Mentai-Ya Hawker Chain Boss Closes Five Stalls, Lost $550K Over Two Years

From Grab driver to F&B empire  

It's a painful reversal of fortunes for Keat Hwee, who gave up his engineering career to pursue his F&B dreams. After his first restaurant, Tenryu Japanese Dining & Teahouse, failed in 2018, he worked as a Grab driver for two years to clear $120K in debt, driving 12 hours daily to make repayments. His successful pivot to hawker-style Japanese rice bowls during the pandemic seemed like the ultimate comeback story.

But in a candid interview with 8days.sg, Keat Hwee reveals he now has $150K in debt to clear – putting him right back where he started after Tenryu's closure.

"Over half a million lost in two years”

Coffee & Chirashi turned out to be an expensive lesson. Keat Hwee estimates the cafe's setup cost plus subsequent losses totaled a "$250K loss estimate" within its first two years of operation.

Add that to approximately $300K lost across his Mentai-Ya stalls between 2023-2024, and you're looking at "over half a million lost in two years," the entrepreneur admits. (His current debt is $150K as biz was good initially and earned $300K, which he used to pay off the bulk of sum owed).

The GST mistake that drove customers away

What went wrong? Keat Hwee points to one critical decision: "After sales at Coffee and Chirashi, and all Mentai-Ya outlets collectively hit $1 million yearly, I was advised to register my businesses for GST," he explains. 

He admits this move was “keh kiang" (being overly clever in Hokkien), as he had aspirations for his biz to become a bigger organisation. 

"From the start we were selling at affordable prices and with low margins," he says. Although the GST registration forced prices to increase by only $1 a dish on average, it still drove customers away, he says. A bowl of Salmon Mentaiko Don used to cost $8.80 before the GST hike, it now costs $9.80.

Letting staff go a painful decision 

The decision to close outlets meant letting staff go – something Keat Hwee describes in emotional terms.

"When I told my guys to find a new job, I explained to them that I had been bleeding since 2023 and 2024," he says. "I tried to get through by putting a plaster or letting the pain heal on its own. But I didn't treat those wounds well and they became cancerous."

He continues with the medical metaphor: "So for now, I really have to cut away an arm or a leg to survive. Or else the cancer will spread and I won't live any longer too."

Despite the necessity, the human cost weighs heavily on him. "Most of them are sad and reluctant to leave, but I really have no choice and they understand.

A future in F&B robotics?

For now, Keat Hwee plans to "focus on two or three Mentai-Ya stalls. Improve food offerings, quality and service”.

Despite the setbacks, he has no immediate plans to abandon F&B and return to engineering. Instead, he's looking to combine both worlds: "I might get into F&B automations and robotics for F&B. I’m really inspired by AI Wok selling robotic hokkien mee [at Margaret Drive Hawker Centre]."

AI Wok is a frying robot that helps whip up plates of Hokkien Mee. “I want a similar robotic system that can provide the taste of hawker food while using minimal manpower.”

He's also adamant about not returning to cafes: "No plans for opening another cafe. It's either a hawker stall or quick service eatery."

There's also a glimmer of hope – business has improved slightly since announcing the Mentai-ya closures. "Many of our supporters have been messaging us and asking us not to close any more stalls, and many of them are coming back," he shares .

“My blood, sweat and life is in F&B”

With mounting debt and industry-wide challenges, why doesn't Keat Hwee doesn't return to the stability of his engineering career? "My blood, sweat and life is in F&B. I was raised by a single mum and grew up in rental flats. McDonald’s was a luxury for me, and Japanese food was completely out of reach,” he shares. 

That experience shaped his vision for Mentai-Ya. “I wanted to create something that parents wouldn’t feel stressed about buying for their kids. That’s why I insist on keeping our salmon mentai bowls below $10. Something that should be expensive, but made affordable for everyone.”

This keeps him going, even as the F&B industry gets tougher.

Despite the brutal conditions of Singapore's dining market, Keat Hwee maintains unwavering faith in his customer base: "I believe my supporters and people who love Japanese food will continue to support us".

Wanted “to give up many times — even my life"

This second setback in his F&B journey has taken its toll, with Keat Hwee admitting he had the intention “to give up many times — even my life". What made him carry on? "People around me pulled me back." He adds: "My passion for food and providing affordable food to the public is what keeps me in this line, but [sometimes] it's not worth the stress, health and mental adversities. This journey is damn tough, but if I want to exit [F&B], it means I have to become bankrupt and restart again. So I'll continue this biz to repay the debt. I might have lost a lot, but I'll definitely do a final fightback and live with no regrets". 

Mentai-Ya currently has four outlets (its Serangoon stall closes end March) including #08 Kopitiam Corner Senja Grand, 628 Senja Rd, S670628. Open daily 11 am to 3.45 pm; 5pm to 8.30pm. Tel: 8692 2149. More info via Instagram and website.

Photos: Mentai-Ya Japanese Cuisine, Coffee & Chirashi

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