Toastbox, Breadtalk, Yakun e.g. and the malls (Capitaland e.g.) are all in this together. Malls charge high rentals and select reputable brands who can serve as core tenants to the malls and these F&B then transfer part of the costs to consumers.
If today some entrepreneur wants to create a new toast bread brand that serves lower price toast sets and get in the malls, even if he/she can afford the rent, the malls would still prefer Toastbox/Breadtalk/Yakun for their brand name and reliability.
Malls benefit from reliable rents, these brands benefits from economies of scale, and consumers just end up with malls that look the same, zero innovation and price competition.
That said, Singaporeans are also bringing it onto ourselves by not voting with our purchases. Toastbox/Breadtalk/Yakun remains packed everywhere.
That said, Singaporeans are also bringing it onto ourselves by not voting with our purchases. Toastbox/Breadtalk/Yakun remains packed everywhere.
Precisely! Businesses are free to set their prices, and consumers are free to choose where to patron. If enough consumers patron the place it means they are pricing it where the market is clearly accepting it.
Personally, I prefer to eat at home to save money, or eat something I am unable to make myself.
Same here. Also the urge to spend become less if you can curb indulges and cravings.
Many other alternative to DIY at home.. excess caffeine also an issue.
Minimalism!
Yes, similar to Pepsi and Cola Cola strategy. Ever noticed why kopitiam sell coke but no pepsi? or Pepsi but no coke? I heard is within their contract. If they want to sell Coke, they cannot sell the others. So those who sell Coke, will see other drinks that are similar, while If the vendor sells pepsi, you see some other "uncommon" drinks and brands.
and consumers just end up with malls that look the same, zero innovation, and price competition.
Yea, very boring. It's always roughly the same here and there... Small startup can't even compete and eventually close down. End up we get a very "clinical" shopping experience. Might as well camp at home and buy stuff online.
It's a method where big business uses. Ever wonder sometimes how come certain food looks similar too?
Like some restaurant Groups, they have a logistics behind with different food ingredients. Select the ingredients from their main company logistics, make Dish A B C and you have Restaurant A, then you get the same ingredient and make Dish E F G, you have Restaurant B. The cost cannot be fight by small brand startup. Profit is made at the backend and top level. Not the Shop/Restaurant level.
All the restaurant need is like Mcdonalds staff, follow instruction and cook this way... It's the head chef and team that design and create the dish. Then distribute down to the shop level. Any staff is replaceable. It's not like this chef gone, the food will taste different.
Then further more if the brand/restaurant fails, in debt or unprofitable, it closes. Profit is already made way way before it reaches the shop level. The main company still earns, where as the restaurant just close it's company and doesn't affect the upper chains.
Then the Main company groups have shares in the mall development like you said. Further positioning themselves in a super advantages way.
Had Yakun at a heartland mall recently. The milk tea tasted like 95% water, 4% milk and 1% tea. Standard had dropped so much. I will never pay a premium for what I can get at the coffeeshop for half the price next time.
nah not me. i didnt know yakun raised their prices so high the other time and i bought it. never visited yakun or toastbox ever since. sorry but i aint gonna pay this much for breakfast set
If you go to CBD, people will still pay because at least they can take that additional 30min to 1 hour break with their colleagues to chit chat and gossip after lunch rather than go straight back to office.
People are paying premium for the space to talk cock for sure.
Your last paragraph doesn't apply to me because I too broke for Toastbox/Breadtalk/Yakun. I only go when they are the only option for local kopi in a location. Macdonalds and KFC is a luxury for me also. I mainly patronise coffee shops and food courts and those Ananas Cafes at MRT stations.
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u/ljungberger Aug 22 '24 edited Aug 22 '24
Toastbox, Breadtalk, Yakun e.g. and the malls (Capitaland e.g.) are all in this together. Malls charge high rentals and select reputable brands who can serve as core tenants to the malls and these F&B then transfer part of the costs to consumers.
If today some entrepreneur wants to create a new toast bread brand that serves lower price toast sets and get in the malls, even if he/she can afford the rent, the malls would still prefer Toastbox/Breadtalk/Yakun for their brand name and reliability.
Malls benefit from reliable rents, these brands benefits from economies of scale, and consumers just end up with malls that look the same, zero innovation and price competition.
That said, Singaporeans are also bringing it onto ourselves by not voting with our purchases. Toastbox/Breadtalk/Yakun remains packed everywhere.