S$1,000 daily takings not enough, Rui Ji Chicken Rice at Ubi close 4 months after opening

SINGAPORE: The closure of Rui Ji Chicken Rice and Curry Chicken Noodle stall at Ubi, just four months after its grand opening, has sparked discussions among netizens regarding the challenges faced by businesses, particularly in the F&B industry.

Comments on social media platforms, notably in the public Facebook group “Hawkers United – Dabao 2020,” reflected concerns about the viability of businesses with such low daily takings.

While some speculated that high rental fees might have contributed to the stall’s closure, many echoed the sentiment that S$1,000 in daily earnings simply isn’t enough to sustain an F&B establishment in Singapore.

According to Shin Min Daily News, the stall, which employs people with disabilities, will cease operations on 16 April, citing poor business as the primary reason for closure.

Owned by Joseph Tan, 58, and co-founded by his step-sister, Jass Lee, who has a disability, the establishment aimed to realize Jass’ dream of operating a chicken rice stall that provides opportunities for disabled individuals.

Jass, who navigates the world in a wheelchair following a tragic accident over a decade ago, saw the venture as a means to empower those facing similar challenges. Due to an infection, she had to get part of her leg amputated.

However, despite their noble intentions and efforts, the stall struggled to generate sustainable revenue.

According to Shin Min, their daily earnings of almost S$1,000 is not enough, rendering it financially unsustainable to cover operational costs.

“I want to open a business to help people with disabilities, but we have no choice but to close because business here is too poor,” Joseph shared, stating that a day’s takings can barely hit S$1,000 on a good day.

“S$1,000 a day in earnings can’t even cover the cost of ingredients and running the stall,” he added.

However, despite the setback, they remain committed to their dream.

Joseph told Shin Min that he is exploring alternative locations for the business while ensuring that the affected employees are redeployed to other branches in the interim.

He mentioned that that he had invested about S$55,000 into the Ubi stall.

Rui Ji Chicken Rice also operates two additional branches, one situated in Toa Payoh Lorong 4 and another located at Beach Road.

Netizens discuss business challenges in F&B sector on Facebook group

Examining comments in the Facebook group “Hawkers United – Dabao 2020,” users debate the validity of the claim.

Some users think that the business is not doing well because the rent is too high.

Additionally, many users concur that earning S$1000 per day is insufficient to sustain the shop.

“It’s takings, not profit. 30% goes to rental, 30% goes to food costs. After paying salary, what do you think he has left,” one user wrote.

Another user pointed out that the high operating and rental expenses are severely impacting the F&B sector.

“We have witness many f&b business closure in 2023,” the user stated, querying the government’s efforts to aid small and SME customers.

“Giving voucher does not solve the root cause and underlying issues,” he added.

Notably, a few individuals engaged in the F&B industry offered their own comments and perspectives on the matter.

“Many things have to be factor in not just only the rental which is usually the killer,” one user said.

He revealed that he personally operates a food stall in a coffee shop, giving him firsthand knowledge of why a daily revenue of S$1,000 falls short.

Another individual, who claimed to manage several F&B outlets, expressed no surprise that the public still perceives S$1,000 per day in revenue as substantial.

He mentioned encountering former staff and even former managers who failed to grasp this reality and requested higher wages, despite some outlets generating less than S$1,000 in daily revenue.

Moreover, a user asserted that the shop’s location is inherently competitive, noting that it has changed ownership multiple times.

They highlighted that its placement in an isolated section, away from visibility from the road, contributes to its challenges.