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School of Architecture, Building & Design Foundation In Natural & Natural & Built Environment Presentation Tittle: Research Assignment Report (Bak Kut Teh restaurant) Group Members: Name Student ID Presentation/ Research Report Roles Angela Wee Kah Man 0322970 Description, competitors and strategy of Teo Chew Bak Kut The, references. Cha Yun Xian 0322048 Description, competitors and strategy of Kee Heong Bak Kut Teh, bibliography. Chan Koon Qi 0322000 Video Chia Keh Chian 0322062 Grammar checker, compile and overall report checker. Darren Tan Quan Wen 0322662 Key Summary, competitive analysis summary table, differences and similarities between both shops, conclusion and nature of market. Tang Ying Jien 0322357 Artistic cover, presentation slides, history, obstacle, recommendation. 1

Bak Kut Teh Final Report

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Page 1: Bak Kut Teh Final Report

School of Architecture, Building & Design

Foundation In Natural & Natural & Built Environment

Presentation Tittle:

Research Assignment Report (Bak Kut Teh restaurant)

Group Members:

Name Student ID Presentation/ Research Report Roles

Angela Wee Kah Man 0322970 Description, competitors and strategy of Teo Chew Bak Kut The, references.

Cha Yun Xian 0322048 Description, competitors and strategy of Kee Heong Bak Kut Teh, bibliography.

Chan Koon Qi 0322000 Video

Chia Keh Chian 0322062 Grammar checker, compile and overall report checker.

Darren Tan Quan Wen

0322662 Key Summary, competitive analysis summary table, differences and similarities between both shops, conclusion and nature of market.

Tang Ying Jien 0322357 Artistic cover, presentation slides, history, obstacle, recommendation.

English 2 [ELG 30605]

Lecturer: Cassandra Wijesuria

Submission Date: 26th November 2015

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Table of Content

No. Tittle Page Number

1 Key Summary 3

2 HIstory of Bak Kut Teh 4

3 Brief Description of Teo Chew Bak Kut Teh 5 – 6

4 Strategy employed by Teo Chew Bak Kut Teh 7

5 Competitors of Teo Chew Bak Kut Teh 8 – 9

6 Brief Description of Kee Heong Bak Kut Teh 10 – 11

7 Strategy employed by Kee Heong Bak Kut Teh 12 – 13

8 Competitors of Kee Heong Bak Kut Teh 14

9 Competitive Analysis Summary Table 15 – 16

10 Summary Table of the similarities between both business

17

11 Summary Table of the differences between both business

17

12 Conclusion 18

13 Obstacles faced by new business 19 – 20

14 Nature of their market 21

15 Recommendation 22

16 Appendices 23 – 42

17 Bibliography 43

18 Reference 44

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Key Summary

This report is a comparative analysis of two Bak Kut Teh businesses in different geographical locations. The business we have chosen must be operated for at least 10 years. The selected Bak Kut Teh restaurants are Teo Chew Bak Kut Teh in Melaka and Kee Heong Bak Kut Teh from Old Klang. Interviews have been conducted in each of the respective Bak Kut Teh restaurant in order to obtain further information from both businesses. The collected information has been analysed and justified through research carried out with reliable sources in references. It is concluded that Kee Heong Bak Kut Teh is more successful than Teo Chew Bak Kut Teh due to greater number of customers and also good quality dish. Moreover, several impactful recommendations such as advertising could be undertake by the businesses in order to improve their competitive edges have included into the report based on our careful analysis so that the business could compete in the market with their full potential.

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History of Bah Kut Teh

Bak Kut Teh, also known as 肉骨茶 in Chinese is a very popular Chinese soup that people in Malaysia and Singapore indulged in it as a satisfying choice of food. As the name literally translated into English, “Meat Bone Tea”, this particular dish does not always start out as an exciting meal back in the old days.

Bak Kut Teh was believed to have been found when Hokkien immigrants from China came to Malaysia to find a living. The old days were hard and the pay was measly, so the immigrants started to find other sources of food to eat instead of plain white rice. Back then, the old ports of Klang was famous for importing herbs and spices, the immigrants that worked there picked up spices that had fallen from the cargo. They started to add different types of herbs and spice into a pot of clear water and broth it. Finally, the outcome of the simple dish was Bah Kut Teh, which the immigrants mixed it with white rice. Since then, it has become a staple food for workers as it was cheap to make and was filling for those who worked long and backbreaking tasks of the day.

Today, as our taste palettes and salaries have increased, the meal added new components, such as tofu, fried dough, vegetables and mushrooms. And one of the most important component that crafted the Bak Kut Teh that enrich itself from the plain soup, was the Pork Rib meat that enhance the taste of the soup itself. Despite the name of the dish includes a word, “tea”, the Bak Kut Teh was not made by tea, rather than that most of the Bak Kut Teh is served with Chinese Tea. People believed that tea would help to get rid of the fat that is found in the meal and the Tea is able to neutralize the alkaline in the dish. As traditional ways maintain, Bak Kut Teh is still served with delicious white rice. The modern world also tweaked the white rice into oily rice, fried onion rice and yam rice to spice up the whole dish.

This meal started out as a popular breakfast dish, but now you eat Bak Kut Teh whenever you crave it. The meal is even a popular lunch for those in a hurry during business hours. So, next time you are craving Bak Kut Teh, remember this beloved dish has provided hard workers nourishment for centuries.

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Brief Description of Teo Chew Bak Kut Teh

Teo Chew Bah Kut Teh is a famous Bak Kut Teh restaurant in Melaka. It is located in Jalan Melaka Raya 4, Taman Melaka Raya, Melaka, Malaysia which is just beside the La Boss Hotel. It is a small but concentrated food business that sells Teo Chew style herbal pork dish as its major product, but what make it so special is because of the soup which has a tad bit different from the other Bak Kut Teh soup, in the sense that the soup has distinct herbal and black pepper flavour and is garnished with celery. Everything comes in a clay pot. Teo Chew Bak Kut Teh restaurant has its loyal customers gained over the years. It is now run by a couple named Eng Khim Hor and Ng May Ling with the help of their children after the boss, Mr Eng’s father, who was the owner of the restaurant which had passed ago few years ago.

The business was originally founded in the 1980s by Mr Eng Khim Hori’s father from just a stall to a restaurant and then handed down to his children. Mr Eng’s father taught him how to prepare the Bak Kut Teh dishes in order to let Mr Eng take order of his business. After his retirement, Mr. Eng did also teach his sibling how to prepare all the dishes too. All of them have now owned thier Bak Kut Teh business with different name in Melaka and Teo Chew Bah Ku Teh which is now owned by Mr Eng is one of the famous Bak Kut Teh restaurant in Melaka. It is named Teo Chew Bah Ku Teh because My Eng family is from Teo Chew dialect.

Teo Chew Bak Kut Teh opens from 7.30 in the morning to 3 o’clock in the afternoon every day, and closes on alternate Monday. Unlike the other Bak Kut Teh restaurant, Teo Chew Bak Kut Teh only focus on 3 main types of dishes, the Bak Kut Teh, stir fried vegetables and the marinade pig trotter which serve together with Yu Char Kuew and yam rice. Although there are only 3 main dishes in Teo Chew Bah Ku Teh, but all of it is delicious and unique in taste and this make Teo Chew Bak Kut Teh different from the others.

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Bak Kut Teh restaurant includes Mr Eng’s sibling’s Bak Kut Teh restaurant which serve more and different dishes. Besides that, the idea of focusing only in 3 main dishes is actually Mr Eng’s idea too, this is because in order to produce the best taste of his dishes, focusing only in 3 dishes allow him to keep on improve in his skill. And this is the reason why the 3 dishes in his restaurant is graded the best in Melaka by the customers. The food is not prepared in the kitchen but right in the middle of the shop itself. And the interesting and unique part of the restaurant is, the boss which is also the cook would yell non-stop for as long as you are there. Preparing and cooking takes up maybe 20-30 per cent of the seat layout. And despite being very helpful for customers to really watch him cook, the yelling in normal kitchen also comes alive at the shop. Teo Chew Bak Kut Teh is famous of it soup which has a distinct herbal flavour. The Bak Kut Teh serves some celery instead of the usual green lettuce. And some standard ingredients like the assorted pork and mushrooms. And the pork from the soup and the marinade pig trotter is tender and falling off the bone. And not to forget the yam rice which is nicely cooked with small chunks of yam and Yu Char Kew (fried beard stick), the combination is always perfect.

Mr Eng and his wife Ms Ng have put a lot of effort in the restaurant. As the owners of Teo Chew Bak Kut Teh, they will make sure their customers receive honest services and best products in order to maintain the reputation of the business. They will make sure all the ingredients are fresh. To maintain the traditional taste of the soup, Mr Eng will always be the one who in charge of preparing all the dishes. Overall, Teo Chew Bah Kut Teh is a successful, historical and well-known Bak Kut Teh restaurant that stands up in Melaka.

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Strategy employed by Teo Chew Bak Kut Teh

Strategy Description

PricingThe prices of the food are affordable and reasonable. They did not raise the prices and take extra charge of 6% due to GST.

Service and products difference

Teo Chew Bak Kut Teh only serves 3 main dishes which is the Bak Kut Teh, Marinade Pork Trotter and the stir fried vegetables. All of them are served in clay pot including the stir-fried vegetables. The soup has a very distinct herbal flavor, which serves with celery instead of lettuce. What are inside the soup to make the Bak Kut Teh so delicious are the innards, mushrooms, meatball as well as the thick 3-layer pork. The pork of the soup and marinade trotter is tender and falling off the bones, this makes the pork more chewable. And for the marinade pork trotter, the sauce is dense with pig trotters, streaky pork and mushrooms. Overall, the Bak Kut Teh is very well cooked and goes extremely well with a bowl of yam rice that is nicely cooked with small chunks of yam together with the extra side dish such as Yu Char Kew (fried beard stick).

Quality of service

Teo Chew Bak Kut Teh provides good services to its customer. Although it is now very successful and famous, the boss is still the one who prepares all the dishes on his own. The workers’ jobs are just assisting the boss, cleaning and passing stuffs. The workers there will welcome the customers politely while the lady boss is the one who is in charge of taking orders. Besides that all of the dishes are cooked at the middle of the restaurant but not in a closed kitchen. Orders come fast and correctly according to the customers’ needs.

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Competitors of Teo Chew Bak Kut Teh

1.SH Restaurant Bakuteh

Located in Jalan Melaka Raya 14, Taman Melaka Raya, Malacca Town, 75000, approximately 1km away from Teo Chew Bak Kut Teh, SH Bak Kut Teh is one of the famous Bak Kut Teh establishments in Melaka. It is famous for its way of traditional way of preparing the Bak Kut Teh which is using charcoal. Besides, it also serves more dishes. For example, ginger wine chicken is one of the most famous dishes in their menu.

2.Restoran New Tasty Bu Kut Teh

Located in Jalan Melaka Raya 14, Taman Melaka Raya, Malacca Town, 75000, approximately 1km away from Teo Chew Bah Kut Teh and just a few block from SH restaurant Bah Kut Teh, New Tasty is another Bak Kut Teh restaurant in Melaka as it offers a very wide variety of dishes including the dry clay pot dishes.

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3. Ah Hui Bak Kut Teh

Ah Hui Bak Kut Teh is located in No. 268, Jalan Melaka Raya 3, Taman Melaka Raya, 75000, Melaka, Melaka, Malaysia, approximately 300 meter away from Teo Chew Bah Kut Teh. It is one of the very well known Bak Kut Teh in Melaka. Ah Hui Bak Kut Teh is a family based business where the company name Ah Hui Bak Kut Teh is came

from the last word of the founder's Chinese name HUI (辉). Ah Hui Bak Kut Teh principal is provided the best quality food at the best taste for all valuable customers. Ah Hui Bak Kut Teh is well known of their wide variety of dishes especially Special Bak Kut Teh, Prawn & Squid Sambal, Black Vinegar Trotter and Red Grain Wine Kidney & Liver. Their food prices are also acceptable.

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Brief Description of Kee Heong Bak Kut Teh

Kee Heong Bak Kut Teh is one of the well-known Bak Kut Teh restaurants in Klang which located off Lorong Kawansari 4A in Taman Eng Ann, with a big red sign over its shop fronts. It is a small but concentrated food business that sells Hokkien style herbal pork dish as its major product. With its mouth-watering and traditional taste of Bak Kut Teh, it has its loyal customers gained over the years who are willing to come all the way down from other cities just to have a good and hearty meal. The restaurant is run by a woman named Tan Shan Mei, with the help of her family after his husband, who was the owner of the restaurant, died nigh 10 years ago. The business was originally founded in the 1980s by Madam Tan Shan Mei’s father in law, she claims her father in law invented Bak Kut Teh. Her father Mr Lee Wen Tee was a chinese chiroprator. Back then he uses the chinese herbs to cure people sprain and used it to cook “Tika”, which is known as pork leg in Hokkien. So he used those herds to make bak kut teh, and then handed down to his son. When the son took

over the business, he moved the business to Taman Eng Ann and named it “奇香” (Qi Xiang), which is pronounced as “Kee Heong” in Hokkien, meaning very appetizing.

Kee Heong Bah Kut Teh opens from 7 o’clock in the morning to 4 o’clock in the evening every day, and closes on alternate Monday. At here, people can find the two main types of Bak Kut Teh, which is the traditional ceramic bowl Bak Kut Teh and clay pot Bak Kut Teh that most of the Bak Kut Teh restaurant in Klang only sells either one type. Kee Heong's Bak Kut Teh has large pork hocks stewed for long hours until the pork-skin acquired a translucent, gelatinous quality, and the meat is meltingly tender. The soup is more like a sticky, viscous stew, bursting with sweet flavours from the meat, garlic and Kee Heong's own secret blend of Chinese herbs & spices, finished off with dark & light soy-sauces. Moreover, Kee Heong's clay pot Bak Kut Teh includes various other cuts of pork, pig's innards & organs, shitake mushrooms, tofu puffs and bean curd sheets, and served topped with large lettuce leaves, which one can push into the bubbling cauldron of soup-stew to slightly cook the vegetable. On the other hand, Kee Heong also offers the dry version of Bak Kut Teh which, instead of pork in soup, pork is cooked in the same special blend of herbs

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and spices, to which dried chillies, cuttlefish and okra were added. The dish was absolutely delicious, and went extremely well with lard-flavoured steamed rice.

It is obvious that Madam Tan Shan Mei has put a lot of efforts in restaurant Kee Heong Bak Kut Teh. As the shop keeper of Kee Heong Bak Kut Teh, she works hard to let her customers receive honest services and best products in order to maintain the reputation of the business. Overall, Kee Heong Bak Kut Teh is a good place to have sweet-smelling herbal soup of perfect consistency that will satisfy the craving for Bak Kut Teh.

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Competitors of Kee Heong Bak Kut Teh

1. Restoran Mo Sang Kor

Located in Taman Berkeley, approximately 1km away from Kee Heong Bak Kut Teh, Mo Sang Kor is one of the oldest and famous Bak Kut Teh establishments in Klang. It is famous for its potent broth, and its stinginess in providing extra broth. The chef at Mo Sang Kor Bak Kut Teh is very careful when it comes to order for more soup, they never dilute their broth with water so that the broth remain thick and slimy.

2. Restoran Pao Xiang

Located in Taman Berkeley, approximately 1km away from Kee Heong Bak Kut Teh, Pao Xiang is a very well-known Bak Kut Teh restaurant in Klang as the very entrepreneurial people behind Pao Xiang have six branches run by the original owners, and six more franchise outlets, five in the Klang Valley and one in Singapore. It offers a very wide variety of pork cuts, from the very popular Tua Kut (shank in Hokkien), to the fat, melt-in-your-mouth Neng Kut.

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3. Restoran Ah Her & Samy Bak Kut Teh

Restoran Ah Her & Samy Bak Kut Teh is located a couple blocks away from the main stretch of shops at Taman Berkeley, approximately 1.5km away from Kee Heong Bah Kut Teh. It is very famous for its traditional bowl Bak Kut Teh. The broth is thick and concentrated with the pork and herbs and the tender pork is bursting with herbal sweetness. It is a place for those who like their Bak Kut Teh strong and intense.

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Strategy employed by Kee Heong Bak Kut Teh

Strategy Description

PricingThe prices of Bak Kut Teh are affordable and reasonable.

Service and products difference

Kee Heong Bak Kut Teh serves both traditional bowl Bak Kut Teh and clay pot Bak Kut Teh. For clay pot Bak Kut Teh, customers have the choice of the dry and the soup version of Bak Kut Teh. The soup Bak Kut Teh is served with the thick soup broth and plentiful of ingredients, this includes the innards as well as the thick 3 layer pork. The ingredients are perfectly enough and they are serving more to the meaty side and the fragrant herbal taste is pretty good too. As for the dry Bak Kut Teh, it brings a like spiciness in it. Well mixed the thick black gravy with the chillies together, the dried Bak Kut Teh always goes to the sweater side of the taste instead of the usual herbal taste. Overall, the Bak Kut Teh is very well-cooked and goes extremely well with a bowl of lard-flavoured steamed rice.

Quality of service

Kee Heong bah kut teh provides good services to its customer. The workers there will welcome the customers politely and take orders immediately. Orders come fast and correctly according to the customers’ need before the food cool down.

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Competitor Analysis Summary Table

Competitive TraitsTeo Chew Bah Kut Teh

(Malacca)

Kee Heong Bah Kut Teh

(Klang)

1. Number of

Competitors10-30 30-70

2. Barrier to Entry

Weak barriers to entry.

Entering the market of Bak Kut

Teh in Malacca is easy due to a

few factors:

1. There is less Bak Kut Teh

restaurant in Malacca and the

competition between each

restaurant is not strong.

2. Bak Kut Teh is considered

something special for Malacca

people since it is the most well-

known delicacies in Klang, and is

less common in Malacca.

Weak barriers to entry.

Entering the market of Bak

Kut Teh in Klang is more

difficult than in Malacca due

to a few factors:

1. There are too many Bak

Kut Teh restaurant in Klang

and the competition

between each Bak Kut Teh

restaurant is very strong.

2. Most of the Bak Kut Teh

restaurant has been open for

more than ten years, they are

experienced and famous, and

have gained a lot of loyal

customers.

3. People used to go to the

Bak Kut Teh restaurant that

they usually go to. They are

not likely to try Bak Kut Teh

restaurant because they have

stuck to the old taste.

3. Differentiated or

Standardized

Products

Standardized products Standardized products

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4. Pricing Power

Price taker. They have the weak

pricing power because the

businesses have no ability to

charge a higher price than the

market price unreasonably. This

will cause customer to turn to

other competitors.

Price taker. They have the

weak pricing power because

the businesses have no

ability to charge a higher

price than the market price

unreasonably. This will cause

customer to turn to other

competitors.

5. Other

Characteristics

Teo Chew Bah Kut Teh only

focuses on 3 main dishes. For

example the Bak Kut Teh, stir

fried vegetables and the

Marinade Pig Trotter which

serve together with Yu Char

Kuew and yam rice. The most

important part is, all of these

dishes are actually prepare by

the boss himself. The food is not

prepared in the kitchen but right

in the middle of the shop itself.

The boss which also the cook

would actually yell non-stop and

despite being very helpful for

customers to really watch him

cook, the yelling in normal

kitchen also comes alive at the

shop.

Kee Heong Bak Kut Teh

provides both traditional

ceramic bowl Bak Kut Teh

and clay pot Bak Kut Teh.

There are two versions of the

clay pot Bak Kut Teh, which

are the soup version and the

dry version. Kee Heong Bah

Kut Teh also sells stir fried

vegetables, such as small

Chinese cabbage (Pei Tsai),

Ching-Chiang cabbage (Pak

Choy), etc.

6. Verdict Monopolistic Competitive. Monopolistic Competitive.

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Summary Table of The Similarities Between Both Businesses

Teo Chew Bak Kut Teh Similarities Kee Heong Bak Kut Teho Number of branches o

Bak Kut Teh Main Product Sold Bak Kut TehLead by owner Leader Lead by owner

1 Founder 1Interest What prompted to start

this businessInterest

Private Annual Revenue Figure Private1 Number of shops 1

Pass the shop to the next generation. Leave it up to

them to decide.

Future Plan Pass the shop to the next generation. Leave it up to

them to decide.Providing quality food and

servicesStrategy Providing quality food and

servicesHome based Business Operation Home based

Summary Table of The Differences Between Both Businesses

Teo Chew Bak Kut Teh Differences Kee Heong Bak Kut Teh1980 When it was founded 1974

Mr. Eng’ father Founder Mr. Lee Wen TeeJalan Melaka Raya 4, Taman Melaka Raya,

75000 Melaka, Malaysia

Location 7, Lorong Kasawari 4a, Taman Eng Ann, 41150

Klang, Selangor

8 Number of employees 1150-100 Per day Number of customer 80-120 Per day

People living nearby and tourist

Who are the customer People living nearby

3 Number of competitor 77.00 AM– 3.00 PM Business Hour 7.00AM – 4.00PM

Soup with distinct herbal and black pepper flavour.

Special Dish Hokkien-style herbal pork-rib soup

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Conclusion

Based on the comparative analysis, it has been concluded that Kee Heong Bak Kut Teh in Klang is more commercially successful as compared to Teo Chew Bak Kut Teh in Melaka.

Firstly, the average number of customer for Kee Heong is greater than Teo Chew Bak Kut Teh. They may not have many branches but quality of the food makes customers dying to come back and even introduce their friend to try their food.

Secondly, Kee Heong Bak Kut Teh has been in the business longer than Teo Chew Bak Kut Teh. Even though it is few years longer; however they have more experiences and loyal customers. They also have more varieties of food. This shows a strong advantage because it is able to attract more customers. The prices of both businesses are almost the same, which is not too costly and the customers are willing to pay for it.

In conclusion, Kee Heong Bak Kut Teh is more commercially successful then Teo Chew Bak Kut Teh due to the supporting reasons as stated above which includes a higher average of customers and quality of food.

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Obstacle faced by New Business

Financial ProblemsAs faced by many new restaurant owners, start-up capital is not an easy stuff to get onto their hands. To open and run a new restaurant, they need a large sum of funding to cover expense such as, shop rental, hiring new staffs, stocking the kitchen and buying new furniture for the new restaurant. Mostly when a new restaurant had just established, their reputation is not well recognize, and the owner will suffer as there is no good profit for several months. Sometimes, the new restaurant is forced to close down when there is no profit to cover up the expenses.

Heavy CompetitionMost people who want to eat Bah Kut Teh usually will flock to old and well-established restaurant, rather than going into a just started Bak Kut Teh restaurant. If considered opening a new Bah Kut Teh shop in Malaysia, a lot of competitors are already ready to conquer your business as there are more than 500 shops selling the same Bak Kut Teh, and some of them are famous and the quality of their Bak Kut Teh is tip top. On the other hand, the old restaurant doesn’t need any form of advertising to attract their costumers while newly opened restaurants needs to greatly promote their food. Worst come to worst, people will tend to think again to either try their luck and dine your Bak Kut Teh or just eat a Bak Kut Teh made by old professional cookers.

Unique Selling PointBak Kut Teh is a well-known dish and it is not easy to be made. It requires great skills and experience to bring out the real taste that most people would want to taste. New owners of Bak Kut Teh restaurant cannot create a simple herbal soup and expect people will start to flock into their shop. They need to come up with better ingredients and components that add a unique selling point to counter the traditional taste of Bak Kut Teh made by other competitors. As all people have their own different preference and fondness towards the taste of Bak Kut Teh, they also need to reconsider the taste of the Bak Kut Teh, whether it is suitable for the costumer, would it be too salty? Would it be too sweet? Would it be too heavily flavoured with herbs and spices? They need to take into all accounts to beat other competitors which already have their own unique taste and regular customers.

Management and StaffsAs said in the previous point, Bak Kut Teh is not someone who can master it easily. So, the restaurant owner needs to carefully pick the staffs and the right employees. They cannot just simply hire a foreigner worker and ask them to learn how to cook and then tell them to manage the whole kitchen while they sit on the cashier area. This will make an irreparably damage to their shops reputation and future customer as the quality of the Bak Kut Teh is not up to the expectation of the customers. Owners at least have one good chef to control the whole flow of the kitchen while still maintaining the foreigner workers to do the side jobs so that the good chef can control the quality of the Bak Kut Teh soup. There will be a miscommunication if a foreigner worker is hired as a waiter who doesn’t even understand simple Chinese.

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Waiter for the restaurant should be employees that are fluent in Chinese language as most Bak Kut Teh customers are Chinese.

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Nature of their market

Both Bak Kut Teh shops are in a competitive market. There are a lot of Bak Kut Teh shops in the same area, which creates lots of competition. The Bak Kut Teh shops have weak barriers to entry. This means new firms are able to enter and exit the market freely. Besides, the Bak Kut Teh shops have weak pricing power, because they have no ability to charge a higher price than the market price unreasonably. This will cause customer to turn to other competitors. Therefore, having a good quality food will bring back trustworthy customers.

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Recommendation

Add VarietyTeo Chew Bak Kut Teh and Kee Heong Bak Kut Teh is very famous for their Bak Kut Teh and their technique to make the soup is well-establish. So to improve more customers to come to their shop, they can update their menu with other different types of Chinese dishes like steamed fish, Yong Tau Foo or special porridge to incorporate with their Bak Kut Teh. This will attract people who want to not just eat Bak Kut Teh, because they have more choices to select from the menu, creating a different taste when enjoying their meals. These days, youngsters from the new generation are tired with the traditional ways of typical Chinese restaurant as it is not appealing with other trending modern restaurants. By doing so, they can also introduce new beverage rather than going with the traditional making tea, like start selling bubble tea or milk tea to attract youngster to their shop.

Getting an UpgradeBoth of the Bak Kut Teh shop runs in a very traditional way with simple plastic chairs and creaking celling fans. With this set up, only regular customer will step in and they cannot attract new customer in the future. So, both of the restaurant should renovate their shop to accommodate with the current trend. They may repaint their walls, replace plastic furniture with wooden chairs and tables and also change into air conditioner. They should also create an identity by making a standard T-shirt for the workers in the restaurant so the restaurant’s employees look more formal and appealing. With a conventional mindset, they can also hire a modern Feng Shui master to help them improve the whole layout of the restaurant and on the other hand, improves their luck and economic too.

Expand TerritorySupposing Teo Chew Bak Kut Teh and Kee Heong Bak Kut Teh is long-established, they should consider expanding their business by opening up more shops. They should pass down their recipe of making their Bak Kut Teh soup to their apprentice. Through expanding, everyone can able to taste their soup without going far away to their shop, reducing transport distance for their customers. This is also a form of advertising which increase their reputation too.

Going High-TechBoth of the restaurant use newspaper or magazine to promote their business. This is considering very old fashion way of advertising. So instead of that, they can create a website page through Facebook or Instagram. This can heavily gain attention from young people who tends to use high tech gadgets on their daily lives. This is a great way to connect the customer with the restaurant through virtual interaction. They can also change or make adjustment to their working etiquette through responses and reviews that customers had written on their website page, making them more favourable to revisit.

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Appendices

Appendix 1: Interview Questions

INTRO

1. What is your name?2. What is your job position in this business?3. How old are you?4. How long have you owned this shop?

HISTORY

1. Did you start this business or did you inherit it?2. Who is the key founder of this business?3. Why or what made the founder start this business?4. How and where did this business start?5. How many generations has this shop been inherited?

ABOUT THE BUSINESS

1. How many types of dishes do you sell? Which are your main dishes?2. Who usually are your customers?3. What is the annual or monthly revenue figure for this business? Ask with

caution and politely with permission from the person4. Do you have any branch? How many? Where?5. Does the name of the shop hold any meaning? What is it?6. How long has this business been going on?7. How the dishes are bring cook? Is there a special way? Who cook it?8. What are the future developments you plan for this business? Eg. Expand

shop, more branches9. Are most of the employees hired or from the family?

FUTURE DEVELOPMENT

1. Do you plan to add new dishes to your menu?2. Who is going to inherit this business from you?3. How are you going to improvise your business?

SUCCESS

1. How did you maintain your business so long, up until now?2. Do you think your business is successful or improving?3. Have you faced any crisis before in this many years? What is it?4. How many customers do you have every day? Estimate.5. Did you have any recent development for this business?

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COMPETITION

1. Who do you consider as your competition?2. Do you think they are strong competitors?3. What are your strategies to compete with them? How?

CURRENT MARKET

1. Do you think at current time and economy, it is a wise choice to start a new business same as yours? Would it be easy or hard?

2. What obstacles would they face?3. How would GST affect this kind of business?

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Appendix 2: Interview Questions with answers

Interview questions with answers

Teo Chew Bah Kut TehDate: 7 November 2015Time: 3.00pm – 3.30pmLocation: Jalan Melaka Raya 4, Malacca, Melaka, MalaysiaInterviewed Person: Ng Mei LingJob Position: Owner’s wife

Q: Who is the owner of Teo Chew Bah Kut Teh?A: Ong Qing Fu.

Q: What is your (Madam Ng Mei Ling) job position in this restaurant?A: I’m in charge of taking orders and serving the customers. Actually, our business is quite simple, we focus on selling Bah Kut Teh and pig’s knuckles only so there’s nothing complicated.

Q: May I know how old are you (Madam Ng Mei Ling)?A: I’m 51 years old this year.

Q: How long have you (Madam Ng Mei Ling) been working in this restaurant?A: I’ve been working at here about 30 years since it opened.

Q: What is your relationship with the owner of Teo Chew Bah Kut Teh?A: Actually, we are running a family business. My father-in-law is the man who started this business and then he passed it down to us. Now that my son has grown up, I think we will retire soon and hand over the business to him. That’s it; passing down the business generation by generation and my son will be the third generation that take over this business.

Q: Do you know what was your father-in-law’s first intention to open this restaurant?A: I’m not so sure about this and he had passed away.

Q: Is this (Melaka Raya) the place where Teo Chew Bah Kut Teh started? Where is the first Teo Chew Bah Kut Teh restaurant? Is there any other Teo Chew Bah Kut The restaurant in other places?A: We opened at another place before. Many years ago, my father –in-law started selling Bah Kut Teh at a small stall. Afterwards, he opened his own shop and broadens his business. When he retired, he passed his business down to my husband. There’s only one Teo Chew Bah Kut Teh restaurant. However, there are Bah Kut Teh restaurants that are opened by our relatives, which has the similar Bah Kut Teh style as us, but they don’t share the same name. For example, the Ah Lang Bah Kut The, which is opened by my sister-in-law.

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Q: What kind of customers do you have?A: Usually, our customers are regular customers, includes families, students, and more. Some of the students have been visiting us for many years, man and boy.

Q: Are there any Indian customers?A: Yes, there are but not as much as the Chinese. We also have customers from Singapore, and there are regular customers because they will always come back to us when they want to eat Bah Kut Teh in Malacca.

Q: Why is this restaurant named Teo Chew Bah Kut Teh?A: Teo Chew is our the native place of our family, that’s why we named it Teo Chew Bah Kut Teh.

Q: Did the Bah Kut Teh here cooked according to the Teo Chew’s cooking style?A: Yes, sort of, because we cooked according to our taste and we are used to Teo Chew taste.

Q: Teo Chew Bah Kut Teh has opened for 30 years?A: For this shop at here, Melaka Raya, it has only opened for 20 years, but it’s been 30 years since my generation took over this business from my father-in-law which is the last generation.

Q: Who is the chef in this restaurant? Is it your family members or workers from the outside?A: The one who work in the kitchen are our own family members. We only employed some foreign workers to do the clean-up or others unskilled work.

Q: Have you ever thought of opening a branch at other places or broaden your business?A: To be honest, we are quite satisfied with our business. I think we have had achievement in our generation. We are old now, and are going to retire soon so we will let the next generation to decide on further development on this business.

Q: What is the barrier that made you refused to open a new branch?A: The biggest problem we are facing now is the number of workers. Nowadays, it is very difficult to employ new workers and we are afraid that we can’t handle a busier situation. Lack of workers can reduce the productivity of our business and we don’t want that to happen.

Q: How many foreign workers are there in your restaurant?A: For now, we only have 5 foreign workers, others all are our own family memebers.

Q: How many family members are there in your restaurant?A: There’s me and my husband, plus two of my sons. Once in a while, my daughter will come and help us after school.

Q: Have you ever thought of adding a new variety to your menu?A: I think focus on what we have now and make it the best is enough. In our owner’s opinion, concentrate on only a few dishes is the best decision.

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Q: How do you maintain your business and keep your reputation high?A: Actually, there’s nothing special. First and foremost, we do everything ourselves. We never let foreign workers to cook in the kitchen. Second, we keep everything clean in our restaurant because environmental hygiene or food hygiene are very important.

Q: Overall, are you satisfied with your business? A: I might not be able to handle this business if there are more customers. So I think I’m quite satisfied already. Regarding further development, I think I will leave it to the next generations.

Q: Did you face any problems throughout these years?A: The biggest problem that we faced is labour issue. Nowadays, it is very difficult to employ workers. I used to have 8 foreign workers but I found that some of them are not suitable for this job, so I sent them back to their home.

Q: How many customers do you have in a day?A: I’m not really sure about this but usually there will be more customers on Sundays and during holidays.

Q: Does Teo Chew Bah Kut Teh opens every day?A: No, it closes on Monday.

Q: Is morning the busiest business hours?A: Not always, sometimes the busiest business hours are during lunch hours.

Q: When is your business hour?A: Our business starts at 7.00am and usually it closes atl 2.00pm, depends.

Q: We’ve realized that there are some others Bah Kut Teh shops around here, do you find it competitive?A: For me, I think as long as we choose the best materials for our customers, keep our food fresh and clean, and be honest with them, our business will not be affected by the others.

Q: According to current Bah Kut Teh market, do you think it’s easy for people to enter this market now? What are the barriers to entry for new Bah Kut Teh business?A: I think it’s is difficult for all business to start up nowadays, according to our country’s economic condition.

Q: What do you think is the most important thing in opening a Bah Kut Teh restaurant?A: As what I’ve mentioned earlier, I think using good materials and keeping your food fresh and clean are the most important things in opening a Bah Kut Teh restaurant.

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Interview questions with answers

Kee Heong Bah Kut TehDate: 9 November 2015Time: 1 pm -1.30 pmLocation: 7, Lorong Kasawari 4a, Taman Eng Ann, 41150 Klang, Selangor, MalaysiaInterviewed Person: Tan Shan MeiJob Position: Owner

Q: What is your name?A: Tan Shan Mei.

Q: May I know how old are you?A: I’m 65 years old this year.

Q: How long is this business?A: 30 years.

Q: Are you the founder of this business? Where did it started?A: The founder of this business is my father-in-law, Mr. Lee Wen Tee. The first shop was not open here, but another place in Klang. For this shop, it has only opened 20 years.

Q: Is this a family business?A: Yes, the business passes down generation by generation. I’m the second generation who took over this business, and my children are the third generation.

Q: How did the business started?A: The business was started by my father-in-law. He used to know a lot about Chinese medicine so he decided to open a restaurant because that sells Chinese herbals food which is Bah Kut Teh.

Q: Have you ever thought of broadening your business?A: I think I’m too old for that. I will leave it to my children.

Q: Who did the cooking?A: We employed workers and teach them how to cook.

Q: What are the most popular dishes in your restaurant?A: Customers usually order traditional ceramic bowl Bah Kut Teh, dry version claypot Bah Kut The and also soup version claypot Bah Kut Teh. In my opinion, traditional ceramic bowl Bah Kut Teh is the best.

Q: What is the price range for the Bah Kut Teh?A: Traditional ceramic bowl RM11 person, for claypot RM12-13 per person, all excluded 6% GST.

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Q: Did you face any problems throughout these years?A: The biggest problem that we faced is labour issue. Nowadays, it is very difficult to employ workers and sometimes the workers are hard to teach.

Q: How many workers do you have in this restaurant? Are they your family memebers?A: We only have five workers, only one of them is my family member.

Q: Are there any competitors around?A: Yes, there are. There are many Bah Kut Teh shops in Taman Berkeley, such as Mao San Kor Bah Kut Teh, Pao Xiang Bah Kut The and more.

Q: Are they competitive?A: Sure they are.

Q: How do you overstep these competitors? What are your strategies?A: The only secret is to make sure the materials we use are good. Good materials make quality food.

Q: According to current Bah Kut Teh market, do you think it’s easy for people to enter this market now? What are the barriers to entry for new Bah Kut Teh business?A: I think it’s is very difficult due to our country’s economic condition. Plus, GST makes starting a business even harder for people. The capital of selling Bah Kut The is high, and therefore our profit decreases.

Q: How did you came up with the name “Kee Heong”?A: It was my husband’s idea. Kee Heong in hokkien means very appetizing.

Q: Have you ever thought of adding a new variety to your menu?A: We used to sell only the traditional ceramic bowl Bah Kut Teh. Now we’ve added the dry and soup version of claypot Bah Kut Teh, and fried Chinese cabbage. Young people nowadays usually prefer claypot Bah Kut Teh.

Q: When is your busiest business hour?A: Usually, during lunch hours, around 12.00pm to 2.00pm.

Q: When is your business hour?A: Our business starts at 7.00am and usually it closes at 9.00pm.

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Appendix 3: Business Card

Kee Heong Bak Kut Teh

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Teo Chew Bak Kut Teh

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Appendix 4: Website

Kee Heong Bak Kut Teh

Facebook: https://www.facebook.com/pages/Kee-Heong-Klang-Bak-Kut-Teh/199345890086884

Teo Chew Bak Kut Teh

Website: https://foodeverywhere.wordpress.com/2012/10/20/teo-chew-bah-kut-teh-melaka/

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Appendix 5: Minutes of meeting

Meeting 1

DATE: 3 November 2015 (Tuesday)

TIME: 12 pm – 2 pm

VENUE: Outside Library

NAMES OF GROUP MENBER

TUTORIAL GROUP ROLE

Darren Tan Quan wen Wednesday Leader

Angela Wee Kah Man Monday Secretary

Chia Keh Chian Monday Member

Cha Yun Xian Monday Member

Chan Koon Qi Monday Member

Tang Ying Jien Wednesday Member

NO. ACTIVITY ACTION TAKEN BY

1. Introduction

- The main purpose of the meeting is to decide the type of business to research.

All Member

2. Discussion

- Decision the choices regarding the location of the business

All Member

- Listing the interview question All Member

- Minutes of meeting will be recorded by Angela Wee Kah Man.

Angela Wee

- Artistic cover will be design by Tang Ying Jien. Tang Ying Jien

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- Video Editing will be done by Chan Koon Qi Chan Koon Qi

3. Conclusion

- We decided to pick Klang and Melaka for location.

All Member

- The interview question has yet finalize All Member

- Next meeting will be on 6 November 2015 (Friday)

All Member

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Meeting 2

DATE: 6 November 2015 (Friday)

TIME: 8 pm – 10 pm

VENUE: At Angela House (Melaka)

NAMES OF GROUP MENBER

TUTORIAL GROUP ROLE

Darren Tan Quan wen Wednesday Leader

Angela Wee Kah Man Monday Secretary

Chia Keh Chian Monday Member

Cha Yun Xian Monday Member

Chan Koon Qi Monday Member

Tang Ying Jien Wednesday Member

NO. ACTIVITY ACTION TAKEN BY

1. Introduction

- Distribute the role of member during interview. Darren Tan

2. Discussion

- Distribution of roles between group member

Chia Keh Chian: Interview

Cha Yun Xian: Interview

Chan Koon Qi: Videographer

Tang Ying Jien: Photographer

Darren Tan: Photographer

Angela Wee: Record all notes of interview

All Members

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- Finalize the business question and location

Melaka: Teo Chew Bak Kut Teh

Klang: Kee Heong Bak Kut Teh

All Members

- Check the equipment for interview All Members

3. Conclusion

- Next meeting to be confirmed

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Meeting 3

DATE: 9 November 2015 (Monday)

TIME: 10 am – 2 am

VENUE: E8.02

NAMES OF GROUP MENBER

TUTORIAL GROUP ROLE

Darren Tan Quan wen Wednesday Leader

Angela Wee Kah Man Monday Secretary

Chia Keh Chian Monday Member

Cha Yun Xian Monday Member

Chan Koon Qi Monday Member

Tang Ying Jien Wednesday Member

NO. ACTIVITY ACTION TAKEN BY

1. Introduction

- Roles of group member for report assignment

Darren Tan

2. Discussion

- Distribution of roles between group member

Chia Keh Chian: Slides

Cha Yun Xian: Description, competitors and strategy of Kee Heong Bak Kut Teh.

Chan Koon Qi: Video

All Member

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Tang Ying Jien: Cover page, history, obstacle, recommendation and references.

Darren Tan: Key Summary, competitive analysis summery table, differences and similar between summary, conclusion and nature of their market.

Angela Wee: Description, competitors and strategy of Teo Chew Bak Kut Teh.

3. Conclusion

- Work must be 80% done on 16 Nov 2015 All Member

- Next meeting will be on 19 Nov 2015 All Member

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Meeting 4

DATE: 19 November 2015 (Thursday)

TIME: 10 am – 12 pm

VENUE: Outside Library

NAMES OF GROUP MENBER

TUTORIAL GROUP ROLE

Darren Tan Quan wen Wednesday Leader

Angela Wee Kah Man Monday Secretary

Chia Keh Chian Monday Member

Cha Yun Xian Monday Member

Chan Koon Qi Monday Member

Tang Ying Jien Wednesday Member

NO. ACTIVITY ACTION TAKEN BY

1. Introduction

- Finalization of the compile report Darren Tan

2. Discussion

- Need to finish the appendix All Member

- Video let a bit more to complete Chan Koon QI

- Others part are done. All member

- Preparation of Presentation Tang Ying Jien

3. Conclusion

- Compete all the work by 22 Nov 2015 and printed

All Member

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Appendix 6: Photos

Teo Chew Bak Kut Teh Restaurant

The exterior of the restaurant The interior of the restaurant

Food preparation by the boss and Choices of food served by the restaurantworker

Interview session Group photo with the lady boss

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Kee Heong Bak Kut Teh Restaurant

Exterior of the restaurant Lines of verse that consist of the word ‘Kee’ and ‘Heong’ hanging on wall

Cooking area Workers preparing food

Interior of the shop crowded with Dry and soup Bak Kut Teh served in claycustomers pot

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Interview session Group photo with the lady boss

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Bibliography

1. Pas, D. (2013, July 23). Bah Ku Teh Teow Chew,Taman Melaka Raya. Retrieved from https://www.google.com/search?q=citation machine&oq=cita&aqs=chrome.4.69i60l4j0j69i57.3513j0j7&sourceid=chrome&es_sm=122&ie=UTF-8

2. Teo Chew Bah Ku Teh (潮州肉骨茶). (n.d.). Retrieved from http://www.hungrygowhere.my/melaka/teo-chew-bah-ku-teh/

3. Teo Chew Bak Kut Teh. (n.d.). Retrieved from

http://www.gomelaka.my/teo-chew-bak-kut-teh/

4. 潮州肉骨茶 Teo Chew Bak Kut Teh. (n.d.). Retrieved from

https://foursquare.com/v/ 潮州肉骨茶 -teo-chew-bak-kut-teh/4e7558d4a809582dd5e95a84

5. Kee Heong Bak Kut Teh, Eng Ann - Klang. (2009, May 19). Retrieved from http://juliansi.blogspot.my/2009/05/kee-heong-bak-kut-teh-eng-ann-klang.html?m=1

6. Jotaro. (2014, March 9). YummY! - Klang Bak Kut Teh @ Kee Heong. Retrieved from http://jotarofootsteps.blogspot.my/2014/03/yummy-klang-bak-kut-teh-kee-heong.html?m=1

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Reference

1. Teo Chew Bak Kut Teh, Melaka - Restaurant Reviews & Photos - TripAdvisor (Teo Chew Bak Kut Teh, Melaka - Restaurant Reviews & Photos - TripAdvisor) https://www.tripadvisor.com.my/Restaurant_Review-g306997-d3504428-Reviews-Teo_Chew_Bak_Kut_Teh-Melaka_Central_Melaka_District_Melaka_State.html

2. My Favorite Teo Chew Bah Ku Teh 喜德潮州肉骨茶馆. (2012, February 9). Retrieved from http://carolslifejourney.blogspot.my/2012/02/my-favorite-teo-chew-bah-ku-teh.html

3. Bah Ku Teh Teo Chew 潮州肉骨茶. (n.d.). Retrieved from http://my.openrice.com/malacca/restaurant/bah-ku-teh-teo-chew-malacca-town/387057

4. Skycookies (2012,October 20).TEO CHEW BAH KUT TEH @ MELAKARetrieved from https://foodeverywhere.wordpress.com/2012/10/20/teo-chew-bah-kut-teh-melaka/

5. 10 Best Bak Kut Teh in Klang. (n.d.). Retrieved from http://my.openrice.com/klangvalley/article/10-best-bak-kut-teh-in-klang/498

6. Yeoh, K. (2012, May 26). Kuala Lumpur - Kee Heong Bak Kut Teh @ Taman Eng Ann, Klang. Retrieved from http://www.chowhound.com/post/kuala-lumpur-kee-heong-bak-kut-teh-taman-eng-ann-klang-851029

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