Analysis of purchasing practices in Malaysia small-sized restaurant industry

Small-sized restaurants play a vital role in Malaysia’s food service industry, yet their purchasing practices remain underexplored. Purchasing is a critical operational function that directly influences cost control, inventory efficiency, and service delivery. This study aimed to investigate the purchasing practices of small-sized restaurants in Malaysia by focusing on three objectives: (1) to assess current purchasing practices implemented, (2) to examine purchasing behavior based on company characteristics, and (3) to identify key factors influencing purchasing decisions. A quantitative survey was conducted among management-level personnel responsible for procurement activities. Using a mixedmode distribution strategy, data were collected from 100 valid responses and analyzed through descriptive statistics and correspondence analysis using SPSS Version 27. The results revealed that while most restaurants engaged in essential purchasing activities, such as inventory control and supplier evaluation, formal procurement procedures were more prevalent among establishments operating for over 10 years or with monthly sales above RM100,000. Price emerged as the most influential factor affecting purchasing decisions, particularly among lower-revenue businesses. Overall, the study highlights the functional yet informal nature of purchasing in small-sized restaurants, with practices shaped by organizational maturity and sales performance. These findings offer valuable insights for enhancing procurement strategies in Malaysia’s SME food service sector.

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