Rents only account for 12% of the total costs.
The problem is with perception. Sinkies equate hawker food to be cheap food. Sinkies demand that local hawkers use the best ingredients and charge very low prices.
I see a lot of fresh seafood used in hokkien mee stall, even the average ones. But they cannot charge more than $4 - $5 for a small plate, or else they will be boycotted. I've eaten pasta where restaurants use far less fresh seafood, but because it is pasta, the dish can sell for $15 easily.
There is no future in hawker food except to serve as a magnet for underachieving cooks if prices are forced to be so low for the sake of losers and cheapskates.