HWC Coffee Malaysia, the operator of latest specialty coffee chain in the country, has announced a RM60 million investment plan to expand its business by establishing up to 85 stores by end of 2024. This ambitious investment strategy is a response to the increasing demand for high-quality coffee in Malaysia and the promising growth prospects for the industry.
The investment plan and expansion strategy demonstrate the company's strong commitment to delivering high-quality coffee and excellent customer service to its growing customer base. The company's ambitious plans position it for continued success and growth in the highly competitive coffee industry.
Under the plan, the company will invest RM25 million this year to open 35 new stores as well as to setting up a coffee academy, a flagship store, and a new corporate office at Millerz Square in Old Klang Road. Remainder RM35 million will be spent in 2024 for the opening of additional 50 more stores.
"We are very optimistic about the coffee market in Malaysia, and we are rapidly expanding our business to meet the growing demand. To attract more customers and enhance our market position, we will increase our marketing and promotional efforts," said Hoe Kian Choon, founder of HWC Coffee Malaysia.
As Malaysia's first specialty coffee chain and a strategic hub for Southeast Asia, HWC Coffee has announced that its first Malaysia and Brunei flagship store is slated to open in May 2023.
HWC Coffee Malaysia, which is 70%-owned by Palaterium Sdn Bhd, is a coffee chain that offering specialty coffee and light food, such as cakes and croissants. In response to customer demand, the company plans to introduce hot food options to its menu.
“We are growing rapidly but cautiously, to ensure that all new locations meet high standards of quality and customer satisfaction,” Hoe added. With this investment strategy, HWC Coffee Malaysia aims to capture a significant share of this market and become a leading player in the industry.
HWC Coffee Malaysia, which had invested RM10 million in new stores opening last year, plans to expand its business further by opening 10 pipeline outlets in Brunei, Singapore, and Indonesia. The company is set to open a flagship outlet in Brunei in May, and it is currently exploring opportunities to expand its business in other overseas markets.
Currently, the coffee chain operates a total of 19 brand stores across Malaysia, with the most profitable locations at Gardens Mall, Pavilion Bukit Jalil, and 1 Utama.
First HWC Signature Store Located at Pavilion Bukit Jalil
19th HWC Brand Stores Located at IOI Mall Puchong
HWC Coffee Taiwan, which owns remaining 30% stake in HWC Coffee Malaysia, is the manufacturer of HWC roasted coffee beans, drip coffee, and coffee brew bag products. HWC Coffee Taiwan operates a 14,000 square feet roasting and packaging factory in Taiwan and exports its products to 26 countries worldwide. The company recently invested RM1.3 million to purchase a coffee roaster to improve the quality of its roasting process and facilitate its business expansion in Southeast Asia.
Meanwhile, HWC Coffee organized a visit to Taiwan, inviting Malaysian and Bruneian media, content creators, and investors to experience the coffee harvesting, roasting, and packaging process where HWC Coffee was founded. This initiative is part of the company's commitment to the "From Farm to Cup" concept and its desire to bring it closer to more people.
Additionally, HWC Coffee has enlisted the help of renowned local artists Jack Tan and Natasha Sass as HWC Friends. This unprecedented link between the coffee industry and the arts marks a significant step in promoting specialty coffee.
Jack Tan and Natasha Sass appointed as HWC Friend