KUALA LUMPUR: Dr Jeffrey Goh Sim Ik — who took a step back from the business world in 2008 to run in the general election for the Cheras parliamentary seat under the MCA banner and lost to DAP’s Tan Kok Wai — is back, with plans to expand his chain of Morganfield’s restaurants in Malaysia and Singapore.
Goh, the founder and chief executive officer (CEO) of Grand Century Restaurant Sdn Bhd, which holds the Morganfield’s franchise, will open four new Morganfield’s restaurants this year, bringing the total number to seven in Malaysia and three in Singapore. He said he owns the company with two other partners.
Already, there are plans to bring the home-grown franchise to the Philippines, Indonesia, Myanmar and China.
“The new outlets in Malaysia will be located in Subang Jaya and Cyberjaya, while those in Singapore will be in Suntec City and Orchard Road,” Goh told The Edge Financial Daily in an interview.
Plans are in the pipeline to open a Morganfield’s restaurant in Johor Baru next year.
The investment cost to open an outlet is about RM2 million, said Goh, adding that these investments will be financed through shareholder funds and retained profits.
Goh is also the CEO of a few other companies, such as Golden Regal Restaurant Sdn Bhd, which owns the HOUSE restaurant, bar and winepost franchise; Perfect Treats Sdn Bhd, the master franchisee of Capricciosa Malaysia and Singapore; and Wish Tea (M) Sdn Bhd, the master franchisee of the Mr Wish fruit tea chain.
“I like to do business where there is a niche market. Morganfield’s, for example, is a brand we created because we noticed there wasn’t really a chain of restaurants that focused on good pork cuisine. We wanted to concentrate on the segment of the market where we could give our best pork dishes,” said Goh, adding that Morganfield’s signature dish is its trademarked sticky bones.
Goh is no stranger to the restaurant business. A dentist by profession, he first ventured into the food and beverage (F&B) business in 1999 by buying a few franchises — The Fish Shop and 1901 HotDog. From there, he went on to form and manage companies such as Revenue Valley Sdn Bhd, which operates The Manhattan Fish Market restaurants in Malaysia, Singapore, Thailand, Indonesia and Saudi Arabia, and Grandpolitan Sdn Bhd, the master franchisee of Tony Roma’s restaurants in Malaysia. Goh said he had exited the companies in 2009 when he decided to pursue a career in politics.
He said his new stable of companies is profitable, with store operating income ranging from 15% to 25% depending on the franchise brands and locations.
“I am quite happy with our performance so far,” he said.
However, he does not have any plans to float shares of any of his companies on the local bourse yet as he feels that the business should drive the listing, and not the other way around.
Goh noted that the F&B industry is fiercely competitive, so he believes it is important to capitalise on marketing and research and development to stay ahead of the curve.
“It is not just about slashing prices. It’s also about constantly having something to excite our guests, and they must feel they get value for money ... That’s why marketing and corporate identity are important,” he said.
“Another area that I emphasise a lot is research and development. My group of chefs, for instance, are constantly thinking of ways to improve the menu,” he said.
Cost control is also important to remain competitive. Goh said his procurement team tries to ensure that they get better value for their purchases.
“Our mid-term plan is to work with [pork] importers, as our consumption of pork ribs will increase with the opening of two more outlets [in Malaysia] at the end of this year.
“We will also start selling barbeque and black pepper sauces in our Morganfield’s outlets within the next couple of months,” he said.
However, Goh admits that maintaining manpower is a challenge for the F&B industry.
“Labour is a big issue. We find it hard to get staff, so we have to depend on foreign workers who sometimes do not fit into our culture,” he said.
Goh also holds a controlling stake in Singapore-based FoodTech Pte Ltd that owns the brand SnackzIt! in Singapore, China and Malaysia. SnackzIt! features a kiosk concept selling Taiwanese snacks such as oyster mee sua, crispy chicken and various deep fried items.
“We are working on a strategy of opening Snackzit! and Mr Wish next to each other, so you can ... order a fruit tea drink while waiting for your food,” he said.
There are now 12 Snackzit! kiosks in Singapore, three in China and one in Malaysia at Klang Parade, Selangor.
This article first appeared in The Edge Financial Daily, on May 5, 2014.