Polar, the 100-year-old chain behind Singapore's sugar rolls and chicken pies

Key Concepts

• Polar: A Singaporean bakery and cafe, originally established in 1926.
• Kiosk Model: The business strategy adopted during the relaunch as Polar Puffs and Kicks, focusing on smaller, strategically located outlets.
• R&D (Research and Development): The ongoing process of creating new products, with a low success rate.
• Regional Expansion: The necessity of expanding beyond Singapore due to limitations in the domestic market.
• Long-Term Employees: The significant number of staff with decades of service to the company.

Historical Origins and Early Development

Polar was founded in 1926 by the speaker’s maternal grandfather during the Gatsby era. The initial concept was a western-style cafe, capitalizing on the popularity of cafes at the time. The business thrived, providing sufficient income for the family. The original cafe operated successfully for several decades, fostering a loyal customer base and a stable workforce, with some employees remaining with the company for 10, 20, 30, or even 40 years. This longevity highlights the company’s commitment to its employees and a consistent business model in its early years.

Transition and Relaunch as Polar Puffs and Kicks

In 1986, the building housing the original Polar cafe was acquired by the Singaporean government for redevelopment purposes, forcing the business to relocate. The business was subsequently relaunched as “Polar Puffs and Kicks,” managed by the speaker’s aunties and uncles. This relaunch marked a shift in strategy, adopting a kiosk model, initially starting with a single outlet at a location called “one raffle’s place.” This kiosk model proved successful, leading to gradual expansion.

Current Scale and Reach

Today, Polar operates 37 outlets across Singapore. Beyond these physical stores, the company also utilizes 200 sales touchpoints, suggesting a broader distribution network potentially including online sales or partnerships. While the founder likely didn’t envision such extensive growth, the company has evolved significantly from its humble beginnings as a family-run cafe.

Challenges and Future Growth – Regional Expansion

Despite its success, the speaker acknowledges limitations to further growth within Singapore, specifically citing “very high rentals” and “manpower core” issues. This indicates the challenges of operating a retail business in a high-cost environment like Singapore. Consequently, the company recognizes the necessity of “regional expansion” to sustain long-term growth.

Product Development and Innovation – A Rigorous Process

Polar actively engages in Research and Development (R&D) to introduce new products. However, the speaker emphasizes the low success rate of this process. Typically, four to five products are developed in each R&D cycle, with a successful launch occurring in approximately one out of five cycles (a 20% success rate). In some cases, multiple R&D cycles (potentially up to five) are required to yield a single successful product, resulting in a success rate of one in 25. The speaker explicitly states that products are only launched if they demonstrate potential for success, stating, “what’s the point of uh putting a product if it doesn’t work? We have to make what we have gone into successful.” This highlights a cautious and data-driven approach to product innovation.

Legacy and Branding

The company’s 100-year history is recognized as a significant asset for branding purposes. This longevity provides a sense of heritage and trustworthiness, appealing to customers.

Synthesis

Polar’s journey from a small, family-run cafe in 1926 to a 37-outlet business with 200 sales touchpoints demonstrates a remarkable story of adaptation and resilience. While its historical roots provide a strong brand identity, the company acknowledges the need for continuous innovation and regional expansion to overcome the limitations of the Singaporean market. The rigorous R&D process, despite its low success rate, underscores a commitment to quality and a pragmatic approach to product development. The emphasis on long-term employees further reinforces the company’s values and commitment to its workforce.