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How Secret Recipe Went From A Family Business To An International Brand

by Afiq Amin
February 22, 2024
SOURCE: SECRET RECIPE

SOURCE: SECRET RECIPE

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What is the go-to dessert store when you need to buy a birthday cake? Of course, most would answer Secret Recipe! You can never go wrong with any of their delicious cakes, even if it’s just a slice. Did you know that the company has been around for 26 years?

Every success comes with a backstory and Secret Recipe is no exception. Before becoming one of the most popular and beloved brands in Malaysia, the company was once a small family business cafe in Petaling Jaya. Let’s learn a little more about the history of how the brand started in the Food and Beverages (F&B) industry.

SOURCE: PURPLEDURIAN

Let’s start with the founder of the business, Dato Steven Sim. The entrepreneur was born in August 1961 in Kota Bharu, Kelantan to a low-income family. Growing up, his family couldn’t afford much but it was later discovered the youngest of 8 children was very creative as he would create his own toys to play with. Who knew that he would also have a talent in business later in life? A struggling childhood didn’t stop the future entrepreneur from furthering his studies as he graduated from Universiti Malaya with a Degree in Accounting.

It was understood that Steven actually has little to no experience working in the culinary business. Before starting his own company, the founder used to work in the marketing department of an international company circulating the Asia Pacific as well as an auditor for Ernst & Young for several years. He noticed that there was something lacking in the F&B business as there were not many casual lifestyle dining cafes at the time.

Because of this, the former Marketing Director then resigned from the corporate world to start his own business. At 41 years old, Steven opened the first-ever Secret Recipe outlet in Petaling Jaya in 1997 with his three nephews (who were bakers). The founder used the then-only outlet to test how Malaysians would accept the restaurant – which focuses mainly on cakes with several unusual flavors. To promote the business, the founder himself had to distribute flyers all around the area and even offered free coffee to attract customers. Thankfully, this strategy worked as people dined in to try the desserts served with the free coffee.

SOURCE: SECRET RECIPE

To further improve the food’s quality, the owner personally asked customers for their feedback on the brand’s dessert so that they could cater to everyone’s needs and preferences. Secret Recipe then got its big break after winning the Best Cheesecake award in the Kuala Lumpur Cakes Competition in 1998. As the brand’s name was getting more famous, it was only a matter of time before Steven decided to expand the business. It was said that the owner first franchised the brand among his friends in 2000 before opening up a second outlet in 2002 in Kuala Lumpur.

The following year, Secret Recipe opened up another outlet in Selangor. In a relatively short time, the brand managed to launch 150 outlets throughout the region. After the brand’s success in Malaysia, it was time to broaden its horizons and open up restaurants abroad. It took years but the household dessert shop managed to open several shops in main cities and shopping malls in other countries like Singapore, Indonesia, China, Maldives, and Thailand!

Of course, success wouldn’t come without some major setbacks. Secret Recipe ventured into Australia in 2010 but not long after, they found the market there too challenging so the business went into administration. Despite investors spending approximately $7 million USD, the Malaysian brand failed to gain traction and only received about $3 million in profit. Australia-based Secret Recipe director Ming Low soon realised that the problem was, “Our concept best suits a shopping centre environment because of the family-friendly shop design and value-for-money menu offering.”

SOURCE: PURPLE DURIAN

Sadly, most if not all branches from down under ceased operations due to poor performance. Regardless, that hasn’t stopped Secret Recipe from achieving other milestones. The brand has won multiple prestigious awards over the years including the Putra Brand Awards, Global Innovative Personality By McMillan Woods Global Awards, Malaysia’s Best International Lifestyle Restaurant Award, Best Multiple Cafes Award, and the Malaysian Business of The Year By Star Outstanding Business Awards earlier this year.

The franchise will be celebrating their 27th anniversary in the F&B business this year and is showing no sign of slowing down. So how about stopping by your nearest outlet to appreciate how far this company has come to provide customers with the best food, drinks, and, of course, desserts they can offer?

Sources: Secret Recipe, SparrowSPH, Anyflip, VulcanPost, Coursehero, Orangkata, PurpleDurian

Secret Recipe Malaysia
https://lomp.at/or2r6
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