Pitfalls in opening a cafe in Ipoh

Upmarket cafes were very hot in Ipoh for a while 2-3 years ago. Cafes mushroomed almost everywhere out of a sudden. Many were tastefully decorated, quaint looking, cosy, with everyone one of them seemingly trying to outdo one another. Some have “unique” selling points, like offering self made bread, pastry, high speed Internet connectivity etc. But the fever has died down a little lately, to me anyway. Here is an article that offered some insight into what it is like to run a cafe business in Ipoh.

Some of the business owners are fairly honest when asked about the challenges facing them when running their businesses in Ipoh. Some seemed to either just put on a brave face or they didn’t know where they failed, if I’m being honest. I’ll let you figure out who was or were talking rubbish. But I would agree on the following points for the Ipoh market:

  1. Competition from the popular white coffee, both taste and price
  2. Standalone coffee enjoyment without main meals not so popular here
  3. Appettite for western coffee is there, but market is not big enough to sustain so many cafes

I have no problem with the price points of their coffee. They are their premium offerings, and should rightly charged as they are. But I have a lot of issue with the price points of their other offerings, like desserts, light bites (sandwiches included) and even main meals! They are deluded, thinking that the Ipoh folks earn as much as those in KL and Penang. In fact if I go to KL, I get better (much better) value for money, on both coffee and food! Incredible isn’t it? But it is!

Basically, your business needs to survive and sustain in such competitive environment first, with so many cafes around, and price reasonably. Lower your cost and overhead, target the right audience and offer value to these customers. Ipoh folks always like good bargains, and they will come back to you if you offer them good value. Tourists business is good, but it is often one-off, and there are not that many tourists coming to Ipoh. Businesses in Ipoh need to first and foremost focus on the locals. Otherwise it will be the same old story. You have been warned.

MAPS postponed their opening date

Received a call from Movie Animation Park Studio (MAPS) that they have postponed their opening date to 1st December 2016. As a Perak Pass holder, I can go get my photo pass done from 1st July onwards. There is going to be a soft opening on 1st June, which I am not quite sure what you can do there from the phone conversation. As for single day tickets, the expiry date will be revised, so it won’t expire on the 30th September since they only open on the 1st December. But the customer rep couldn’t confirm when exactly is the expiry date though. So the opening date will coincide with year end school holiday. It will be interesting, the park is going to be packed with people. If the staff is not well drilled I can foresee that it is going to be chaotic there. Let’s see.

Massimo bread price increase from 4th April 2016

Just received a notice from The Italian Baker that they will be adjusting the prices of their bread from 4th April 2016 onwards. They have been absorbing the 6% GST since April last year when GST went live. There was confusion initially I think because they thought their bread are zero rated. Turned out that not all bread are zero rated.

So from 4th April onwards, a loaf of Massimo Sandwich with wheat germ will retail at RM2.65 (small) and RM3.70 (long), an increase of 15 cents and 20 cents respectively.

Massimo bread new prices

Can’t blame them, flour subsidies from the government have been cut lately too. Just more misery for the commoners…