SME Stories: Lolla Paluza, Built With Conviction And No Loans

There is one common thing that many millennials, in their other life, want to own: the cafe. The aesthetic, the drinks, the location – ask them their favourite cafe and you’ll get a glimpse into their soul (or at least, personality). And many entrepreneurs have decided to live this dream, footing the steep start-up cost that could balloon up to RM500k via investors or loans, but coffee-loving, picture-taking Malaysians will know that there’s a chance this could turn into a nightmare of low sales, increasing debt, and then closure. It’s a tough fantasy. Few last year after year – but those who do have a story to tell.

I spoke to the owner of a cafe slash hidden space hybrid, Lolla Paluza, already operating for 4 years in Petaling Jaya with a steady flow of regulars to boot. What tales and hot takes did she have on her small business sustainability?

Leaping In Waffle-First

After years working in corporate, Minh decided to take a leap of faith and delve into her love of F&B. With the encouragement of her partner, Lolla Paluza was founded in 2022 as a dessert cafe (you will find really good waffles and ice cream a major player on their menu), but has since morphed into an event space that renters can easily adapt for any event they need.

Looking past what’s in vogue, or even a location with high visibility and foot traffic, Minh’s current design for Lolla Paluza is to be “a hidden, cozy space that works for remote workers by day and small, meaningful gatherings by night.” This highly flexible and customisable option allows her to cater to a wider band of customers. “We introduced quiet hours, flexible layouts, self-service elements, and customised menus for private events.” 

May You Last A Latte Longer

One reason why Lolla Paluza has lasted this long is their approach to the volatile cafe scene: they’re okay with not being the latest Instagrammable spot. While they do keep an eye on the gamut of trends that hit cafes and the food scene every season, the better focus is to serve up a quality menu with a comfy environment.

And you can feel it: a visit to Lolla Paluza feels like a home away from home, with an honest, authentic quality that you can feel even in their food ingredients. It’s a reflection of Minh’s principles: adhering to what she believes, showing up everyday, and serving with sincerity, honesty, and fairness.

Another factor Minh attributes her relatively long term business success to, unsurprisingly, is human connection.“From serving people of different background(s) equally, building communities of different interests, and most importantly sharing the serving opportunity with the smaller local vendors or food providers”. Minh will introduce them as her partners, and they’ll work as a team.

Community is also key when setbacks happen, such as when her food equipment suddenly broke down. “A back up plan and being close to the supporting community” were the lessons Minh took away from this. 

What’s Brewing Next?

Looking to the future, Minh’s long-term plan is to have Lolla Paluza be a “blueprint for a small, values-led space” that can be replicated elsewhere, while “increasing revenue without increasing stress or fixed costs” as they continue to draw in quality customers.

One surprising thing, given the high cost of business, is that Lolla Paluza did not take any bank loans or have any investors or large capital as a fail-safe –a huge challenge which has bested many other now-closed cafes. While this means that their growth is slow, it also means they’re debt-free – and proving that it’s actually possible to last, albeit tough-going, in today’s saturated market. Of course, if you do want to start a cafe or any other SME and need the loan, go right ahead. We have a Small Business Loan Calculator that helps you find and compare the best rates for your situation.

Money aside, what’s Minh’s biggest tip for new owners on how to manage a small business successfully? Begin with what you love, “something you won’t be tired [of] doing everyday, day and night” and as you do it, never stop learning. And of course,  “stick to the values you believed [in] when you started, and keep showing up.”