- 11 minutes ago
Every great brand starts somewhere. Group CEO at Secret Recipe Cakes & Cafe, Patrick Sim takes us through the journey of building, growing, and staying true through changing times revealing the real story behind Secret Recipe.
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00:07All right, today Cigar SP has been one of the most recognized Malaysia's most iconic brand
00:14with multiple outlets across multiple markets within the brand has gone into international
00:21market as well. But the story began at the small town back in SS2 in 1997 and for this
00:29segment we're going to take a look and explore how this small cafe neighborhood has become a successful
00:37well-known global F&B brand that has stood the test of time and for that I welcome you and
00:43I'm
00:43honored to present you who's ready with me. On the side is Patrick Sim, the group CEO of Cigar SP.
00:50Thank you so much for joining us Patrick. We know that Cigar SP started as a family business and has
00:55grown into a global F&B brand. Firstly, share with us how did Cigar SP first start?
01:04Right, so back in 1997, the founder in fact which is my uncle Dato Steven Sim, so he's quite a
01:13legend
01:14in the industry like F&B industry now. But back then he had this vision and because the cafes in
01:261997,
01:27they were either like bakeries, you know you got your cakes from your bakeries or either you go to a
01:32Kopitiam to have a cup of coffee but there was no nice place where you can sit down with a
01:38slice of cake
01:38and coffee in a good ambience back then and he found that gap in the market. So interesting story,
01:45back then he had nothing to do, he had no background with bakery or cooking but he was always an
01:51entrepreneur at heart. In fact, if you would guess what his profession was, he was actually a hair
01:56stylist. Oh okay, interesting. Yeah, so he was a hair stylist and he actually worked with my cousins,
02:05his nephews who had some baking background to start the cafe. So he actually closed down his hair salon
02:12back then in SS2 and took the risk to actually try to run a cafe with his nephews. Yeah, so
02:20Dato Steven
02:22actually he came from Kelantan. Okay, so my grandfather came from China. Okay,
02:27Long back then, he had 10 children. Dato is actually the youngest one. Oh yeah, quite a big family. So
02:36growing up was definitely tougher, you know, 10 children had to take care of so many families. They
02:41were saying that even eating egg last time was a luxury. So they would actually leave the egg on
02:48their lips to show off to you know the neighbour that eat egg today. So yeah, growing up a bit
02:54tougher.
02:55Yeah, so but he always had the entrepreneur mindset and he wanted to build a business
03:00and you know they started Secret CP back then and it's grown today and really helped you know the
03:06family. We know that the beginning was not easy but it was the moment to start something new
03:12for the whole family. Yeah, and we do that looking back probably in tougher times we have to do multiple
03:22or
03:22very hard decisions not only for the business as an entrepreneur but also for the whole family.
03:28Looking back, share with us what some of the most important decisions that ultimately lay
03:36the truest or we can say the foundation that lead to the long-term success of the brand. Right,
03:43So back then, you know starting off any business is really very challenging. You don't know much about
03:52so many things, you're just learning as you go. I think the key is actually having that grid,
03:57that continuity to push on. So my uncle Dato Steven used to tell us this story. You know people would
04:04walk into the cafe at the start of the business and you know they look around and they say you
04:09ask him
04:09are you selling furniture? Oh, okay. You know why? Because nobody in the cafe table and chair so they
04:16ask him, are you selling furniture? So yeah, it was a really tough time back then just pushing the
04:23business but after a while they managed to get some things right. They learned along the way.
04:29In fact, one of the pivoting points is when they won the best cheesecake award in 1998.
04:34Well that is they say often the breakthrough moment. So that again is another interesting story behind
04:40that. So they actually submitted to join this award and somehow I think very busy in the cafe,
04:48they forgot about it. So when the person in charge came to pick up the cake, they realized we didn't
04:55really get ready. Never mind, we just take a cake from the fridge. Oh my. Existing one and then they
04:59give to the person and somehow that cake still won. Oh my god. Yeah. Definitely the cake.
05:04The cake has some unique element. Yeah, yeah. It has its cigar recipe. That's why it's won. Yeah.
05:10And winning the marble cheese cake at the Kuala Lumpur Cakes and this is back in 1998 competitions.
05:18How transformative was this moment in shaping the trajectory of cigar recipe moving forward after that?
05:25It was really important because it made the brand more famous and people saw, okay,
05:29this one award. Maybe let's give it a try. So that really helped drove many customers to us.
05:35Then from then on, we tried to expand more outlets. One of it is through franchising and you know,
05:42we expanded having a central commissary to support more outlets and it just continued rolling since then.
05:47Yeah. It's a very proud journey from the beginning until the end and this is the moment of breakthrough
05:56from a single marble cheesecake and it has built, secret recipe has grown far more beyond that and
06:04starting scaling a local concept because we know many entrepreneurs out there, they only start with
06:10sometimes with single but only a few managed to grow into a multiple or expand in different locations or
06:16different markets. Maybe share with us what a secret recipe, secret success behind of you managed to scale
06:26sustainable or managed to scale until now. Right. So I think for F&B, one of the major concerns people
06:33have is
06:34when you start to scale, the product becomes more inconsistent and you don't really get the kind of
06:40service or satisfaction levels you will have when it was smaller. So we did some practical steps along
06:48the way. One is actually setting up a central commissary, which a lot of F&B nowadays they do about,
06:53I think, I believe we were one of the pioneers back then in 1999, 1998. You are good, you guys
06:58are.
06:58Yeah. So we're famous for our cakes. That's our core product. We make sure everything is made within
07:04the factory and not, you know, in single stores where it can be more inconsistent when it involves
07:10a lot of different people. Now, I'm quite interesting. How did you transitioning to taking a leadership role
07:19now? Yeah. Being the Group CEO. So was it overwhelming feeling because you need to not only learn about the
07:25products that Cigure SP has offered to other people, but you also need to understand the consumer habits,
07:31what do they like and what kind of trend you have to manage or you have to strategize to make
07:37sure
07:37Cigure SP is still relevant. Share with us your experience. Right. So I think in a sense, I've been with
07:43the company for a while before I took on the role. In fact, I'm 12 years now. 12 years? Yeah,
07:49with Cigure SP.
07:49It's a one decade. Congratulations. Yeah. Thank you. Yeah. So, you know, you learn along the way.
07:55Of course, I made a lot of mistakes, but I think that's a point where, a good point to learn.
08:00Mistakes are
08:00where we learn better. Yes. Mistakes, we learn better. Yeah. And you just try a lot of things on the
08:09way.
08:09I think the important thing is to never give up. Be open about learning new things, learning from people
08:15within your networks, learning from suppliers, and then trying to push through and implement.
08:21And of course, having very good people around you to support your growth. Definitely, the talent around us.
08:27Yeah, yeah. I would say that's really important. And we know that FMB industry is also highly competitive
08:33and the trends keep changing quietly. But this is also a challenge for the leaders and CEO like you also
08:40to look at the market. So this is the niche we are going forward. But share with us, what are
08:46the
08:46difference or what separates brands that enjoy, that enjoys maybe a short-term popularity other than
08:53the people who endure decades to maintain relevant? It's not easy for FMB to maintain for so long.
09:01We are actually 29 years already today. 29? Today? Yeah, not today, but this year 29 years.
09:09In fact, next year will be our 30th anniversary. My happy anniversary.
09:14So, FMB brands come and go. Trends come and go. I think we want to make sure
09:18the core product offering that we have is still very relevant to Malaysians or globally today.
09:28One thing is to make yourself quite unique. I would say Secret 3 Kicks are still very unique in the
09:33market.
09:33Still. I just had them last week. Right. Thank you so much for your support.
09:38Yeah. And if you were to ask, sometimes people ask us, who is your direct competitor? And
09:43the answer is not so direct, right? Versus some other brands where you can just compare it so obviously.
09:49So, I think we carve ourselves a unique space and we make sure we are consistent across for many,
09:57many years. What we do and we definitely have to keep on innovating new products, technology and whatnot
10:06to be able to be relevant today still. Through marketing, branding, it's continuous and never ending.
10:13True. Continuous, never ending. I doubt that even if you're talking with me right now in the studio,
10:19sales are still going up. And it's very inspiring to hear this story also. And we know that to keep
10:28evolving, to keep marketing products, to do what the world needs also. And if from my experience also,
10:36cigarette recipe also set a standard for chocolate indulgence. Right. So, if I go to any new other
10:42cafes or any other local brands that like give like chocolate, and then if it's similar like yours,
10:49and then we were like, we put a standard like, oh, this is like chocolate indulgence cigarette recipe.
10:55So, I think it's very good that you guys managed to maintain the quality over the decades. Yeah.
11:01Because it's not definitely, these shows means you have established to where you start, to where you
11:07are right now. And as a second generation leader in the businesses, we know it's not easy because you
11:12need to also overcome any challenges moving forward, follow up with the trends. But also, how do you
11:20preserve the founder's vision, but at the same time generate new ideas, new strategies to move forward the brand?
11:28So, I think the core of what Secret recipe is in terms of its values, what it represents,
11:34our tagline is actually sweet moments together. So, I think that is something that can transcend the
11:39generations. It's about, you know, celebrating with your family or your friends, having some good time.
11:45So, what you want is whenever you walk through a Secret recipe, yes, we renew the brand. Nowadays, we
11:51renovate and we make the stores look a lot nicer. But you still feel that core value
11:57when you walk into Secret recipe, which is our founder's vision of being able to just be there for
12:02your family, for Mother's Day, it's our most top selling day. Celebrating those sweet, special moments
12:08together. That's how we do it. Despite all the digitalization and all the technology coming in
12:13nowadays, the core beats still the people and our customers.
12:17Yeah, we can see that consumer habits is evolving dramatically from eating in cafes and restaurants
12:23and then we go to food delivery and other digital platforms to get food. How do Secret recipe adapted
12:31to these changes while maintaining its core identity?
12:36So, I think on the back of it, we do implement a bit of technology in terms of analyzing the
12:42data
12:43we get from all the different customers. So, we can actually customize how we serve them better. You
12:49know, if you like this certain item or this product, you know, maybe we can do a bit more with
12:53you.
12:54But we still maintain, you know, service levels within the store. So, when customers still walk in,
12:58they should be able to experience Secret recipe on a more people basis. I mean, we try our best in
13:05that
13:05area. But technology is just an enabler from what I think it enables you. It's a tool to help us
13:12do our job better to serve our customers. And we can reach to your customers in a lot of ways.
13:18Yeah, yeah. If they can't come to our stores, which is hundreds all over the state, you can just order
13:24the delivery. Yeah. So, we work, we grab, you know, if sometimes there's a nickname for us,
13:29last-minute cakes. Last-minute cakes. Yeah. So, if you forgot about, I mean, hopefully not. Yeah.
13:35Your wife or your girlfriend's birthday, Secret recipe is there for you. Yeah. That's the secret
13:39of keeping. Yeah, we are everywhere. Yeah. That's the secret of. Yeah. One hour, okay. Half an hour.
13:46True. And that's the way to not keep our partners or spouse angry. Yeah, yeah, yeah. Correct.
13:52Correct. Correct. They're there to save you. And we know that SR also expanded in multiple
13:58international markets. What are some of the biggest lessons that you have learned about bringing
14:02Malaysia brand into the global stage? And definitely we want to understand. First,
14:07establish is another challenges when you started and then you try to sustain is another challenges.
14:12But now you have gone into the international market. You need to keep evolving and sustaining.
14:18What are the challenges that you have learned that some of the core value that,
14:23all right, this is something that any entrepreneur must understand and overcome?
14:29All right. So, for us, when we expand overseas, currently we use a master franchise model. So,
14:35we work with a partner in the local country because we feel they would know the market better than us.
14:41And, you know, normally we try to work with someone more established where they have retail networks.
14:46And, you know, they have experience in F&B. So, I think the number one thing for us is
14:52choosing the right partner. So, I think we should be quite selective in who you choose because choosing
14:57the wrong partner could work out really badly. You have to share a lot of know-how with them on
15:02how to,
15:02you know, do our kicks. A lot of our secrets.
15:05A lot of secrets will be in the wrong hands. Yes, yes, yes. So, you have to evaluate,
15:11you have to be a bit more picky on the values that they carry, how they're going to operate your
15:15brand, whether they're going to follow your SOPs or, you know, they want to do their own thing.
15:19So, that's why we have to be very careful. Number two thing is, you know, we have to learn how
15:24to
15:24adapt to the local market quite a bit. Certain tastes are different in different countries.
15:29Especially on the food. We're quite lucky. Cake is still, I feel, quite international kind of
15:33taste. The taste, yeah. Everyone can still love it, even though, no matter how it tastes also.
15:39Right, right. But certain food might be too spicy for certain markets. Like in Philippines,
15:43they can't take so spicy. You know, certain markets, they prefer fresher type or different type of menu.
15:49So, sometimes you have to adapt a bit more, but make sure it still stay true to the core of
15:53what
15:53secret recipe is. May I know the total outlets secret recipe has now? Sure, yeah. So, we have 370 outlets
16:01in
16:01Malaysia for secret recipe. Then, total throughout the world, if we include our other brands. So, you know,
16:08we have Hokkaido Big Sheet Start as well. Thank you for bringing that also. Yeah, yeah. And Lapisan.
16:14Lapisan, yes. That's a new brand that we started. So, total about 500 stores.
16:18Wow. Total, if we add international and Malaysia is almost reach 1,000? No, no. So, total 500.
16:27Total 500. Okay. And 500 is a lot to manage. Your team is based on every state of how you
16:36only have one
16:37base in Malaysia to operate everything? How? So, our HQ is still in Malaysia. We have a team that manages
16:44our
16:44franchisees globally and also locally. So, they have to visit and audit them to make sure they are
16:49complying to the standards. Then, we have a local operating team also. So, we run about half the
16:54stores ourselves and half is a franchise, I would say. Okay. I understand. And this is some of the lessons
17:00that you have learned also throughout the decades, throughout the years, that you have to be picky
17:05with who you collaborate. Do they understand our value? Do our work's ethic or moral is aligned? And then,
17:12at the same time, we have to understand the different needs of a different consumer with a
17:18different background or from a different state. And maintaining quality while expanding is definitely
17:23is not easy. How do you maintain different quality but good, great quality within the other countries?
17:32And how do you guys innovate or within the R&D? How's the process took like? Or for example, like
17:37maybe you
17:38start from this from Malaysia and then only then you go to international or it's a different process
17:44within the international market? Right. So, in terms of international, it's not easy. It takes quite a bit
17:51of time to actually develop the know-how. So, like first thing is raw material like your ingredients
17:58that you're going to put in the cake. Can it be the same quality? And some places need halal ingredients.
18:03Yeah. So, for us, we make sure things are halal across our regional expansion. That's very important,
18:11as you mentioned. Then, can they get the raw materials in their country or they have to export it? So,
18:17there's quite a bit of work to be done. Then, you have to set up their central kitchen to be
18:22able to scale
18:23at the kind of stores they want to open. So, for example, places like Maldives, they have to bring in
18:29everything because they don't have much raw material. So, we have a secret recipe in Maldives.
18:33Yeah. Right. There will be cost a bit more on the logistics and the manufacturing.
18:40Based on the journey also, we want to take a look at the lesson for inspiring entrepreneurs out there.
18:46Based on the journey of SR over the past decades, what are the most important lessons that you would
18:50share to entrepreneurs hoping to build enduring brands of their own? Because we know that some of the
18:58challenges or some of the things that you just shared is know well who you work with and also
19:04not only know who's your partner but also know well who's the market you're entering to. But if they
19:09want to start now but they're quite shy or don't know how to get this cost to start F&B
19:16food or supply
19:18chain, what's your advice to them? F&B, to be honest, is quite a tough market because it's so competitive.
19:24People are coming in every other day. But I think if you can start off with at least a core
19:31service
19:32or product that is quite unique to the market, that's one of the starting points. Then after that,
19:37you need, it's so many things all right. You need to finance it, you need to be a team that
19:41supports you
19:42and you can trust and continue. And you need to be able to find ways to grow and expand into
19:50different
19:51markets. I would say take it step by step. Don't rush it. So sometimes if you rush things too fast
19:56really then you've got too many things to handle. That's when things start to crumble. Make sure you
20:01build up your initial place, you spend the time and effort. It's really, I mean if you first start
20:06it's just night and day really just to set it up. Once it's stable, you've got your people stable then
20:12only you can consider expanding. Don't like overgrow too fast. That is one of the don't scale too fast.
20:20Yeah, don't scale too fast. Although I mean we have scaled quite quite big but I mean it's not easy.
20:25It's not easy. There's a lot of things. It took you like 30 years, almost 30 years. 30 years to
20:31be where
20:31we are today. Correct. Yeah. And it's definitely the journey is inspiring and it's something that we can
20:38be proud of especially for a local brand that has entered international markets and have been standing
20:43steady for almost 30 years. Next year going to 30 years and probably you are bringing the future of
20:49SR for another decade. And how do you see the brand continue to evolve, the SR continue to grow
20:56within the F&B landscape? What's your next plan? Right. I mean currently we are trying to you know
21:04reach out to especially the younger customers that you know don't really know us so well compared to
21:09you know the ones that have grown up with us. So we're trying to market more to the Gen Zs.
21:14We're
21:15working with this Beachy Mow. I'm not sure you heard. Beachy Mow. So we have these plushies. It's a very
21:21cute cat.
21:21So actually it's a local artist where they do this Beachy Mow comic. Okay, okay. Then we collaborate with them
21:28to have plushies and a lot of different kind of retail items that excite the younger generation.
21:34Now we're working, we work with Zeus Coffee to launch a Zeus Indulgence in our store.
21:39Zeus Indulgence. Yeah. So a lot more collaboration, a lot more fun and excitement we're trying to do.
21:44Okay, I can't wait.
21:45We're working with the Chef Seed Mushit. So we launched a Nasi Arab.
21:48Ooh, yeah, yeah. We just launched it recently for Ramadan, right? Yeah. So if you can go ahead, come over.
21:55Yes, I would want to try it. Maybe in some later next week when I come and visit our store.
22:02Again, I will say thank you very much, Patrick. This is definitely a very inspiring story and journey.
22:07We can see from a small neighbourhood, from SS2, and then to a homegrown global F&B brand,
22:15CEO S&P is definitely a reminder that we need to have a very strong foundations.
22:20And with what you've just shared, with all the challenges and opportunities and the journey back then,
22:27we can say that consistency can turn clear and also a clear vision into a success story.
22:34Mm-hmm. This is definitely a success story for everyone. And maybe right after this interview,
22:40I'm going to go get a cake for myself. Talking about all of this makes me very hungry. Again,
22:46I want to say thank you very much to Patrick Singh, the Group CEO of Seed Groot Respe.
22:50Thank you so much, Nina, for having me here.
22:52And I hope we can have another discussion maybe next in one of your outlets.
22:55All right. Sure, sure. You're always welcome.
22:58Yes. Sorry to put you on the spot, but maybe I'm definitely hungry. Thank you very much.
23:02Hope to see you again. Thank you so much.
23:03All right. For those who missed out my exclusive interview with Patrick Singh,
23:08the Group CEO of Seed Groot Respe, you can catch it on astronomy.com and across all social media platforms.
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