S$750K+ in losses later, here are the F&B lessons this 29 Y/O hawker learnt the hard way
3 business lessons from Tommy Pang’s F&B rollercoaster You may know Tommy Pang, 29, as the second-gen owner of hawker brand Bai Nian, who has never been shy about airing his family’s business struggles on Instagram. His parents started the original Bai Nian Niang Dou Fu yong tau fu stall in 2013. In 2017, the […]
Tommy Pang, a 29-year-old second-generation hawker, shared valuable business lessons from his F&B rollercoaster in an Instagram post. His experiences with Bai Nian, a hawker brand, and previous ventures, Shi Nian and Dudu, highlight the importance of structure, risk management, and marketing in the food industry.
Firstly, rapid growth without proper systems can lead to quality issues and financial losses. In 2019, Shi Nian opened at Albert Centre Market and expanded to 30 outlets in two years. However, Tommy faced shrinking portions and quality complaints due to the lack of systems and structure. With 20% of the outlets being franchised, maintaining consistent standards became challenging, leading to a loss of S$500,000 in six months.
To avoid such pitfalls, Pang emphasized the need to create a solid system before scaling through franchising or partnerships.
Secondly, F&B businesses should avoid overcommitting resources to a single location. Dudu, a Cantonese restaurant, suffered a loss of S$250,000 in seven months after its Eunos outlet was forced to close. Despite spending S$100,000 on fitting out the premises, the business was left with no control over the location's declining footfall due to office workers shifting to remote work. Tommy learned that controlling capital investment, relocation time, and business survival in case of disruption is crucial.
Lastly, effective marketing is necessary when the location cannot sustain its business. Bai Nian Food Court experienced a loss of S$250,000 in seven months as footfall at ESR BizPark decreased after the pandemic. With no time to research and develop a new concept, they opened a fried chicken cutlet rice stall to fill the vacant space. Although this solution was short-lived and the unit became empty again, it highlights the importance of marketing efforts to attract customers when the location's appeal is limited.
In summary, Tommy Pang's F&B lessons emphasize the significance of establishing robust systems, managing risks associated with single-location investments, and employing effective marketing strategies to sustain business growth and profitability.
Written by urgent.news from Vulcan Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
