Wednesday, August 31, 2011

Coffeeshops In Close Proximity to Hawkers Ctrs Cannot Compete

Over the years more & more normal coffeeshops have closed down. This is especially the case for those just a stone throw away from a hawker centre. I conclude 2 reasons for this.

1) People don't find it worthwhile to pay the bigger rental component for their food in coffeeshops.
2) Income gap becoming wider. The market segment occupied by normal coffeeshops has shrunk with the emergence of more specialised eateries since coffeeshops are still a form of hawker ctr but with increased prices for same stuff & less variety.

The coffeeshops that are left are mostly those run by chains such as kopitiam, Koufu etc which i avoid as much as i can since is not value for $$.

Latest one to bite the dust is the below coffeeshop is at blk 505 West Coast Drive. Hawker ctr(triangular roof) is just a couple of metres away. It follows the same fate as the one at blk 354 Clementi Ave 2. Why pay for overpriced stuff(rental component) when is more value for $$ just a few metres away?

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