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Wholesale Food Market for Hotels, Restaurants and Catering Industry in Malaysia, New Report Launched

Market Research Reports, Inc. has announced the addition of “Wholesale Food Market for Hotels, Restaurants and Catering Industry in Malaysia” research report to their website


Lewes, DE -- (SBWIRE) -- 04/17/2015 -- 1. MACRO-DEMOGRAPHICS

- Malaysia GDP growth remains positive at 5.5% this year
- Selangor has the highest GDP output due to high concentration of commercial and industrial activity
- Growth has recovered since the 1997 crisis
- Wholesale & retail trade, restaurants & hotels contributed >13% to Malaysia's economy
- Population growth expected to stablise at ~2%
- High proportion of young population key contributor in tomorrow's consumer market


- Total F&B purchases estimated at RM7 billion
- Two-third of total purchases sourced from wholesalers
- Average growth of ~7% estimated over 3-year period
- Restaurants largest customer group
- Meat forms the largest segment
- Intense competition from hypermarkets likely to slow future growth for wholesalers


- F&B wholesalers generally very specialized
- Each region has its own key players.............but each product segment dominated by few big players
- POK Brothers a well-known player in frozen food segment
- Bigger vegetable wholesalers differentiate by offering imported vegetables
- Piau Kee an established name in seafood segment
- Chuan Yee a more prominent wholesaler in dry goods segment
- Alcoholic and non-alcoholic beverages dominate by different players
- Overall, meat and seafood experienced highest volume growth over the past 5 years
- Margin provided varies depending on product types
- Similar margin provided to all customer types
- Margin likely to be further squeezed
- Wholesalers threatened by both manufacturers and hypermarkets
- Centralised procurement makes hypermarket very price competitive
- Carrefour the leading hypermarket
- Price remains the key competitive tool….
- Typical credit term 30 – 60 days
- Discounts/incentives not very frequent
- Most wholesalers provide free delivery services
- Minimum purchase commonly required
- Collection emerged as the key challenge faced
- 'Halal' becoming a pressing issue in F&B industry
- 7 factors to be successful in food wholesale
- Overall, existing players deem the market to be less and less profitable


- Most restaurants located on West Coast
- Restaurants categorised into 8 key segments
- Various types of restaurants
- KFC has the most number of outlets
- Hotels rated according to Star and Orchid system
- Cafes & FSRs found in all 3 – 5 star hotels
- Bulk of star-rated hotels are 1-star outlets
- KL has most 5-star hotels
- West Coast hotels have lower occupancy rate, possible due to high supply
- Most hotels located in city areas
- Catering industry is fairly fragmented


- Wholesalers key source of F&B supply
- Most customers have between 1 to 5 wholesalers
- Many customers would like to purchase from only one wholesaler as it would be convenient
- Most customers have >1 supplier for same item
- Most customers have used their current wholesalers for more than 10 years
- Word-of-mouth important source of recommendation
- Owner key decision maker for smaller restaurants
- Purchasing department key decision maker for Chain Restaurants (>3 outlets)
- Chefs have say in food items needed for hotels
- Owner also main decision maker for caterers
- Chefs have big influence on choice of suppliers
- Purchasing Dept consolidate Hotels' purchases
- Chain Restaurants pick from approved supplier list
- Rapport with wholesalers is important
- Independent Restaurants/Small Caterers often pick up their own supplies
- There are many advantages of using wholesalers
- Customers spend most on meat and seafood
- Most customers order perishable goods on a daily basis
- Many caterers prefer to purchase from the wet market
- Customers mainly purchase vegetables/fruits, seafood and meat from wet market
- More caterers tend to favour hyper/supermarkets compared to restaurants and hotels
- Restaurants mainly purchase condiments and beverages from hyper/supermarkets
- Hotels mostly purchase soft drinks from hyper/supermarkets
- Caterers mainly purchase rice/grains and soft drinks from hyper/supermarkets
- Most customers prefer to pay by cheque
- Larger customers prefer lower prices rather than incentives/discounts
- Quality and price most important factors for restaurants
- Hotels find quality and range most important
- Quality and price equally important for caterers
- Caterers mostly cater for private events
- Most customers believe that larger wholesalers can offer a wider range
- Key complaint: wholesalers do not inform customers when food run out of stock
- Key suggestion: wholesalers to maximize the use of the internet

- Overall, attractiveness for traditional wholesale is medium
- Nevertheless, growth prospect for F&B remains bright

- Key Player: Lucky Frozen
- Key Player: Pok Brothers
- Key Player: Angliss
- Key Player: CVS Vegetable Supply
- Key Player: Chuan Yee
- Key Player: Albert Wines & Spirits
- Key Player: Deligreen Food Industries
- Key Player: Permanis Sandilands
- Key Player: Chop Tong Guan

- Malay restaurant: Ideal Restaurant
- Malay restaurant: Pulau Pinang Kayu Nasi Kandar
- Malay restaurant: Mohd Yusof Ramli Restaurant
- Malay restaurant: Tawakwaf
- Chinese restaurant: Chinese Restaurant
- Chinese restaurant: Four Seasons Restaurant
- Chinese restaurant: Ming Restaurant
- Chinese seafood restaurant: Restoran Sea View
- Indian restaurant: Ravi Canai & Such
- Western restaurant: Fisherman's Grill
- Chain Café: Déli France
- Chain western restaurant: San Francisco Steak House
- Chain Japanese restaurant: Dontaku Restaurant
- Chain Italian restaurant: Piccolo Mondo
- Chain fast food restaurant: Nando's
- Chain fast food restaurant: A&W
- Chain fast food restaurant: Kyros Kebabs
- Sundanese restaurant: Sundanese Restaurant
- Nyonya restaurant: Baba Restaurant

- Hotels 1-2*: Yao Han
- Hotels 1-2*: Hoover Hotel & Tea House
- Hotels 1-2*: Seri Malaysia Negeri Sembilan
- Hotels 2*: Straits View Hotel Sdn Bhd
- Hotels 3*: Bukit Bendera Resort
- Hotels 3*: Hotel Seri Malaysia
- Hotels 3*: New Coco Hut Chalet
- Hotels 3*: Swiss Inn Kuala Lumpur
- Hotels 4*: Concorde Hotel Kuala Lumpur
- Hotels 4*: D' Coconut Lagoon Resort
- Hotels 4*: Hotel Villa Langkawi
- Hotels 4*: Puteri Pan Pacific Hotel
- Hotels 5*: Crown Princess Hotel KL
- Hotels 5*: The Andaman

- Caterers: Frankfurter Party
- Caterers: Jaha Enterprise
- Caterers: Bamboo Catering and Event Planning
- Caterers: Eden Catering
- Caterers: Home Spicy Rice Sdn Bhd
- Caterers: Hutsahana Japanese Cuisine
- Caterers: Java Catering (M) Sdn Bhd
- Caterers: JJ Catering
- Caterers: Le Yean Air Cond. Restaurant
- Caterers: Kuala Lumpur Airport Services (KLAS)

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