Is $8 for a meal at $41.68m Tampines coffee shop too much, even if rent has doubled?

Is $8 too much to fork out for a coffee shop meal in the heartlands?

Stomper Andy feels that a nasi lemak stall at 21 Street Eating House, located at Block 201 Tampines Street 21, has been overcharging customers.

On one occasion, his wife was charged $8 for white rice with a fried chicken drumstick and brinjal.

Andy told Stomp: "My wife was timid and did not dare to ask about the prices.

"I think $6 would have been acceptable: $3 for the drumstick, $1.80 for the vegetables, $1 for the rice and $0.20 for the takeaway box."

Andy said the same stall charged $6 for blue butterfly pea rice with a fried chicken wing and bitter gourd recently.

The Stomper added: "$4.50 to $5 would be acceptable for this."

Interesting, the stall offers a value meal of blue butterfly pea rice with a fried chicken wing, egg, ikan bilis and cucumber for $4.20, according to its signboard.

Andy said: "I'm wondering how this stall is able to charge to $8 in a coffee shop. It's a ridiculous overcharge in a neighbourhood."

21 Street Eating House made headlines two years ago when it was sold for a record $41.68 million. Some tenants complained that they have being making a loss ever since rent doubled in April 2022.

https://stomp.straitstimes.com/singapore-seen/is-8-for-a-meal-at-4168m-tampines-coffee-shop-too-much-even-if-rent-has-doubled

Looks like someone learned well from the money-grubbing pappies. Too well, until it backfired spectacularly on his ass.

New owner who bought coffeeshop (at Blk 848 Yishun St 81) for S$40 million is increasing rent to S$10k/month; at least 10 out of 14 existing stalls are therefore not renewing their leases.

Bishan coffee shop zichar stall imposing 7% GST & 0.1% service charge to the bafflement of everyone

Prices in Singapore have been creeping up for sure and one zichar stall in Bishan has announced it is charging the 7 per cent goods and services tax (GST) and a 0.1 per cent service charge starting Aug. 1, 2022.

This has led to widespread bafflement among patrons of the zichar stall as a result, Shin Min Daily News reported.

Where is the stall?

The FuLee Seafood stall at Block 120 Bishan Street 12 is one of 15 zichar stalls islandwide under that brand.

The Bishan outlet put up a sign on July 27 informing customers about the impending price changes.

However, the notice also said the 0.1 per cent service charge will be imposed only for dine-in customers.

This led to patrons expressing their displeasure, according to the Chinese newspaper.

They also appeared bamboozled as this could very well be the first zichar stall they have encountered on the island that imposes GST and service charge, given that only restaurants or those with more refined dining environments would do so.

Responses by patrons

One 67-year-old customer said this was the first time he has ever heard of a coffee shop stall charging two fees.

He said he did not understand the reason for the service fee and was worried other stalls might follow suit.

He added that he will visit other stalls in the future when the extra charges kick in.

Another diner, 27, said it was unreasonable as the service should then match the new charge.

Another diner, 60, who was more understanding, said the price will still be acceptable if it does not increase too much.

Regarding GST, customers did appear more understanding as they are aware that this is imposed as long as a business has an annual taxable turnover above S$1 million -- in line with Singapore's long-standing GST regulations.

GST and service charge are different things

Walter Theseira, an associate professor at the School of Business, Singapore University of Social Sciences, stressed when interviewed by Shin Min that service fees are not government taxes, and they are different things.

He said under current guidelines in Singapore, operators are only to clearly distinguish between price components.

And this is what FuLee has apparently done, going by their new notice.

Business responds

While slapping both charges on dine-in customers at a heartland coffee shop at one shot might sound random, the business has it rationale -- but whether it is convincing, appears to be another matter.

When contacted for comment, the owner of FuLee Seafood, Wu Yujiao, confirmed that the company's annual turnover will soon exceed S$1 million a year.

She predicted that this year's turnover will exceed the threshold, as last year's turnover was just below that figure.

The company applied to be a GST-registered business and has received approval from the authorities, she said.

Wu added that according to the regulations of the authorities, the food and beverage industry is exempted from showing retail prices that are inclusive of GST.

Since the prices of food at the zichar stalls she operates do not include GST, the business decided to add a service charge component.

Moreover, since the authorities did not stipulate the amount of the service charge businesses are allowed to impose, she decided to charge a symbolic 0.1 per cent nominal service fee.

Wu also said for bills above S$50, the stall will waive the 0.1 per cent service charge and spare customers the need to handle small change of a few cents.

The math

In practice, and to give an example of what a 0.1 per cent service charge translates to, this means a S$49.90 dine-in bill comes up to S$53.44 when GST and service charge are factored in.

Without the 0.1 per cent service charge, the bill will be S$53.39 -- a difference of 5 cents.

The boss added: "Of course I am worried that some customers will not come to visit in the future and this will affect the business, but there is no other way."

She stressed that the service fee is only 0.1 per cent and unlike the 10 per cent service charge levied at restaurants.

https://mothership.sg/2022/07/bishan-zichar-gst-service-charge

Can the hawkers at Tampines St 21 coffee shop survive after having their rent doubled?

Controlling rent of coffee shop stalls might deter owners from improving: Desmond Lee

SINGAPORE — Controlling the rent of coffee shop stalls might reduce incentive for coffee shop owners to invest in the improvement of their facilities and services, according to Minister for National Development Desmond Lee.

Lee was responding in written form to a question by Nee Soon Group Representation Constituency Member of Parliament Carrie Tan during Monday’s (4 July) parliament sitting. Tan has asked whether there were any plans to control rents on coffee shop stalls in Housing & Development Board (HDB) estates, so that high rental costs would not be transferred to customers.

Tan’s query comes on the back of Yishun coffee shop KPT Kopitiam being sold for a whopping S$40 million last month, the second sale of its kind in a week. Another coffee shop in Tampines, 21 Street Eating House, exchanged hands for a record S$41.69 million earlier in June, topping a record transaction involving Yong Xing Coffee Shop at Bukit Batok for S$31 million in 2015.

Tenants of the 21 Street Eating House told The Straits Times that rent had increased, spurring some to consider terminating their agreements.

Ensure choices and competition

A key measure to ensure affordable meals and cushion the potential impact of resale transactions was to have a good supply of coffee shops in every HDB estate and town to ensure healthy competition, said Lee. These coffee shops can be run by social enterprises in order to keep food prices low.

“The market for F&B is highly competitive, especially in our heartlands. For example, the two coffee shops at Tampines and Yishun are within neighbourhood centres that have five and seven coffee shops respectively within a 400m radius, and residents hence have a choice of affordable food options there,” Lee said.

There are over 770 HDB coffee shops, and over 100 hawker centres in Singapore. In the past four years, HDB completed 34 new coffee shops, with another 30 expected to be done in the next four years. Four new hawker centres will be operational this year, with another seven in the planning or construction phase.

HDB stopped selling coffee shops in 1998 and has only rented them out since. Lee did not specify how many coffee shops were sold and privately-owned, and how many were rented out.

Provision of budget meals

In 2018, the HDB introduced Price-Quality tenders, with 50 per cent of points assigned to the quality of the operator. The quality takes into consideration the availability of budget meals, good track record and community initiatives.

Operators who successfully tender for HDB coffee shops typically provide budget food options at every stall, with these priced at around $3.

The rentals under Price-Quality tenders are also lower and more sustainable than under pure price bidding tenders, Lee added.

In considering rent control measures, Lee cited the need to “guard against unintended impacts”.

“For example, by controlling rent, we could end up reducing the incentive for coffee shop owners to invest in improving their coffee shops to provide better services and facilities to customers,” he said.

“HDB regularly monitors the resale market for HDB coffee shops, as well as the prices of food sold in both sold and rental coffee shops, and will not hesitate to review its policies to address affordability concerns where necessary.”

https://sg.news.yahoo.com/controlling-rent-coffeeshop-stalls-improving-desmond-lee-093305260.html

Teach them a lesson. Stop going to that coffee shop.

黄循财：确保组屋区有小贩中心和社企咖啡店 与天价咖啡店竞争

（早报讯）邻里咖啡店天价转手，坊间担心食物价格上涨进一步冲击生活开销。副总理兼财政部长黄循财指出，应对这个问题的最主要方式是确保所有组屋区都有小贩中心和社会企业经营的咖啡店。

黄循财星期二（6月21日）上午在记者会上宣布推出15亿元援助配套，从五方面为家庭、企业和个人提供援助。

至于政府会否采取措施，干预咖啡店天价转手，黄循财答复《联合早报》提问时指出，应对食物价格上涨最主要方式是确保每一个组屋区都有人们可以负担的食物选项。

他说：“我们了解新加坡人对物价上涨的担忧，尤其是食物。而最近的这些交易确实可能引起坊间的焦虑。”

黄循财说，政府继续推动小贩中心建造计划，是确保新加坡人继续可以享有可负担得起的食物价格的主要策略，这也会为这一类商业交易引进竞争压力。

他也说，政府也会继续为新加坡人提供补助，应对生活费的上涨，这包括提供邻里购物券和消费税补助券。“这将确保每一个人都能得到帮助，尤其是低收入和弱势群体，他们得到的帮助会更多。”

过去两个月，位于淡滨尼21街的一家咖啡店以4168万元易手，位于义顺81街的另一家咖啡店尺价高达9361元，这些天价交易预料将推高摊位月租，食物价格预计也会上调，引起坊间的不安。

https://www.zaobao.com.sg/realtime/singapore/story20220621-1285133

Yishun coffeeshop sold for S$40 million, last changed hands in 2007 for S$6 million

Another coffeeshop has changed hands at an eyebrow-raising price two days after reports of a Tampines coffeeshop being sold for a record S$41.6 million emerged.

This time around, the spotlight is on the one located at Block 848 Yishun Street 81, which changed hands at S$40 million.

Higher per square foot price than the Tampines coffeeshop

8world reported that the 397sqm (4273.27sqft) coffeeshop was sold at a higher per square foot (psf) price than the one in Tampines.

The Tampines coffeeshop spans 604sqm, which means the new owner paid S$6,964 psf. In comparison, the Yishun coffeeshop's psf price is S$9,361.

According to the Singapore Land Authority (SLA), the coffeeshop has 78 years left on its lease.

It is reported that a caveat was filed in May, and the deal has not been completed.

According to PropertyGuru, a caveat is a legal document to protect buyers’ interests in a property for sale, and lodging one with the Urban Redevelopment Authority (URA) secures the property for the buyer.

Rent remains unchanged -- for now

Vendors at the Yishun coffeeshop told 8world that rent prices, along with the operator, have remained unchanged.

They expect negotiations for their new rental contracts to take place in July or August, and will then decide if they will remain at the coffeeshop depending on the proposed conditions.

8world reported that the coffeeshop's current operator, KPT Investment, took over the space at the end of 2007 and paid S$6 million for the space.

Industry insiders do not expect food prices to rise significantly

8world also spoke to reps from the Foochow Coffee Restaurant & Bar Merchants Association and Kheng Keow Coffee Merchants Restaurant & Bar-Owners Association, who both believe that the recent trend of coffeeshops being sold at record prices will not have a significant effect on food prices.

Instead, they believe that the bulk of the burden will fall on stallholders.

https://mothership.sg/2022/06/yishun-coffeeshop-sold-40-million

Tampines coffee shop sold for record $41.68m; tenants say rent doubled

SINGAPORE - A coffee shop in Tampines changed hands for a record $41.68 million, and some tenants are thinking about terminating their agreements following a surge in rent.

A firm called G&G (21) lodged a caveat with the Singapore Land Authority in April for the coffee shop, 21 Street Eating House, in Block 201 Tampines Street 21.

The transaction is expected to be completed next month, local media outlet 8world reported on Wednesday (June 15).

The deal topped the previous reported record of $31 million for a coffee shop in Block 155 Bukit Batok Street 11 in 2015.

Based on Accounting and Corporate Regulatory Authority records, G&G's director, Mr Kiong Tai Weng, owns several other businesses including the 7 Stars coffee shop chain and U Stars supermarkets.

In 2014, he bought the Hong Kong Street Zhen Ji foodcourt in Block 151 Ang Mo Kio Avenue 5 for $7.4 million as the late founder was his mentor, The New Paper reported.

The 604 sq m Tampines coffee shop, which has 18 stalls, has 76 years left on its lease, according to a property title information search.

The purchase price of $41,682,168 works out to about $6,411 per sq ft (psf) - almost on a par with the average of $6,964 psf for ground level retail units in Far East Plaza and Lucky Plaza in Orchard Road sold this year, data from ERA Research and the Urban Redevelopment Authority showed.

Some tenants at the Tampines coffee shop told The Straits Times that rents there have surged since a new operator took over in April.

The owner of Zaleha Food Corner, who wanted to be known only as Madam Zaleha, 66, said rent doubled from $6,000 to $12,000.

"I've been doing business here for 23 years, but I think we cannot afford the rent now. Maybe I'll have to close my stall."

Madam Zaleha added that she has had to raise prices by between 20 cents and 50 cents, and worries she cannot pay her five workers their salaries.

The owner of Kumamoto Ramen, who wanted to be known only as Ms Jacquelyn, had to let two workers go, leaving one worker to man the stall since April.

"We've been making a loss since rent doubled and we can't increase our prices. That's why we're thinking of pulling out," said Ms Jacquelyn, who is in her 40s, adding that she is now paying nearly $10,000 in rent, which used to be about $5,000.

Another tenant, who declined to be named and runs two stalls at the coffee shop, said rent rose 30 per cent and he had to fork out an additional $10,000 in total for both his stalls.

"The location is good, but business is not great. We've been making a loss since April," he said.

Mr Nicholas Mak, ERA Singapore's head of research and consultancy, said there is optimism in the market as lunch and dinner crowds in food and beverage establishments have nearly returned to pre-pandemic levels.

He noted that the Tampines coffee shop is surrounded by Housing Board blocks, which is a good catchment area for potential customers.

"But it also faces competition - there are about four other coffee shops within a 10-minute walk," said Mr Mak.

"The buyers should be mindful of the competition. If they raise rents too high, tenants will just go elsewhere."

More at https://www.straitstimes.com/business/property/tampines-coffee-shop-sold-for-record-4168m-tenants-say-rent-doubled

More than half of half of stallholders at Toa Payoh kopitiam pull out after rent doubles

Faced with a doubling of their rental fees under a new management, more than half the stalls at a coffeeshop in Toa Payoh decided not to renew their contracts.

According to Shin Min Daily News on Saturday (May 14), six out of 10 stall holders at a coffeeshop located in Blk 233, Toa Payoh Lorong 8, will not be returning once their lease expires on May 31.

Some of the stallholders have been operating in the coffeeshop for more than a decade.

Out of the nine hawkers at the stall, three had already decided to wind up their businesses at the beginning of the year for various reasons, reported Shin Min Daily News. The last, a drinks stall, is owned by the owner of the coffeeshop.

After a recent change in management, the remaining hawkers were informed that their rent would be increased after a month-long renovation period beginning June 1.

One 60-year-old hawker, surnamed Yu, told Shin Min Daily News that he had received information two weeks ago that his rent would be doubled, from $3,000 a month to $6,000 a month.

Yu has been running an economic bee hoon stall at the coffeeshop for 30 years.

He was also told that the new space allocated after the renovation would also be slightly smaller. Thus, Yu decided not to renew his contract, adding that he would be taking a break for a while.

A hawker, Peng, 72, who runs an economic rice stall, told the Chinese evening daily that his rent was adjusted from $2,800 to $5,500.

The amount does not include the $1,200 fee for the clearing of plates and "a few hundred" for other miscellaneous fees. These would make the monthly cost swell to $7,000, said Peng.

Peng added that stallholders were told they have to purchase basic cooking ingredients such as rice, sugar and oil from the management's designated suppliers.

"I always look around to find the cheapest prices. With this rule, how will I be able to manage my cost?" asked Peng.

When contacted by Shin Min Daily News, the owner of the coffeeshop, surnamed Su, said similar requirements on suppliers are enforced in other coffeeshops as well.

He added that rental fees were adjusted by the new management "according to the market rate". He also explained that as the coffeeshop is old, the extensive renovation required will incur a hefty cost.

"Previously, stallholders were not asked to pay for plate-clearing or cleaning fees," explained Yu on why tenants may be feeling the pinch.

Su also signalled that business at the coffeeshop had been poor due to stall owners reducing their operating hours.

He stated that some stalls would only be open for half or day, or for three or four days a week, adding that customers might be put off by this in the long run.

However, Peng told Shin Min Daily News that he decided to close the stall earlier at 6pm rather than 8pm during the pandemic due to the lack of customers.

One stallholder who owns the zichar stall concurred. He added that pre-Covid, most of their customers had been foreign workers working or living nearby. However, due to the pandemic, most of them had returned to their home country.

"My stall was the only one open at night, but business still wasn't good," said the stallholder surnamed Qiu, adding that he had to rely on business generated by food delivery platforms to survive.

Qiu shared that he would be moving to a stall at Cambridge Road next month, where he would only have to pay $4,000 a month, including miscellaneous fees.

https://www.asiaone.com/singapore/more-half-stallholders-toa-payoh-kopitiam-pull-out-after-rent-doubles

Ah gong has a message for the coffeeshop owner:

Only a matter of time before the cheekon lice stall flies the coop too :P

Who did these hawkers vote for? :P

UNESCO heritage my ass.

ORBIGOOT, increase some more lah, hope your coffeeshop gets emptied out eventually!

Such fucking greedy landlords deserve to burn in hell.