KUALA LUMPUR: Palaterium Sdn Bhd, which operates Malaysia's newest specialty coffee chain HWC Coffee, will invest RM60 million to establish up to 85 stores by December next year.

"We have a very good perspective for the coffee market, so we are rapidly growing. To attract more people to enjoy our coffee, we will increase our marketing spending and promotional efforts," said Hoe Kian Choon, the founder of HWC Coffee Malaysia.

To capitalise on the expanding coffee market, Hoe said Palaterium would invest RM25 million this year to open 35 shops and RM35 million in 2024 to open 50 stores.

The RM25 million investment this year was also to open a coffee academy, a flagship store and a new corporate office at Millerz Square in Old Klang Road, he told the New Straits Times.

"Specialty coffee and light food like cakes and croissants are what we sell. Because of the demand, we will soon start selling hot food. We are growing the company quickly, but cautiously," he added.

Marketresearch.com projects that Malaysia's coffee market will generate US$1.46 billion In revenue with a 4.4 per cent annual growth rate this year.

"With 33 million people, we can't go wrong in this area. Finding a skilled barista, choosing a decent site, and educating customers about the differences between specialty and regular coffee are hurdles, but these won't stop us from expanding," said Hoe.

Palaterium is 70 per cent-owned by Gazeum Sdn Bhd, and 30 per cent by HWC Coffee Taiwan.

HWC Coffee Taiwan is the manufacturer of HWC roasted coffee beans, drip coffee, and coffee brew bag products.

It operates a 14,000 sq ft roasting and packaging factory in Taiwan and exports the products to 26 countries worldwide.

The Taiwan company recently invested RM1.3 million to purchase a coffee roaster to improve the quality of its roasting process further and facilitate its business expansion in Southeast Asia.

Last year, Palaterium invested a total of RM10 million to launch up to 15 HWC locations in Malaysia.

The first location was established in One Utama in April 2022.

The company currently has 18 outlets, with Gardens Mall, Pavilion Bukit Jalil, and One Utama housing the most profitable ones said Hoe.

Hoe said it planed to increase sales in foreign markets with 10 pipeline outlets in Brunei, Singapore, and Indonesia.

"We are opening a flagship outlet in Brunei next month. We have enquiries from Bangalore and we are doing our due diligence. For overseas markets, The idea is to have a local partner manage the operations," he said.




last time starbucks n CBTL je

then ZUS fast expansion, gigi follow, then Indon Kopi Kenangan masuk

now another, HWC chain wanna expand aggresively also

Msia market can contain so much coffee chains?

daily RM10 kopi is new normal? weekend RM20 fancy kopi?

This post has been edited by premier239: Mar 8 2023, 03:41 PM

Cuci duit business maybe....

Drink Rm20 coffee, then cry why government cannot control inflation. bunch of bodohs

lol. u cuci see. this type of business got proposal, business plan and audit. not hongkong movie.

those 1 shop restaurant yes can cuci

Wait, what? HWC coffee? Better than Zus boh?

for me better... and also cheaper

not this one?

wow...coffee is really a thriving business eh...

their coffee good?

Palat-terium?

wat so good with this coffee compared to ZUS?

dunno, rmb gt 1 ktrad diehard zus fans, bought subscription some more

was offered 2 of the innitial 15 locations but eventually feels not a good idea afterall having too many partners. b40 trying to be t20
lol

Now only i know nescafe tin already sell till 3.50 d. Thanks to coffee trend i guess

franchising?

u in the industry?

their initial capital, royalty rank against zus n gigi how?

kenot go la ZUS now. last time buy their mocha rly taste ke laut .. even dua darjat taste better than them. GIGI is the best for me now

Franchise model?

No wonder can open so many outlets, after all not their money!

Coffee? Who cares about the coffee? Franchisee fee's the main purpose. Lol.

ZUS coffee quality drop already. Last week I tried their zirty latte, bleugh...

and because the barista is cheap labor in malaysia