Assignment 3 Enterprenureship

Summary

In this interview, Mr. Ki, co-founder and co-owner of the Malaysian coffee chain Bread, shares his entrepreneurial journey, from the challenges of starting a coffee shop to expanding into multiple outlets. He emphasizes the importance of passion, customer experience, and adapting to market needs. Mr. Ki reflects on the struggles and decisions that shaped his business, including a major revamp in 2017 and the impact of social media marketing during the COVID-19 pandemic. His story provides valuable lessons on persistence, managing people, and balancing business growth with quality control.

Takeaways

• 😀 The importance of customer experience: A business should always focus on delivering exceptional customer service to succeed.
• 😀 Passion and ambition are essential in entrepreneurship: The founders started with a strong passion for coffee, which drove them to build their business.
• 😀 The name 'Bread' reflects the business ideology: It combines 'brew' for coffee and 'great' for pastries, symbolizing quality offerings.
• 😀 Overcoming early challenges: In the first few years, the business struggled, but a major revamp in 2017 helped turn things around.
• 😀 Adaptation to market demands: Initially, the founders had to adjust their offerings to suit local Malaysian tastes and preferences.
• 😀 Risk-taking and resilience: They faced a major financial risk, investing $2 million into a revamp, but their willingness to take a leap paid off.
• 😀 Strategic expansion: The business aims to expand one outlet per year, focusing on sustainable growth and maintaining quality control.
• 😀 Lessons learned: The founders emphasize the importance of focusing on people, maintaining high standards, and never compromising on customer experience.
• 😀 Overcoming COVID-19 challenges: The business adapted to the pandemic by shifting to online marketing and utilizing social media to stay connected with customers.
• 😀 Differentiation from competitors: The brand focuses on providing a comfortable and unique experience, rather than directly competing with big chains like Starbucks.

Q & A

What inspired you and your brother to start the coffee business?

The inspiration came from our passion for coffee. We were in Singapore and observed a café that was selling good coffee and western-style food. We decided to take that idea and open a similar business in Malaysia, where we could combine our love for coffee with good pastries.

What does the name 'Bread' signify in relation to your business?

The name 'Bread' comes from combining the word 'Brew,' referring to coffee, and 'Bread,' symbolizing the pastries we serve. The name reflects our aim to offer both great coffee and delicious baked goods to our customers.

What was one of the biggest challenges you faced when starting Bread?

One of the biggest challenges was deciding whether to revamp our shop or continue as it was. The decision to revamp in 2017 cost us $2 million, which was a huge financial burden at the time, especially since our revenue was only around $70,000 to $100,000 per month.

How did the revamp process affect the business operations?

We had to temporarily close the ground floor of the shop for renovation. To continue operations, we moved the business to the second floor while the ground floor was being revamped. This allowed us to stay open and continue serving customers.

How did you adapt to the local coffee culture in Malaysia?

At first, we tried to introduce freshly roasted coffee, which was different from the heavily roasted coffee that many Malaysians were used to. We faced some resistance, but over time, we adjusted our approach to cater to local tastes by gradually changing the roast profile to match what people preferred.

What is the current state of the business, and what are your plans for expansion?

Currently, Bread operates five outlets—three grand outlets and two smaller ones. Our expansion plans are cautious; we aim to open one new outlet per year to ensure quality and stability in our operations.

What is the most important lesson you've learned during your journey?

The most important lesson is that focusing on people—whether it’s your employees or your customers—is key. Good people help you deliver a good product, and a positive customer experience drives success.

What role does social media play in your business strategy?

Social media has become a crucial part of our marketing strategy, especially after the pandemic. We use platforms like Instagram, Facebook, and TikTok to engage with customers and promote our offerings. It has allowed us to reach a wider audience and adapt to the digital age.

How does Bread differentiate itself from larger coffee chains like Starbucks?

Bread focuses on creating a unique customer experience rather than directly competing with large brands. While we sell similar products, our emphasis is on offering a more personalized, comfortable environment with attentive service and affordable prices.

What advice do you have for aspiring entrepreneurs looking to start their own business?

I would advise aspiring entrepreneurs to focus on people—your employees and customers. It's important to have a strong work ethic and be ready to work hard. Additionally, the location of your business is critical—choose a spot that maximizes visibility and accessibility.