The Business Times

Founder Bak Kut Teh calls for customers' support as Covid-19 pushes it to the brink

Published Wed, Jul 15, 2020 · 10:17 AM

FOUNDER Bak Kut Teh is seeking customers' support as the coronavirus pandemic threatens to shutter the 42-year-old F&B business in the next two months, having eroded its income from locals and tourists.

In an open letter posted on social media, the business' second-generation owner, Nigel Chua, said: "The decision to write this letter is a heavy one. I am appealing to everyone for your support so that Founder Bak Kut Teh can continue to serve you and future generations for many more 42 years to come. We do not wish to close our doors, but we desperately need your help."

Calling it a "dire situation", he said that the coronavirus pandemic has hit the business hard. It has kept away tourists, who form a significant portion of its customers, and forced it to rely on takeaway orders and deliveries during Singapore's partial lockdown.

Sales plunged by 85 per cent over the past five months, he added.

Mr Chua and his father, who is the founder of the business in pork-bone soup and other accompanying dishes, were relieved when the authorities permitted dining in at F&B outlets again. However, its outlets have been empty, with no diners in sight.

"In our 42 years of business, these few months are the most tiring, trying and difficult," Mr Chua wrote.

A NEWSLETTER FOR YOU
Friday, 8.30 am
SGSME

Get updates on Singapore's SME community, along with profiles, news and tips.

To save itself, Founder Bak Kut Teh will offer discounted set menus for the first time, from July 17 to Aug 17, he said.

"Your next meal choice will make a difference to us," he added in his plea to customers.

Founder Bak Kut Teh was set up in 1978 by his father, a former pig farmer in Seletar who loved the dish and found his options lacking so much that he decided to do it himself.

The brand now has four outlets in Singapore, and one outlet each in China, Taiwan, Vietnam and Indonesia. In Singapore, it now employs 38 people, down from about 40 before the pandemic. Most employees have been retained by converting some of them to food delivery drivers. "This reduces the need to hire external parties and saves costs," Mr Chua told The Business Times. 

Founder Bak Kut Teh does not manage its overseas branches, however. "Although we did hear from them that they are also badly affected by Covid-19, we are unable to provide any further insights into the situation," Mr Chua added.

KEYWORDS IN THIS ARTICLE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Consumer & Healthcare

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here