Bak Kut Teh

Group Members:

• Lee Xin Ying 0322432

• Boon Li Ying 0323839

• Michelle Tung Man Kaye 0324175• Gillian Chong Yeong Lin 0323941• Foo Ji Sun

0323550• Sulaiman Idris

0321087• Muhammad Faidh

0323712

Study two trades or businesses of the same category and type in any parts of the Peninsula, and more

specifically, Klang Valley.

The Assignment

Data collection was done through interviews which were conducted with the managers and supervisors at

each Bak Kut Teh restaurant through physical visits on two separate occasions.

Methodology

What is Bak Kut Teh?How do they come from?

Description of the history of the business

•History of Bak Kut TehBak Kut Teh is believed to have originated from the Fujian province of China

•Bak Kut Teh in MalaysiaThe introduction of the dish to Singapore and Malaysia is attributed to the Hokkien immigrants who moved to this region in the 19th century

•What is Bak Kut Teh?

A soup based dish consisting of different cuts of pork meat simmered in a herb based broth for hours

Normally use pork ribs, but they are also known to include other cuts of pork into the herbal broth as well

•What is in the Broth?

Normally star anise, cinnamon, cloves, female ginseng (locally known as dong guai), fennel seeds and garlic, which are boiled for hours together with the selected cuts of meat.

Brief Description of Two Business

• Chuan Klang Bak Kut Teh

• Tian Hoe Bak Kut Teh

Tian Hoe Bak Kut TehSeremban

Chuan Klang Bak Kut TehKlang Valley

Chosen Restaurants

Chuan Klang Bak Kut TehKlang Valley

Current Location: No.66, SS14/2, 47500, Subang Jaya, Selangor.

• Founded by Ivy Chong in 2006• Number of branches : 0• Number of employees : 7• Capital required to start their business : RM100,000• Estimated current number of customers : <100• Recent development : None• Design of restaurant : normal restaurant

About Chuan Klang Bak Kut Teh

Business hour : 10.45am – 12am (Open Everyday)

Main Products Sold :

• bak kut teh• braised pork’s leg• chicken wine• black pepper stomach

soup• home steamed fish head

Tian Hoe Bak Kut TehSeremban

Current Location: 347, Taman Yoon Fook, Jalan Tampin 70450, Seremban, Negeri Sembilan.

About Tian Hoe Bak Kut Teh

• Founded by Siew Kon Sin in 1981• Number of branches : 0• Number of employees : 4 (Tuesday to Saturday), 5 (Sunday)• Capital required to start their business : RM20,000• Estimated current number of customers : > 1,500• Recent development : None• Design of restaurant : traditional restaurant

Business Hour : 9.30am – 2.30pm (Closed on Monday)

Main Products Sold :

• bak kut teh• braised pork’s leg• chicken wine• clay-pot chicken rice• herbal tea

Comparative Analysis of the Businesses’Competitive Traits

Da De Bah Kut Teh

Chuan Chiew Bah Kut TehMing Siang Bak Kut Teh

Yu Kee Bak Kut Teh

Chuan Klang Bak Kut Teh Tian Hoe Bak Kut Teh

Restoran Seremban GardenKedai Sin Thow Yuen

Competitors

PricingChuan Klang Bak Kut Teh• they discuss together to ensure the prices are the same.

Tian Hoe Bak Kut Teh• they set its prices higher than the other competitors.

Advertising• they both advertised via word of mouth

Competitors Strategies

Black Pepper Stomach Soup

Chicken Wine Soup

Braised Pork’s Leg

Home Steamed Fish Head

Dry Bah Kut Teh

100% Klang Bah Kut Teh

Product variety ofChuan Klang Bak Kut Teh

Chicken Wine Soup

Bah Kut Teh

Herbal Tea

Product variety of Tian Hoe Bak Kut Teh

Chuan Klang Bak Kut Teh• Need to have a large amount of capital to start the business. It is

difficult to overcome the obstacle because the standard of living is very high nowadays.

Tian Hoe Bak Kut Teh• The location is not crowded. It is difficult to overcome the obstacle

because it doesn’t increase the annual revenue of the business.

Obstacles faced by new business

Chuan Klang Bak Kut Teh• operating at place full of competitors.

Tian Hoe Bak Kut Teh• Their competitors will not have a very big impact to their

business.

Nature of their Markets

• Both sells Bah Kut Teh• No other branch

Similarities

Chuan Klang Bah Kut Teh Tian Hoe Bah Kut TehFirst generation

- Ivy ChongFounder Second generation

- Ken Siew

No.66, SS14/2, 47500, Subang Jaya, Selangor.

Location347, Taman Yoon Fook, Jalan Tampin 70450, Seremban,

Negeri Sembilan.

7 Employees 4 on Tuesday to Saturday5 on Sunday

Less than 100 Customers More than 150Different age of people Targeted customer Older age of people

10.45am – 12am (midnight)Everyday

Business Hour 9.30am – 2.30pmClosed on Mondays

Less than 500,000 Annual Revenue More than 200,000

Differences

• Tian Hoe Bak Kut Teh is more commercially successful

• Taste of food is more delicious

• The design of their restaurant will give the customer a traditional feel and is more eye-catching than Chuan Klang Bak Kut Teh

• Used the right way to reduce their expenses

Conclusion

• Based on our analysis regarding to the two restaurants, Chuan Klang Bak Kut Teh and Tian Hoe Bak Kut Teh, we have provided a few recommendations on improving the competitiveness of each business.

Recommendation

• Concentrate more on the taste of the Bah Kut Teh soup

• Can increase the number of customer because of their own uniqueness of taste

Chuan Klang Bak Kut Teh

Enhance The Taste of Food

• Upgrade and expand the space of the restaurant• Customer have a better environment

and a comfortable place for them to enjoy their meal

Chuan Klang Bak Kut Teh

Expansion of The Space

Employ Chinese Workers

• so that more easily to communicate and understand what the customer needs

Chuan Klang Bak Kut Teh

Location of The Restaurant

• change their location to the prime spots in high traffic areas, so that it’s more convenient for the people to access their restaurant

Tian Hoe Bak Kut Teh

Increase Number of Workers

• increase the number of workers because they have only 4 employees including Mr. Ken himself so that enough worker to help around when peak hours

Tian Hoe Bak Kut Teh

Renovation• renovate the restaurant because

will provide a more comfortable environment to the customers although it is full with traditional feel

Tian Hoe Bak Kut Teh

REFERENCES

1. http://eresources.nlb.gov.sg/infopedia/articles/SIP_1800_2011-03-18.html

2. http://www.smokywok.com/2011/12/bak-kut-teh-chinese-herbal-broth-with.html