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Starting a Restaurant Business in Malaysia
We can see that more and more restaurants are popping up in the city. The phenomenon proves one thing: the restaurant business is one of the common business ventures in today’s business world. That said, building a restaurant from scratch is not easy – all of those advantages come at a price.
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.
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.
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.
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:
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!