Malaysians love for food has created a large market in the food and beverage (F&B) industry. F&B services recorded a gross output value of RM82.8 billion in 2017 as compared to RM66.4 billion in 2015, with an annual growth rate of 11.7 per cent.
Malaysian food came about from a colourful blend of many cultures, resulting in many different cuisines. The outlets in the F&B industry consist of full-service restaurants, fast-food cafés/bars, street stalls/kiosks and self-service cafeterias. The primary local cuisines are Malay, Chinese and Indian food, but there are also cross cultural adaptations and mixed cultures such as Mamak (Indian-Muslim cuisine) and Nyonya (the Malay Chinese mix). The F&B industry in Malaysia is also highly diverse with American, Italian, Japanese, Korean, Middle Eastern and Thai options all widely available.
There are many well-known restaurant chains in Malaysia. Papparich, one of the most successful casual dining restaurants serving Malaysian cuisine, has over 125 stores worldwide. The Chinese chain restaurants include Tai Thong Group, Oriental Group, Oversea Group and Grand Imperial Group. TGI Fridays, Chili’s and Tony Roma’s are all American chain restaurants in Malaysia. International fast food chains such as McDonald’s, Subway, Starbucks and Nando’s have also established their presence in Malaysia.
The F&B business has to meet the challenges of meeting customers’ tastes while managing high capex. As such, is important to minimize the capex whilst getting the food formula right to extend the longevity of the restaurant. From the accounting angle, there is a constant need to assess the useful lives of PPE and to review their impairment. Restaurant chains that make use of central kitchen arrangements need to be careful about transfer pricing and the timely recording of transactions.
From the tax angle, capex such as fit-out costs and consumables prior to opening an outlet usually face challenges when claiming tax deduction or capital allowances. F&B groups also face the dilemma as to whether to place all their restaurants under one company or under separate companies. Either choice has its own advantages and disadvantages from the tax angle.
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Ensure resilient power supply and safe operation
This requires a reliable power supply. But that's not enough to ensure uninterrupted operations: The safety of people, products, and processes must be maintained at all times, in manufacturing plants as well as office and administrative buildings.
Quickly adapt to changing consumer preferences
The food and beverage industry is driven by trends and rapidly changing customer demands. New products need to be developed quickly and manufactured reliably and with the highest quality using production equipment that can be adapted just as quickly.
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