 Secret Recipe Cakes and Café have founded in

1997. Established their brand name in Malaysia,

Indonesia, Singapore, Thailand, China and
Brunei.
 Competitors such as Old Town White Café,
Starbucks and other else provide the food and
beverage service.Secret Recipe Cakes and Café
has over 180 outlets throughout Malaysia and
Asia.
 The current trend in Malaysia is the customer
prefer dining outside from their home these days.
Resulting in an explosion growth in café
business.
 Dato’ Steven Sim who is the founder of Secret
Recipe and also the CEO of Secret Recipe , a local
F&B group with an international brand presence
 He began his career after realizing that the cafe
culture was slowly making waves in major Asian
countries.
SECRET RECIPE AT CHINA & INDONESIA
 Secret Recipe launched in China
 China, with a population of 1.3 billion, provides for a nearly infinite
consumer base with which Secret Recipe may tap into.

 International Market Potential : China’s younger generation which

consists of teenagers and the working-class, since heavily influenced by
Western culture, are very likely to prefer dining in the kind of dining
ambience that Secret Recipe’s outlets will have to offer.

 Secret Recipe has chosen franchising as the market entry strategy.

Franchising is defined as “when a retailer (franchisee) agrees to make
some payment and meet the operating requirements of a manufacturer
(franchisor), in exchange for the right to market the franchisor’s goods or
services under its brand name”

 The economic aspects of China are showing favorably, with booming GDP
growth in recent years. As disposable income in China increases, so will
the amount of customers that may dine at Secret Recipe increase
 Secret Recipe launched in Indonesia in 2003
 Geographically, Indonesia is the closest society to Asia,
 The diversity of the food and culture in Indonesia is very similar to
Malaysia’s.
 Due to halal certification,Secret Recipe can attract more Muslim customers
at Indonesia.
 Secret Recipe has chosen join venture approach for one of their expansion
strategies at Indonesia.
 The decision making power will be partly belonged to the company’s joint
venture partners. This is because the counterparties are more familiar with
the local preference and culture whereby it can help them to come out with
the localization products that suit the local resident tastes and preferences.
 Indonesia are culturally similar with Malaysia which the company has no
worries to authorize its joint venture partners in managing the branches in
these countries. Meanwhile, to show respect to the local culture and religious
factors, non-halal foods are prohibited in outlets in Indonesia, which the local
manager strictly monitors the processes of food production.
 Economically fast-growing India is another potential destination which Secret
Recipe’s franchising model should be going to. Many famous global food and
beverage companies such as McDonald’s, Baskin Robbins and Subway have
already entered into the Indian market one after another

 McDonald’s in India show absolute respect to the local culture by removing

unsuitable foods such as beefs or pork items from the menu, and promoting an
entirely beef-free menu. It is seemed to be appropriate that Secret Recipe adapts
franchising model as expansion strategy in India because franchisees have more
knowledge in monitoring the food materials used and ensure no violation of
cultural taboos.

 India has a unique culture that was found around 40% of the Indian population
are vegetarians based on religious factors. The best example for Secret Recipe to
refer is that Baskin Robbins interestingly offers 100% vegetarian ice cream in
India and promotes it heavily (Lingam, 2010). Secret Recipe can develop various
categories of vegetarian foods in Asian fusions.

 Special offerings need to be developed with the assists and advice of local
franchisees and chefs. This market is definitely bright in prospective future.
 In summary, Secret Recipe is a well known Malaysia franchise
company and successfully established its own brand name throughout
Malaysia and Asia in the short period of ten years. With the
realization that Secret Recipe has performed so well in the recent
years, the company put much effort in term of innovation,
differentiation, research and development, consistency are the
pertinent factor to evolve the company

It is not an easy way for an entrepreneur to start up a business in

foreign country especially different culture from home country.
However, Steven Sim has proved his foresight and belief are realizable.
With the company’s continuous effort in this field, Secret Recipe will be
able to contend with other large international food chains and become
internationally well-known brand in the near future.