<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published December 6, 2008
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Crisis yet to leave sour taste for restaurants
Most of them experience only a small drop in business, if at all; weekend traffic is still much the same
By ANG AN SHING
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AS the economic crisis bites, one would expect the public to spend less on eating out. However, restaurants here seem to be holding out well, with some hardly affected at all.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>STILL A DRAW
Demand is rather inelastic at mid-tier outlet Casa Verde in the Botanic Gardens (above), says Les Amis Group spokesman Raymond Lim </TD></TR></TBODY></TABLE>A BT check with several restaurants showed that most have experienced only a small decline, if any, in business.
They reported that the number of customers have dropped a little, and they are spending less. But this is only noticeable during weekdays; on weekends, it is still pretty much business as usual.
Restaurants and outlets belonging to the Les Amis Group, such as Casa Verde, the Canele Patisserie shops, The Canteen, La Strada and Peperoni Pizzeria, have seen no drop in customers.
Said Raymond Lim, spokesman for the Les Amis Group: 'No, numbers have not gone down. For the mid-tier outlets like our Canele Patisserie Chocolaterie chain, our two-month-old Casa Verde in the Botanic Gardens and The Canteen which are all pitched at the middle to middle-upper tier, the demand is rather inelastic. In good times, there will be the mass market customers who will come to eat. In bad times, the affluent will cut back on going to posh places and downgrade to restaurants like these that offer a bigger bang for their buck.'
To attract customers, the group's restaurants have been running several promotions. For example, at Casa Verde, there is a wine promotion in which all wines sold by the bottle will enjoy a 25 per cent discount in the months of November and December.
Creative Eateries Group, which owns restaurants such as Siam Kitchen, Bangkok Jam, Shabuya, Al Dente Trattoria and Tajimaya has also not seen any decline in business despite the crisis, and its customers are still responding to its year-end promotions.
'Many Singaporeans do not buy stocks or mini-bonds, so they are not directly exposed to the economic crisis. This economic crisis is one driven by fear. Maybe Singaporeans would decide to spend less on houses, or cars, but at the moment, not on food,' said Fabian Koh, who looks after operations, sales and marketing at Creative Eateries Group.
Il Lido has been experiencing a drop in the number of diners, although they are still spending as much as they were before the economic crisis.
Owner Beppe De Vito said: 'We believe this is mainly due to the fact that we have less of the 'see and be seen' crowd and more of the affluent business customers who are choosing our outlets to entertain their business clients in our well-established outlets rather than trying new places.'
While other restaurants are offering promotions to respond to the downturn, il Lido restaurant is taking the route of enhancing its level of service and its product offering.
Henry Tan, boss of Boon Lay Raja Restaurant, said that customers are spending less, with demand for cheaper dishes increasing. He estimated that the impact on his business is about '5 per cent', with the restaurant still fully booked for weekends as well as almost fully booked for the New Year.
'The most important is to make sure the food is value for money. The quality of the food must be good, and we have not increased our prices. In fact, we are planning a promotion in December to lower our prices.'
While it is so far so good, restaurant players are bracing for more challenging times.
'Maybe in the first two quarters of 2009, when more information about the economic crisis is available, patronage will drop and that is when we will have a few problems,' said Creative Eateries' Mr Koh.
Crystal Jade's Stella To, who is special assistant to the managing director, said: 'The cost of labour and rental remains steep. Crystal Jade needs to maintain the quality of the product and is unable to transfer the increase in operating cost to the customer. With the current economic situation and market competitiveness, the margin is very slim. Customers are very conscious about their spending; they are spending less per bill.'
Crystal Jade is planning to introduce new value-for-money items to attract customers.
Even with the economic insecurity, it appears that most Singaporeans still love their food, and are still willing to spend to satisfy their tastebuds.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Crisis yet to leave sour taste for restaurants
Most of them experience only a small drop in business, if at all; weekend traffic is still much the same
By ANG AN SHING
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
</TD><TD>Email this article</TD></TR><TR class=font10><TD align=right width=20>
</TD><TD>Print article </TD></TR><TR class=font10><TD align=right width=20>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>AS the economic crisis bites, one would expect the public to spend less on eating out. However, restaurants here seem to be holding out well, with some hardly affected at all.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>STILL A DRAWDemand is rather inelastic at mid-tier outlet Casa Verde in the Botanic Gardens (above), says Les Amis Group spokesman Raymond Lim </TD></TR></TBODY></TABLE>A BT check with several restaurants showed that most have experienced only a small decline, if any, in business.
They reported that the number of customers have dropped a little, and they are spending less. But this is only noticeable during weekdays; on weekends, it is still pretty much business as usual.
Restaurants and outlets belonging to the Les Amis Group, such as Casa Verde, the Canele Patisserie shops, The Canteen, La Strada and Peperoni Pizzeria, have seen no drop in customers.
Said Raymond Lim, spokesman for the Les Amis Group: 'No, numbers have not gone down. For the mid-tier outlets like our Canele Patisserie Chocolaterie chain, our two-month-old Casa Verde in the Botanic Gardens and The Canteen which are all pitched at the middle to middle-upper tier, the demand is rather inelastic. In good times, there will be the mass market customers who will come to eat. In bad times, the affluent will cut back on going to posh places and downgrade to restaurants like these that offer a bigger bang for their buck.'
To attract customers, the group's restaurants have been running several promotions. For example, at Casa Verde, there is a wine promotion in which all wines sold by the bottle will enjoy a 25 per cent discount in the months of November and December.
Creative Eateries Group, which owns restaurants such as Siam Kitchen, Bangkok Jam, Shabuya, Al Dente Trattoria and Tajimaya has also not seen any decline in business despite the crisis, and its customers are still responding to its year-end promotions.
'Many Singaporeans do not buy stocks or mini-bonds, so they are not directly exposed to the economic crisis. This economic crisis is one driven by fear. Maybe Singaporeans would decide to spend less on houses, or cars, but at the moment, not on food,' said Fabian Koh, who looks after operations, sales and marketing at Creative Eateries Group.
Il Lido has been experiencing a drop in the number of diners, although they are still spending as much as they were before the economic crisis.
Owner Beppe De Vito said: 'We believe this is mainly due to the fact that we have less of the 'see and be seen' crowd and more of the affluent business customers who are choosing our outlets to entertain their business clients in our well-established outlets rather than trying new places.'
While other restaurants are offering promotions to respond to the downturn, il Lido restaurant is taking the route of enhancing its level of service and its product offering.
Henry Tan, boss of Boon Lay Raja Restaurant, said that customers are spending less, with demand for cheaper dishes increasing. He estimated that the impact on his business is about '5 per cent', with the restaurant still fully booked for weekends as well as almost fully booked for the New Year.
'The most important is to make sure the food is value for money. The quality of the food must be good, and we have not increased our prices. In fact, we are planning a promotion in December to lower our prices.'
While it is so far so good, restaurant players are bracing for more challenging times.
'Maybe in the first two quarters of 2009, when more information about the economic crisis is available, patronage will drop and that is when we will have a few problems,' said Creative Eateries' Mr Koh.
Crystal Jade's Stella To, who is special assistant to the managing director, said: 'The cost of labour and rental remains steep. Crystal Jade needs to maintain the quality of the product and is unable to transfer the increase in operating cost to the customer. With the current economic situation and market competitiveness, the margin is very slim. Customers are very conscious about their spending; they are spending less per bill.'
Crystal Jade is planning to introduce new value-for-money items to attract customers.
Even with the economic insecurity, it appears that most Singaporeans still love their food, and are still willing to spend to satisfy their tastebuds.
</TD></TR></TBODY></TABLE>
