The chicken rice stall was grappling with an exorbitant rental cost, a burdensome additional expense of $2,000 for a dishwasher, and a substantial 20% profit reduction on each item sold. These financial strains seemed incredibly unjust and unsustainable, akin to daylight robbery for a small business owner striving to make both ends meet.
Here is the story:
I recently spoke to the shop staff at the chicken rice stall in Pasir Ris Drive 6, and it’s disheartening to hear about the challenges they’re facing. The cost of living in our area has skyrocketed, forcing the chicken rice stall owner to make the difficult decision to close down the business. It’s a testament to the tough times many small businesses are enduring.
The shop was dealing with a rental cost of a staggering 14K, an additional 2K for a dishwasher, and a 20% profit cut for each item sold at the stall. This seemed incredibly unfair and unsustainable, almost like daylight robbery for a small business owner trying to make ends meet.
On top of these challenges, when the coffee shop decided to renovate, the stall owner had to shoulder a certain percentage of the renovation costs, adding further strain.
In the midst of this adversity, Coffee shop has stepped up to continue the business. They’ve made adjustments by retaining the staff and shortening business hours, displaying resilience and adaptability in a tough market.
The Weight of Rental Costs
One of the most pressing issues faced by the chicken rice stall was the exorbitant rental cost. At a staggering $14,000 per month, this figure was nothing short of astronomical for a small business. It created a constant cloud of financial anxiety that loomed over the stall owner’s head, making it increasingly difficult to maintain profitability.
The Dishwasher Dilemma
Adding to the financial woes was an unexpected $2,000 expense for a dishwasher. While maintaining hygiene standards is crucial for any food establishment, the sudden need for this equipment further exacerbated the already precarious financial situation.
The Profit Margin Squeeze
In an industry where margins can be tight, a 20% profit reduction on each item sold was a heavy blow. This reduction was not only affecting the business’s bottom line but also putting pressure on prices, potentially driving away loyal customers.