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<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 28, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Sushi Tei's secret recipe
By JOYCE HOOI
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SUSHI Tei might sell food that goes around in circles, but the conveyor belt sushi chain itself appears to be on an upward trajectory.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Mr Ong: Reckons that not going the way of wine lists and stiff linen has kept the group in the black throughout the recession</TD></TR></TBODY></TABLE>As the chain celebrates its 15-year anniversary this month, its growth has progressed fairly smoothly, much like how plate after plate of sushi emerges on the belt in its 11 outlets across the island.
Its first outlet was opened in Holland Village back in 1994, by Daniel Ong and two other partners, with just 30 items on its menu and 20 staff.
Now, more than 250 items jostle for attention on Sushi Tei's colourful smogasboard of a menu, backed by 500 employees in Singapore alone and 2,000 staff across the region.
'Fifteen years ago, there were very few conveyor belt players in Singapore. It was a relatively new concept,' said Mr Ong.
As with breaking any new ground, the chain had to contend with a dining public that did not know what to expect.
'They were just uncomfortable with going in, not knowing how much it was going to cost, whether it would be bar food or fine dining,' said Mr Ong.
If there is one thing that Mr Ong has consciously steered clear of, it would be the fine dining niche. While the newly renovated Paragon outlet is an ornate affair where chatting ladies sit next to tables where business pow-wows are conducted, its price points cannily put it in the casual and affordable category.
'Our price points range from $20-25 per person, which is considered affordable and generates repeat business,' said Mr Ong.
In fact, he reckoned that not going the way of wine lists and stiff linen has kept the group in the black throughout the recession.
Last year, Sushi Tei saw a top-line growth of about 32 per cent over 2007. This year, the group is expected to shrug off the recession with a top-line turnover in excess of $60 million compared to $53 million in 2008.
Flying in the face of conventional wisdom during the downturn, Sushi Tei will have refurbished two existing outlets and opened two news ones by the end of 2009.
Such bold moves do not come cheap. Mr Ong estimated that capital expenditure ranges from $1.5 million to $3 million per outlet, with a payback period of three to four years - and the group is not about to slow down.
'Within the next three years, we'll build another five to seven outlets in Singapore,' he said confidently.
Apart from shrewdly straddling the price territories of cheap grub and posh nosh, Sushi Tei has stayed clear of the pitfalls that plague other dining establishments, such as some local high-end Chinese restaurants. Among those establishments, a poaching war is set to brew after several chefs were implicated in a kickback scandal earlier this month.
'We always prefer to go into a business where we are not chef-dependent - we're not selling the person, we're selling the brand,' said Mr Ong.
And the group has made headway regionally in selling the brand, with a presence in China, Indonesia, Malaysia and Australia.
In those countries, Sushi Tei runs a tight ship, either operating outlets directly or through joint ventures, but never through franchises.
'We have to steer clear of a pure franchise because you tend to lose control in terms of how they manage and operate the business. We don't want to dilute brand equity from a mismanaged franchisee,' Mr Ong declared.
As a result, 90 per cent of the menu in the overseas markets adheres strictly to the range found in Singapore outlets.
While the food might stay the same in any country where a Sushi Tei outlet might be found, the group itself certainly is not standing still.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Sushi Tei's secret recipe
By JOYCE HOOI
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right></TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right></TD><TD>Feedback</TD></TR></TBODY></TABLE>SUSHI Tei might sell food that goes around in circles, but the conveyor belt sushi chain itself appears to be on an upward trajectory.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Mr Ong: Reckons that not going the way of wine lists and stiff linen has kept the group in the black throughout the recession</TD></TR></TBODY></TABLE>As the chain celebrates its 15-year anniversary this month, its growth has progressed fairly smoothly, much like how plate after plate of sushi emerges on the belt in its 11 outlets across the island.Its first outlet was opened in Holland Village back in 1994, by Daniel Ong and two other partners, with just 30 items on its menu and 20 staff.
Now, more than 250 items jostle for attention on Sushi Tei's colourful smogasboard of a menu, backed by 500 employees in Singapore alone and 2,000 staff across the region.
'Fifteen years ago, there were very few conveyor belt players in Singapore. It was a relatively new concept,' said Mr Ong.
As with breaking any new ground, the chain had to contend with a dining public that did not know what to expect.
'They were just uncomfortable with going in, not knowing how much it was going to cost, whether it would be bar food or fine dining,' said Mr Ong.
If there is one thing that Mr Ong has consciously steered clear of, it would be the fine dining niche. While the newly renovated Paragon outlet is an ornate affair where chatting ladies sit next to tables where business pow-wows are conducted, its price points cannily put it in the casual and affordable category.
'Our price points range from $20-25 per person, which is considered affordable and generates repeat business,' said Mr Ong.
In fact, he reckoned that not going the way of wine lists and stiff linen has kept the group in the black throughout the recession.
Last year, Sushi Tei saw a top-line growth of about 32 per cent over 2007. This year, the group is expected to shrug off the recession with a top-line turnover in excess of $60 million compared to $53 million in 2008.
Flying in the face of conventional wisdom during the downturn, Sushi Tei will have refurbished two existing outlets and opened two news ones by the end of 2009.
Such bold moves do not come cheap. Mr Ong estimated that capital expenditure ranges from $1.5 million to $3 million per outlet, with a payback period of three to four years - and the group is not about to slow down.
'Within the next three years, we'll build another five to seven outlets in Singapore,' he said confidently.
Apart from shrewdly straddling the price territories of cheap grub and posh nosh, Sushi Tei has stayed clear of the pitfalls that plague other dining establishments, such as some local high-end Chinese restaurants. Among those establishments, a poaching war is set to brew after several chefs were implicated in a kickback scandal earlier this month.
'We always prefer to go into a business where we are not chef-dependent - we're not selling the person, we're selling the brand,' said Mr Ong.
And the group has made headway regionally in selling the brand, with a presence in China, Indonesia, Malaysia and Australia.
In those countries, Sushi Tei runs a tight ship, either operating outlets directly or through joint ventures, but never through franchises.
'We have to steer clear of a pure franchise because you tend to lose control in terms of how they manage and operate the business. We don't want to dilute brand equity from a mismanaged franchisee,' Mr Ong declared.
As a result, 90 per cent of the menu in the overseas markets adheres strictly to the range found in Singapore outlets.
While the food might stay the same in any country where a Sushi Tei outlet might be found, the group itself certainly is not standing still.
</TD></TR></TBODY></TABLE>
