‘We Are Bleeding’, Says Chef Bob As Soaring Food Costs Hit His Eateries Amid Mid-East Conflict; Cooking Oil Prices Up 54%

In a recent FB post, the chef shared that coconut milk prices have jumped from $4.70 to $6.30 per litre — a 34 per cent increase that significantly impacts his food cost. While his suppliers did not explicitly state the reason behind the hike, he says the cause is clear.

“We already expected it, because of the ongoing war. With the oil price hike, it’s a domino effect, everything else will also go up,” he tells 8days.sg.

Cooking oil prices have surged the most

And it’s not just coconut milk. “Everything, even other raw materials and vegetables, has gone up at least 20 to 30 per cent, which is a significant hike because of the volume that we are cooking.”

“Vegetable oil used to be $29 to $35 for 17kg, right now [it] can go up to $34 or even $54 for 17kg,” he says with a defeated chuckle. 

That’s an increase of roughly 17 to 54 per cent. He explains that the wide price range comes down to quality. “It depends on the grade of cooking oil.”

No choice but to use lower quality oil 

As a result, he has had to make compromises. “So now, we have no choice but to go for the cheapest vegetable oil, which is also not as good for our health because the cheapest one might be [of] lower quality.”

“The price hikes are so steep and they include diesel, which vehicles use to deliver our ingredients.”

“We are bleeding at the moment”

Despite rising costs, Chef Bob says he is not passing on the added costs to his customers — a decision he admits is far from easy. “It’s very challenging because for F&B, our profit margin is already very slim. Any price increase will makan into this [already thin] profit margin.”

“It’s because we [are] scared to scare away our customers. If we increase our prices, we may lose even more in sales,” he reasons.

He adds that smaller operators like himself are at a disadvantage compared to larger restaurant groups that can buy ingredients in bulk and absorb costs more easily.

“Right now, if we can get 10 per cent profit it is good enough. I have kept my food costs at 30 per cent, but we are bleeding at the moment.”

New kopitiam opening — despite rising costs

To add to his growing list of challenges, the chef has just opened a new kopitiam, Rahsia Bidadari, at Alkaff Crescent in partnership with Singaporean entrepreneur Kai Emilio. “We just opened a kopitiam, and with the current price increases, we are shocked as money is flowing out, but there’s no money flowing in,” he laments.

At the new eatery, his team operates multiple stalls selling drinks, nasi lemak (with a padang-style option), fried snacks, mamak stall food and wok-fried dishes. The kopitiam is currently in its soft launch phase, with its official opening slated for May 1.

"There's no Plan B"

Still, chef Bob remains cautiously optimistic: “We need to bite the bullet for now. I believe things will stabilise soon. It all boils down to supply and demand, hopefully people will still go out and makan.”

For now, there is no fallback plan, as he puts it plainly: “There’s no plan B for now, because we just opened the kopitiam.” He adds: “For now, we are stable for the next six months. After six months, we don’t know what will happen,” noting that this applies across all his F&B businesses, including 9Yards.

“It’s the talk of the town right now”

Beyond his own businesses, Chef Bob says the situation is affecting the wider F&B scene. “With all my peers in F&B, [rising food costs is] the talk of the town right now,” he says.

To make matters worse, he notes that suppliers have become stricter, with many moving away from credit terms to cash-on-delivery arrangements.

“We need to be affordable and trustworthy”

Despite the challenges, the chef says his approach is guided by his focus on long-term customer trust.

“In business, we just need to put in the effort because I believe it is all pre-destined, whatever we do we need to be genuine,” he says.

He emphasises keeping prices fair and food standards consistent, adding: “When we offer food, it needs to be at a price that customers can accept, we need to be affordable and trustworthy”.

“People are very entitled right now”

Amid rising costs and the ongoing Middle East conflict, he hopes diners will be more understanding of the pressures F&B businesses are facing behind the scenes.

“Sorry to say this, but people are very entitled right now. It doesn’t mean just because they pay for the food, they can talk bad about a business,” he says. “You can make or break a livelihood [with words] but they don’t see that, they just want to go viral,” he adds, referring to the trend of negative food reviews on TikTok.

With no clear signs of costs easing, he says operators like himself can only adapt and push forward, all while hoping customers will continue to support local businesses like his during this trying period.

9Yards is located at #01-05 Village Hotel Changi, 1 Netheravon Rd, S508502. Open Fri to Sat 8am to 3am; Sun to Thur 8am to 10pm. More info via Instagram.