Looking for a sip of Malaysian heritage? OldTown White Coffee might just be the perfect brew for you.

But before they became a household name, OldTown was just a small shop in Ipoh, Malaysia with a big dream.

Today, they’re an international brand with over 200 locations across Malaysia, Indonesia, and Singapore.

It all started with three guys who wanted to share the smooth, creamy taste of Ipoh white coffee with the world.

Here’s how a simple idea turned a local gem into a global sensation.

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🍃  Brewing tradition  

In Malaysia’s early days, Hainanese immigrants from China found Western coffee too bitter.

So, they roasted beans with margarine and added condensed milk.

This creamy blend, which they named "Ipoh white coffee", became a local favorite.

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💡 The big idea  

Three coffee lovers soon fell in love with the coffee’s unique taste and quality.

They were Goh Ching Mun, Tan Say Yap, and Lee Siew Heng.

Goh and Tan were in the coffee manufacturing industry for a long time. Lee was working at a garment manufacturing and trading company before joining.

Together, they took inspiration and created a three-bean blend recipe with a unique taste profile.

Arabica beans for the sweet and nutty notes, Robusta beans for a deep and roasted taste, and Liberica beans for a lingering finish.

But they wanted everyone, not only Malaysians, to enjoy this coffee.

And so, in 1999, they made instant 3-in-1 white coffee packs, under the name  "OldTown".  

By 2000, OldTown began exporting their coffee and even created 3-in-1 packs for instant milk tea.  

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🚀 Taking flight  

The founders wanted to recreate the classic Malaysian coffee shop experience. So, they decided to open a chain of "kopitiams" (cafe outlets).

In 2005, the first OldTown kopitiam opened in its hometown, Ipoh.

Success came quickly.

In 2011, only six years later, OldTown was listed on Bursa Malaysia, Malaysia’s stock exchange.

The secret was a smart profit-sharing franchising model.

Franchisees pay an initial fee of RM80,000 (~$17,900), granting them rights to use OldTown’s trusted brand. Then, an initial investment costs RM600,000 (~$134,600)  to RM800,000 (~$179,600)

Once on board, franchisees aren’t alone.

OldTown offers support on marketing, operations, and supply chain logistics. They also help select prime locations and train staff to perform consistently.

Franchisees pay 5% of sales as a royalty fee and 3% for advertising.

The company focuses on sustainability, making sure that all outlets meet Halal standards and include environmentally friendly practices.

It was a win-win! Customers love OldTown for their affordable prices and high-quality products; franchisees get a reliable system that attracts loyal customers.

This model helped OldTown expand into countries like Indonesia, Singapore, Hong Kong, China, and the Philippines.

In 2013, OldTown opened its 200th store.

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💼 A huge win  

OldTown hit a major milestone in 2017 when Dutch coffee giant Jacobs Douwe Egberts Holdings Asia NL BV (JDE) bought the company for $361M.

This marked one of Malaysia’s most successful franchise stories!  

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🌟 Blending tradition with modernity  

Today, under CEO Dawn Lise, OldTown stays true to its roots while evolving to meet modern tastes.

New products include salted caramel coffee and plant-based meals.

They also focus on affordability, with initiatives like Malaysia’s Menu Rahmah campaign.

When Goh, Tan, and Lee first created their coffee blend, they never imagined it would become a global brand.

But with a push for export, the idea to create a coffee chain, a smart franchising model, and a lot of hard work, they did.