The dim sum brand Red Star says it’s hard to keep going: it burns $ 100,000 a month and the business falls 90%

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Due to the recent increase in Covid-19 cases, Singapore had to return to closer social interactions and the default state of working from home.Phase 2 (increased alert).

Dinner is not allowed in the food and beverage (F&B) establishments and restaurants can only offer takeaway and delivery food. In addition, people will be allowed to gather in groups of up to two, from five.

Hooi Kok Wai, co-owner of the 47-year-old dim sum restaurant Red Star, said in a interview with TODAY that the 80-table restaurant had seen the business fall sharply since the start of Phase 2 (Augmented Alert).

The Heritage Dim Sum restaurant has been popular with Singaporeans for many years and even used to be booked periodically for events on 15 of 30 days each month.

However, despite appearing on delivery platforms, the brand has experienced a 90% drop in revenue during this period.

The 82-year-old chef said the restaurant only gets orders worth $ 2,000 on weekends and up to $ 1,000 on weekdays.

In addition, the operating costs of the 80-seat restaurant stand at more than $ 100,000 a month, mostly because it began paying for Malaysian accommodation.

Red Star employs about 50 people and has not reduced any since the Malaysia-Singapore borders were closed in March 2020. Hooi said the restaurant had only cut between 20 and 30 of its staff. part-time and special until now.

However, he said TODAY that if the current restrictions on Covid-19 are extended, he did not think that “it is possible to continue without taking more drastic actions”.

Many street vendors and F&B companies are suffering

Street vendors who are not IT literate or knowledgeable on social media have been at a major disadvantage since the rules that prevented food came in.

There have been many reports of street vendors who have difficulty making use of social media or online distribution platforms to expand their reach. These street vendors are also experiencing a huge drop in losses due to increased alert measures.

AChannel News Asia reportstood out as a barbecue seafood stall at Bedok’s 85 Fengshan Food Center could not even get $ 100 S of sales in one day.

Most recently, it was reported that the Swee Kee Eating House heritage brand was forced to close after being in operation for 82 years.

Featured Image Credit: Seth Lui

The mail The dim sum brand Red Star says it’s hard to keep going: it burns $ 100,000 a month and the business falls 90% first appeared on Vulcan Post.



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