Punggol’s OK Chicken Rice outlet shuts despite strong sales amid rising rental pressures
Popular eatery OK Chicken Rice and Humfull Laksa has closed its outlet at Block 660A Edgedale Plains, despite steady sales of about S$1,000 per day and a 4.7-star Google rating. Owner Daniel Tan cited unsustainable rental and manpower costs as key reasons for the decision, reflecting broader challenges faced by small F&B operators in Singapore.
- The outlet, which closed on 10 August, was losing between S$1,000 and S$3,000 monthly despite good sales.
- Rising rental and manpower expenses remain the main cost pressures for hawkers and small food chains.
- The closure underscores growing concerns over rental inflation, which analysts say has triggered hundreds of F&B shutdowns nationwide.
SINGAPORE: OK Chicken Rice and Humfull Laksa has closed its outlet at Block 660A Edgedale Plains in Punggol, despite generating about S$1,000 in daily sales.
The announcement was made in a 10 August Facebook post by the stall’s owner, Daniel Tan.
He highlighted the stall’s positive reception, noting its 4.7-star Google rating and steady customer flow.
Despite these successes, Tan said it was ultimately necessary to shut the outlet.
“There are far more factors in trying to balance quality, speed while paying staff fairly and juggling all the expenses including rental,” he wrote.
Speaking to Mothership, Tan said that even with brisk business, the stall was still losing between S$1,000 and S$3,000 monthly after factoring in costs.
He added that sales at the brand’s other outlets were stronger, averaging around S$2,000 per day.
The main challenges, he said, were rental and manpower costs.
Tan reassured that no employees would be laid off, as staff from the Edgedale Plains outlet would be redeployed to other locations within the chain.
The business is also maintaining a presence in Punggol through its other outlet at Block 308C Punggol Walk at Foodgle.
Rising costs squeeze small F&B players
The closure adds to growing concern over the sustainability of small food businesses facing escalating operating expenses.
In May, a consultant and professional speaker reignited public discussion on social media about how soaring rentals were hurting hawkers and small vendors.
Zat Astha, Editor-in-Chief of The Peak magazine, also addressed the issue in an opinion piece titled All Hail the Landlord: Spike in F&B Closures Demand Closer Look, which highlighted how increasing rents have become a major driver of business failures across the sector.
According to Reuters, prime retail rents rose by 3.0% year-on-year in 2024 to reach S$27.80 per square foot per month, followed by a further 0.6% rise in the first quarter of 2025.
These increases have contributed to the closure of more than 300 F&B outlets per month in 2025 — averaging over ten shutdowns every day.
Analysts warn that without targeted support or structural changes to rental models, even well-performing small businesses may continue to struggle to survive Singapore’s high-cost environment.
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