In a surprising turn of events, OK Chicken Rice and Humfull Laksa has announced the closure of its outlet at Block 660A Edgedale Plains in Punggol. The decision came despite the stall recording daily sales of approximately S$1,000 and maintaining a strong 4.7-star rating on Google reviews.
Owner Daniel Tan shared the news on 10 August through a Facebook post, expressing gratitude for the stall’s loyal customer base and acknowledging the positive reception it had received. However, he explained that the financial pressures of running the outlet outweighed its daily revenue.
High Costs Overshadow Daily Revenue
Although the Punggol outlet enjoyed a steady flow of customers, Tan revealed that it was still incurring losses averaging between S$1,000 and S$3,000 per month. The key factors behind these losses were escalating rental costs and manpower expenses.
“There are far more factors in trying to balance quality, speed, paying staff fairly, and covering all the operational expenses including rental,” Tan explained. He added that while his other outlets were performing better, averaging S$2,000 in daily sales, the rising cost of doing business remained a significant challenge.
No Job Losses for Employees
In his announcement, Tan reassured customers and staff that no employees would be laid off as a result of the closure. Instead, workers from the Punggol branch would be redeployed to other outlets within the chain.
The closure does not mean a complete withdrawal from the Punggol area. OK Chicken Rice still operates another branch at Block 308C Punggol Walk, located within the Foodgle food court.
Rising Rental Costs Challenge F&B Businesses
The closure of this well-rated and seemingly successful food stall has reignited discussions about the sustainability of small and medium-sized food and beverage businesses in Singapore, particularly in the face of rising operational costs.
In May, a consultant and professional speaker raised concerns on Facebook about the sharp rise in commercial rental rates. The post sparked conversations about how these increases contribute to social inequality and place additional pressure on small business owners.
Industry Observers Warn of Widespread Closures
Zat Astha, Editor-in-Chief of The Peak magazine, delved deeper into the issue in an opinion piece titled All Hail the Landlord: Spike in F&B Closures Demand Closer Look. Zat described a concerning trend where many F&B outlets are being forced to shut down, not because of poor sales, but due to untenable rental costs.
Data supports these observations. Prime retail rents in Singapore rose by 3.0 percent year-on-year in 2024, reaching S$27.80 per square foot per month. This was followed by an additional 0.6 percent increase in the first quarter of 2025. These rental hikes have created a difficult environment for small business owners to maintain profitability.
More Than 300 F&B Outlets Closing Monthly
The impact of rising rents has been severe. According to Reuters, Singapore saw more than 300 F&B outlets close each month in 2025. This figure translates to over ten businesses shutting their doors every day, a rate that has alarmed industry watchers and business owners alike.
The Struggle to Balance Quality, Affordability, and Costs
The story of OK Chicken Rice’s Punggol outlet highlights a growing struggle within the F&B sector. Businesses are finding it increasingly difficult to maintain food quality, keep prices affordable for customers, and pay fair wages to staff while coping with mounting rental and operational expenses.
For customers, the closure serves as a reminder that supporting local eateries goes beyond frequent visits. The sustainability of these businesses often hinges on broader systemic factors, such as rental policies and operational cost management.
Looking Ahead
While OK Chicken Rice continues to operate in other locations, the closure of its Punggol outlet underscores the urgent need for solutions to help small and medium-sized food operators cope with Singapore’s rising business costs. Without changes, more well-loved stalls may face the same fate, even when customer support remains strong.
