How Nam Kee Chicken Rice brother sold Lamborghini to save family legacy
Now, two years on, the brothers have implemented plans to bring the Nam Kee Chicken Rice Restaurant brand overseas.
https://sg.finance.yahoo.com/news/h...u2Tk68VOpcEG2QYROJIuSGl1Aqy1lXVtVcwn5-lyY0Rct
The three Nam Kee brothers who are third generation owners of the chicken rice brand. They gave up lucrative banking jobs to save the family legacy. (PHOTO: Prince Lee)
By Prince Lee
SINGAPORE – Besides taking a significant pay cut, Ken Chew, one of three brothers currently running Nam Kee Chicken Rice Restaurant also had to sell his Lamborghini when the siblings took over their father's business in the thick of the pandemic in 2020.
The trio wanted to keep their family legacy alive.
Back in 1968, Nam Kee Chicken Rice Restaurant was first set up by Ken's grandfather, Chew Nam Peng, in a shophouse along Upper Thomson Road. During that time, there were just a handful of chicken rice stalls in post-independence Singapore.
Prior to their leap into the F&B (food and beverage) industry, the three brothers – Ken, Lincoln and Dave – worked in the sales department of the same bank for five years, where they each pulled a salary of about S$10,000 monthly.
Speaking to Yahoo Finance Singapore, Ken said, "From being an employee to running our own business, it was not an easy transition. Lincoln, Dave and I took a pay cut of around 60 to 70 per cent."
Expansion of the brand
Now, two years on, however, the brothers have already set in motion plans to bring the Nam Kee brand overseas.Ken divulged that the brothers have partnered with friends in Vietnam to open a chicken rice store about six months ago.
"While it is using our system, our recipe, and our F&B knowledge, it is not in the name of Nam Kee as we're still trialling the system and fine-tuning some processes," he shared.
"Replicating the system in Vietnam is much easier than in Singapore, and manpower and rental costs are also lower. The business is doing well, and we are in talks to open another outlet because response has been overwhelming," Ken said.
Eventually the shop might be branded as a Nam Kee outpost, but not while the trial is underway.
"We went knocking door-to-door in Ang Mo Kio, Bishan, and Thomson to let people know we were open for business," Dave recalled. Fortunately, with the help of government grants, the brothers upgraded their point-of-sale system, and hopped onto food delivery platforms.
In the early days of the takeover, the brothers exhausted about 90 per cent of their savings which was "in the six figures", in order to improve the efficiency of their backend operations as well as keep the shop afloat. But they pressed on, working every day for 12 hours, and did not lay off any workers.
One of their immediate to-dos then was also to reduce food waste. Before the brothers' takeover, there was 11 to 12 per cent wastage to cost ratio. They have managed to reduce this by 54 per cent by educating workers on how much food to prepare and order from suppliers.
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Still, the brothers feel that their takeover of Nam Kee has brought about a different sense of fulfilment as compared to working in the bank, even as they have to give up on life's luxuries such as spontaneous trips, family dinners, and nights out with friends.
Spreading their wings
The siblings are also keenly exploring opportunities locally.For instance, Ken shared, they have started another F&B business in Singapore that offers a different type of cuisine. In fact, this new venture already has a "second store".
This venture will remain a different entity to Nam Kee in the foreseeable future. It currently counts as another experiment to ensure their system is working and achievable, which would give them more confidence in future expansions and franchises.
"In the long term, we're also planning to have on-the-go food in places like 7-11. We also hope to work towards using organic products in our dishes; this is our bucket list," Ken said.
Will they sell the business? No, as they believe Nam Kee has not "reached its maximum potential". Instead, they are on the lookout for "collaborations, mergers and franchises".
"Our dream is for Nam Kee to become an international brand one day," Ken said.
Ultimately, what is the brothers' measure of success?
Ken said, "When we have the Nam Kee brand all over Singapore, and the stores are able to help our workers live a better life."
