Loving Hut @ Puchong

Hello! I’m the student from the Tarc and this blog was formed for a college assignment of business research. So, welcome to my blog about the business research of the Loving Hut. The first Living Hut is established in Taipei on 28 April 2008 by Supreme Master Ching Hai. Nowadays, there are more than 241 Loving Hut restaurants in 32 countries around the world.

Loving Hut restaurant is a corporate name of "love" wish that the entire world can become "family" through the "love". Loving Hut is one of the fastest growing international vegan fast food chains in the world. It is created to cater for a growing international trend into the healthy, kind and green vegan lifestyle. In order to let everybody can enjoy the foods and inspire people to consume a plant-based diet, it offers vegan food with healthy, tasty and affordable meals because it can easily available to everyone in different parts of the world. The locations of the Loving Hut are operated independently all across the world and each of the restaurants has its own unique menu which based on local ingredients, traditions and talent 

Vegetarian & Vegan Elites

The cuisines of the Loving Hut are made with wholesome vegan ingredients that are free of animal and are 100% vegan, natural, healthy, kind and green in an effort to reduce our environmental impact and the suffering to our animal friends. Loving Hut strongly believes that with enforcing 100% vegan, not only healthy but also can avoid from cancer which is caused by meat. Besides, it allows animals and human live in a peaceful world. What we eat will determine who we become? We will impact the environment when we consume excessive animal-based products, as we created water pollution, deforestation and human become one of the biggest culprits in global warming. To reduce damage to our environment, especially in solving global warming issues, vegan foods not only is the most fastest way to stop global warming at the same time strives to fight for the problems of food shortages, water, and land pollution due to animal husbandry production. 

Management concept:

1. "Love" as the core business strategy of loving hut, expanding globalization and to let the world eat healthy. 

2. The method of "innovation" as a force of sustainable management. 

3. Using “team" spirit as the completion of the mission of the enterprise. 

4. Using “love, honesty, and humility "attitude, sincere dedication and service,   let people happy with living in beautiful planet. 

Mission 

Loving Hut's mission converts all the people from the world to a healthy vegetarian and vegan lifestyle.

Vision 

All the people could live in love, peace and harmony with each other in the world.In order to achieve  this vision, Loving Hut provides healthy vegan cuisines from across the world, affordable prices, wholesome ingredients which are low in calories and free of monosodium glutamate, elegant and comfortable environment with free wireless internet access and cheerful employee who are caring about going green. At Loving Hut, all the waste thing is recycled and packaging is made of recycled material or post-consumer environment-friendly materials. Apart from that, Loving Hut also invites residents from the old folks’ homes and orphanages to dine at Loving Hut for free. 

Loving hut hope and willing to touch the hearts of all the Malaysians and make a changing to Mother Earth.

company’s current financial status. 

The company’s current financial status is stable. It has about 50 to 60 customers daily and 100 to 120 customers during the weekend. Mostly about 80% of the customers are Chinese and there is also has Indian and Malay because of the cuisine is halal. Although the cost of operation is very expensive, Loving Hut still can earn profit but not earn very much. 

There are five outlets of Loving Hut in Malaysia: 

Bandar Puteri Puchong outlet

15, Jalan Puteri 2/7,

Bandar Puteri Puchong,

47100 Puchong, Selangor.

Contact number : 03-80627769

Email: contact@LovingHutMalaysia.com

Operation hour is 11am until 10pm daily break at Wednesday

Wisma NV Multi Outlet

No 1, Jalan 1/116A, Off Jalan Sungai Besi,

57100 Kuala Lumpur,

Federal Territory of Kuala Lumpur

Tel: +60162618276

Email : contact@LovingHutMalaysia.com

Operation Hour:  Opening hour is 8am - 9pm

Ipoh Outlet

18, Jalan Mas, Taman Mas,

3200 Falim, Ipoh, Perak,

West Malaysia.

Tel: +6016- 238 8330

Email : kianfeelee@hotmail.com

Operation Hour: 11am - 3pm and 5.30pm - 10pm

(Close on every Wednesday)

Seri Petaling Outlet

53-1, Jalan Radin Bagus,

Bandar Baru Seri Petaling,

57000 Kuala Lumpur

Tel: +60390570968

Email : lovinghut.sp@gmail.com

Johor Bahru Outlet

98, Jalan Besar,

Taman Munsyi Ibrahim,

81200, Johor, Malaysia

Tel: +6072345350

Email: LovingHutJB@hotmail.com

Operation Hour: Tue - Sun, 11:00am - 8:30am

Web: www.LovingHutMalaysia.com

Channel: http://suprememastertv.com/loving-hut/

Interview an assistant branch manager

 

The owner of the Loving Hut franchise in Puchong is Tracy Wong because of the owner is at the oversea recently so I'm interview assistant branch manager of the Loving Hut, Puchong whom is Annie Thong.

1) How much does your franchise gross per year? How much does it net? Are the procedures followed to make royalty payments to the franchisee burdensome?
Sorry, I cannot answer your question because I’m just a manager and not the owner. I don’t know it as the franchise’s account is calculated by the office of the franchise. 

2) Are the financial projections of revenues, expenses, and profits that the franchisor provided me accurate in your judgment?
The manager refuses to answer this question. 

3) Does the franchisor give you enough assistance in operation your business?
I’m not the member of the Malaysian Vegetarian Society, so I didn’t know whether franchisor gives enough assistance in operating the franchise. 

4) How many hours, on average, do you work a week?
Operation hour of the Loving Hut is 11am to 10 pm and break at Wednesday. All the employee arrive at 10am and have 2 hours break for lunch and dinner. Thus, one day work 10 hours and a week is 60 hours. 

5) How often do you get a vacation?
Not really, depend on the situation of the business. 

6) Have you been caught off-guard by any unexpected costs or expectations?
Yes, I have been caught off-guard by any unexpected costs or expectations but there is still some unexpected cost such as broken plate, glass and others else. 

7) Does your franchisor provide ongoing training and support to you?
Franchisor will offer ongoing assistance and training through the Malaysian Vegetarian Society. 

8) If you had to do it all over again, would you purchase a franchise in this system? Why or why lost?
Sorry, I couldn’t answer you about this because I’m not the boss here. 

Question about franchiser and franchise

Seven Seas Delight + Soup



Sandy Beach Bars Rice + Soup, Asam Laksa, Loving Hut Ice-cream

1) Is the product or service safe and reputable?  

All Loving Huts are 100% vegan, natural, healthy, kind and green. The cuisines of the Loving Huts are made with fresh and wholesome vegan ingredients which are low in calories and free of monosodium glutamate. The company uses premium ingredients such as blown sugar, olive oil, sea salt, blown sugar, herbal spices, and a good quality of soy sauce. For example, Loving Hut purchases the soy sauce in term of a jar but not in a barrel. Thus, all the material of the foods is in high quality at the Loving Hut. Besides, most of the foods are organic even an ice-cream is also organic. An ice-cream of the Loving Hut is made by themselves using an organic soybean. The cuisine of the company is very healthy as the vegetarian meat is seldom sold in Loving Hut and they make it using source like bean instead. In addition, the soup of the shop also does not contain any monosodium glutamate but using Madou instead. 

2) Is the franchise international, national, regional, or local in scope? Does it involve full- or part-time involvement? How many franchise outlets now exist? How many will there be a year from now?

Loving Hut franchise is international in scope. Loving Hut involves full-time involvement as it needs to pass full responsibility to the franchiser. The first Living Hut is established in Taipei on 28 April 2008 by Supreme Master Ching Hai as she is being inspired by the urgency of global warming issues. Nowadays, there are more than 241 Loving Hut restaurants in 32 countries around the world such as China, USA, Taiwan, Japan, Vietnam, Hong Kong, Korea, Singapore and others, there still have other branches will be opening in many locations globally. Loving Hut opened on 12 December 2012 and has operated almost 4 years in Puchong.  

3) What service and assistance will the franchiser provide? What kind of training program does the franchiser offer? How long does it last? What topics does it cover? Does the franchiser offer ongoing assistance and training?

Franchisor will provide the concept of setting up the shop and how to set up the cuisine with healthy, organic and good quality. For example, the soup can use Madou instead of monosodium glutamate. The concept of setting up the shop is about go greening concept to avoid global warming issue, this is the main reason of the Loving Hut become one of the fastest growing international vegan fast food chains in the world. Besides, all decoration of the restaurant must fit their image standards with paintings, lanterns and crap which is similar with the franchisor. Franchisor provide Supreme Master Television channel and distribute DVDs about global warming, flyers, and to share different kinds of vegan food to the franchise to help advertisement. Franchisor will train the franchisee use heart and love the serve the customer and instill that do not waste food. Franchisor will encourage franchisee to eat vegan, use enzymes, and do not waste food. Franchisor will offer ongoing assistance and training through the Malaysian Vegetarian Society. 

4) How much is the franchise fee? Exactly what does it cover? Are there any confining fees? What additional fees are there?

Franchisee sets up the franchise by joining the Malaysian Vegetarian Society and gets approval from the franchisor. Each franchise is operating independently across the world. So, there are no franchisee fees, loyalty fees, and revenue sharing arrangements between the franchisee and franchiser. However, all decoration of the restaurant must fit their image standards with paintings, lanterns and crap which are similar with the decoration of the franchiser and it is a revenue generator for the owner. Each of the restaurants has its own unique menu, but it is recommended to purchase franchiser owner’s food products that are made in Taiwan. This is a large source of revenue and the main source as restaurants burn though processed food supplies. Thus, there are no confining fees and other fees require setting up a franchise.

5) Is there a national advertising program? How is it financed? What media are used? What help is provided for local advertising?
Loving Hut has its own television channel which is Supreme Master Television. It is own by the owner of the Loving Hut whom is Supreme Master Ching Hai. Supreme Master Television is international and non-profit channels that encourage and promote green living, healthy and peaceful. Supreme Master Television is broadcasting on 14 satellite platforms and over 90 cable and IPTV networks that in more than 60 languages. Franchisor and Malaysian Vegetarian Society will also distribute DVDs about global warming, flyers, and to share different kinds of vegan food to help advertisement. 

6) Is the potential market for the product or service adequate to support your franchise? Will the prices you charge be in line with the market?

The potential market for the cuisines of the Loving Hut is adequate to support the Loving Hut franchise. Nowadays, people would like to go trend of healthy and organic foods in order to keep fit, away from the disease and stand healthy. Some of the people may pursue green issue and willing to solve and reduce global warming.  Besides, an increase of number of vegetarians also increases the vegan market. The prices charge does not line with the market but lower than the market price. Most of the people thought that the price charge of Loving Hut is expensive as their standard, high quality and organic. However, the prices charge of the Loving Hut is set below the market price of others. This is because vegan cuisine is one of the fastest ways to solving global warming and can show compassion for all lives, in order to lest everyone can enjoy it, it must be affordable to easily available to everyone in different parts of the world. The prices charge of the Loving Hut is not only affordable but the price also cheaper than animal-derived products. 

Kitchen of Loving Hut at Puchong 

7) What is the total cost of the franchise? What are the initial capital requirements? Will the franchiser provide financial assistance? Of what nature? What is the interest rate is the franchiser financially sound enough to fulfill all its promises?

The cost of purchase of the raw material is about 30% of the sales revenue per month. The company has 10 employees includes waitress, dishwasher, chef and assistant chef. The cost of salaries is quick highly than other restaurant because Loving Hut only just hire local employee and does not hire labor from foreign countries in order to avoiding communication problems with the customers and embodied the vegan culture. It also provides EPF and SOCSO for the benefit of the employees. The fee of water and electricity is about few thousand per month. The kitchen of the Loving Hut even has 2 sets of air-conditioner in order to keep the temperature of the kitchen. Because of manager would like to reserve the secret business of the company, so the total cost and initial capital of the franchise cannot get the appropriate answer. Franchisor does not provide financial assistance because it would let franchisee to operate independently.  

8) What is the length of the franchise agreement? Under what circumstances can it be terminated? If you terminate the contract, what are the costs to you? What are the terms and costs of renewal?

The length of the franchise agreement is not limited because each franchisee is operating independently. It can be terminated at any time and bear the costs itself.  

9) Are you allowed to sell your franchise to a third party? Does the franchiser reserve the right to approve the buyer?

It is allowed to sell franchise to a third party but need to seek approval from the franchisor. Besides, the third party must join the member of the Malaysia Vegetarian Society in order to get the right of operating the franchise.

A franchise evaluation checklist - myself

1) Are you qualified to operate a franchise successfully? Do you have adequate drive, skills, experience, education, patience, and financial capacity? Are you prepared to work hard?
I would be qualified and able to operate a franchise successfully. Although I do not have adequate skills and experience but I have adequate drive, patience, and education in marketing, and green knowledge as I would do as much as possible of research and survey to elevate the experience and confidence to start up a franchise. I would solve the financial capacity by collaboration with relative or friend who is interested and has experience in operating the Loving Hut franchise. I would prepare to work hard in to spread to mission and vision of Loving Hut worldwide. 

2)  Are you willing to sacrifice some autonomy in operating a business to own a franchise?
I am willing to sacrifice some autonomy in operating a business to own a franchise such as Loving Hut. I would like to spread the mission and vision of Loving Hut to my hometown which is Sabah and let the people of Sabah to enjoy a delicious, healthy and affordable cuisine. 

3) Can you tolerate the financial risk? Would business failure wipe you out financially?
I can tolerate the financial risk although business failure would wipe me out financially. Because of the noble and meaningful to spread the mission and vision of Loving Hut across the world, so no matter how hard is it, I would try my best to operate the franchise. 

4) Can you juggle multiple tasks simultaneously and prioritize various projects so that you can accomplish those that are most important?
I cannot juggle multiple tasks simultaneously and prioritize various projects so that I can accomplish those that are most important because I would like to do a task with one mind in order to complete the task successfully. 

5) Are you genuinely interested in the product or service you will be selling? Do you enjoy this kind of business? Do you like to sell?
I am genuinely interested in the cuisines and foods I will be selling and I enjoy this kind of business and like to sell it because of the mission and vision of the Loving Hut, it is very meaningful to operate it. 

6) Do you enjoy working with and managing people? Are you a “team player”?
I am enjoying working with and managing people and I am a team player. As I do not have enough experience, so I would collaborate with partners to operate the franchise to elevate my confidence to start up a franchise. In order to operate a franchise successfully, communication and collaborate with employees and partners is very important. I would use love to build relationships and collaborate with partners and the employees. 

7)      Will the business generate enough profit to suit you?
The cost of the raw material of the Loving Hut is very high as all the material use is in high quality. Thus, the business is able to earn the profit but just earn little. The business would generate enough profit to suit me as long as it does not suffer loss because people should contentment. If I earn enough profit, I would open another franchise at another place.

result of customer survey

There are 7.054 billion populations in the world, but there is less than 10 % are vegans? The concept of the loving hut is very amazing, so why can’t Loving Hut unable to inspire all the people in the world become a vegan? In order to find out the answer, I do the customer survey about vegan survey and knowledge of the green concept on 10 customers from the Loving Hut and 10 students from the Tarc College.

Based on the result of the customer survey, I found that most of the vegetarian or the customers of the Loving Hut have the knowledge about meat production will bring negative effect to the world and believe that become a vegan is the fastest way to save the world. However, about 90% of the students from the Tarc College only have a little concept of green concept such as recycle, reduce and reuse. They didn’t have any of the knowledge about meat production might damage the world and didn’t believe that become a vegan is the fastest way to save the world.

Below are the statistic of the result of customer survey:

Age of the customers

 The main reason I eat vegan was because of :

How often do you eat vegan?

What are you doing to help the planet?

Have you heard of the following issues surrounding beef?

Do you know that meat production produces lots of methane (a greenhouse gas) and eating a half-pound hamburger is equivalent to driving nearly 10 miles in car in the amount of CO2 equivalent greenhouse gases produced?

Do you know that meat aggravates world hunger as more than half the U.S. grain and nearly 40 percent of world grain is being fed to livestock rather than being consumed directly by humans?

Do you agree that become a vegan is the fastest way to save the world?

Conclusion

Although “go green, eat veg to save the world” message of the Loving Hut transfer worldwide but still cannot inspire people to do so. However, Loving Hut still can through the trend of healthy, affordable and organic foods in order to keep and increase customers and achieve the mission of converts all the people from the world to a healthy vegetarian and vegan lifestyle.There are some of the information are show at appendix 1, and hope that all people can go green and eat veg.