Old Town White Coffee, a popular Malaysian cafe chain, has finally entered the Philippines with its first branch in SM Grand Central Caloocan. Synonymous with traditional Malaysian culture, the brand is looking to cut through the crowded food and beverage market in Southeast Asia to reach a younger audience with its high-quality coffee blends, signature brewing techniques and Malaysian cuisine, including Nasi Lemak, Curry Laksa and Kaya toast. According to Dawn Liew, general manager of food an
ood and beverages at Old Town White Coffee, since the soft opening of the outlet on 25 May, customer interactions have been generally positive.
“For any international expansion, we always emphasise the suitability of the local franchise partner. Hence, any decision taken for international expansion depends on whether we meet a local franchise partner whom we have chemistry with,” she told Inside Retail.
As for expansion in its home country of Malaysia, the northern and eastern urban areas are being targeted. The management team has identified gaps in the market, and believes the brand has what it takes to make an impact in these areas.
A crowded marketplace
The Southeast Asian marketplace has a myriad of food and beverage offerings from humble mom-and-pop coffee shops right up to high-end artisan coffee outlets, so for a brand like Old Town White Coffee to stand out, it has to be on its A-game.
“Old Town White Coffee differentiates itself from other coffee chains in APAC in that we are a restaurant serving Malaysian cuisine that also happens to own its own distinctive trademark and proprietary recipe of coffee, tea, and chocolate beverages,” Liew explained.
She went on to say that it is imperative for the brand to ensure consistent quality and taste across its outlets, both domestically and internationally. This is where control of key raw materials is paramount. It’s all about discipline and consistency, with a strict adherence to standard operating procedures.
Modern and minimalist
The store in SM Grand Central Caloocan offers a sneak peek into the brand’s new design language that embraces a modern and minimalist aesthetic.
“Old Town’s brand archetype is that of the Progressive Artisan with a mission to deploy creations of cultural significance and relevance to the modern audience,” she elaborated.
The brand has been modernising its profile and even before the pandemic, it embraced online food delivery services in markets like Malaysia, Singapore and Indonesia. Liew noted that the brand’s omnichannel efforts are in full swing, too.
Challenges and opportunities
International expansion always brings with it challenges, as well as opportunities. Liew mentioned that the export of products and the ability to train and retain key personnel for new markets are the usual challenges for the brand.
The brand emphasises maintaining close working relationships with franchisees to find ways to overcome these challenges together.
The company is also focused on sustainability and environmental responsibility across the APAC region.
“Caring for the environment has always been part of our mission statement since 2011. The emphasis on the 3 Rs of reuse, reduce and recycle has always been core to our business strategy and purpose,” Liew stressed.
The team has been working on its sustainability initiatives from a packaging point of view as technology improves and the availability of different recyclable and compostable materials become available and affordable alternatives.
“We are targeting an avoidance of sending 23 tonnes of single-use plastic waste to landfill through our initiatives in 2023,” she added.
Sustainability is key
In 2022, JDE Peets, the principal holding company of Old Town, released a global animal welfare policy, complementing the supplier code of conduct, which outlines more universal requirements.
Among the animal welfare policies is the cage-free egg commitment, which is effective across all brands in the JDE Peet portfolio.
By 2027 in Asia, and 2025 in the rest of the world, the company will require all eggs and egg ingredients used in its products to be sourced from cage-free hens.
“As part of the initiative above, we have begun working with the Ministry of Health Malaysia, as part of their pioneer program to feature calorie counts for all our menu items, in line with educating our consumer base on healthier consumption,” she stated.
This has also included the inclusion of plant-based products, such as plant-based chicken, vegan egg, and oat milk.
At the same time, the company is in the process of converting its fleet of vehicles into more energy-efficient ones, and so far, Liew estimates that the company will save 18 tonnes of carbon emissions in 2023.