Yesterday i just heard my friend said pandan indah got a cafe called island red cafe, like oldtown style restaurant, now got 4 branches in malaysia, they're melaka, penang, puchong & pandan indah. It is doing mlm way like recruiting more member to join then got commission. He said only need to invest RM6000 then enjoy every month 5% fixed guarantee return without recruiting any members.

Any guys here heard of this?

What is the product or service offered?

Sounds like a pyramid scheme.

I think it is same method follow sunshine empire.

I thought I did replied on this post earlier.

Well, it seems like a partnership to me where all the people become shareholders by investing RM 6k. When another sum of money accumulated, another new outlet establishing.. yes?

Yes, but it can't mention as shareholders, unless my name got listed inside the company license.

i think they mean you invest 6k, and every month they return you 5% of the 6k(RM300). but.. for how long? that means, probably after they return your capital, probably gonna have trouble paying out anymore or will depend on business situation. i wont call this as "investment.."

This post has been edited by jong52yuara: Jan 19 2008, 03:00 PM

If biz not good, food not tasty, that mean no biz, so will they still have 5% give us? I don't think so.

i eat there last time, food not very good, this kind of business have to many competition already and they dont have anything special about their franchise.

OK, this type of company cannot be trusted. Why? I'll explain. Maybe it's not logic and it's possible but please hear me out first.

Getting fixed 5% back per month = 60% return on capital per year. So, by Q4 of 2nd year, your total capital is back.

The question is :
Will you ever get back your capital? Can the cafe itself survive the long run in a first place??

2nd thing, I think the manager of this cafe is a bit rush. I think he want his "cafe" to be listed in Bursa Saham or what. Getting member like MLM method. As after you had invest, you're like part of the "shareholder"

Possible things to happen was :
- Getting good respond. Owner become greedy and run away with all the money. 6K per person. Imagine there's 1k person investing. that's make a total of 6 million in his hand. Don't even mention the whole Malaysia. He can run to other countries... Believe it.

Lastly, There's no such free lunch in this world. Not even "cafes"

"Guaranteed" returns on your investment aye?
Alright, lets do the maths here:

100% / 5% = 20 months

So basically, you have 20 months to breakeven, and whatever after is profit.
This sounds good, IF it works always.
As you said, this will depend on the profit they are able to generate from that RM6000.
If their business goes downhill, then there will be no return.
Should consider carefully before committing to anything

Don't ever trust this business.

If they term it as shareholders, get your name listed as shareholders or partners in registrar of of business or companies.

get the whole document of terms and condition posted here and we can start talking....

Red Island Cafe...never heard before
but if is J.Co, i'm sure everyone will rush to invest on it

Even J.Co biz model doesnt guarantee a success. Unlike McD. The donut is very much competitive, there's so many donut in the market. You dont and wont see J.Co open as much stores as McD because they are catering another segment of market which tends to spend more on food. Because of that, they dont need to open up as much franchise stores as the other did.

Hi..

Do you have the web site and information about the Red Island Cafe ?

They even don't have website now.

hmmm if u are listed as shareholder also .. its not public listed .. so if the company go bust we are liable for the liabilities .. no ? ...

Yes... Heard of this. And the owner as well as the person who start of this plan is my friend. But then, now just had 1 outlet. Puching opening soon. Melaka and JB still looking for places. Their target is 100 outlets this year. Sound ridiculous.

They are kind of cafe which like oldtown offering food and beverages.

True. Rm6k considered 1 unit. When they successfully accumulate 50unit, then 1 new outlet will be open.

As what my friend told me. The name got listed inside. But i wonder.

5% is just pay for 1st 2 years, thereafter till the 5th years, is just 2.5% monthly. Their contract of paying is for 5 years. After 5 years, is sharing profit with the company as 51%/49%. In RM but will be credited to your so called e-wallet which u can use to ex-change as Food voucer or withdraw it out. On top of that, monthly will give you Rm100 Food voucer to eat at this cafe.

True, the owner wanted to get listed in share market and expand to oversea market as what been told.

True. No free lunch in this world. Rm6000 is not a small amount.

But today this kind of restaurant quite competitive, it is not easy to get more customer, because many of them will still choose oldtown, unless island red more famous than oldtown and the food is better than oldtown, or else your money become water. If the food very special & tasty still can consider.

It is not easy to be listed in share market, 5 yrs is impossible to be listed, as you can see now big mlm company like lampe berger, i still remember year 2004 they told me 2005 will be listed in share market but until now i still can't see its footprint in the KLSE or HSI. So far only amway, usana, nuskin and so on were listed on the NYSE share market of coz their company already more than 10 years.

Anyway, as you said our name got listed in the company license so RM6K can make a try but as your comfortable investment. If lose you can't blame. I'm not talking negative on this company but as what i saw in company sunshine empire, they always got huge seminar to attract ppl to invest but finally their promise return become lower & lower, coz not enough money to laudering and finally you will see the return not enough to share the profit to the investor, just like a company EMPAY, starting was very good return but finally you need to do recruitment only got return.

I stayed in Penang...

can I know where can i go and try the food in Island Red Cafe? Where did this restaurant located? I wan to go and have a try...