The Franchisees

Are you pleased with your investment in this franchise?

We are doing fine. 

Has the franchiser lived up to his promise?

Yes, the franchiser is regularly providing us with training. It is carried out in the HQ.

What was your greatest disappointment after getting into this business?

So far, there is no disappointment, our business is growing well, and we doesn't make any loss thus far. 

How effective was the training you received in helping you run the franchise?

The training provided was very helpful and knowledgeable.

What are your biggest challenges and problems?

Our biggest challenges will be making the best brewed coffee to live up to the customer expectation. And so far, there is no problem in operating this business. 

What is your franchises cash flow like?

We can't disclose this information.

How much money are you making in your investment?

About RM 150,000 a month.

What do you like most about being a franchisee? Least?

There are a lot of things to be mentioned.

Is there a franchisee advisory council that represents franchisees?

I'm not sure.

Knowing what you know now, would you buy this franchise again?

I will consider .

The Franchiser and the Franchisee.

Prior to this, I had called the Berjaya Group for a short interview with the people there.
Surprisingly, He was able to answered most of my questions. While some of them, he told me to refer to their official website.

Some of the answers below are from the person from the HQ, while some are from the outlet manager herself.

Is the potential market for the product or service adequate to support your franchise? Will the prices you charge be in line with the market?Yes. Starbucks coffee is a worldwide company, so our market in Malaysia won’t be bad. I am quite satisfying the potential of market for our stores, due to the package and discount of Starbucks. The price that we charge with the product is exactly same as the market price.

Is the market's population growing, remaining static, or shrinking? Is the demand for your product or service growing, remaining static, or shrinking?

Yes, the population of Starbucks is growing gradually, more and more people are consuming our product.Especially, the teenagers start to love our coffee. We are glad to open more outlets to different places to full-fill the demand of our coffee.

Is the product or service  safe and reputable?

Our products is safe and well-known for having good coffee taste. We purchase high quality coffee bean and sell them along with fresh, rich-brewed beverages. We do also sell food besides coffee. We also have a great environment, services provided just to let our customer feel comfortable while having their time be it studying or meet-up. Free Wi-Fi also provided to the customers at every outlets. Customers can enjoy  our nicely brewed coffee while surfing the internet. 

Is the product or service a passing "fad", or is it a durable business idea?'

In my opinion, Starbucks is a worldwide company that sell finest coffee for over 40 years already. You can now see almost everyday there will be people holding a cup of Starbucks coffee in their hand. Our coffee still popular among people. It is hard for us to say it is not a durable business idea as it can still durable for many years. I dare to say, It is definitively a durable business idea. It will never go down as a fad.

What will be competition, direct or indirect, be in your sales territory? Do any other franchisees operate in this general idea?

We sell our product which is our coffee and also some dessert. Our competitor will be The Coffee Beans, San Francisco Coffee, Old Town White Coffee, Gloria Jeans and Secret Recipe. However, we always bring a unique feature in our products and service so that customers will be more attached to us.

Is the franchise international, national, regional, or local in scope? Does it involve full- or part-time involvement?

Starbucks is an international, worldwide company. It has more than 19000 stores in 59 countries.

How many years has the franchiser been in operation? Does it have a sound reputation for honest dealings with franchisees?Around 14 years since 1998. We deal with them with our full responsibility and earn the trust and respect of our customers and partners. We are also committed to doing business responsibly and conducting ourselves in ways that earn the trust and respect of our customers, partners and neighbours.How many franchise outlets now exist? How many will there be a year from now? How many outlets are company-owned?There were 19,763 stores exists in 59 countries while in Malysia Berjaya group owned 115 stores.How many franchises have failed? Why?

So far none of our franchises had ever failed before.

How many franchisees have left the system within the past year? What were their reasons for leaving?

No, Starbucks does not allow us to exit the franchise relationship.

What service and assistance will the franchiser provide? What kind of training program does the franchiser offer? How long does it last? What topics does it cover? Does the franchise offer ongoing assistance and training?

We make the finest coffee, dessert, a comfortable environment with free Wi-Fi internet for our customer. As for the training program, the new employer need to attend a training course.This training course last for one month before officially start to work. 

Will the franchise perform a location analysis to help you find a suitable site? If so, is there an extra charge for doing so?

We are not in charge in finding a site, thus we have no knowledge about it.
Our headquarter is the one in charge of making this decision.

Will the franchiser offer you exclusive distribution rights for the length of the agreement, or may it sell to other franchises in this area?

Since the company had already be in the Malaysia Head Quarter for around 14 years. I think it won’t change.

What facilities and equipment are required for the franchise? Who pays for construction? 

Facilities and equipment that required for the outlet is table, chair, machine, supplier, food and so on. Our company will pay all the expanses.

What is the total cost of the franchise? What are the initial capital requirements? Will the franchiser provide financial assistance? Of what nature? What is the interest rate? Is the franchiser financially sound enough to fulfill all its promises?

(Refused to answer) 

How much is the franchise fee? Exactly what does it cover? Are there any confining fees? What additional fee are there?

(Refer to the official website) 

Does the franchiser provide an estimate of expenses and income? Are they reasonable for your particular area? Are they sufficiently documented?

(Refused to answer)

How risky is the franchise opportunity? Is the return on the investment consistent with the risk?

It is hard to say, it depends on the situation.

Does the franchiser offer a written contract that covers all the details of the agreement? Have your attorney and your accountant studied its terms and approved it? Do you understand the implications of the contract?

We hire a lawyer to help us in this contract. Having them to explain the details and agreement.

What is the length of the franchise agreement? Under what circumstances can it be terminated? If you terminate the contract, what are the costs to you? What are the terms and costs of renewal?

(Refused to answer) 

Are you allowed to sell your franchise to a third party? Does the franchiser reserve the right to approve the buyer?

No. Definitely not. 

Is there a national advertising program? How is it financed? What media are used? What help is provided for local advertising?

Almost all the advertisements are done locally. Newspaper, banner and flyer are most commonly been used as a media. 

Once you open for business, exactly what support will the franchiser offer you?

They will provide training course for the new employers, buy all the necessary equipment, supply the coffee beans and other necessary ingredients.

How does the franchise handle complaints from ad disputes with franchisees? How well has the system worked?

(Refused to answer)

Questions to Ask Current Franchisees

How much does your franchise gross per year? How much does it net? Are the procedures followed to make royalty payments to use the franchisee burdensome? 

(Unable to answer. I was told to look it up on their official website.)

Are the financial projections of revenues, expenses, and profits that the franchiser provided me accurate in your judgement?

Yes, it does. 

Does the franchiser give you enough assistance in operating your business?   

Yes, they do. They provide the necessary training for us to let us know more about the coffees, basic manners, and environments that we are providing for the customers.

How many hours, on average, do you work a week? 

8 Hours, on average, 5 days a week. Every week has 2 days off. 5 minutes breaks for them each day.

How often do you get a vacation?

Twice per year. 

Have you been caught off-guard by any unexpected costs or expectations?

No, I didn't encounter this problem before. The costumer here were quite friendly and also very patient. Sometimes small expectation happen but it won't cause a big hassle.

Does your franchiser provide ongoing training and support you?

Yes. Before working, I was trained at Berjaya Starbucks Coffee, the headquarters. there will be a one month training class for the franchisee. 

If you had to do it all over again, would you purchase a franchise in this system? Why or why not? 

Yes, I will.  Because this is my passion. I'd been very happy working with Starbucks for 5 years,  I don't plan to step down anytime soon. I will continued to serve the people. Besides it is also quite popular among the working people and students and it is also easy to make profit like that.

Questions to Ask a Franchisor.

Prior to this, I had called the Berjaya Group for a short interview with the people there. 

Surprisingly, He was able to answered most of my questions. While some of them, he told me to refer to their official website.

What is the background of the company and it's performance record? 

Well, Starbucks was based in Seattle, Washington founded by three partners, Jerry Baldwin an English teacher, Zev Siegl a history teacher, and Gordon Bowker a writer in the year of 1971.

The name Starbucks comes from Herman Melville’s Moby Dick, a classic American novel about the 19th century whaling industry.In Malaysia, Berjaya Starbucks Coffee Company SdnBhd is jointly owned by Starbucks Coffee International and Berjaya Corporation Berhad. The company operates Starbucks stores throughout Malaysia. The first Starbucks store in Malaysia opened on 17 December 1998 at KL Plaza in Jalan Bukit Bintang, Kuala Lumpur and it grows rapidly that, 115 stores were build all over Malaysia nowadays.

What is the company's current financial status?

You may get it from the official website.

What are the names, addresses, and phone numbers, of existing franchisees in my trade area?Alpha Angle Shopping Centre.Lot G25A Jusco Alpha Angle Shopping Centre,
Jalan 2/27A, Setapak,
53300 Kuala Lumpur
Telephone: +60 3-4149 2842

Describe how you train and mentor your franchisees.

•  Provide a pre-opening training before working
• Training classes for one month.
• Train to know the coffee name, the recipe.
• Keep giving support and training
• Held an annual training program

If at some point I decide to exit the franchise relationship, how does the exit process work?

Starbucks does not allowed exit relationship to happen.

In what ways do you work with a franchisee who is struggling?

We will decide whether to work with or end the relationship of franchisee based on the outcome of their performance. Renovation of the current franchisee, lending money and also release some promotion item to help them. Organizing some event to raise the reputation of that franchisee.

A visit to the outlet.

I went to Starbucks, Wangsa Maju to do my research on their franchise. 
It was a nice cozy place, less crowded with nice soothing music. 
The customers are enjoying their coffees while I walk passed them.
No doubt, Starbucks has always been and always will be about quality.
The store  is about enjoyment at the speed of life – sometimes slow and savored, sometimes faster. Always full of humanity. 
I went in to interview with their manager. Ms. Rina
She was a friendly lady. Already has been working here for the past 5 years.
Prior to that, I had already make an appointment with her. She weren't sure what I was up to.
And so I told her I wanted to do an interview for assignment purpose.
She gladly accept my request and appointment were made on that day.
On the day of the interview, I was then asked to give her the questions and we sat down with a small simple table between us.
At first, She weren't able to answer most of the questions about franchise.
Nevertheless, I kept on trying and I tried to asked in a more simple manner and minimize the proficiency usage of English, as she is poor in English.
Hence, she ended able answered them. 
After around 15 minutes, we then concluded our interview with both parties thanking each other.
She wouldn't let me snap a picture of her, I was told that she is busy.
Although I didn't expect to received a lot of questions left unanswered, but still, I'm very much appreciate enough that she invites me to wrap up the interview. 

  

The front of the outlet.

Counter

Serving Customer

Customers looking around.

Cakes!

Places to hang around.

The Baristas are busy working. 

Franchise Approval Process

Where can I usually find Starbucks? and Starbucks worldwide.

Starbucks can be found in any neighborhood where there is a perceived high traffic for it's stores. Their location are extremely conductive for individual that are on the go and for those who enjoy reading and listening to music


Ever since Starbucks was first established. The franchise has been growing gradually throughout the world.

It currently operating in more than 50 countries.

Argentina, Aruba, Australia, Austria, Bahamas, Bahrain, Belgium, Brazil, Bulgaria, Canada, Chile, China, Cyprus, Czech Republic, Denmark, Egypt, El Salvador, England, France, Germany, Greece, Hong Kong, Hungary, Indonesia, Ireland, Japan, Jordan, Kuwait, Lebanon, Malaysia, Mexico, New Zealand, Netherlands, Northern Ireland,Oman, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Scotland, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates,United States and Wales.