Today, we had the privilege of visiting our client Max Husky at Eco Galleria, Iskandar Puteri, and it was an inspiring experience. Driving in from Singapore via the Tuas Second Link during a non-peak hour, the journey took just 45 minutes to cross the border. This convenience makes it clear why Johor is an attractive destination for Singaporean entrepreneurs exploring expansion opportunities.
As soon as we stepped into Max Husky, we were struck by its classy and thoughtfully designed interior. The renovation was tastefully done, with a blend of modern elegance and cozy charm. Every detail, from the furniture to the lighting, was carefully curated to create a memorable customer experience. The restaurant also stood out for its attention to detail:
- Personalized Touches: Cute coffee art featuring the Max Husky logo, classic glasses, and personalized utensils enhanced the dining experience.
- Customer Care: Small but thoughtful gestures, like covering drinks with coasters when customers leave the table, added to the sense of hospitality.
- Professional Staff: The restaurant, now a year old, boasts a team of six well-trained waitstaff who were attentive and efficient, further elevating the customer experience.
Background of Max Husky
Max Husky is not just a restaurant—it’s an innovative multi-concept business that combines a restaurant, dance studio, piano teaching facility, and corporate event space under one brand. This unique setup showcases the potential for blending various ventures in one location, creating a versatile business model with multiple revenue streams.
The Multi-Concept Model
Under the Max Husky brand, Gary has created a dynamic business that appeals to various customer segments:
- Restaurant: A classy dining space offering a range of dishes and beverages, ideal for families, friends, and corporate meetups.
- Dance Studio: A space for dance classes and events, targeting both hobbyists and professional dancers in Johor.
- Piano Teaching Facility: A place for music enthusiasts to learn and refine their skills, catering to children and adults.
- Corporate Event Space: A flexible venue for hosting corporate meetings, training sessions, and team-building activities.
This innovative model not only diversifies revenue but also positions Max Husky as a community hub for various activities, attracting a wide range of customers.
Factors Driving Max Husky’s Expansion to Malaysia
Max Husky’s decision to expand to Malaysia was driven by strategic and economic considerations that made Johor a more viable and attractive location compared to Singapore. Here’s a detailed look at the factors behind this significant move:
High Rental Costs in Singapore
Max Husky, already a well-established brand in Sentosa, Singapore, faced the challenge of high rental costs when exploring expansion opportunities within Singapore. The available units were prohibitively expensive and did not provide the necessary space to scale their multi-concept business model.
Cost-Effective and Spacious Premises in Johor
In contrast, Max Husky found a 15,000-square-foot property in Eco Galleria, Johor, with a monthly rent of RM20,000 (approximately SGD6,300). This larger and more affordable space enabled the business to:
- Implement multiple business concepts, including a restaurant, dance studio, piano teaching facility, and event space, under one roof.
- Enjoy a significant cost advantage compared to the smaller and costlier spaces in Singapore.
Lower Overheads and Operational Costs
The cost efficiency extended beyond rental expenses. Johor offered:
- Affordable Staffing Costs: Labor costs in Johor are substantially lower than in Singapore, enabling Max Husky to hire more staff. This additional manpower enhances customer service and overall operational efficiency.
- Sustainable Operating Expenses: The combination of lower rent, staffing, and utilities ensures that the business can operate sustainably over the long term.
Market Demand in Iskandar
The presence of a growing expatriate community in Iskandar Puteri was a key driver behind the expansion. This demographic, coupled with increasing local demand, provided a robust target audience for Max Husky’s offerings.
Enhanced Customer Experience
With the ability to hire more staff in Malaysia, Max Husky significantly improved its customer-centric approach. The availability of additional manpower allowed the business to:
- Deliver personalized and attentive service.
- Create a seamless and memorable experience for customers.
A Strategic Decision for Long-Term Success
The expansion to Johor was not just a cost-saving measure but also a strategic decision to scale the business effectively. By leveraging the advantages of Johor’s lower overheads and strong market potential, Max Husky positioned itself for long-term growth while maintaining its high standards of service and customer satisfaction.
This move demonstrates how strategic location choices and thoughtful planning can transform a business model, ensuring sustainability and success in a competitive market.
Financial Model
Max Husky’s financial model is designed to leverage the cost advantages of operating in Johor while maximizing revenue through its multi-concept business approach. By combining affordable rental rates, reduced overhead costs, and diversified revenue streams, the business achieves a sustainable structure that ensures long-term profitability. This strategic approach not only optimizes operational expenses but also aligns with the growing market demand in Iskandar Puteri.
Initial Capital Investment
| Initial Capital Investment | Amount (MYR) | Approximate Amount (SGD) |
|---|---|---|
| Renovation & Furnishings | MYR 600,000 | SGD 173,000 |
| Licensing & Permits | MYR 30,000 | SGD 8,600 |
| Equipment for Dance and Piano Facilities | MYR 200,000 | SGD 57,700 |
| Marketing and Branding | MYR 50,000 | SGD 14,400 |
| Total Initial Investment | Approximately MYR 880,000 | Approximately SGD 253,700 |
Expected Revenue Generation
| Expected Revenue Generation | Amount (MYR) | Approximate Amount (SGD) |
|---|---|---|
| Restaurant | MYR 150,000/month | SGD 43,000/month |
| Dance Studio and Piano Lessons | MYR 50,000/month | SGD 14,400/month |
| Corporate Events | MYR 30,000/month | SGD 8,600/month |
| Total Monthly Revenue Estimate | Approximately MYR 230,000/month | SGD 66,000/month |
With strong traffic at Eco Galleria, particularly on weekends, Gary expects to achieve a return on investment (ROI) within 2-3 years.
The Eco Galleria Advantage
Eco Galleria’s location in Iskandar Puteri is a key factor in Max Husky’s success. Here’s why:
- Proximity to Singapore: A 45-minute drive via the Tuas Second Link makes it convenient for Singaporeans to visit.
- High Foot Traffic: The mall attracts locals and tourists, particularly on weekends.
- Modern Infrastructure: Eco Galleria’s design and amenities complement upscale businesses like Max Husky.
Map of Eco Galleria
Overcoming Challenges: Establishing Max Husky in Eco Galleria, Iskandar Puteri
Setting up Max Husky, a multi-concept business in Eco Galleria, Iskandar Puteri, was an ambitious project filled with unique challenges. Over the course of a year, Luma Insight collaborated closely with Gary, our client, to overcome obstacles ranging from licensing complexities to navigating unfamiliar systems. Below is an in-depth look at the hurdles we encountered and the solutions we implemented to bring Max Husky to life.
Business Premise License Requirements
The Challenge:
Securing the business premise license required comprehensive documentation, including approvals from the shopping complex management and proof of property tax payments from the landlord. These were mandatory for compliance with local regulations.
Our Solution:
- Collaborated closely with the complex management to compile and submit the necessary documents.
- Worked with the cooperative landlord to secure updated property tax payments, expediting the approval process.
Staff Qualifications for Compliance
The Challenge:
Local regulations required staff to hold specific qualifications, such as food handling certifications, which were challenging to fulfill due to limited availability of qualified candidates.
Gary’s Approach:
Gary independently connected with reputable training providers and local recruitment agencies to meet compliance requirements set by MBIP (Majlis Bandaraya Iskandar Puteri).
Navigating Local Government Processes
The Challenge:
The MBIP office primarily communicated in Malay, creating a language barrier for Gary and his team. Navigating the intricate approval processes added complexity.
Our Solution:
- Acted as a non-executive local director to handle all correspondence and communication with MBIP.
- Bridged the language gap to ensure smooth and efficient interactions with government authorities.
Adapting to the XpatNova System
The Challenge:
The XpatNova system, newly launched in 2024 for employment pass applications in Iskandar Puteri, required both Gary and our team to familiarize themselves with its functionalities and requirements.
Our Solution:
- Worked closely with XpatNova officers to understand the system’s intricacies.
- Dedicated time to mastering the platform to ensure compliance and efficient application processing.
Licensing and Setup: How Luma Insight Helped
Setting up a multi-concept business like Max Husky requires navigating a complex licensing process. Here’s how Luma Insight assisted Gary:
- Business Licensing:
- We ensured compliance with all relevant local council requirements for F&B, education, and event spaces.
- Special licenses for the dance studio and piano teaching facility were secured with minimal delays.
- Renovation Approvals:
- Luma Insight helped obtain renovation permits and ensured the design met safety and regulatory standards.
- Brand Registration:
- The Max Husky brand was officially registered, including trademarks for its logo and branding elements.
- Operational Support:
- We assisted in staffing, sourcing high-quality materials, and recommending vendors for specialized equipment.
Key Takeaways for Singapore Entrepreneurs
The success of Max Husky in Johor’s Eco Galleria demonstrates the value of strategic planning and expert guidance. Collaboration with local stakeholders, such as the shopping complex management and landlords, was essential for overcoming regulatory challenges. Having a local representative fluent in Malay streamlined government processes, while adaptability in learning new systems like XpatNova ensured compliance and efficiency.
For Singapore business owners, Gary’s journey underscores the importance of diversifying business concepts, leveraging cost advantages in Johor, choosing prime locations like Eco Galleria for accessibility and foot traffic, and partnering with professionals to navigate licensing and setup complexities. These strategies collectively create a foundation for sustainable growth and success in Malaysia.
Final Thoughts
Our visit to Max Husky was not only an enjoyable experience but also a testament to the opportunities available for Singaporean businesses in Johor. Gary’s innovative approach, combined with the support of Luma Insight, has turned Max Husky into a thriving multi-concept brand.
If you’re considering expanding your business to Johor, let us help you navigate the journey—from licensing and compliance to operational support. Reach out to Luma Insight today, and let’s make your vision a reality!
