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Old town is a regional caf chain operator and an established beverages manufacturer in Malaysia As at 31 Dec 2011, the group

p operates 196 caf outlets in the Asia region. Generates 68% and 32% of its revenue from food and beverages (F&B) segment and fast moving consumable

goods (FMCG) segment respectively.

Oldtown's cafe outlets by type as at FY11


2%

Fully-owned

40% Partially-owned
49%

Franchised
Licensed

9%

3-in-1 coffee mix under the OLDTOWN brand name for the retail sector in the year 1999. As per date 31 October 2009, the OLDTOWN 3-in-1 instant coffee mix was sold in approximately 1,348 retails nationwide in Malaysia, approximately 550 retail outlets in Singapore and approximately 2,100 retail outlets in Hong Kong. Old Town subsidiary which is known as White Caf Marketing commenced operations as the marketing arm for the groups beverages in 2001. White Caf managed to obtain a Halal certification from the Islamic Religious Department of Perak for the Groups beverages in 2002. The company successfully formulated their original blend of 3-in-1 instant milk tea for the retail market under the OLDTOWN brand name 2003. Major changes in year 2005 as White Caf officially open a chain of cafe outlets based on the traditional Ipoh coffee shop setting and atmosphere under theOLD TOWN WHITE COFFEE brand name.

In year 2006, the company expanded their export markets to Japan and China.

In 2007, the incorporation of OldTown Singapore took place to


provide management services, supply of food and beverages items to caf outlets in Singapore.

In 2009 white coffee obtained a HACCP certification from BM


TRADA Certification Ltd for the production of roasted coffee powder. In year 2010, OLDTOWN Singapore started operation of caf outlets.

# no of outlets

Secret Recipe
Old Town White Coffee Starbucks Coffee Subway Sandwiches Pappa Rich Coffee Bean & Tea Leaf Station 1 Leisure Caf Hailam Kopitiam

212
183 125 95 63 52 41 27

24.2%
20.9% 14.3% 10.9% 7.2% 5.9% 4.7% 3.1%

San Francisco Coffee


Dome Caf Gloria Jean's Coffee Killiney Kopitiam Kluang Station Georgetown White Coffee Total

23
16 13 10 8 7 875

2.6%
1.8% 1.5% 1.1% 0.9% 0.8% 100.0%

Malaysia has about 14 caf chain operators with the top five making up 78% of the total number of caf outlets in the country. While on the Fast Moving Consumer Goods (FCMG) segment, Old town is the third largest coffee retailer with 9.5% market share in 2011 Old town is the clear market leader with 42.3% market share, leading the second and third largest player of Super Group. Hong Kong and Singapore coffee mix markets, Oldtown ranked is number 2 with increasing market share over the past 3 years, challenging the market leader, Nescafe which has about 29% market share in Hong Kong

Old town's FMCG market share breakdown by country

Old town cafes have been strategically placed themselves as retailer position in supply chain mapping of F&B industry. Main Suppliers Gongga Food Sdn. Bhd.(fully owned subsidiary) - Supplies dry & frozen coffee beans, curry paste and samba products. Nestle Products Sdn. Bhd. - Supplies ice-cream and yogurt products. Permanis Sandilands Sdn. Bhd. - Supplies carbonate drinks

Board of directors
1. Datuk Dr Ahmed Tasir bin Lope Pihie Independent non-executive chairman, since 2009 2. Lee Siew Heng -Group Managing Director, since 2007 3. Goh Chin Mun -Executive Director, since 2007 4.Tan Say Yap -Executive Director, since 2009 5. Clarence DSilva A/L Leon DSilva -Executive Director & COO of F&B segment, since 2009 6. Chuah Seong Meng, -Executive Director and COO of FMCG segment, since 2009 7. Chin Lai Yong - Non-independent non-executive director, since 2009 8. Mark Wing Kong - Independent non-executive director, since 2009 9. Dr. Leong Chik Weng - Independent non-executive director, since 2009

The interior dcor of OLD TOWN WHITE COFFEE have been amazing arranged to suit the perfection of creating memories. Customers are welcomed with a modern ambience comprising of old black and white pictures hanging on the wall showing history of the caf, black wood parquet flooring, and walls that uniquely decorated. Tables are made from marbles so that customers can have a sense of luxury feeling. The equipment used for coffee making and beans roasting are all derived from overseas Free WIFI services is being provided.

All the cafe outlets are supported by three (3) centralised food processing centers operated by OLDTOWN subsidiaries:Dynasty Confectionery Esquire Chef Emperors Kitchen

The coffee and tea beverages offered at our cafe outlets are specially formulated and manufactured for our OLDTOWN WHITE COFFEE.
OLDTOWN White Coffee (Hot) and (Cold)

OLDTOWNs Nan Yang - O (Hot) and (Cold)


OLDTOWN White Coffee Freeze

There were total of nine employees in the caf outlet, including the Supervisor, Ms. Natasya. Generally, the restaurant manual indicates that there is 3 division of hierarchy level when it comes to their organization structure. It can be explained as follows:

Bar Crew

Service Crew

Kitchen Crew

Standard operation procedure Basic Operation Management Training Inspectors Regular inventory Prevent wastages

The main problem that the Oldtown Alpha Angle branch is facing originated from
issues regarding customers. When it comes to matters consisting of late orders and foods are not tasty, the customers can be seriously pushy and needy.

. However, at times, the customers can be grumpy naturally and overreacted to the slightest mistake or error without being compassionate and understanding on the workers.

This following list of steps highlighted by Old town

management particularly in dealing with errant customers.


Much of this guideline will be used by Assistant

Supervisors, Supervisors, and Managers to pacify


customers that are not happy with current services that arise out of wrong billing, late orders and receiving tasteless food and beverages.

The steps are: Listen to customer Customer needs to maintain an eye contact regularly in order to show respect Listen attentively Do not interrupt customer when they are speaking Empathize Acknowledge Convey problems to Managers about full information of the situation Settle the problem Settle the problems immediately If unable to settle, get superior to help out Thank the customer Thank the customer for their food and beverage Assure them this thing never happen in future Invite the customer to return again

Caf Outlets (North)

Caf Outlets (Central)

Caf Outlets (South)

Caf Outlets (Singapore)

Warehouse (Johor Bahru) Warehouse (Ipoh) Warehouse (Butterworth) Warehouse (Subang Jaya)

Warehouses (East Malaysia)

Warehouse Indonesia Confectionary and Bakery Ipoh) Food Processing Center (Ipoh) Food Processing Centre (Subang Jaya) Caf Outlets (Indonesia) Caf Outlets (East Malaysia)

Improvement in terms of constant changes is the key for OLD TOWN WHITE COFFEE continuous success. By working and tinkering with existing business model, practices and strategies will ultimately give them the competitive advantage to stay ahead from the rest of the competitors. Needless to say, the companys legacy remained unscathed for the last decade due to their striving effort in managing customers needs and wants effectively.

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