Cafés/bars continued to feel the negative impact of the COVID-19 crisis in 2021. The Malaysia Government Movement Control Order (MCO) was reinstated in January 2021 in several states and federal territories, with a wide range of restrictions imposed, including a ban on travel between states and districts, stay at home orders, non-essential workers to work from home, and only five essential economic sectors allowed to operate (manufacturing, construction, trade and distribution, plantations and services - including supermarkets, banks and health services).
Outlet location was crucial for cafés/bars operators seeking to weather the COVID-19 crisis, largely because consumers avoided visiting destinations such as large shopping centres in order to practise social distancing. Cafés/bars operators such as Craveat Management Sdn Bhd and Black Canyon Coffee (M) Sdn Bhd, which have outlets located in shopping centres and hotels, faced considerable difficulties in attracting traffic as movement restrictions discouraged consumers from visiting busy locations.
Starbucks Berjaya Coffee Co (M) Sdn Bhd and Golden Arches Sdn Bhd remained the two largest players in cafés/bars in 2021, with both companies registering an increase in share during the year. These players benefited from the strong drive-through offer in their store networks, as COVID-19 related restrictions and consumer concerns about viral transmission through social contact bolstered the importance of such services.
International tourism is expected to revive gradually in the forecast period as the immediate threat from COVID-19 recedes, which will have a positive impact on the performance of cafés/bars, as such outlets are frequently visited by tourists. Movement restrictions being eased towards the end of 2021 – with interstate travel and dining in in foodservice outlets allowed in October – provided a boost to cafés/bars sales at the beginning of 2022.
Cafés/bars players are expected to continue to work to adapt their offers to the changing market environment during the forecast period. The revival of hectic, away-from-home orientated lifestyles will bolster the demand for convenience, with cafés/bars operators expected to introduce a variety of quick combo meals such as beverages and dessert/bakery products for breakfast and tea breaks.
Established players, particularly in the specialist coffee and tea shops segments, may look to downsize their store space in order to reduce rental costs in the longer-term. These operators may look for standalone formats in office areas and also to share space with others in order to reduce costs.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Understand the latest market trends and future growth opportunities for the Cafés/Bars industry in Malaysia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Cafés/Bars industry in Malaysia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This category encompasses all establishments where the focus is on drinking (either alcoholic or non-alcoholic beverages). While a wide variety of snacks and full meals are offered, it is not uncommon for consumers to only order a drink. As a general rule, establishments deriving 50% of their income or more from the sale of drinks are included here.See All of Our Definitions
This report originates from Passport, our Cafés/Bars research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!