“Don’t burn your EPF savings diving into risky F&B unless you’re a passionate, obsessive foodie”

 

“DON’T enter into business just because you have a bit of spare cash lying around. F&B (food & beverage), in particular, is a tough industry.”

That was the simple message shared by enterprising digital creator Roman Akramovic (@SyedAkramin) who felt compelled to advice potential entrepreneurs about the pitfalls of the makan business.

Citing success stories such as Khairul Aming, BangSudu and Ming Chuun, it was surmised that the trio made it because they are not just passionate but obsessed about the F&B industry.

Knowledge, interest and drive was required to succeed, hence the advice was to think carefully before taking the leap as opposed to simply because “one has the money”.

The pro-Madani influencer was mirroring advice proffered by Entrepreneurial and Cooperatives Development Minister Steven Sim Chee Keong at a dialogue session entitled SME: The Backbone of Malaysia Economy at MITEC, Kuala Lumpur on April 12.

Explaining that there are not enough stomachs to sustain the number of new restaurants opening each year, the former Human Resource Minister urged entrepreneurs to exercise caution before going all-in to invest in F&B business.

“Don’t enter the restaurant business. If you want to serve people, enter  politics,” the DAP deputy secretary-general jokingly concluded.

Emphasising the point about obsessiveness, Syed Akromovic shared examples of the aforementioned entrepreneurs who have succeeded in building successful F&B businesses.

First was popular influencer Ming Chuun who scoured the length and breadth of the country in search of the best ayam gepuk (an Indonesian-styled ‘smashed’ fried chicken dish) before opening his own restaurant.

The inspiring journey of BangSudu who graduated from a roadside nasi lemak vendor to restaurateur was also highlighted as example of grit, determination and passion.

Many commenters were in agreement that F&B is a cruel mistress and could wipe out a person’s hard-earned savings.

Warning those who have just collected their EPF pension funds to not lose it all in F&B, one observer claimed that many are unsuited to this industry as they have no prior experience being entrepreneurs.

As such, it is just best to lead a simple existence upon retirement rather than having to work as a security guard when one has lost-it-all in an ill-advised restaurant venture.

Somehow echoing a similar sentiment, another commenter pointed to better putting one’s EPF savings in ASB (Amanah Saham Bumiputera) or any trust fund with a prospect of “securing big (dividend) returns”.

Patience is a virtue, counselled one level-headed commenter. Do not rush into things and make sure due diligence and research is carried out. Let the research be prolonged rather than regretting a hasty decision.

Start small was the helpful tip by one conservative commenter. There’s no need to invest heavily in rented premises and renovation only to give up short time later. Note that even big brands suffer losses in this aspect.

All sound advice. But whether budding entrepreneurs will take heed is another matter altogether.

Food is central to Malaysian culture and many will feel compelled to try their luck. Whether they succeed depends on the abovementioned pre-requisites of passion, drive and obsessiveness, otherwise they may be looking at gaping holes in their finances/savings. –  Focus Malaysia