Starbucks Coffee Malaysia eyes retail foray

KUALA LUMPUR: Berjaya Starbucks Coffee Company Sdn Bhd, the operator of Starbucks Coffee Malaysia, plans to sell Starbucks products in local retail establishments in the next 12 months.
Starbucks Coffee Malaysia & Brunei managing director Sydney Quays (pix) said it is in talks with license holder
Starbucks Coffee International to obtain licensing in order to kickstart the project.
"We're looking at other retail businesses like FMCG (fast moving consumer goods) business where we retail Starbucks products in all retail establishments like hypermarkets, supermarkets and convenience stores," he told SunBiz in an interview recently.
"We're working on that now for the future, it's part of the pipeline," said Quays, adding that possible products for sale outside the Starbucks outlets are ready-to-drink beverages, the Via instant coffee (sachet) and maybe food items.
He said the idea is similar to what is available overseas like buying a bottle of Starbucks Frappuccino or Doubleshot from convenience stores.
"Once we get the licensing, we'll be able to move forward (to working) with the (retail) partners," said Quays.
He said the plan of entering the retail market is about growing the Starbucks business and the brand, banking on the convenience factor.
"It's also good for the business. It's another revenue stream for us," said Quays.
Starbucks Coffee Malaysia, a wholly-owned subsidiary of Berjaya Food Bhd, has 196 outlets in the country that are company-owned.
Quays said historically, it has always aimed to open 25 to 30 stores a year depending on the macroeconomic situation, with investment ranging from RM800,000 to RM1.6 million per store, depending on size. Of this, the company expects at least 30% to 40% to be drive-through outlets.
"We see drive-thrus as a big potential of convenience for the future. Currently we have 18 drive-thrus and we see that as a potential.
"Having coffee in your car is acceptable. We see that convenience factor as something that spurs the growth of drive-throughs. It would give us the opportunity of having another avenue to generate income," said Quays.
With a revenue growth rate of about 20% year-on-year, he said the company aspires to be able to embed Starbucks into the everyday life of the Malaysian consumers.
"We want to move into new areas of opportunity that we have not been as part of the whole Starbucks business. We are in many small towns but we hope to expand that and we can only do that if we're embedded in the lives of Malaysians. When that happens, organically the business will grow," said Quays.