Home Food & Beverages Opportunities and dilemmas of Chinese restaurant industry in Malaysia

Opportunities and dilemmas of Chinese restaurant industry in Malaysia


Opportunities and dilemmas of Chinese restaurant industry in Malaysia

by Ma Lin 

As a multi-ethnic country, Malaysia has a rapidly growing population and a large market demand. Chinese catering investors are targeting this form and slowly occupying a place in the Malaysian catering industry with a Chinese restaurant.

In recent years, Chinese food has attracted the attention of people all over the world. It has become a platform for overseas Chinese and Chinese people who miss their hometowns around the world, and has become a window for foreigners to understand China. It is understood that in the past 40 years, the Chinese catering industry has actively explored overseas markets, and currently there are over 600,000 overseas Chinese restaurants.

As one of the important economic bases in Southeast Asia and a strategic base in China’s “One Belt, One Road” strategic layout, Malaysia is also a diversified ethnic country. The growth of Chinese tourists, coupled with the large demand in the local market, is targeted by Chinese catering investors. This form, with a family restaurant, slowly occupied a place in the Malaysian restaurant industry. As the capital and largest city of Malaysia, Kuala Lumpur now has a large number of large and medium-sized Chinese restaurants, which have become a new local fashion and are loved by Malays, Chinese, international students and tourists. There are many forms of Chinese food in Malaysia, including chain brands such as Quanjude, Meizhou Dongpo, Lanzhou Beef Noodle, Xiaolongkan Hot Pot, etc. Private dining in various situations in Geelong gives private investors an opportunity to create their own brand.

How Chinese investors view the Malaysian market

Mr. Wang Xiaoping, head of the Chinese restaurant chain Xiaolongkan Kuala Lumpur, believes that Malaysia’s investment is at the time. “With China’s “One Belt, One Road”, catering has become a trend overseas. Compared with China, where the catering market is too saturated, Malaysia is currently a country in the development of catering. And the Malaysian government has developed some in order to attract Chinese investors. Preferential policies, the increase of Chinese investors can also provide jobs for the local people and realize the development of both sides. He also said that the Malaysian Chinese community is one of the most important goals for Malaysian investors, not only because local Chinese have high acceptance of Chinese food, Moreover, through communication with the Chinese, the outsiders will be better informed about the local area and reduce unnecessary troubles. For this Sino-US trade war, Mr. Wang Xiaoping believes that the Sino-US trade war has an impact on the location of Chinese SMEs, but If it is dangerous, it will be able to make enterprises develop in Southeast Asia. For example, Vietnam, the Philippines, including India, there will be many companies moving around here.

Wang Xiaoping, who is the head of Xiaolongkan Hot Pot, which has successfully opened a branch in Kuala Lumpur and won a certain reputation, advises overseas catering investors that it should be based on local food customs and consumption concepts as an important reference target and improvement. “Kuala Lumpur is a fashion and tourism city that innovates and neutralizes some local features and changes according to customer needs,” he shared.


The dilemma of Chinese food in Malaysia

In recent years, many Chinese investors have poured into the Malaysian catering industry. When they want to get a piece of it, they are happy and a few happy. Some Chinese restaurants are in the store, bankrupt, and the trend of opening new stores. Some of them have faced losses and closures due to various unsolvable problems after opening in Kuala Lumpur. However, some investors have ushered in the second spring of their career. Why do the same choices have different fates?

Mr. Han Xiaoguang, a private investor (Malaysian Chinese Restaurant – Partner of Dapan Chicken, Xinjiang) expressed his personal views on this issue. He believes that many restaurants in Kuala Lumpur have gone bankrupt. There are three important reasons: the first site selection, Chinese restaurants will face location problems when they first come. The location of China and Malaysia is different from that of China. China is more concentrated, and Malaysia is more scattered. This just tests the founders’ views on site selection. The second point of quantity and quality, many Chinese restaurants have come to Malaysia, in order to get higher profits in the production of the above materials for the work of cutting corners, the number of customers to get unsatisfied, at the same time the taste of food also determines this One of the important reasons why the restaurant can be operated; the third point of service, Chinese investors did not use the locals as restaurant service staff at the time of opening, which would make the customers entering the restaurant have a great communication. Trouble, this is one of the important reasons for customer loss.


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