How to Start Restaurant Business in Malaysia

Most foreigners would like to start a restaurant business in Malaysia being their first choice. It looks very lucrative simply because people generally love eating and eating… The culture same throughout the world where people just love eating! 

This explains why the first business that comes into mind for everyone, including foreigners in Malaysia is to start a food and beverage business!

It is said there are more than 1,000 restaurants or café owned by foreigners in Kuala Lumpur alone! Some enterprising foreigners, they started successful chain restaurant or café brands such as Chat Time (owned by Taiwanese), Café Bene (owned by Koreans)! Their concept brings a new wave of eatery lifestyles into Malaysian culture.

Depends on your preference, some foreigners would like to introduce their food culture from their homeland to Malaysians and tourists. Malaysia is one of the top ten countries in the world for tourism! These unique restaurants are usually exclusive in nature. Some examples of exclusive restaurants in Kuala Lumpur are Bombay Place(Indian), Al-Almar (Lebanese cuisine), Naab (Persian food), Fong Lye(Taiwanese), Lafite(French), Shogun (Japanese) and many more…

While anybody can and like to start a restaurant business in Malaysia, it takes a truly hard-working, dedicated and discipline entrepreneur to open and operate a successful restaurant.

Once you decided on the concept of the business, these are a few main things you need to complete:

1) Location of the Restaurant – This is the key to the future of your business, the location must be suitable for good traffic and provide a convenient parking space. Traffic by foot and by cars as well as other means is important. Determining the traffic numbers in both these areas as other is very important for future business reasons.

2) Concept, layout, and design- This can make or break some businesses in the restaurant industry depending on their competition and consumer demand. Some areas expect a certain level of quality in service or food or variety in food selection. Other areas demand a layout that is unique and appealing or beneficial for movement. You would need to do intensive research and gathering info from nearby stores.

3) Menu – One of the most important things may be the menu selection of foods and beverages. A well-defined menu that able to accentuate the customers and word of mouth about the best food you have in your chosen specialty. Size of the menu is also important in consideration of your costs and the types of foods you want to serve and or mix using basic ingredients. The proposed menu need to match the available ingredient’s supplies in the market.

4) Staffing – can be a very challenging task to be able to find workers with dedication, principal and good ethics. Good staffs will be able to display a good image of your restaurant, hence able to serve the customers well which will bring onward referral or business. You may want to save your time for this function by engaging the outsourcing service of human resource company would be beneficial.

6) Business and Operating Systems – You will definitely need a restaurant system where a good one will give you smooth operation daily without much headache! The advantage of running a restaurant under the franchise, the system are usually very clear and is set up ready.

The other steps to do after you decided the right restaurant concept and ready to start, you will need to:-

1. Incorporate a Malaysian company Sdn Bhd with 100% foreign ownership available with a minimum paid up capital RM1 million

2. Apply for necessary Business License  for Signboard License, Alcohol License (if applicable), Halal License (if applicable) MACP and PPM (if you want to play music in your premise)

For 100% foreign-owned company, you will need to apply for Wholesale, Retail Trade License to approve your entity. Such license will only be granted to a restaurant of “unique'” concept and with size minimum 1,500 sq ft. Unique concept means dishes where Malaysian expertise is hard to find an example: Chinese Cafe, French cuisine, an Arabic restaurant, etc. 

3. Apply for DP10 2-years Work Permit for you and family after all the above licenses are obtained. The approval of DP10 work permit processing is fast, approval often within 1 month.

At MalaysiaBizAdvisory, we are able to assist you the complete services (business profiling and plan, company documentation due diligence, registration of company, licenses and work permit applications) plan of helping you to start a restaurant business in Malaysia fast and without a hassle! Check it out with us! We “simplify your business investment” in Malaysia.

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