A lot of funds were invested in their good looking interiors. Most of the kitchen is on the open concept. The premium three lots are in the latest commercial development in Sri Damansara and they may have gone through a bidding war with similar or other food business operators. Ten years ago (before the kopitiams genre) the investment for an upscale coffee joint was RM750K. Why the confidence?
Pappa Rich has 27 outlets in Klang Valley. Not a bad idea to focus its energy on. It still has a long way to go in catching up with Old Town White Coffee. The market leader has 138 outlets in most of the states in Malaysia and they have also gone regional. The other players are Station 1 Cafe with 40 scattered in most of the west coast states. Kluang Station is found in mostly in the shopping malls and has 10 outlets and is pretty quiet now.
Personally, Pappa Rich may have got their strategy right focusing in the Klang Valley. Logistics, management and training will be much easier. But I am sure many prospective partners are waiting in wings for the green light to open in other cities. The other is their location - a willingness to pay premium rental for good lots. In exchange for the increase operational costs their prices are higher. But the perception they give the customers through their ambiance, layout, interiors and fittings is that they are better value compare to the foreign franchise coffee and not that they are more expensive than other kopitiams. Yes perception. Brilliant.
However, do forget about excellent service and consistent food quality. But then there is not one kopitiam that offers these two consistently at the moment. So the one that comes out with a strong Business Format will win in the long-term. Business Formats are standards set out clearly and being merciless pursued. It governs logistics, operations, customers' service, food quality from purchasing, preparation and delivery, training, administration, office systems and automation, marketing etc etc. They should head hunt a top executive from McDonald's. which I feel has the best. It is proven that out of 100 businesses with a strong Business Format, 96 will still be around in 10 years. It is a complete reversal for those hit and miss operators. Only 4 will survive out of 100 in ten years (E-Myth).
My other Pappa Rich post is on the Aman Puri, Kepong outlet.
Menu was simple and not extensive. Easy to manage. They may revise when R & D is fully operational.
Toast or steam bread is still the best deal in most kopitiams but the piece of butter in Pappa Rich was miserably small. I was certainly not please.
The popular and cannot get it wrong nasi lemak was standard but not exceptional. I have not had an exceptional one yet in kopitiams.This is a not a good one. Old Town has the best. The chicken was below average.