An engineer turned hawker who opened eight food stalls and two cafes lost $550,000 in just two years.
After announcing last month that only three branches would remain open to focus on clearing debts, the sudden announcement of complete closure has shocked customers.
From Eight Stalls to None
Shin Min Daily News reported last month that Japanese food stall chain Mentai-Ya previously had eight outlets across Singapore in Bukit Panjang, Toa Payoh, Serangoon Central, Clementi, Boon Keng, Tampines, Punggol, and Sengkang.
By March, only the Bukit Panjang, Punggol, and Tampines stalls remained operational.
At that time, Mentai-Ya owner Khoo Keat Hwee, 38, said in an interview that the eight stalls had lost about $300,000 over the past two years, averaging losses of $10,000 to $15,000 monthly.
However, Mentai-Ya recently posted on social media announcing a complete shutdown with the message, “We tried our best but still failed.”
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“Besides the Japanese food stalls, I also opened Coffee & Chirashi in Choa Chu Kang and Chirashi-Ai in AMK Hub. Coffee & Chirashi alone caused me to lose S$250,000. In total, I’ve lost S$550,000,” Khoo said.
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Rising Costs and Price Adjustments
Khoo disclosed that he registered for GST for his company in mid-2022. From 2023, facing rising costs in food ingredients, manpower, and rent, he reluctantly increased food prices by S$1.
“Mentai Don’s price rose from S$8.90 to S$9.90, which caused us to lose 20% to 30% of customers. In January 2024, to boost business, I reduced the price to S$8.50. Though we received more orders, our profits dropped significantly, and some stalls couldn’t survive,” Khoo explained.
Khoo said that while the three remaining outlets were profitable, the previous losses were too heavy to overcome. He decided to close these final three outlets on 8 Apr and mentioned he now carries a debt of S$550,000.
“Since this decision was sudden, we didn’t inform our customers. I told my staff we needed to cut our losses quickly, and I would compensate them.”
Khoo stated that he now wants to “reset, recover, and restart” and won’t attempt entrepreneurship for a while. For him, the decision to shut down completely was painful but necessary.
“My dream is still to provide delicious and affordable ‘everyday’ meals to the public. I won’t stop fighting for this dream,” he said.
He added that although he considers this a “failure,” he has gained valuable experience that he’s willing to share with other food business owners to help them avoid similar hardships.
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