Fruit Store Chain Business

By EILEEN HEE

MBG Fruits Sdn Bhd, a local fruit store chain, has grown from strength to strength since it was first conceptualised in 2005.

According to managing director Adnan Lee, MBG is a first-of-its-kind fruit shop in the country with a money-back guarantee for fruits sold that are spoiled or rotten.

“If a customer is not satisfied with our fruits, they can return them,” he tells StarBizWeek.

Adnan says MBG decided to adopt the concept as it allows the company to keep track of the quality of its products. “This way, we get responses from customers if there is something wrong with the fruits we sell,” he says.

Adnan Lee at his MBG Fruits outlet

“In a month, we have five to 10 cases of people returning fruits. When they do that, we can find out which suppliers or farmers have been supplying us with substandard products.”

Adnan says his grandfather, who came all the way from China to Malaysia in the 1950s, started the business. “My father took over the store in 1980.”

In 1994, he took charge of the business and focused on branding it.

Adnan says what distinguishes MBG from other shops is the quality of its fruits.

“Eight out of 10 customers will buy fruits based on the price. The remaining two will base their choice on quality and choose MBG,” he says.

The company strives to provide the best value for money for all its fruits, be it local or imported, he says, adding: “Besides fresh fruits, we also sell cut fruits and fruit juice as well as providing extra services like fruit basket as gift and home delivery.”

Adnan describes his business as evergreen, as it has been passed down to the third generation now.

He says despite the current economic slowdown, all its outlets continue to perform well. “The buying power may have dropped but the number of customers is still increasing.”

He says the company, which now has 16 outlets, is set to open three or four more in the next few months.

“We intend to have 20 outlets by year-end,” he says, adding that MBG also plans to expand to Indonesia by 2011. Typically, each outlet costs RM200,000, he says.

Adnan says the company allocates about RM150,000 yearly to train its staff to improve their English, Cantonese as well as basic customer service.