Ex-Shangri-La “Chief Baker” Famous For Croissants Relocates Hougang Bakery After 80% Rental Increase
Butter Bread, a humble bakery in Hougang with croissants netizens declared “better than Tiong Bahru Bakery’s” made mini waves when it opened in 2021. 8days.sg loved its pastries when we reviewed the bakery last year. Butter Bread is run by ex-Shangri-La “chief baker” Andrew Loong, and it's popular for its flaky viennoiserie, scones and sourdough bread. After two years operating at Hougang, the bakehouse relocated to City Gate shopping mall at Beach Road at the end of July.
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Andrew tells 8days.sg that he “decided to take a leap of faith to move to a more central location” as “the increase in rent for [the Hougang outlet] was comparable to the shops in the city”. The new space at Beach Road remains a takeaway outlet, but with a new minimalist interior similar to that of a spartan industrial kitchen.
80 percent rental hike
Andrew shares that there was “approximately an 80 per cent increase in rental price, so [he] felt it was unsustainable in the long run for the Hougang location”. Currently, the amount he pays for his new Beach Road space, roughly the same size as the heartland locale, is “about the same as [the Hougang outlet] after the rental increase”. With its more central location, Andrew hopes to appeal to a larger, “wider, more diverse customer base here compared to the heartlands”.Lost $10K monthly at previous location
The only downside to moving is the risk of losing his regulars at Hougang. He shares that “business had been pretty unpredictable” recently prior to his big move, “with more low seasons than highs”. Due to “uncertainties in the economy” and inflation, Andrew had to increase the prices of his pastries, which caused his business to slow down. He called it a “domino effect” — “whenever prices increase for commodities or daily goods, people tend to want to spend less”.
It got to the point where Andrew made “a loss of $10K per month” from the beginning of this year. Nonetheless, he had a “good base of regular customers” in Hougang, whom he hopes will continue to patronise Butter Bread through its website, which offers both pick-up and delivery.
Since moving to Beach Road, Andrew says there’s been a “reduction of business by 90 percent for walk-ins”, which he attributes to people being unaware about his move. However, the baker remains positive, hoping to “drive the business online” — which explains why only 20 percent of his pastries are sold on-site, while the rest are only available online.
So why relocate to Beach Road instead of somewhere cheaper?
“We felt that having a pick-up location in a more central area makes it more accessible for our customers. Previously, we did quite a bit of deliveries to central locations for regulars who ordered from their offices, so we also saw the potential in [having a shop in Beach Road].”
He admits the business is “still making $10K losses monthly”, but reasons that it’s only been slightly over a month since Butter Bread moved to its new address. He’s hopeful they will “gain more customers” given time.
New items on the menu
In line with the new shop’s minimalist aesthetic, Andrew now only displays one of each pastry at a time instead of laying them all out like he did at his previous outlet.
There are also five new additions to his online menu - Matcha Madeleines ($30 per box of 20 pcs), Financiers ($35 per box of 16 pcs), Blueberry Almond Tart ($12), Strawberry Cheesecake ($12) and Earl Grey Cookies ($12 per 200g pack).
Slightly higher prices, but croissants cost the same
The rest of his offerings remain the same. Expect higher prices now due to “constant price increases in the ingredients used”, such as premium Lescure French butter for his pastries. For instance, the Ham & Cheese Croissant and Pain au Chocolat now costs $5.50 instead of the previous $5, while the prices of madeleines have gone up from $25 to $30. That being said, Andrew has kept the price of his best-selling original croissant at $4.50 as it’s his bakery’s signature bake.
Andrew is currently “observing the market to see if there’s still potential for [Butter Bread] to expand further”, and hopes to open a dine-in outlet if business picks up in the near future.
Butter Bread is located at #B1-56 City Gate, 371 Beach Rd, S199597. Open Tue - Sun 11.30am - 6.30pm (Closed on Mon). More info via their website or Instagram.
Photos: Butter Bread
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