The term “hawkerpreneur” is operationally defined as an entrepreneur who runs a traditional street/hawker food in a modernised and innovative manner. The surge in modernised or franchised hawker food businesses in Malaysia represents an increasing demand for higher-quality hawker food and more hospitable and convenient settings in which these businesses operate. While much has been studied in literature regarding hawkers, especially in relation to cultural representation, food safety issues and food consumption behaviour, there are inadequate studies on examining the key factors in successfully converting a traditional hawker food business model into one that is conducive to a more formalised, modernised and enterprising setting.

Not fully understanding the success factors crucial in transforming the traditional business model can result in future hawkerpreneurs facing significant barriers in running their street food businesses. First, this study aims to provide two things, (1) a set of guidelines and preventive measures pertaining to transformational challenges in enterprising traditional street food businesses to future and existing adopters; and second, (2) To provide guidelines to local city councils, trade associations and venture capital companies to better mobilise and promote the hawkerpreneurship concept to existing and future traditional food hawkers.

To achieve these purposes and understand the challenges in franchising hawker food businesses, interviews were conducted with food hawkers in George Town, Petaling Jaya, Shah Alam, and Kuala Lumpur. This study was conducted in two stages: first, by having in-depth, semi-structured interviews with “hawkerpreneurs” who successfully modernised their business model; and second, by conducting in-depth, semi-structured interviews with hawkers who owned long-established traditional hawker food businesses, but had yet to consider modernising their current businesses.

Exploring the unknown

Based on the study, it was found that the drive for modernising the hawker business could be subjected to a personality trait, commonly known as the “entrepreneurial spirit”. Most hawkerpreneurs’ narratives indicate that the process of enterprising the traditional hawker food business requires an idiosyncratic behaviour. This behaviour is based on a high level of self-efficacy, characterised by confidence in the hawker’s own ability to be successful. He or she must be ready to handle various, and sometimes unexpected, challenges in uncertain situations. Besides self-efficacy, individual attributes such as innovativeness, achievement motives, and a proactive personality also contribute to a strong entrepreneurial behaviour.

Financial risk in funding a total “makeover”

The restructuring of dining space requires extra capital investment in many other aspects other than just building proper facilities, notably in relation to staffing, facility and equipment maintenance, and outlet rental. The high amount of start-up capital investment required for the reconfiguration process is a huge deterrent to many traditional hawkers. It can be deduced that business modernisation may only be feasible for hawkers with abundant financial resources, and a lack of such resources can affect entrepreneurial success.

Challenges with the brand repositioning process

Diversification motives have been argued to be potentially risky, as they can indirectly affect an original brand identity. There are two major setbacks in the brand-repositioning process of franchising hawker food: first, a lack of branding knowledge among traditional food hawkers; and second, customers’ stereotyping of hawker food as being “cheap and low-end”. Interestingly, the character of a place is not defined by the food and gastronomic experience; on the contrary, the food and gastronomy directly and indirectly contribute to the character of a place and its brand image.

Resistance to automation and standardisation

Hawkers take pride in their products, guarding their product’s original taste ferociously. Accordingly, they generally express doubts about the practicality of franchising, and convey deep concerns over the threat of standardisation of their dishes. Their recipes require a great deal of experience to master, which can only be accumulated through years of trial and error. The most valuable aspect of their products is the “classic, authentic taste”, the main reason for repeated patronage. This indicates that the knowledge in preparing hawker food is considered a “practical consciousness”, a non-transferable and non-reflective form of cognitive knowledge that can only be gained through the experience of growing up in localised, socio-cultural and idiosyncratic surroundings. Therefore, the challenge will arise in the knowledge transfer between traditional hawkers and their franchisees, should franchising take place.

Based on these findings, it was proposed that food hawkers should evaluate themselves based on their willingness to venture (and capabilities of venturing) into franchise businesses, prior to considering the adoption process. Failure to recognise their capabilities and openness towards franchising hawker food can result in unnecessary pressure, negatively influencing the transformational effectiveness of the business. A mismatch between personality and the new business model fit is inevitable. It is uncommon for any new franchising food hawker business to not experience possible errors during the beginning stage of the process, while some individuals may demonstrate impractical or loss-making goals. However, the cultivation of entrepreneurial spirit should be supported by multiple parties. Government and non-government agencies such as the National Federation of Hawkers and Petty Traders Association ought to work hand-in-hand with the National Finance Council, especially as financial viability is a common and major concern in cultivating a new entrepreneurial opportunity.

Associate Professor Dr Daniel Chong Ka Leong
School of Hospitality and Service Management
Email: @email