In addition to being worth RM18.7 billion, F&B outlets in Malaysia enjoyed continued growth throughout 2023, proving we Malaysians treat food the way deep sea divers treat oxygen!
This is no surprise – we identified the country’s F&B sector as among the safest and most lucrative markets for new entrepreneurs in our previous list of small business ideas in Malaysia.
But while the industry itself is doing well, some F&B businesses prosper more than others.
In some cases, you can just smell the potential.
And so, for your benefit, we’ve scoured recent news articles and market reports to find five high-potential food business ideas in Malaysia as of August 2024.
Let’s begin!
1. Food stall or kiosk
While not the most glamorous choice, numbers show food stalls in Malaysia are doing well.
According to Retail Group Malaysia’s Retail Industry Report released in March 2024, kiosks and stalls experienced a significant growth of 13.5% in 2023, outperforming the 4.6% growth by traditional cafes and restaurants.
There are endless varieties of food options you can serve, from traditional Malaysian cuisine, Western dishes, and whatever the heck this is.
In addition to steadily growing demand, food stalls and kiosks require minimal start-up capital and can easily shift from one location to another should you find a better spot.
2. Durian store
As one of the top durian producers in the world, Malaysia has always been a key player, but did you know the Malaysian durian market is expected to be worth RM238.4 billion by 2033?
One rising trend with plenty of room for new players is something known as ‘durian tourism’.
These are packaged ‘durian tours’ offered by reputable travel agencies that include visiting orchards, eating fresh fruit, and making tempoyak.
We’re not suggesting you start your own durian orchard, but there are plenty of opportunities to break into this market, including opening a humble food stall selling durian pulut.
Tell us where you stall is because we’ll come!
3. Halal F&B business
To be clear, we don’t just mean serving Halal food but obtaining Halal certification from JAKIM.
Malaysia has among the strictest Halal requirements in the world, but it may be worth it considering in 2022, Malaysia’s halal F&B export grew by 57% from the previous year to RM27.84 billion.
In addition, Malaysia has long been a top destination for ‘Halal tourism’ in Southeast Asia, with over 4.5 million international Muslim tourists visiting in 2023.
While a Halal certified restaurant might be the first thing that comes to mind, there are numerous opportunities in the Halal F&B sector including logistics and production, as Malaysia is extremely particular about maintaining its standards.
4. F&B franchise
According to the Malaysian Franchise Association (MFA), the country’ franchise industry has soared from RM14 billion in 2020 to RM26 billion in 2023.
Their directory currently lists 60 different F&B franchise options, ranging from fish and chips to ayam penyet outlets.
The benefits of a franchise are obvious:
- reliability
- brand recognition, and
- access to an entire support system
You’ll be limited of course by how much you can afford to pay as the franchise fee, but not all franchises will charge you the equivalent of seven kidneys.
Head to MFA’s F&B directory and send off messages to the brands that you feel curious about.
IF you’re intrigued by the idea of a franchise but would get lost in the sea of options, our last suggestion is for a specific franchise 😊
5. Mixue franchise
The ice cream and tea franchise Mixue launched its first Malaysian store in Johor’s Paradigm Mall in 2022.
Just two years later, there are more than 300 outlets throughout Malaysia, in large part thanks to a simple yet lucrative franchise opportunity.
We spoke to a Mixue representative and here are some key details about the franchise deal:
- A Mixue franchise typically costs RM300,000, including royalties, equipment, renovation, and initial stock.
- Major costs include RM14,000/year for trademark, RM60,000 for equipment, and RM150,000 for renovation.
- Franchisees can choose between street and mall-based sites.
- The outlet must have a full-time manager who must be a company director, aged 18-50, and be physically present at least four hours a day for the first three months.
If you have the funds or are willing to take a bank loan, it’s not a bad deal at all – check out our guide to opening a Mixue franchise in Malaysia for a fill breakdown of the costs and processes.
DON’T blindly trust our food business ideas!
While we confidently say our suggestions are research-backed, we cannot advocate strongly enough that you do your OWN due diligence!
For starters, we could well be completely wrong.
Secondly, just because a business has potential, doesn’t mean it’s a guaranteed success and it’s important to find an idea that aligns with your own strengths, skills, and passions.
Once you find an idea, map out key aspects of your solution with our business model canvas.
Ideally, your solution should have a unique value proposition that sets it apart.
And once you find something worthwhile, the next step should be registering a business entity.
From business idea to business entity
Regardless of what F&B outlet you open, it’s important to register it as a business entity with SSM for several reasons:
- It’s a legal requirement by the government and specifically LHDN
- It makes you more trustworthy to potential clients and customers
- It allows you to apply for small business loans and other SME benefits
- It allows you to hire staff legally, and
- If you go into business with a friend, you can create legally binding contracts
As an SME, you have two main options: Enterprise or Sdn Bhd.
Here are a few resources you might find handy:
- A definitive guide to Enterprise vs Sdn Bhd
- How to register your own company via MyCoID
- A list of most common F&B licenses in Malaysia
- Nine FAQs On food handling training
We wish you all the best, and remember we’re always here to help!
Let MISHU help register your first business
MISHU’s team of licensed Company Secretaries and business consultants are here to help entrepreneurs start, build, and grow their businesses. Get in touch – we’d love to help with yours!