My wife and some friends are interested in investing in these Hailam Kopitiam Franchise Biz.

I would like to hear comments and advice from u all in here.

Please share what you think, the pros and cons, etc...

Here's a little info as a start.

1. Project Cost ~ RM320-410K depending on corner or typical lot.

2. Breakeven analysis ~ RM1600 - RM2530 sales per day.

What do u all think?
Can go ahead or just forget bout it?

1. Project Cost ~ RM320-410K depending on corner or typical lot.

the franchise cost?

depends on location also, ss2 one good business....despite alot of kopitiams around the same area...

since so much of the kopitiam out there, what is ur advantages against them?

Given such little info, i would say YES, GO AHEAD!

But the fact that you opened this thread means you have DOUBT.

So give your intuition a benefit of doubt, and do more research, before committing this.
For a start, what market research have you done, and what result did it yield?

i would suggest to come out with a brand if u are doing the same like others kopitiam

Do some research (market, franchise cost, franchise brand in the selected area, customers flow in existing franchisee etc.) and be quite confirm of what you are investing in. If you still have doubts after accessing all the info, i suggest you FORGET ABOUT IT.

Investing needs confidence, passion and patience.

Anyway, GOOD LUCK to you. Hope you have the confidence and passion in investing the said kopitiam.

almost 2 yr only can take back the cost..
if business not good then big loss

1 head i think more than 10...
coz...eat n drink...15+ ady
so 1 people =20..^^
1 day 80customer...
then 1.6k

I would say go ahead. In business, it is either profit or loss. If you can take the risk, why not? Besides, it is a franchise. You just follow whatever they are doing to ensure success

Sounds interesting. Since you have done some study on this company, do you mind telling us more?

The project cost include renovation + deposit?
How much you need to pay for the annual loyalty fees?
Did they disclose their current operational branch margin of profit or sales volume?
What is their advantage over other kopitiam, will they help you to do marketing, they will have promotional item each month to attract customer?
What is their future plan?

hehe, seems like a lot question... Hope you can get this info before deciding to go on.

franchise lisence fee is RM60k for 5 yrs.
already included in project cost.

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Added on November 6, 2009, 12:26 pmyes...thats the breakeven point.

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Added on November 6, 2009, 12:29 pmYes. Reno n deposit included in project cost.

Royalty is included already in breakeven analysis. it is 5% of sales.

profit n sales volume is not provided as yet.

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Added on November 6, 2009, 12:41 pmProject cost is start up cost.

Breakeven analysis is only for monthly operating cost and and sales. Not included the project cost.

Rough estimation provided for cashflow and payback computation is:

assuming 70k cash inflow, minus all expenses cost, net cash inflow is estimated at only 17k.

so payback period for project cost is 1yr4mths.

This post has been edited by stupidbump: Nov 6 2009, 12:41 PM

How about loan arrangment from the bank?

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Added on November 6, 2009, 3:35 pmoh yea, we have franchisee incentive from SME Bank, PNB and BNM. Try to explore.

This post has been edited by istrong: Nov 6 2009, 03:35 PM

wow ROI 1yr 4mths???

Thats very good already. Anything that has ROI of less than 2 yrs is good enough for me.
Imagine you can open a new outlet after 2yrs.
Then on the 4th year you can open another 2 more

somehow i am not very optimistic of the figure they provided unless they can show me real track records.

Hi stupidbump,
My friends and I are thinking about investing with the same franchise brand. I bet, taking the corner unit is better, more space. We have identified the location, but yet decide which shop lot to rent. 1 more thing that is still running over my mind, the franchiser did not mention whether they will be taking in local or foreign workers.

Anyway, good luck to you and me...

too many restriction if to start up franchise. If I have 300k and about to venture into business, I would rather choose own restaurant with own style. Franchise, as u know... 62k is for franchise license fees.... so belum untung, rugi ady...the most earn money one is the franchisor. Later, daily SALES of rm1600-rm2532...(IS EXCLUDE OF RAW MATERIAL, SALARY, UTILITIES), part of net profit will also need go back to the franchisor.

Sales doesnt mean profit fren...those who counted 1.33 years 4 break-even considered rm1600 to rm2532 is net profit ady... So.. inclusive of raw material... break even period may be doubled up.

Kind to explain more detail on what info u gathered with ur frens?

at lease 2 yr u only can take back the cost...
quite competative in EAT biz nowadays, everywhere too much choice for ppl..

This post has been edited by ETEAM TRADING: Dec 28 2009, 10:02 AM

I do not think a breakeven in 1 year 4 months is feasible. You would be looking at more like 2-3 years if it is a new business. Unless you manage to pick a crowd pleaser franchise AND get a good location.

Also, could you get around 160 customers per day? What are your opening hours... staff wages and so on. I advise against hiring foreign workers for your Hailam Coffeeshop, as it tends to be a put off (at least for me, as a customer).

The new Old Town Kopitiam in bandar sunway is a good example of a successful venture(the one opposite pyramid, at mentari court area).

Best of luck with your business.

My friend's mum started 1 few months ago. She said the initial cost is around 300k. The food is ok, but due to too many cafe in that area, I see their business is not that good. But at least it is still better than IRC in that area. The reason i go frequent that place is because for the past 2 mths my hse don't have internet connection and Hailam kopitiam got free wifi + power plug for every table (unlike old town who don't provide power plug, for fear that you will sit there whole day with just 1 cup of Old Town White Coffee )

u mean there will be more to pay later on?

few years back my fren's wife relatives bought a franchise of old town cheras area, invited me to share of 25 to 50k, i was reluctant then, so i passed & now that franchise is doin approx 10k nett profit mthly for the past 1.5yrs...

guys,
if the franchise owner lari or dun wan to do anymore, what will happened to the franchisee? need to close as well or we can continue using the same brand name or change other name??

I didn't ask in details. But i assume 300k is including renovation, franchise fee, initial start-up cost, 1st mth rental, starting operational cost etc. There after monthly is salary and other overhead. I'm not sure. But my fren's mum told me 300k, 5 shareholders, all paid in cash.

Since franchise brands are very common these days, I say...
Location is everything to franchises like these... must be placed in an area with steady traffic flow plus easy accessibility (parking, medium congestion, etc).

rm10k net profit monthly is not good right? can turn into losses if business drop a bit

Last time I see kopitiam business is damm profitable...
But nowadays I se many kopitiam tutup kedai....
hmmmm... it looks risky..

Fashion almost over

What I'm sure is that red Island cafes sure tutup kedai after opening for a while..
Scam victims....