Malaysian F&B businesses share how digitalisation creates new opportunities and growth (VIDEO)

KUALA LUMPUR, July 28 — Digitalisation has opened a window of opportunity for many small and emerging business owners who aspire to expand almost indefinitely.

Conventionally, small businesses could only target their communities or at most several communities if they had multiple outlets.

But with e-commerce platforms, the sky’s the limit.

One of the platforms that have enabled businesses - regardless of their size - to target a large group of shoppers is Shopee.

ShopeeFood, integrated into Shopee’s ecosystem, offers users a seamless food delivery experience while helping merchants to embrace digitalisation and widen their reach.

Here are some of the success stories shared by Shopee merchants who have come a long way in their entrepreneurial journey.

Radius Khorr (left) started the business from a car boot sale before evolving it into a brand with 40 outlets nationwide. — Picture courtesy of ShopeeFood

From car boot to 40 outlets nationwide

Food entrepreneur Radius Khorr had no idea three years ago that he would own 40 outlets nationwide with daily orders of 2,000 Vietnamese coffee by 2022.

The 32-year-old Penangite started his career as a graphic designer but after spending some years overseas, he got bored and decided to move on to be a food entrepreneur.

He started a car boot business selling his coffee called Kee Nguyen but soon noticed that the volume of coffee sales increased.

However, Khorr said he faced an uphill climb during the movement control order (MCO) when the country restricted shipments due to the Covid-19 pandemic.

“It was difficult to send coffee to the respective Kee Nguyen outlets.”

“The business couldn’t operate for the first two months during the start of MCO, while people remained very sceptical about going out and prefer to stay indoors.”

To ensure business longevity, Khorr said he embarked on social media to help the business go viral, which eventually made people become curious about the coffee.

He then signed up for ShopeePay and ShopeeFood to target those who prefer a more secure and convenient alternative when it comes to ordering coffee without heading out.

Kee Nguyen offers a variety of imported Vietnamese coffee. — Picture courtesy of ShopeeFood

“We managed to have various promotions and are proud to say that for one of them we actually got 2,000 orders across all outlets on a daily basis.

“ShopeeFood helped with the uphill trend.”

Khorr said it is important for businesses not to limit themselves to only walk-in customers.

“We have to digitise as the industry is moving towards that.”

“Be persistent and ambitious and don’t give up on your plans. Look at the long-term goal, don’t do short-term plans just for the sake of the trend.”

Gan Shun Fen and Terence Lee wanted a healthy tea option and founded Chatto Tea before expanding the business with two other brands. — Picture courtesy of ShopeeFood

From humble beginnings to a multinational brand

Terence Lee and his business partner Gan Shun Fen had an idea in 2017 to introduce a healthier bubble tea option.

Within a mere five years, the simple idea evolved into a holding company with three beverage brands, namely Chatto Tea, Chatto Coffee and Chatto Brew.

Chatto serves a wide range of healthy tea drinks, coffee and hand-brewed coffee and tea. — Picture courtesy of ShopeeFood

The brands now serve a wide range of delicacies from healthy tea drinks to coffee made from 100 per cent Arabica beans as well as hand-brewed coffee and tea.

Today, Chatto has nearly 30 branches in Malaysia and has successfully expanded the brand overseas to Canada, Australia, and Brunei.

However, the business growth for the founders wasn’t as simple as it sounds.

According to Lee, the pandemic brought many challenges to the business.

“We had to work hard to sustain our business in the market and continue to innovate to ensure our brand is always a talking point from the consumers.”

One of the strategies to ensure the business continues to grow was to go digital via ShopeeFood and ShopeePay in 2021.

“E-wallets and food delivery apps are the future and people are starting to use them more frequently.”

“This brings more convenience to our customers.”

Lee also advised other business owners to continue coming out with interesting products to be featured on food delivery platforms.

Coox cloud kitchen offers a space for F&B operators who needed a kitchen space but didn’t want to break the bank. — Picture courtesy of ShopeeFood

Born out of pandemic

While many businesses were struggling just to survive the trying times, a new business was born during the pandemic to offer solutions for food and beverage operators.

Coox was founded by a group of like-minded business owners in early 2021 to provide F&B operators with a low-cost entry to start or scale their businesses.

According to its marketing head Nelson How, the concept was to provide kitchen rental that focuses on food delivery and takeaways to assist F&B owners to have a source of income during the trying time.

“We also see ourselves as an incubation platform for new F&B players and a value for money expansion platform as compared to a brick & mortar business model for existing F&B brands.”

Coox marketing head Nelson How says Coox was set up to provide kitchen rental that focuses on food delivery and takeaways to assist F&B owners to have a source of income during the trying time. — Picture courtesy of ShopeeFood

Coox currently has two cloud kitchens located at Glo Damansara and Taylor’s Lakeside campus.

How said when they set up the business, the direction was to focus on digitisation and automation.

“We believe that tech will be the frontier and future for all industries and it is important for us to start ahead.”

“Coox’s adoption of e-wallet and app usage not only provides consumers with options, flexibility and convenience, it also helps business owners with consumer communication, retention and reward.”

To do so, How said they partnered with Shopee from the start of the business to enjoy the offerings from ShopeePay and ShopeeFood.

“ShopeePay and ShopeeFood are integrated within Shopee’s ecosystem to help grow the retail and F&B business by expanding their revenue stream.

How said ShopeePay also provides not only a robust payment method but its coin collection system has allowed consumers to have the flexibility to spend their coins, which provides additional discounts to consumers.

AnMour Café offers a variety of western delicacies in Johor Baru and is soon expected to open an outlet in Klang Valley. — Picture courtesy of ShopeeFood

Embracing digitalisation for faster growth

Johor Baru-based café owner Alexander Lim has successfully expanded his AnMour Café in the southern state with 11 outlets.

Despite his consistent success, Lim is certain that the way forward for growth is digitalisation.

According to him, e-wallets and delivery platforms offer various benefits to both the business owner and the customers.

“Many believe that Shopee has a large database of users and made it clear of its reputation in the different markets.

“Also, we want to provide customers with alternatives in terms of getting their meals with a more convenient and safer platform.”

AnMour Café owner Alexander Lim has extended his cafe to 11 outlets in Johor Baru and is expecting to open one in Klang Valley soon. — Picture courtesy of ShopeeFood

Lim also noted that F&B businesses should try using the platforms as we all attempt to go digital.

“It’s also another source of gaining sales and orders from new or current customers.”

“This will soon be the primary source for businesses and there are no other alternatives.”

A guide on how to order from ShopeeFood. — Picture courtesy of ShopeeFood