Fast Food in Malaysia - an Overview

Fast Food Industry in Malaysia

INTRODUCTION:

In recent years, the major food consumption trend in urban parts of developing countries is that more consumers are eating increasingly more meals outside of their homes and most of the growth in away-from-home eating has been in the fast food sector. Fast food business is a rapidly growing industry in the world today as well as in Malaysia, especially in urban areas.

Traditionally, Malaysians like to have home- cooked meals. However, emphasis is increasingly being placed on quick meals solution due to the busier consumer lifestyle and dual-working families with children. Consequently, this factor has placed more emphasis on fast food items.

The rise of disposable income and the public’s growing appetite for fast-foods have maintained the rapid growth of the sector. Moreover, the growth of this sector has been contributed by young adults who raise families and are likely to take their children to fast-food eateries, thus creating a new generation of fast-food lovers. Malaysians tend to spend more on food compared to other household expenditures. Accordingly to recent survey by ACNielsen, there is 59% of adult population in Malaysia that eats at take-away restaurant at least once a week.

MARKET SHARE:

Malaysian fast food industry started in 1963, when A&W opened up their first outlet at Kuala Lumpur Batu Road, which now known as Jalan Tuanku Abdul Rahman. Since then, the American franchises have been dominating the fast-food industry market in Malaysia. It includes big names like Kentucky Fried Chicken (KFC), McDonald’s, Burger King, Starbucks, Domino Pizza, Kenny Rogers Roasters and Pizza Hut.

Among the estimated 6,000 or more franchise outlets in Malaysia, foods and beverages dominate the franchising sector at about 32% and fast food or Quick Service Restaurant (QSR) market was valued at approximately RM1.8 billion.

At present, the largest foreign franchise operator in Malaysia is KFC....