Our last day: Closing our restaurant after 11 years 😢 #Singapore

Key Concepts

• Drastic Change in Customer Behavior: Shift in consumer spending habits post-COVID-19.
• Per-Head Spending: Average amount spent by a customer.
• Manpower Issues: Challenges in hiring and retaining staff, particularly chefs.
• Salary Competition: Inability of smaller businesses to match higher salaries offered by larger companies.
• F&B Establishments: Food and Beverage businesses.
• Secondhand Equipment: Used equipment acquired to start a business.

Business Closure and Contributing Factors

The transcript details the painful closure of a business, attributed primarily to a drastic change in customer behavior following the reopening of international travel.

• Customer Spending Decline: Pre-COVID, per-head spending was around $40-$50 per pack. Post-international travel reopening, this dropped significantly to approximately $15-$25.
• Increased Competition and Price Sensitivity: The availability of numerous dining options, such as a plate of tacos for 30 ringgit in JB, made customers less willing to spend at the speaker's establishment.

Manpower Challenges

A persistent issue since the business's inception has been manpower.

• Pre-COVID Salary Norms: A junior chef could be hired for approximately RM 2000-2800.
• COVID-19 Impact on Labor Market: During COVID-19, there was a shortage of cooks. Larger companies began offering salaries 1.5 to 2 times higher than the norm, making it impossible for smaller businesses like the speaker's to compete.

Business Sentiment and Market Position

The speaker expresses a feeling of being "hitting a wall, being trapped in a corner and really running out of options."

• Survival vs. Elimination: When questioned if the business was being eliminated for not being "the fittest," the speaker highlights their 11-year survival, suggesting the challenges were external rather than a lack of fitness.
• Industry Impact: The speaker's business, "BB," is identified as one of 320 F&B establishments that closed in July of the current year.

Liquidation and Support for Others

In the process of closing, the business is clearing out its inventory and equipment.

• Equipment Disposal: All chillers and freezers, along with other equipment, are being sold to other F&B businesses that are opening up.
• Reciprocity and Support: This action is motivated by the fact that 11 years prior, the speaker's business received significant help through secondhand equipment, which enabled them to start.

Conclusion

The closure of the business is a consequence of a significant shift in customer spending habits and intense competition for labor, where smaller businesses cannot match the salary offerings of larger corporations. Despite surviving for 11 years, the external economic pressures led to an insurmountable situation. The business is now focused on liquidating assets and, in a spirit of reciprocity, assisting other emerging F&B establishments with their equipment needs, mirroring the support they received when they first started.