In a shocking turn of events in Singapore's dynamic food and beverage scene, Mr. Khoo Keat Hwee, the 38-year-old owner of the popular Mentai-Ya stalls, has announced the closure of five of his outlets after incurring significant losses totaling $550,000 over the past two years.

Mr. Khoo’s journey into the F&B industry started with his first venture, a Japanese dining restaurant named Tenryu Japanese Dining and Teahouse, which tragically only lasted from 2015 to 2018, leading him to accumulate debts of about $120,000. Instead of returning to his stability as a sales engineer in Jakarta, he took on the role of a Grab driver to alleviate his financial burdens.

In a remarkable comeback, he launched Mentai-Ya in 2020, introducing a budget-friendly hawker stall concept that experienced rapid growth, expanding to four additional stalls in two years. His entrepreneurial spirit didn’t stop there—he also opened two cafes, Chirashi-Ai in Beauty World Centre and Coffee & Chirashi in Choa Chu Kang, offering a broad selection for those craving breakfast, brunch, dinner, or even dessert.

However, Mr. Khoo faced challenges right along the way. In September 2021, he accused a rival fusion donburi chain, Ishiro, of orchestrating a negative review campaign targeting his business and another establishment, The Social Outcast—an incident that raised eyebrows in the local F&B community.

Unfortunately, the struggles have intensified recently, forcing Mr. Khoo to announce a significant downsizing of his operations. His ambitious venture with Coffee & Chirashi resulted in an astounding loss of approximately $250,000 within its first two years, while the overall loss from his Mentai-Ya stalls between 2023 and 2024 ballooned to about $300,000. In a move that reflects his leaner strategy, Coffee & Chirashi shuttered on March 4, with Chirashi-Ai set to close by the end of this month.

Citing the burden of a Goods and Services Tax (GST) registration, Mr. Khoo labeled the decision a misstep. He explained that despite an average price increase of only $1 per dish, the change negatively influenced customer patronage. "We were selling at affordable prices with low profit margins from the start,” he lamented, “So, raising prices was a killer move."

The closure of stalls has translated into emotional farewells for his staff. “Most were saddened and reluctant to leave, but they understood the situation,” Mr. Khoo shared, reflecting on the tough choices affected by the current high rental rates and a staggering 20% to 30% increase in food supply costs throughout 2023 and 2024.

The competition and high operational costs have Mr. Khoo evaluating the sustainability of the F&B industry. “Even if business is thriving, the next lease renewal will invariably result in increased rent,” he noted. “F&B is incredibly challenging, and while I made mistakes—including scaling too quickly with limited capital and registering for GST—I won’t shift the blame.”

Looking ahead, Mr. Khoo remains committed to the three remaining Mentai-Ya outlets located in Punggol, Tampines, and Bukit Panjang. He’s exploring innovative solutions like automation, inspired by Wok AI's tech-driven model that prepares local favorites efficiently, with the hope of cutting costs and improving service.

He admits he contemplated throwing in the towel after this series of setbacks, but his passion for providing affordable, quality food keeps him in the fight. “This journey is tough,” he reflected. “But exiting would mean declaring bankruptcy and restarting from scratch. So, I will continue this business to repay my debts. I've faced significant losses, but I’m determined to stage a comeback, ensuring I live without regrets.”

As the future hangs in the balance, Mr. Khoo's tenacity and commitment to learn from his experiences could serve as a beacon of hope for struggling entrepreneurs in the F&B industry.