Successful Entrepreneur Story 1 Old Chang Kee

Old Chang Kee is a food retail chain best known for its Hainanese-style curry puffs, which were first sold in 1956. The business was bought over and revamped in 1986, and has since expanded to a chain of over 70 outlets in Singapore located in shopping malls, petrol stations and other high-traffic areas. Its menu includes mostly takeaway deep-fried snacks, as well as quick dine-in meals at selected cafes. The chain sells more than 40,000 curry puffs daily. Old Chang Kee is also present in Malaysia, Indonesia and China, and is listed on the Singapore Exchange.

Origins Hainanese immigrant Chang Chuan Boo set up his first stall at Koek Road in 1956 selling the curry puffs that later became famous. He then moved his stall to Albert Street, which was renown for its hawker stalls until the 1980s. In 1973, Chang opened a second stall at a coffee shop on Mackenzie Road, near the Rex Cinema, where the curry puffs were very popular and became known as the the Old Chang Kee or Rex curry puffs. At their peak, it was estimated that the stalls sold some 700 curry puffs a day. Made of fried chicken, curried potatoes, herbs and spices encased within a buttered and fried pastry, each puff cost 35 cents in 1981.

In 1986, Chang retired from the business and decided to return to China. A small group of investors led by Han Keen Juan, who had met Chang through the Hainanese Association, bought the stall at Mackenzie Road for S$30,000 and invested a further S$40,000 as working capital. Han decided that the business needed to be revamped and engaged an advertising agency, which designed a new logo and came up with the tagline Old Chang Kee - its a better puff. The decision to work with an advertising agency prompted four shareholders to pull out, leaving Han and his cousin Bugs Tan. A minor investor, Hans nephew William Lim, put in S$5,000 and later became the companys chief executive officer.

A former salesman and marketing manager, Han faced a number of difficulties at the beginning, including a rental hike from S$600 to S$3,000 a month and the departure of the chief chef within a year. Sales of around 700 puffs daily at 40 cents each also did not bring in enough revenue for expansion. Han realised that gradual expansion was needed and opened a second outlet at the Lau Pa Sat market at Shenton Way. Han and Tan also standardised the recipe, preparation and cooking processes for the puffs, and travelled to India and Sri Lanka to learn about spices.

Expansion and overseas franchises By 1991, Old Chang Kee had 12 outlets around Singapore and sales turnover had gone from S$700,000 in 1987 to S$1.6 million in 1991. A factory at Ubi Avenue utilised mechanised dough mixers and potato peelers, turning out more than 10,000 curry puffs each day. Han also won the Small Scale Entrepreneur Award in 1992.

In 1993, Old Chang Kee opened its first overseas franchise outlets in Malaysia, Indonesia, China and Japan featuring the slogan A taste of Singapore. A factory in South Africa and distribution to taverns and supermarkets there followed in 1994. Expansion abroad was rapid, with 20 outlets in Indonesia and 10 in Malaysia by the end of the first year of their foray overseas and sales in each market passing the S$1 million mark. In Japan, Old Chang Kee puffs were distributed through coffee house chains, leisure destinations and vending machines at the rate of hundreds of thousands each month. By 1996, there were 30 franchised outlets in Malaysia, Indonesia, South Africa, China, Japan, India and New Zealand. In Singapore, Old Chang Kee produced curry puffs at a 20,000 square foot factory in Woodlands and sold between 12,000 to 16,000 puffs daily at its 20 retail outlets.

However, business at the overseas franchises eventually declined. There were complaints about the quality and consistency of the puffs, and the franchise outlets became unprofitable. Han decided to terminate all 24 overseas franchises in 2002 at a loss of about S$50,000. By contrast, the Old Chang Kee brand remained strong in Singapore, and the company racked up S$14 million in sales in 2002.

Diversification and re-expansion overseas Hans nephew William Lim joined the company in 1995 and became Old Chang Kees managing director in 2003. Lim increased the number of outlets to 40 by 2005, with half of these having been opened within the previous two years. The menu was also expanded to include other fried items such as chicken wings, fish balls and nuggets, and a delivery service as well as a fast food cafe concept called OCK Take 5 was introduced. A research and development team was given the task of coming up with a new product every three months, and the company attained halal certification. The companys turnover reached S$20 million in 2004.

In 2005, Old Chang Kee re-entered overseas markets with stricter controls for foreign franchises. Three factories in Malaysia and Thailand were opened to maintain the quality of the curry puffs, and retail outlets were opened in Malaysia, Indonesia and the Philippines. To maintain freshness and taste, the puffs were manufactured at the factories then fried at the various outlets. By 2008, there were 54 outlets in Singapore, two in Kuala Lumpur, four in Indonesia, and two in Manila.

In 2007, the company introduced a baked food brand named Pie Kia, offering savoury and sweet pies and other snacks through a franchise system. The following year, Old Chang Kee listed on the Singapore Exchanges Catalist board with an Initial Public Offering of 25 million new shares at 20 cents each. IPO proceeds of around S$5 million were earmarked to fund expansion in Australia and China, increase and refurbish outlets in Singapore, and for strategic alliances and tie-ups. (Source : http://infopedia.nl.sg/articles/SIP_1671_2010-06-16.html)

Successful Entrepreneur Story 2 Sakae Sushi

Sakae Sushi is a restaurant chain from Singapore that specialises in affordable Japanese food served to diners via a kaiten (conveyor belt). Since the opening of its first outlet in 1997, the chain has expanded to over 60 locations across Singapore, Malaysia, the Philippines, Indonesia, China and Thailand. The brainchild of entrepreneur Douglas Foo, Sakae is the flagship brand of Singapore-listed company Apex-Pal. Background In 1996, Douglas Foo set up Apex-Pal with a Japanese partner to enter the garment trade. Soon after, Foo began searching for a different business opportunity in which he would have first-mover advantage and a competitive edge. As his wife Yen Khoon had a liking for Japanese food, Foo frequented Japanese restaurants in Singapore and eventually struck on the idea of serving Japanese food at affordable prices. Despite an economic crisis in Asia at the time and his lack of experience in the food industry, Foo decided that there was a niche for a kaiten (conveyor belt) sushi chain serving Japanese food at affordable, mass market prices and steered Apex-Pal in this direction. His Japanese partner did not agree with the change and withdrew his shareholding, leaving Foo to set up and source for funds for the fledgling business. After travelling to Japan and Hong Kong to observe and learn from kaiten sushi restaurants, Foo set up the first Sakae Sushi outlet in 1997 in OUB Centre at Raffles Place, in the heart of Singapores financial district. Sakae was chosen for the name of the outlet as it means growth in Japanese and also sounds similar to sake, a Japanese liquor. The 1,300 square foot outlet with seating for 100 customers was an immediate success, and Sakaes simple price structure proved to be very popular. The majority of sushi dishes were priced at S$1.90 and premium dishes at S$6.50, which made Sakae more affordable than other Japanese restaurants. Sakaes popularity prompted the opening of a second, 2,900 square foot outlet at the Heeren mall. A third restaurant opened at Wheelock Place in January 1999. Foo had initially planned for six Sakae outlets for the Singapore market, but he soon saw the potential for expansion to suburban areas. By 2002, there were more than 10 Sakae outlets in Singapore, Thailand and Indonesia, with annual revenue of around S$23 million. Foo also had ambitions to turn Sakae into a major food franchise and the McDonalds of sushi worldwide. In 2001, Sakae opened its first over seas outlet in

Thailand, a joint venture with a Thai food company and other local partners. By 2002, Sakae was in Indonesia as well.

Public listing In 2003, Sakaes parent company Apex-Pal was listed on the Singapore Stock Exchanges Sesdaq (now named Catalist) market. Apex-Pals food businesses, of which Sakae is the flagship brand, represented over 95% of the companys revenues. In August, Apex-Pals Initial Public Offering (IPO) set out 16.5 million shares, of which 836,000 were for public investors and the rest for institutional investors, clients and company employees. The public tranche was 916 times subscribed, which made it the highest share subscription rate in Singapore at the time. On the total offering of 16.5 million shares, the IPO was 47.4 times subscribed. The IPO brought in about S$3.4 million that was used for new Sakae outlets (and other brands within Apex-Pal) and working capital. By 2006, there were 31 Sakae outlets in Singapore and another 12 in Malaysia, Indonesia, Thailand, the Philippines and China. Net profit was S$3.7 million on revenues of S$51.9 million. This spectacular growth had come about without bank borrowings, with Sakaes expansion financed initially through Foos savings, then earnings and public listing. Global ambitions and consolidation Building on Sakaes ambitions for a global presence, Foo worked to take the brand into neighbouring countries and beyond. In December 2007, Sakae opened its first outlet in the United States at the Chrysler Building in New York, its 61st outlet worldwide. Apex-Pal invested an initial S$3 million in the 3,000 square foot outlet. The outlet has since closed. Initially, because of the companys small size, Foos strategy for Sakaes expansion was to enter into franchise agreements. As the company grew (with double-digit revenue growth in the years following its 2003 listing), the company also utilised a strategy of foreign direct investment in countries where this was feasible.

When a global economic crisis struck in 2008 and Sakae found its margins squeezed by higher prices for commodities such as rice, the company froze wages and cut executive pay but decided against mass staff layoffs. A profit of S$2.3 million in 2007 was followed by a net loss of S$3.8 million in 2008 due to outlets operating outside Singapore, rising rentals, and salary and commodity costs. It was Apex-Pals first annual loss since listing in 2003. Sakae introduced cost cutting measures such as sourcing for new food suppliers, minimising waste and tightening other operational

practices. The company returned to profitability in 2009, posting a S$3.3 million profit on revenues of S$88.8 million.

Use of technology The use of technology in food preparation and serving has been a signature mode of operation for Sakae Sushi. To avoid the problem of food quality changing when chefs depart, Sakae installs sushi rice rolling machines in each outlet. Together with a central kitchen where ingredients are prepared, this ensures that Sakaes food is of a consistent quality across the chain.

In Sakae outlets, each table is equipped with a hot water tap for tea refills and a computerised menu where diners can view and order items, which helps customers to track their spending. This electronic ordering system has been patented by Sakae, as has its portable conveyor belt system for food delivery both within restaurants and for outdoor catering. This system, designed in 2000, cost between S$60,000 and S$100,000 to patent and won Spring Singapores Innovation Award.

(Source : http://infopedia.nl.sg/articles/SIP_1354_2010-07-09.html)

Successful Entrepreneur Story 3 BreadTalk

BreadTalk, a company and designer confectionery store, most famed for cream-filled buns topped with pork floss, named Flosss. It was started in July 2000 by George Quek, currently its managing director and claims to be Singapore's first "bread boutique". Description BreadTalk outlets are characterised by a white minimalist, space-age dcor, coupled with the extensive use of see-through glass panels, creating a bright-looking fluorescent lit-boutique-like feel that allows people from outside the shop to look in and watch the chefs making the delectable bread and pastry concoctions from start to finish. Customers also enjoy a breezy and trendy ambience in these boutique bakeries. The walls are splashed a clinical white and the bread and pastries are displayed on sleek white plastic and glass shelves like clothes on display in a store, creating a wonderful potpourri of colours and smells that attract long queues of people and ringing tills round the clock. Stylish plastic carriers used for purchases are trendy looking and carries over the minimalist concept of pure white packaging. Products BreadTalk's most famous and popular bread item is its floss bun, aptly named "Flosss", which is a sweet cream-filled bun topped with a generous layer of pork floss. Sales of this pork-floss bun make up 20% of its monthly sales with an estimated average of 2000 Flosss buns sold per day just at its Bugis Junction outlet. Katherine Quek, BreadTalk's finance director and also the wife of George Quek, is the creator of BreadTalk's signature bun, which mixes a Western-style bun with an Asian ingredient, creating a fusion of cultures and tastes. The current bun was experimented on four times by the Queks and their consultants from Taiwan and Japan before it was sold in the stores, now a favourite snack among regular BreadTalk patrons.

BreadTalk also stocks more than 50 varieties of baked goodies, with exotic names like "Spice Girl", "Crouching Tiger, Hidden Bacon", "Moshi Mushroom", "Earthquake Cheese Loaf", "Down2earth" and "Mount Fuji Swirl". Cakes with intriguing designs and flavours have also appeared in the outlets and BreadTalk has recently also introduced green-tea and pandan flavoured mooncakes in its stores, in conjunction with the local mooncake festival in September 2002. In addition, customers can look

forward to tasting 10 to 20 new creations in the stores each month, attracting customers to make repeat visits.

Three foreign chefs were specially recruited to help create new "designer breads", Chef Yeh Wen-chuan, 63, from Taiwan, Mr Tachihara Kazuomi, in his 50s, and his son, Itaru, 25, from Japan. The senior Mr Tachihara is an award winning chef who has won two television awards in Japan for his baking skills.

To celebrate BreadTalk's first anniversary, all bread items were sold for $1 from Friday to Saturday, 13-14 July 2001. More than 100,000 pieces of bread were sold on Friday alone.

Location and outlets The first BreadTalk outlet was started at Parco Bugis Junction in Victoria Street, costing $300,000 with a storefront the size of 753 sq ft (70 sq m). At the end of its first year of operations in 2000, BreadTalk suffered a pre-tax loss of S$247,000 but generated a hefty pre-tax profit of S$2 million by the end of 2001.

BreadTalk outlets were initially concentrated in major shopping malls in the town area and slowly moved out into neighbourhood shopping centres, with the aim to attract a larger customer base of those aged 18 to 40 years, targeting mainly students and young working adults.

The company plans to regionalise BreadTalk and set up outlets in Indonesia, Malaysia and Thailand in 2003 and a listing on the Singapore Stock Exchange is being considered.

Awards Aug 2002 : BreadTalk won the first Promising Brand Award (SPBA) given by ASME. The bread boutique celebrated this award with its customers with a one day 50% discount sale on all its bread items on Thursday 29 August 2002. BreadTalk also earned a mention in Prime Minister Goh Chok Tong's National Day rally speech in August 2002.

(Source: http://infopedia.nl.sg/articles/SIP_657_2005-01-25.html)

Successful Entrepreneur Story 4 Bengawan Solo

Bengawan Solo is one of Singapores most successful bakery chains, having built its reputation on the quality of its popular nonya-style cakes and pastries. Founded by Anastasia Tjendri-Liew in 1979, the company has grown from a single shop to a chain of over 40 outlets, with a turnover of S$43 million in 2008.

Background In 1970, company founder Anastasia Tjendri-Liew moved from her hometown of Palembang in Indonesia to Singapore. Marrying accountant Johnson Liew in 1973, she turned her keen interest in baking and cooking into a home business two years later by producing butter and chiffon cakes from the kitchen of her four-room flat in Marine Parade. Tjendri-Liew sold her products by word-of-mouth, and they proved so popular that she eventually started supplying them to shops.

However, she did not have a food-manufacturing license, and was told by government officials to shut down the home operation in 1979. The demand for her products continued and a few months later, Tjendri-Liew opened a shop at Marine Terrace. As the previous tenants had not done well, she was able to obtain a low rent of S$1,200, and named the shop Bengawan Solo after an Indonesian folk song. Her cakes and traditional Southeast Asian kueh remained popular, with demand increasing significantly after a positive newspaper review.

Expansion Customers urged Tjendri-Liew to open another shop in a more central location, and a second outlet at the Centrepoint shopping mall on Orchard Road opened in 1983. By 1987, the company had five outlets and required a central kitchen, which was opened on a 9,500 square foot plot at Harvey Road. Bengawan Solos utilisation of a central kitchen was a first for Singapores confectionery industry, and the move drew much media attention, as well as paving the way for other bakeries to do likewise. Sales grew to around S$8 million in 1991.

Having grown to 25 outlets by 1997, Bengawan Solo shifted central kitchen operations to a larger, S$6 million factory in Woodlands. Business continued to thrive, and in 2000 the companys turnover was close to S$30 million. Within a few years of the opening of the Woodlands factory, the company found that it needed

more manufacturing capacity, and explored the possibility of opening factories in neighbouring countries.

Bengawan Solos rise was reflected by its entry into the Enterprise 50 list of Singapores top privately held companies. In 1998, the Association of Small and Medium-sized Enterprises named Tjendri-Liew the first recipient of the Woman Entrepreneur of the Year award. According to Tjendri-Liew, over the years Bengawan Solo has attracted offers to buy out the business, but she has declined all bids as Bengawan Solo was her baby. Johnson Liew joined Bengawan Solo as the companys accounts director in the early stages of its development. After 2000, their son Henry Liew also joined the company, working in the area of business development. His vision for the company included expanding the business overseas and developing it into an international brand, improving production and operations, and introducing promotions such as cake vouchers, while maintaining Bengawan Solos traditional customer base. The company also began experimenting with new cakes and kueh offering an innovative take on traditional recipes, new desserts and caf-bakery style outlets. In 2006, Bengawan Solos sales turnover was S$36 million, continuing a trend of annual growth of around 10% to 15% each year over the previous decade. A second factory in Woodlands was built at a cost of S$5.2 million, and its opening in 2009 doubled the companys production capacity.

Plans to expand Bengawan Solo overseas have been discussed since 2003, but the company has preferred to take its time to research markets, think through production issues and quality control, and test responses at overseas trade fairs. With the majority of its customers at Singapore stores comprising tourists, in particular from Hong Kong, Japan and Malaysia, Bengawan Solo is focusing on these countries for its first steps abroad. With a good record of continued profitability and no debts or bank borrowings, the Liew family has expressed its desire for Bengawan Solo to become an internationally renowned brand while remaining a privately held family business.

Business philosophy Having built its reputation as a maker of high-quality cakes and kueh, Bengawan Solo has sought to maintain its market position by following Tjendri-Liews business philosophy of maintaining rigorous standards in production and using premium ingredients. When customer feedback reported a slight dip in the quality of its

products following a major expansion of outlets in the 1990s, Tjendri-Liew personally investigated the manufacturing and operational processes and instituted a standards system. She continues to gather customer feedback from outlets and conduct daily inspection rounds at the companys factories. Most of Bengawan Solos range of over 50 different types of cakes and kueh retain a handmade element to maintain a traditional taste. However, the company has employed technology where possible to improve the production process. For example, Japanese encrusting technology is used to ensure consistent crusts on its pineapple tarts, and air-mixers and depositors are utilised for sponge cakes. Custom-made revolving ovens and a rotating-steaming conveyor system were also installed for kueh lapis and kueh salat respectively.

While the company has built its reputation for quality, marketing efforts have also focused on tie-ups with family-oriented companies, shopping centres, credit card companies and banks for offers and packages. Festive periods have traditionally brought increased business, and Bengawan Solo has capitalised on this with festive season and occasion-specific products and marketing. Customised cakes and cakes featuring licensed characters such as those from Disney have also formed a large portion of the companys business.

(Source : http://infopedia.nl.sg/articles/SIP_1682_2010-07-01.html)