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The secret of Secret Recipe

SUCCESSFUL MALAYSIAN BRANDS

By RACHAEL KAM

Saturday March 21, 2009

FOR many people, the sight of a red squarish paper bag printed with the words Secret Recipe in grey

conjures up the image of a cake.

But why do you think of cakes when you see Secret Recipe? That is the secret recipe of the brands

founder Datuk Steven Sim, who made the brand popular a decade ago.

The chief executive officer and managing director of Secret Recipe Cakes & Cafe Sdn Bhd has a passion

for brand building and always thinks out of the box. When he started the cafe business with his threenephews who are bakers, he envisioned a brand that has the potential to be recognised globally.

Datuk Steven Sim at a Secret Recipe outlet in Jaya One, Petaling Jaya.

After thinking for a name for weeks, Secret Recipe just came to me in a dream one day. I knew it would

not go wrong. It is literally a secret recipe, Sim tells StarBizWeek.

Secret Recipe is a brand that is easily acceptable as our products and menus are adaptable in any

market, he adds. Cakes, though western in origin, are quite universal and easy to relate to. It is not

mind boggling or complicated; it is a product category that is fun and anyone can enjoy, he says.

So, Sim and his nephews started their first Secret Recipe outlet in SS2, Petaling Jaya, in 1997.

The company had very much focused on brand building early on. It created its own logo, corporate

colour, marketing strategies, uniforms, menu layout, interior design and customer service standards.

To be different, we must identify the features of a brand that (can) extend beyond. These features are

what makes a brand truly unique and distinctive compared with its competitors, says Sim, who is also a

well-known speaker at brand conferences and events.

Building a sustainable business with a strong brand is no easy task, Sim says, adding that one must knowwhat the brands strength is, focus on it and develop it consistently.

Differentiation, innovation, adaptability, research and development, consistency, identity and brand

promise are the ingredients that drive and grow our company, he says.

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Today, Secret Recipe Cakes & Cafe has grown from just one outlet with a staff of two to 200 outlets,

including 50 overseas, and close to a total 4,000 employees. The company is targeting for 200 outlets

domestically in two years.

We will open a Secret Recipe outlet in Australia by year-end. We plan to have three there in the first

year, he says, adding that it now has outlets in Singapore, Thailand, Indonesia, the Philippines, China,

Pakistan and Brunei.

I am very excited about this venture because it will be our first western market, Sim continues,

referring to Australia.

There was a lot of market research done in terms of lifestyle, cultural differences, food staples and food

culture, he says.

Sim recalls that when the Secret Recipe brand was first introduced in Singapore in 2000, it did not

receive much attention, and had to compete with more established names from the United States,

Europe, Australia, Hong Kong and even Singapore itself.

We had to prove we are as good, if not better than any brand in Singapore. We have proven that by our

market presence, sustainability, consistency and awards recognition, he says.

In 2007, Secret Recipe Cakes & Cafe was awarded the International Franchisor of The Year award by

Franchising and Licensing Association Singapore. The company has also been recognised as the Largest

Caf Chain by the Malaysia Book of Records.

It grabbed several international awards such as Indonesias Best Restaurant Award 2006 given by

Yayasan Penghargaan Prestasi Indonesia, Best Casual Dining Restaurant of The Year 2007/2008 by

Hospitality Asia Platinum Awards and Philippine Tatler Best Restaurant 2008 by The Philippine Tatler

Magazine.

Sim says there are plans for three more outlets in Singapore this year, adding to the 15 it currently has in

the island republic.

Secret Recipe cafes not only offer a wide variety of cakes; the cafes concept is flexible, hence different

menu items are offered in different countries. Thats why you can find Malaysian favourites like nasi

lemak and mee goreng in some of the overseas outlets.

In a way, this is to show that we are truly a Malaysian brand, Sim says, noting that overseas customers

are under the impression that Secret Recipe is a western brand