, vision, and plan of action for your restaurant.

The length and level of detail of business plans vary, ranging from brief synopses to large papers. Investors can benefit from clear insights and additional information provided by beginning with a concise plan and working their way up to a detailed one.

In short, a thorough description of the resources allocated to the success of your restaurant should be included in your business plan.

Steps to include in your business plan 

Your restaurant and mission statement needs to reflect your brand and goals, but you don't have to start from scratch.

The Eat App Restaurant Business Plan template , created by industry professionals and packed with insider information, is your go-to manual for creating a profitable business plan.

Your finalized business plan should have 11 essential elements, no matter how you write it. Continue reading below. 

1. Executive summary

A restaurant business plan should always begin with an executive summary. Why?

• 80% of venture capitalists say they read the executive summary first.
• 62% of investors say they would not continue reading a business plan if the executive summary did not capture their interest.
• A strong executive summary can increase the likelihood of securing funding by up to 40%.

An executive summary not only acts as the introduction to your restaurant business plan samples but also as a summary of the entire idea.

The main aim of an executive summary is to draw the reader (oftentimes an investor) into the rest of your business plan.

The executive summary also helps you envision the identity of your restaurant which essentially shapes the customer experience and sets you apart from competitors.

To establish a distinct identity, you need to focus on c ommon elements of an executive summary, including:

• A mission statement  
• Proposed concept development
• Cuisine selection
• The overall execution
• The potential costs
• Expected return on investments (ROI)

Let's take a more in-depth look at the concept development, cuisine selection, and mission statement.

Further reading

• How to write a restaurant executive summary

Concept Development

Selecting the type of restaurant, service style, and atmosphere is the first step towards creating a unique dining experience. Whether you envision a sample menu for a:

• cozy, intimate bistro
• bustling quick-service deli
• fast-casual restaurant
• fine dining establishment

Your concept should reflect your passion and expertise in the industry.

Cuisine Selection

The cuisine you select for your restaurant can significantly influence its success.

Choosing the appropriate cuisine is vital for distinguishing your establishment from competitors and attracting your target market.

To make an informed decision, consider factors such as:

• Market demand
• Expertise and passion
• Ingredient availability
• Competition
• Profitability
• Cultural fit
• Seasonality
• Dietary restrictions and trends

In the highly competitive restaurant industry, keeping track of current and emerging cuisine trends can be a significant advantage.

Creating a mission statement

A well-constructed mission statement communicates the purpose, values, and goals of your restaurant to potential investors and customers alike.

A mission statement serves as a guiding light for decision-makers and employees, fueling their efforts to achieve your restaurant’s objectives.

To create an impactful mission statement, consider the following steps:

• Identify the purpose of the restaurant.
• Contemplate the brand’s image.
• Account for the target audience.
• Incorporate company values.
• Ensure brevity and comprehensiveness.

Related content:  How to Write a Restaurant Mission Statement  

Remember, your mission statement should not only differentiate your restaurant from competitors but also resonate with your target market .

2. Company description

This is where you carefully introduce the company in the restaurant business plan. Include the name of the restaurant you are launching in this field along with its address, phone number, and other important information. Then, also include the owner's information as well as a synopsis or explanation of their background. The restaurant's legal position and its short- and long-term objectives should be outlined in the second section of the company description. To demonstrate your understanding of the changes in the local food business and the reasons why the most independent restaurant investors will be successful in this market, please submit a brief market research.

Here's an example of the page layout:  

Company Description

Restaurant Name: [Restaurant Name]

Location: [Restaurant Address]

Contact: [Restaurant Phone Number] | [Restaurant Email Address]

Owner: [Owner Name]

Experience: [Owner Name] has over [Number] years of experience in the restaurant industry. They have worked in various roles, including [List of Roles]. They are passionate about food and creating a memorable dining experience for their guests.

Legal Standing: [Restaurant Name] is a [Type of Legal Entity] registered in [State/Province].

3. Market analysis

The market analysis portion of the restaurant business plan is typically divided into three parts.

3.1 Industry analysis

What is your target market? What demographics will your restaurant cater to?

This section aims to explain your target market to investors and why you believe guests will choose your restaurant over others.

Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

By diving into demographics, preferences, dining habits, and trends, you can fine-tune your concept and marketing strategy to reach and appeal to your target audience effectively.

An example of analyzing your target market

  Comprehending your target market is key to customizing your restaurant offerings to their preferences and needs.

Demographics and preferences

Identifying your primary target market involves considering factors such as:

For example, a neighborhood with a high concentration of families might prefer a family-friendly restaurant with a diverse menu catering to various age groups and dietary preferences.

Conversely, a trendy urban area with a predominantly young and affluent population may gravitate towards upscale dining experiences and innovative cuisine.

Cultural and ethnic backgrounds also have a significant impact on restaurant preferences, with people from different backgrounds having distinctive tastes and customs that influence their dining choices.

By thoroughly understanding the demographics and preferences of your target market, you’ll be better equipped to create a restaurant concept that resonates with them and ultimately drives success.

Dining habits and trends

As the restaurant industry continues to evolve, staying informed about dining habits and trends is crucial for adapting your offerings and attracting customers.

For example, the rise of online ordering and delivery services has significantly influenced dining habits, with many consumers seeking the convenience of having their meals delivered to their doorstep.

Health trends have also had an impact on dining habits, with an increasing number of individuals seeking healthier options when dining out.

• How to find your restaurant's target market

3.2 Competition analysis

It's easy to assume that everyone will visit your new restaurant first, so it is important to research your competition to make this a reality.

What restaurants have already established a customer base in the area?

Take note of everything from their prices, hours, and service style to menu design to the restaurant interior.

Then explain to your investors how your restaurant will be different.

3.3 Marketing analysis

Your investors are going to want to know how you plan to market your restaurant. How will your marketing campaigns differ from what is already being done by others in the restaurant industry?

How do you plan on securing your target market? What kind of offers will you provide your guests? Make sure to list everything.

The menu is the most important part of a restaurant's debut. Your restaurant wouldn't be able to operate without it.

You most likely don't have a final draft at this time, but you should aim to create a mock-up for your restaurant business plan. You can choose a design that you can envision yourself using and add your logo to the mock-up.

• Top Free Restaurant Menu Makers

There are several resources available online if you need assistance with menu design or don't want to hire a designer.

But the price should be the most important component of your sample menu. The cost research you've completed for investors ought to be reflected in your prices. They will have a clearer idea of your restaurant's intended price range as a result.  You'll quickly see how important menu engineering can be, even early on.

5. Employees

The company description section of the restaurant business plan briefly introduces the owners of the restaurant with some information about each. This section should fully flesh out the restaurant's business plan and management team.

The investors don’t expect you to have your entire team selected at this point, but you should at least have a couple of people on board. Use the talent you have chosen thus far to highlight the combined work experience everyone is bringing to the table.

6. Restaurant design

The design portion of your restaurant business plan is where you can really show off your thoughts and ideas to the investors. If you don’t have professional mock-ups of your restaurant rendered, that’s fine.

Instead, put together a mood board to get your vision across. Find pictures of a similar aesthetic to what you are looking for in your restaurant.

The restaurant design extends beyond aesthetics alone and should include everything from restaurant software to kitchen equipment. 

7. Location

The location you settle on for your restaurant should be well aligned with your target market (making it easier to cater to your ideal customer) and with your business plans.

At this stage in the process, it's not uncommon to not have a specific location in mind - but you should at the very least have a few options to narrow down.

Pro Tip: When you approach your investors about potential locations, make sure to include as much information as possible about each venue and why it would be ideal for your brand. 

Example for choosing an ideal location

Choosing the ideal location for your restaurant is a pivotal decision that can greatly influence your success. 

To make the best choice, consider factors such as foot traffic, accessibility, and neighborhood demographics.

By carefully evaluating these factors, you’ll be better equipped to maximize visibility and attract your target market.

Foot traffic and accessibility

Foot traffic and accessibility are important factors in selecting a location that will attract customers and ensure convenience.

A high-traffic area with ample parking and public transportation options can greatly increase the likelihood of drawing in potential customers.

Additionally, making your restaurant accessible to individuals with disabilities can further broaden your customer base and promote inclusivity.

Neighborhood demographics

Analyzing neighborhood demographics can help you determine if your restaurant’s concept and cuisine will appeal to the local population.

Factors such as income levels, family structures, and cultural diversity can all influence dining preferences and habits.

By understanding the unique characteristics of the neighborhood, you can tailor your offerings and marketing efforts to resonate with the local community.

Conducting a market analysis can be a valuable step in this process.

To gather demographic data for a particular neighborhood, you can utilize resources such as the U.S. Census Bureau’s American Community Survey and reference maps.

Armed with this information, you can make informed decisions about your restaurant’s concept, menu, and pricing, ensuring that your establishment is well-positioned for success within the community.

Conducting market research will further strengthen your understanding of the local demographic.

8. Market overview

The market overview section is heavily related to the market research and analysis portion of the restaurant business plan. In this section, go into detail about both the micro and macro conditions in the area you want to set up your restaurant.

Discuss the current economic conditions that could make opening a restaurant difficult, and how you aim to counteract that. Mention all the other restaurants that could prove to be competition and what your strategy is to set yourself apart.

9. Marketing

With restaurants opening left and ride nowadays, investors are going to want to know how you will get word of your restaurant to the world.

The next marketing strategy and publicity section should go into detail on how you plan to market your restaurant before and after opening. As well as any plans you may have to bring a PR company on board to help spread the word.

Read more: How to write a restaurant marketing plan from scratch

10. External help

To make your restaurant a reality, you are going to need a lot of help. List any external companies or software you plan on hiring to get your restaurant up and running.

This includes everything from accountants and designers to suppliers that help your restaurant perform better, like POS systems and restaurant reservation systems .

Explain to your other potential investors about the importance of each and what they will be doing for your restaurant.

11. Financial analysis

The most important part of your restaurant business plan is the financial section . We would recommend hiring professional help for this given its importance.

Hiring a trained accountant will not only help you get your own financial projections and estimates in order but also give you a realistic insight into owning a restaurant.

You should have some information prepared to make this step easier for the accountant.

He/she will want to know how many seats your restaurant has, what the check average per table will be, and how many guests you plan on seating per day.

In addition to this, doing rough food cost calculations for various menu items can help estimate your profit margin per dish. This can be achieved easily with a free food cost calculator. 

• Important restaurant metrics to track

A well-crafted restaurant business plan serves as a roadmap to success, guiding every aspect of the venture from menu design to employee training.

By carefully considering each component of the plan, aspiring restaurateurs can increase their chances of securing funding, attracting customers, and achieving their long-term goals.

Remember, a restaurant business plan is not just a document to satisfy investors; it is a living tool that should be revisited and updated regularly as the business grows and evolves.

By staying committed to the plan and adapting it as needed, restaurateurs can ensure that their culinary dreams have a solid foundation for success.

Growth Marketing Manager at Eat App

Saif Alnasur used to work in his family restaurant, but now he is a food influencer and writes about the restaurant industry for Eat App.

Reviewed by

Nezar Kadhem

Co-founder and CEO of Eat App

He is a regular speaker and panelist at industry events, contributing on topics such as digital transformation in the hospitality industry, revenue channel optimization and dine-in experience.

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Business Licenses Needed for a Restaurant in Malaysia

Introduction.

We wish opening a restaurant in Malaysia was as simple as cooking delicious food and serving it to paying customers, but the reality is that specific business licenses must be secured to operate legally.

On top of the usual mandatory permits, you may want additional licenses depending on your target audience and the ambiance you want to provide (in general, the fancier you get, the more it’s going to cost you).

This article provides a brief overview of the mandatory and common optional licenses needed to setup an F&B outlet in Malaysia. As we go over each license, we’ll address:

• issuing governing body, and
• best practices or considerations

Do note that we assume you have registered an SSM enterprise or Sdn Bhd, as those registration documents will be necessary to apply for business licenses. If you’re not familiar, don’t worry, contnue reading and there’ll be a link to our incorporation guide at the end. 🙌

Also, while we’ll provide the cost of licenses issued by federal bodies, locally issued licenses are priced at the discretion of Local Authorities, and there are too many of them to list!

Let’s go!

Key Takeaways:

• A Premise and Signboard License is mandatory for every restaurant in Malaysia. The validity of the license is usually for one year and is issued by Local Authorities
• On top of the mandatory license, business owners may need to apply for Halal Certification, Liquor Licenses, Wholesale, Retail, and Trade Licenses and Music and Performance Licenses
• Halal Certification requires the food served in the restaurant be prepared and served in compliance with Islamic law.
• Music Authors’ Copyright Protection Berhad License (MACP) is a mandatory license for restaurants that play copyrighted music. MACP determines the price of the licensing fee based on the type and size of the eatery. The application process for obtaining the license involves filling out a form and submitting necessary documentation.
• licenses are a total headache – hire us to do it for you instead!

Mandatory License

Whether you plan to serve budget fried rice or wagyu steaks, every restaurant needs a valid premise and signboard license.

Overview of Premise & Signboard License

These licenses are issued by the Local Authorities (also known as Pihak Berkuasa Tempatan or PBT) that govern your jurisdiction. Together, the licenses acknowledge your premises meet required health and safety standards, and that your signboard is an honest representation of your business.

Requirements

To obtain the premise license as an F&B outlet, here are some requirements you need to meet:

• Have your business registration documents from SSM
• Undergo a Ministry of Health-certified food handling course
• Receive typhoid injections for yourself and staff
• Pass a premise inspection by officers from the Local Authorities

Different Local Authorities (MBP, DBKL, etc) will have different specifications for F&B premises concerning safety, pest control, customer facilities, location and even interior design. For example, some municipalities require different floor materials depending on whether or not the space is air-conditioned!

Your best bet is to pass a premise inspection to speak to a business consultant, call the Local Authority in question, or track down a checklist from an official online source.

Wait time, length of validity, and cost

Expect it to take anywhere from 2 to 4 weeks from the date of application for the Local Authorities to issue your premise and signboard license. In general, they are valid for one year from the date of issuance and can be renewed for another 12 months upon renewal application.

Some local authorities  prorate the application based on the calendar year . This means it expires on 31 December regardless of when it is granted, though you are only charged for the number of months the license is active.

As far as pricing, not only does it differ by jurisdiction, but also by restaurant size and location. We’ll just use DBKL as an example here:

• (a) dining floor area does not exceed 90 square meters (RM200 per year)
• (b) dining floor area does not exceed 120 square meters (RM300 per year)
• (c) dining floor area exceeding 120 square meters (RM400 per year)
• Food courts (RM200 per year)
• Food stall within licensed premises (RM100 per year)

You can find DBKL’s official guidelines here , but be warned, it is in Bahasa Melayu and of course only applies to those whose premises are within DBKL’s jurisdiction.

Optional Licenses

Here’s where budget fried rice or wagyu steaks will influence what additional permits you may need. These licenses are not necessary by default and depends on the type of restaurant you want to operate in Malaysia.

1. Public House Liquor License

Issuing body : Local Authority

If you intend to serve alcohol strictly for on-premises consumption, then you’ll need to apply for a Public House Liquor License from your Local Authorities. You will need to obey certain restrictions, such as pass an interview with the police (just in case you were thinking of selling bootleg alcohol) and ensure your premises are a certain distance from mosques, schools, or any majority Muslim residential areas.

2. Halal Certification

Issuing body : Department of Islamic Development Malaysia (JAKIM)

If your main target audience are Muslims, getting Halal certification could give you a competitive edge. Just bear in mind that Malaysia is one of the strictest countries when it comes to Halal regulations and you cannot serve any alcohol on the premises.

After applying, JAKIM officials will inspect your premises and may take samples for lab testing (kindly sponsored by you). The fee for restaurants is RM200 per premise, and certification is valid for 2 years.

3. Music and Entertainment Licenses

Two related activities that need separate licenses here:

Music Authors’ Copyright Protection (MACP) License

Issuing body: Music Authors Copyright Protection (MACP) Berhad

If you blast K-pop hits nonstop in your restaurant to attract customers, you are profiting from the artists’ work and need to purchase a license from MACP. For restaurants, it will cost anywhere from RM 847 to RM1,376 and the license will be valid for one year.

Recordings of songs and live performances (by DJs or drunken patrons on karaoke nights) are charged differently.

Public Performance License

Live performances of copyrighted songs will need an additional Public Performance License, also valid for one year at the price of RM1,200 – RM27,000 depending on the number of patrons and whether or not the performance is the main draw of the business.

4. Wholesale, Retail, & Trade (WRT) License

Issuing body: Ministry of Domestic Trade (KPDN)

If you are a foreigner and plan to open the restaurant as a foreign-owned business (over 50% foreign ownership) you will need a WRT License which is designed to regulate foreign involvement in distributive trade in Malaysia. It costs RM3000, takes 1 – 3 months to be approved, and will be valid for two years.

Alternatively, consider partnering up with a local shareholder or director to avoid the hassle of applying for this license, and enjoy the benefits of being legally recognised as a local business.

5. Private Car Park License

Issuing body: Local Authority

Say your restaurant is in a busy area where parking is scarce and there is open land nearby that can be used as a dedicated parking lot. You’ll need to plan out the arrangement of the parking lot just like you would for the floorspace in your restaurant and submit these to your Local Authorities. And just like with a restaurant, officials will come to inspect that the car park is up to standards.

Tell MISHU your business license needs

If you plan to apply for businesses licenses for your restaurant, consider engaging MISHU to do it on your behalf. Government officials melt at our smile – see above for a free preview!

As promised, here’s our in-depth guide to incorporating a Sdn Bhd in Malaysia.

FAQs about licenses needed to open a restaurant in Malaysia:

• What business licenses are required to open a restaurant in Malaysia? 💡At the very least, any restaurant operating physically needs a valid premise and signboard license issued by their Local Authorities.
• What is a Signboard License in Malaysia and what are the necessary documents? 💡It is a license acknowledging that your signboard is an honest representation of your business and meets the safety requirements set by the Local Authorities. A full list of required documents can be found here .
• What are other licenses needed to open a restaurant in Malaysia? 💡Other licenses are optional, and include Halal Certification, Liquor Licenses, Car Park Licenses, WRT Licenses, and various Music and Performance Licenses
• What are the standard requirements of a WRT license? 💡The business applying for a WRT license must be incorporated in compliance with the Company Act 2016, have RM1,000,000 in paid-up capital, and already have prior approval from Local Authorities.
• Should I apply for all the business licenses stated? 💡No, a better approach would be to determine your needs and then map them to necessary licenses. At any rate, a premise cannot have both Halal Certification AND a Liquor License in Malaysia.

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4 thoughts on “ Business Licenses Needed for a Restaurant in Malaysia ”

Hi, I have reached out on your WhatsApp regarding licenses. I am opening a restaurant in December, it’d be great if you can reach out to me on the necessary licenses required for my premises. Thanks!

Best regards, Tristan Chai

Hi Tristan,

Thanks for getting in touch.

Yup, we have confirmed your message has gone through to our client servicing team. Don’t forget to invite us to your grand opening!

Do you do business license application for Majlis Daerah Kuala Langat?

Yes, we do, and would be happy to assist you. Our client servicing team will be getting in touch shortly.

Take care and we wish you a smooth application!

The MISHU Editorial Team

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If for any reason you are unhappy with our services for issues that we are directly responsible for, simply email us at [email protected] within 30 days from your payment date and we will provide a full refund – no questions asked.

However, do note that this guarantee applies only to New Sdn Bhd and New LLP registration services, and that any fees that have been paid to SSM or other government authorities as part of the registration process are non-refundable.

There’s absolutely no risk! Take our commitment and try us out.

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Food Business Malaysia Checklist: The Ultimate Guide

February 28, 2020 By Andy

Starting a food business in today’s environment is tough and you’re going to need some help in looking a cut above the rest.

Sure, knowledge in business and operations is a must, but the right approach to getting started is crucial.

F&B businesses have come a long way and there’s something for everything – whether opening a café or restaurant.

Here we outline a step-by-step plan in this food business Malaysia guide for you.

We’ll discuss how to construct a business plan, gathering your equipment, assembling your team, choosing a location and so on.

Let’s get started.

Create A Business Plan

Primarily, you need to construct a feasible business plan:

• Determine on your business entity, whether you are sole proprietorship, general partnership or Limited Liability Company (LLC).
• Determine your F&B business concept, whether it is a quick-service restaurant, full-service restaurant and bar (FSRB) or food truck.
• Determine your marketing, logo, and name – to make your customers recognize your product through your brand.
• Determine your target market – to identify the patrons that are attracted to your business concept, price points and create a relevant targeted offering.
• Determine your ideal business location – that contributes to your best market share around the area and the competition you will face with other businesses.
• Determine your business budget for expenses; including inventory, labour, rent, utilities, and the price range of your business menu.
• Determine the structure of your business – the number of employees and the house managements; include front-of-house and back-of-house.

Also, you should know the reason to scheme a proper business idea plan before constructing an F&B business, so that you’ll always be on the right track.

You can read more here:

Why You Should Have a Business Plan before Launching Your F&B Business in Malaysia and How to Create One

Create A Marketing Plan

“Does having a passion is enough to make a product goes success?”

Yes, with the presence of practical passion, you may form substantial marketing, product positioning, and shelf strategy to assist you in raising the opportunity of your success.

However, you still need to understand some of the basics of brand awareness.

This can be done by knowing your focus on your establishment and securing a niche in your target market before deciding for any further direction in the business flow.

Having a marketing plan as part of your business plan is going to explain how you’re going to influence your customer to buy your products. 

Your marketing plan should include these details:

• The products and Unique Selling Proposition (USP) – you need to describe the uniqueness of your products, by its features and knowing how your product may benefit the customers.
• The pricing strategy – the price you charge has to be competitive with other vendors, but still enable you to gain a reasonable profit and return on investment.
• The sales plan – determining what types of salespeople involving and how you plan each of them to contribute their sales effectiveness to reach the business goal
• The advertising and promotion plan – determine what kind of media effective on reaching your target market and promote them according to your annual advertising budget, for every medium you are focusing on.

Note that if you are developing for a marketing plan, you should include the target market and a competitors’ analysis too.

Be creative and find effective marketing strategies for the sake of your F&B business.

6 Ways to Market Your Restaurant or Café Business in Malaysia and Get More Customers (With Examples)

Choose The Right Location

Deciding a location has been prioritized when it comes to constructing a business and has become the major role in determining your success.

First, you must ensure your business is located in the strategic area as in the central place, where there are many people walking around and people can easily come over to the place.   

The business location should not be somewhere in an isolated area or where there is a lot of traffic either, as you need to avoid the unwanted disturbance to your customers.

Here are some things that you might want to consider:

• Cost – need to consider the rent that you afford to start the business.
• Accessibility to customers – a place for your customers to come by your restaurant with their transportation.
• Restrictive regulations – restrict unwanted noise and smell.
• Proximity to other businesses – figure out your business competitors that might affect your business.
• Scheme the plan of the future – plan long-term projects that may contribute to major development on your business in another year.

However, you can read another list for you to follow up before you start picking the right location for your F&B business. 

Picking a Location for Your Café or Restaurant in Malaysia: 10 Things to Consider Before Signing Your Lease

Gather Your Team

You must decide your food business concept because different business concepts have different on the quantity of staff for your consideration.

The selection of staff must be considered based on the scale of your restaurant. Make sure to hire enough staff for each job and they anticipate shift planning or back-up, for emergency cases.

If you are a full-service restaurant, you definitely need a handful of servers, bartenders, kitchen staff, a couple of hosts to greet the guests and busboys to clean up after them.

You should stay diligent in searching for the right candidates who are good at multitasking, fast on their feet and may work under pressure. 

Nonetheless, it is also important for you to create SOP and make your staff learn about them to ensure the business runs smoothly.

SOPs for Your F&B Business in Malaysia: Why You Need Them and How to Create Ones That Work

Obtain Licence And Permits

You are required to have a licence and permits, especially when you are dealing more with food or products, which are consumed by people.

Here are some important documents that you may want to take note to conduct this business:

• A federal Employer Identification Number (EIN) for tax purposes.
• A business licence from your city or state that enables you to run the business.
• A food service license from your city or state for the establishment that serves food.
• A Certificate of Occupancy (CO) to ensure your restaurant or F&B business is safe for customers to come over and you can serve them.
• A cabaret license – only if you have a special area for your customers to dance.
• A license for halal food – to reassure Muslim customers to obtain and consume a halal cuisine.

Despite all of the license requirements, you should be more compliant with the applicable health, the safety codes and the other food service regulations as they are paramount in the F&B industry.

9 Food Safety Tips Every Restaurateur Must Follow

Choose A Point Of Sale System

As someone who runs a business, you absolutely need a new fresh technology system, such as a good Point of Sale (POS) system to ease the business process.

A good operating system such as a POS system is required to smooth the process of business and to keep things recorded.

This system helps a lot in handling your business in the future, especially when it comes to communication among your employees, the front-of-house and the back-of-house. 

POS system also enables you to print kitchen orders, keep customer tabs open, split checks, customize table layout and manage the reservations.

However, this system varies in its features and functionality, which depends on the business concept that you hold on, whether it is a quick-service restaurant or full-service restaurant.

Check out more details on the features of GetSlurp POS System that are designed to cater to your F&B needs.

You may also learn more on how to pick up the correct POS System for your business using our guide:

Looking for the Best POS System for Your F&B Business in Malaysia? We’ll Show You How To Choose One!

Promote, Promote, Promote

Nonetheless, to make your food business Malaysia known, you have to advertise your business in different mediums.

One of the promotion strategies is to do online marketing . 

There are several ways that you might like to consider, to alert your food business, which are:

• Come up with a great website – to input all the keys information about the opening times, menu, a booking engine and many more.
• Use social media – to share some high-quality behind-the-scenes photos, news, and restaurant information to social media accounts such as Facebook, Twitter and Instagram.
• Place your ad in online newspaper platform
• Host a soft opening – to buzz about your restaurant to the community around the area.  
• Offer promotions to new guests – free drinks for the first 10, 50 or 100 customers.

Apart from that, you may try to promote your food business by having a collaboration with the food delivery companies such as Grab Food , Food Panda , and Dahmakan .

The food delivery business is usually a standalone business that allows the customers to get the ready-to-eat meal on their table right away.

This is especially for working people who do not have time to cook for themselves.

Therefore, you can actually start to hire several people like your food couriers, to deliver the food to your customers in certain locations. 

Learn more about food delivery service before you can decide to add the delivery service in your restaurant or not.

Pros and Cons of Offering Food Delivery Service

Scale Your Business

The positive cash flow indicates the success of your business, and it is a key driver to meet the longer-term business goals.

Having more money coming helps you to manage expenses and lets you know where you stand if you are planning for store expansion.

Reminder, if you are intending to open a new outlet or make a store expansion, ensure you have lots of positive cash flow so that you won’t end up with debts or negative cash flow in the future.

Here are some tips that you might want to read as guidance to raise your restaurant’s profitability.

6 Strategies to Help Your Restaurant Increase Profitability  

Opening a food business Malaysia is exciting yet the gargantuan tasks to manage it is a tall order. 

All you need to do is to come up with new brand ideas and uniqueness, to cater to the market demand and attract the customers. 

However, have you heard about the GetSlurp POS system ?

A technology company called Silentmode Sdn Bhd is the one who delivers innovative solutions via software as a service model by developing a product, Slurp, a cloud-based Point-Of-Sale (POS) system.

The Slurp POS system literally helps a lot for food and business retailers in Malaysia especially to improve their business efficiency, to enhance the customer experience and many more. 

So, what are you waiting for? Sign up for a free demo on GetSlurp POS System today.

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Starting An F&B Business In Malaysia: A Step-By-Step Guide

• January 2, 2020

Want to start your own F&B business in Malaysia in 2021?

Unfortunately, it may be harder than you think. 

• How do you get a business license in Malaysia? 
• What food and beverage should you sell?
• How many potential competitors are there in the food and beverage industry?

SME Bank reported that up to 50% of F&B businesses in Malaysia fail by the 5th year of operations.

But don’t fret! This doesn’t mean that you shouldn’t open your cafe or restaurant.

It just means that you need to be smart about it so you don’t end up being part of that statistic.

To help you prepare, here’s our step-by-step guide on how to start an F&B business in Malaysia!

• Test the market
• Construct a business plan
• Secure funding
• F&B licenses and permits
• Supply chain
• F&B equipment
• Choose a POS system
• Create the menu
• F&B marketing strategy
• Quality control

Step 1: Narrow down your idea and test the market

There are a lotttttt of cafes in Bangsar, KL. 

Pokok KL….Therefore Cafe….Urban Daybreak….

So as an example, what would set your F&B business apart if you want to do kind of the same thing in the same area?

Think about that for a sec.

This first step is crucial in getting you on the right path to F&B business’s success.

Use TART (yum yum!) to help you get started:

• Think  about what you want to sell – Coffee? Pasta? Brunch foods? Cocktails?
• Analyse and Research ! Analyse the market and recognise where the need and gaps lie to narrow down your list so you can choose 1 – 3 ideas to test
• Test your idea and whip up a few versions of the meals or drinks until you come up with the perfect recipe

This initial part of starting an F&B business requires A LOT of creativity, mindfulness, and patience, but the more time you invest in creating the right recipes and business, the higher your chance of F&B glory.

• Get the opinions of others by performing taste tests – This could be done amongst family, friends and even potential customers. You could even try setting up a pop-up at nearby grocery stores or events to test your recipes and get early feedback from customers.
• Don’t base your ideas off on the current hype – Most trends come and go. Your products should be sustainable and outlast the trend in order to prevent customers from disappearing once the hype is over. 

Step 2: Construct an F&B business plan 

The most important step for setting an F&B business in Malaysia (and everywhere) is creating a detailed F&B business plan.

This is to help you and potential investors get a deeper understanding of your idea and the feasibility of the business. 

An F&B business plan should include the following:

• The food/drink idea and business concept – are you going to be a quick-service restaurant, full-service restaurant or bar? What food/drinks will you sell and what are the prices for each?
• Business entity – are you starting the business as a sole trader or through a partnership? Perhaps even a franchise or limited company?
• Target market – which group of customers will be attracted to your business? Create customer avatars to narrow down your customer base. 
• Location – where will your business be located? Where are your customers? What kind of competition will you face in that area? Important things to consider for the perfect location are the cost of rent, accessibility to potential customers, distances to competitors and any plans for the future.
• Marketing – include your business name and logo. What is your branding and marketing strategy? 
• Financial projection and budget – create a forecast of expenses you will incur e.g. inventory (food and beverage), labour, rent and utilities
• Operations – what is the structure of your business going to be like? Think about management style for front-of-house and back-of-house staff

Most F&B businesses fail in the first year because they struggle to breakeven.

So your financial projection and budgeting part of your F&B business plan is crucial.

Be sure to include the following in your F&B financial projection:

• Sales projection – estimate the average purchase per customer visit and the average cost of goods sold (COGS) per customer visit to get an understanding of when how much you need to sell and for how long before you can breakeven within a given timeframe
• Salary expenses – include labour cost into your Cost of Goods Sold (COGS)
• Startup cost – rent, utilities, equipment, starting cash balance, initial inventory

Step 3: Secure funding 

Now it’s time to think about how you are going to fund your F&B business. 

It can cost up to RM500,000 to start a cafe or restaurant in Malaysia. The bulk of it will come from renovations and equipment purchases. Here’s a quick breakdown for your reference:

• Licences, permits and business insurance
• Technology setup (WiFi, business software, etc.)

And this is just the one-off cost.

After this, you have your ongoing cost where you’ll probably spend between RM25,000 – RM50,000 per month on recurring payments like loan repayments, rent, salaries, insurances, and utilities.

So basically, you need a lot of capital to get started, and enough capital to keep you going.

Luckily, there are a lot of other ways to fund your new venture:

• SME business loan from banks or the government 
• Find investors or get into a partnership 
• Family/friend loans 

Think about starting a small F&B business first and you can the scale it up later.

Don’t expect to make a profit right away and understand that money will always be a little tight at first. 

Step 4: Sort out legal paperwork

Make sure you do your research and get all the relevant licensing and permits you’ll need for your F&B business.

According to the Malaysian government’s official website , some general licenses that are applicable for any business include:

• Company Registration
• Company and Employees Income Tax Registration
• Employees Provident Fund
• Social Security Organisation
• Human Resources Development Fund
• Business Premise Licenses and Signboard Licenses

And since you’re in the food and nbeverage industry, you’ll need some specific permits and certificates like the ones below to run your cafe/restaurant/quick-serve:

• Food handling permits
• Alcohol license
• Halal certifications 
• Health & Safety permit 

TIP: The licenses you need for your F&B business depend on the state you’re in – Kuala Lumpur, Sabah, Penang, etc..

So be sure to check with your State Authority on what permits and certificate you need to get for your F&B business.

Step 5: Ensure you have a good supply chain 

In order for your F&B business to succeed, you need to look for a good and reliable supplier.

Ideally, you should be getting the freshest produce and ingredients at the right quantity and at the right time. 

Maintaining a good relationship with your supplier is also important to ensure that any future problems can be fixed immediately e.g. a last-minute increase in supply needs.

Make sure to keep in constant contact with your supplier and give them enough time to source and deliver your ingredients.

Here’s a list of some online suppliers you can shop from:

• Supplybunny.com – comprehensive and easy-to-navigate grocery supply platform
• Dropee – Wholesale F&B supplier marketplace
• Foodbiz Malaysia – comprehensive directory of food manufacturers, distributors, and suppliers
• OhMyGrocer – wholesale F&B supplier

Step 6: Buy or rent F&B equipment 

Once you’ve secured your finances, it’s time to start looking for all the equipment you’ll need for your restaurant or cafe.

For F&B businesses, restaurant equipment and appliances are going to be one of your most significant startup expenses. 

Create a list and compare costs for each equipment in order to find the best deals. Here are a few items you may need:

• Work surfaces e.g. countertops, cutting boards and food serving tables
• Kitchen appliances e.g. stoves, fryers, microwaves and ovens
• Utensils e.g. frying pans, pots and cooking utensils
• Cold appliances e.g. refrigerators and freezers
• Furniture e.g. tables, chairs, booths, decorations
• Glassware and silverware
• Tablecloths, placemats and napkins
• Take-away containers

Here are some online equipment suppliers in Malaysia:

• F&B Equipment – commercial kitchen equipment supplier
• Kitchen Arena – kitchen equipment and appliances seller

Step 7: Choose a Point of Sale (POS) System 

Every F&B business has a good POS system to help operations flow more efficiently.

A POS system allows you to:

• take customer orders and send them directly to the kitchen
• manage and customise table layouts
• track reservations
• make payments
• serve customers with contactless ordeing and payment
• have your own food delivery

A good POS system should ensure you have clear and constant communication between front-of-house and back-of-house. 

And with its back office, you will also be provided with insightful data analytics and reports such as:

• Daily sales report
• Best and worst selling items
• Sales growth
• Stock levels
• Customer purchase behaviour

And so on….

Looking for a system that’s easy to set up and that will help grow your F&B business?

Check out StoreHub for all your F&B business management needs! 

StoreHub is an all-in-one F&B tech solution that combines an integrated POS system with:

• inventory management
• employee management
• customer relationship management (CRM)
• supplier management
• food delivery feature
• cashback loyalty program
• QR table ordering system

Step 8: Creating the menu 

How many items are you planning on selling on restaurant or cafe?

Make sure you don’t over-do it as too many choices can turn customers away! 

When creating your menu, remember to take these things into consideration:

• Use clear and descriptive language 
• Show pictures of food/drink items whenever possible 
• Use a range of colours 
• Always include a short explanation of what’s in each dish
• Highlight recommended choices
• Keep it clean and simple to read

Step 9: Come up with an F&B marketing strategy

How do you get people to come to your cafe, restaurant or food truck? 

Besides the traditional marketing methods (e.g. adverts/posters, TV ads) and promotional offers, the best marketing strategy for any F&B business out there is to use…

Social media.  

Almost everyone is on social media these days and photos of food/drinks are always circulating online.

For example, there are more than  215 million posts tagged under #foodporn on Instagram alone !

That’s crazy!

So yes, people love taking photos of their food/drink and sharing them online with their followers. 

You must take advantage of this by having a good social media presence and building up your business’s social media page by taking aesthetic photos of your product offerings. This is a really helpful platform if you’re starting a small F&B business.

You need an account with at least 3 major social media platforms in your country – Facebook, Instagram, Twitter, and Google My Business.

• Create a Google My Business account to list your business on Google so people can easily learn more about you and even find directions to your store. Find out how to set up Google My Business here! 
• Focus on food presentation and aesthetic plating so customers are willing to take a photo of your food and share it on their social media accounts. This will increase the number of shares of your food/drinks on social media and generate organic buzz. Learn more about food photography here!
• Get connected with micro-influencers and food bloggers – Micro-influencers tend to have more engaged followers and food bloggers create content that can reach out to your target audience. Invite them to your place during your soft launch to review your food/drinks to create more buzz.

Step 10: Maintain quality control

One of the most important factors to a successful F&B business is maintaining a high standard in food and drink, and customer service.

You need to make sure that your products meet the expectations of customers since the first day you started your F&B business because that will keep them coming back for more. 

Taking time to perfect the recipe and hiring the right staff to create and deliver these dishes/drinks will go a long way. 

Always strive to get feedback and reviews from customers and use them to constantly improve.

• Print out and paste food preparation SOPs in the kitchen as a reminder to your staff 
• Conduct random spot checks  to test the quality of your food and drink, as well as your service

Final words

There you have it!

You’re all ready to start your new venture! 

Remember that starting a new F&B business will be a challenge and a rollercoaster ride of emotions, but if you continue to work hard and don’t give up, nothing will tastes sweeter than victory!

Power your F&B business with   StoreHub!

Apply now  to get a free demo and consultation from StoreHub’s qualified Business Consultants

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