Malaysians kopitiam.

OldTown is Malaysias home grown kopitiam operator with the

largest branch network in Malaysia; it also distributes packaged coffee products
across theregion. Over a decade of history.The group commenced operations with 3in-1 instant coffee manufacturing in 1999 under the OLDTOWNbrand name and
started exporting a year later. OldTown built its second core business in 2005 when
the first OldTown White Coffee outlet was opened to public in Ipoh. The vertical
expansion into the food services industry has been successful and today OldTown
has a total of 182outlets in Malaysia, Singapore and Indonesia, while its coffee
products are exported to 12 different countries.Booming on a bulging midriff. We
like OldTown for its stable food and beverage business with visible growth prospects.
While consumers preferences are constantly changing, we believe the variety of
foodin OldTowntruly caters to everyones taste buds makingit a preferred hang out
spot. The risingpurchasing power of the younger population is positive for OldTown
because they tend to hang out more often.Management targets to open another 27
(11 already) outlets by end 2011; 22 in Malaysia, 3 in Singapore and 2 more in
Indonesia
Overview of Old Town
Introduction. Founded in 1999, OldTown began with the manufacturing of 3-in-1
instant coffee. By 2005, OldTown was exporting to Singapore, Hong Kong, the US,
UK, Taiwan and Indonesia. The same year, the first OLDTOWN WHITE COFFEE
outlet was opened
in Ipoh beginning its involvement in the caf and restaurant business. Now there are
1
71 cafes across Malaysia, 9 in Singapore and2 in Indonesia.

Business.
It is straightforward with two operating segments:
(1) the well-known cafe chain and (2) manufactured beverages.
Over the years, OldTowns caf chain business has been growing faster than its
manufactured beverages business.We do believe its strength in the caf business stems
in part from being an integrated coffee supplier,granting the caf business a steady supply
and controlled quality at stable cost

S.W.O.T
.
Analysis
Strengths.
OldTown is an all-rounded food & beverage company, botha coffee producer, spanning
roasted coffee powder to instant coffee mix and ready-to-drink (RTD) coffee and running
a highly frequented caf chain comprising both owned and franchised outlets.
It has a strong retail network for its beverages, approximately 5,002 retail outlets nationwide
in Malaysia, 730 in Singapore and 2,335 in Hong Kong. For its caf chain which started in
2005, it now has 182outlets compared to 49 outlets of Papparich, its closest competitor in
terms of menu. It has up to 48 types of drinks and dessert and 72 types of food in its menu
which offers consumers plenty of choices, similar to what a food court can offer. Certainly,
OldTown provides a more comfortable ambience and better hygiene.
Weaknesses.
Having morethan 100 items on the menu prepared using different materials and ingredients,
quality control is the main concern. It also increases food preparation lag time, reducing
the speed of food delivery. Another weakness is that some of its cafs employ foreign
labourers who cannot communicate properly.
Opportunities.
OldTown is well-positioned, catering to the burgeoning and increasingly affluent urban
population. We see huge potential for OldTown to open new outlets in Malaysia and
overseas, especially Indonesiawhere it currently has merely 2 outlets to serve the 9.6m
population in Jakarta.Locally, its outlets are still concentrated in central Malaysia with about
60% of its outlets located in the Klang Valley.This compares with 515 KFC outlets in
Malaysia implying that OldTown has ample of opportunities to catch up in terms of growth
from its current outlet size which is just one-third of KFCs.Other
angles would be;

.
As many of OldTowns favourite items are similar to finger foods,it would be another
potential strategy to place kiosks in high traffic areas, e.g., malls, office buildings,etc to
cater to the non sit-down, take-away crowd.
Threats.
Like any other operator in the food and beverage industry,due to low barriers of entry,
OldTown facesstiff competition from fast food chains, bakeries, food courts and many more.
The offerings on its menu can and have been easily replicated by various copycat outlets
that have sprung up over time

OLD TOWN WHITE COFFEE

Things Wait For You When You Take Your Time

SWOT ANALYSIS
SWOT analysis is used explore the strengths, weaknesses, opportunities and threats of the Old
Town White Coffee.

STRENGTHS
-The taste and the aroma of the white coffee is unlike any other coffee.
-Is well known in all over Asia Pacific

WEAKNESSES
-Has its own limitation of producing new products due to its white coffees specialty
-The brand only pays attention to one product only
-Slows down the product expansion

OPPORTUNITIES
-Some people are interested in franchising the cafe
-Could expand more types of local cuisines in the menu

THREATS
-Has other companies to compete with Old Town

S.W.O.T. analysis of Old Town White Coffee Caf

Strengths
- Variety choices of food and drinks
- Reasonable and affordable prices
- Widely franchised in Malaysia/numerous
outlets
- Ideal location with plenty of parking spaces nearby
- Free wireless connection for internet access
- Some outlets are 24 hours operated

Weaknesses
- Instability quality control of food
- Insufficient service such as note the wrong order and impolite manners
Opportunities
- Training program provided for workers to upgrade their working efficiency
- Expand to global market
- Provide delivery service
Threats
- Competition: numbers of competitors which running same kopitiam concept
such as Pak Li, Starbucks coffee and etc.
- Economic crisis
- Instability of food trend