Legacy manufacturers Tong Heng and Lim Chee Guan have spent a long time in F&B and are nonetheless studying
In Singapore’s fiercely aggressive F&B panorama, most new eateries barely make it previous a couple of years. Skinny margins, hovering rents, labour shortages, and fickle client developments make closures a near-daily headline.
But, scattered throughout town are uncommon exceptions: family-run manufacturers which have thrived for many years, some spanning three or 4 generations. These companies have weathered epidemics, financial downturns, and altering tastes—studying onerous classes alongside the best way.
We spoke to 2 such companies, Lim Chee Guan and Tong Heng, to learn how they survived when so many others faltered, the errors they made alongside the best way, and the methods that allowed them to show custom into an enduring legacy.
1. Recognising when to pivot
For a lot of heritage F&B companies, longevity can grow to be a double-edged sword. Methods that introduced success for many years can shortly flip right into a legal responsibility if client preferences shift and the enterprise doesn’t reply in time.
At Tong Heng, the warning indicators grew to become clear within the 2010s. Whereas the model remained well-known for conventional pastries—significantly its egg tarts—amongst older prospects, Ana Fong, the fourth-generation proprietor of the enterprise, observed one thing worrying: youthful diners have been nearly absent from the store.
“Most of our walk-in prospects have been of their 40s and above,” she recalled, including that it was uncommon to see anybody underneath 20. The model had grow to be acquainted, however not related to the subsequent era.
The design of Tong Heng stopped on the 70s or 80s. It didn’t evolve.
Years of unchanged branding and retail design meant the store felt frozen in time. Left unaddressed, that hole risked breaking the chain of continuity each heritage enterprise is dependent upon.
Recognising the urgency, Tong Heng launched into its first main revamp in a long time to modernise the model and entice youthful prospects, whereas preserving the heritage and familiarity that long-time patrons cherished. Ana spent over eight months evaluating a number of artistic companies earlier than deciding on one to steer the redesign.
Right this moment, its shops at Chinatown and Jurong Level are vibrant and alluring, with modern glass show counters, refreshed packaging, and a up to date inside.
2. Balancing between custom & innovation
Maintaining with developments and evolving client preferences doesn’t must imply compromising what makes a model distinctive. For 87-year-old bak kwa model Lim Chee Guan, the problem grew to become obvious when third-generation house owners Benny Lim and Jerre Lim joined the enterprise within the 2000s.
They recognised the necessity to introduce mechanisation, quicker manufacturing traces, and fashionable packaging to scale operations and meet rising demand.
However change met resistance. Older members of the family feared that dashing up processes or utilizing machines would dilute the model’s signature charcoal-grilled flavour and hand-finished texture.
Balancing effectivity with custom is a core stress for heritage F&B manufacturers, however Benny and Jerre ultimately arrived at a compromise: “selective modernisation.”
Machines are used for repeatable, non-flavour-critical duties, reminiscent of reducing, weighing, and a few packaging. However the essential steps—the marination, the charcoal roasting, and the ultimate hand inspection—stay underneath the cautious supervision of skilled workers or members of the family.
“That approach, we shield the style and texture that constructed our status whereas making the enterprise extra sustainable,” stated Benny.
It took “persistence and proof” to get there, although. The third-generation house owners didn’t push for wholesale change from the beginning—as an alternative, they piloted small course of upgrades, confirmed measurable good points and left the ultimate high quality style checks unchanged, which ultimately persuaded most sceptics.
“There have been irritating moments, however somewhat than surrender we doubled down on small wins and clear style assessments till belief grew.”
3. Growth isn’t all the time the reply
About twenty years in the past, Tong Heng did what many profitable F&B manufacturers are often tempted to do: it expanded. An investor got here on board, and shortly the bakery had retailers sprouting in prime places, together with Takashimaya and Changi Airport.
However the fast enlargement didn’t finish nicely for the enterprise. “That’s the place we acquired our fingers burnt,” Ana shared in an interview with the Enterprise Occasions. “It was an excessive amount of to deal with, then I realised we paid a excessive worth.”
With too many retailers to handle, the enterprise discovered itself unfold too skinny. High quality slipped, operations grew to become tougher to regulate, and, critically, the model started to endure within the eyes of customers. Because of this Tong Heng intentionally maintains simply two shops right now.
The expertise additionally reshaped how the enterprise thinks about succession. Ana and her household grew to become satisfied that Tong Heng ought to solely be handed down throughout the household. Work has already begun to groom the fifth era—Fong’s niece, a current graduate working in consulting—who additionally occurs to fall squarely throughout the youthful demographic Tong Heng hopes to win over.
That stated, the enterprise isn’t ruling out development completely, although franchising is firmly off the desk. Exporting merchandise is a chance, however provided that the bakery can discover a approach to take action with out compromising high quality—significantly for its signature diamond-shaped egg tarts, that are greatest loved recent from the oven.
Opening an outlet abroad may very well be an possibility, however nonetheless, Ana stays cautious as variations in substances, water, and native situations may make it tough to copy the identical style and texture overseas.
4. Understanding the market and demand
For Lim Chee Guan, understanding the market has all the time been as essential as perfecting the product.
Being within the bak kwa enterprise means coping with extremely seasonal demand—peaking round Chinese language New Yr—and unstable uncooked materials prices that put fixed strain on each operations and money stream.
These cases have pushed the enterprise to put money into higher forecasting, improved staffing plans, and clearer order administration to keep up the client expertise even throughout peak intervals.
One other key space of focus has been digital infrastructure. Through the COVID-19 pandemic, when in-store gross sales dropped by greater than 70%, Lim Chee Guan turned to on-line orders to maintain income. Their on-line ordering system was launched in time for the 2021 Chinese language New Yr season, however overwhelming visitors induced the web site to crash inside simply two hours.
Even in subsequent years, the platforms have sometimes struggled, with prospects reporting login or checkout points throughout peak CNY intervals.
The third-generation house owners took a tough lesson from these experiences. “Digital demand surges can expose operational weak factors,” shared Benny.
“That taught us to deal with digital infrastructure and order administration as core operations, not optionally available add-ons, and to construct redundancy and clearer buyer communications round peak intervals.”
F&B remains to be a troublesome trade
It’s not straightforward to function within the F&B trade, not to mention survive for many years. These heritage manufacturers present that cautious planning, adaptability, and a robust deal with high quality are key to longevity.
That stated, with the current wave of F&B closures, even established names face ongoing challenges.
For Lim Chee Guan, the largest hurdles right now are rising ingredient and labour prices, fierce competitors from each new entrants and premium options, and prospects’ rising expectations for comfort and dependable on-line ordering.
Past sustaining its high-quality requirements and bettering digital and supply techniques, the model can also be emphasising its heritage and craftsmanship to navigate these challenges, ensuring prospects perceive the story—and the care—behind each product.
Equally, Tong Heng stays cautious in navigating a shifting panorama. Enterprise has been “sluggish” in current months, however Ana views this as a chance to deal with product innovation and improve the retail expertise, utilizing the downtime to strengthen the basics.
Discover out extra about Lim Chee Guan right here.
Discover out extra about Tong Heng right here.
Learn different articles we’ve written on Singaporean companies right here.
Featured Picture Credit score: Lim Chee Guan/ Design Singapore Council
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