21-Year-Old Gelato Shop Tom’s Palette Seeks Buyer To Avoid Closure
Home-grown gelato shop Tom’s Palette may not have to close after all.
The well-loved brand announced in an Instagram video on Aug 11 that it plans to shutter its Bugis and Kovan outlets in October, after 21 years in business.
However, general manager and co-owner Faith Yap, 35, who appeared in the video, tells 8days.sg that Tom’s Palette is actively searching for a buyer and has already been approached by several interested parties. If a suitable buyer is found, the closure may be avoided. The brand’s other owners prefer not to be named.
“Yes, we have had interested parties approach us, and are in the process of filtering and assessing each other’s needs,” says Faith, who became a co-owner in 2019.
The team had been considering winding up the business since March and decided in late July to proceed with the closure if no suitable buyer emerged. While the last day has not been confirmed, Faith says both shops will likely close around Oct 18.
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Almost shuttered in 2022 after $160K loss
Faith confirms that Tom’s Palette has been operating at a loss and almost shuttered four years ago.
“Yes, we’ve been operating at a loss. In 2022, the loss was about $160K and the brand nearly shuttered then, until a new investor came along and saved us, not just with the funds, but with new ideas about how to make the business sustainable and a lot of operational support,” she shares.
Although the team has improved the company’s financial position, Faith says its current scale is still insufficient.
“We managed to narrow the [financial] gap this year, but realistically, we’d need to run four successful outlets to be able to truly call ourselves a sustainable business,” she adds.
Tom’s Palette currently operates two shops and a production kitchen.
Pays about $25K in rent monthly, utility costs up 17%
Faith attributes the potential closure largely to rent and manpower challenges, though rising ingredient costs and lower customer spend have also contributed.
“It was a combination of all these factors that eventually broke the camel’s back, but I think the two major ones are rent and manpower challenges,” she says.
“For reference, in 2019, rent accounted for 11 per cent of our total expenses, and it’s currently sitting at 22 per cent. We pay about $25K in rent for our outlets and kitchen. It would have been $27K by next March.”
The company had considered relocating to reduce its overheads, but Faith says it could not find a sufficiently affordable alternative.
“As much as we’d like to move somewhere more affordable, there really isn’t anything affordable at the moment,” she says.
The brand’s other expenses have also continued to climb. “The utilities bill for our kitchen just went up 17 per cent, actually,” she adds.
Manpower has been another persistent problem.
“Manpower-wise, we unfortunately can’t pay a lot and the job can get incredibly physically taxing, so we are constantly stuck in the process of hiring and training [new people] every few months,” Faith explains.
Revenue grew, but costs rose more
On paper, business appears to be booming. Faith says that both outlets have recorded revenue growth after the shops’ rebranding in 2023.
However, operating costs have risen faster than revenue.
“The increase in operating costs has not been proportional to our increase in revenue,” she explains.
Fan favourites returning before potential closure
In the lead-up to October, Tom’s Palette is bringing back some of its most-requested creations for a final Encore Collection.
Three returning flavours will be released every Tuesday at 6pm. These include Soya Bean You Tiao, Taiwanese Sesame Brittle and Mao Shan Wang. The gelato will be sold in limited quantities online and at both shops.
The first Chocolate Series, available till Aug 20, features Nasty Mix, Mocha Macadamia Nut and Melt & Sizzle Version 2.
Made only about $100 over five hours at Kovan outlet
Faith tells 8days.sg that the crowds in the evenings do not reflect how quiet the outlets can be during off-peak periods, with most of the brand’s business coming in during the final few hours of the day.
“When we were operating [at] Kovan on weekday afternoons, we made about $100 from 12pm to 5pm on average. It wasn’t even enough to pay for manpower.”
This echoes what she shared in the IG video: “The truth is that the dessert industry really only does well for three hours out of the day, and it’s not enough to pay for the 21 hours when there’s not a lot of people.”
Proposed sale includes more than 250 recipes
The proposed sale includes the brand’s IP and more than 250 recipes.
Faith says the ideal buyer should have strong F&B experience, be willing to get hands-on with daily operations and, preferably, already operate a kitchen that could incorporate gelato production.
“Most important would be whether they have any ideas on how to make it a sustainable business,” she adds.
The team is also selective about who inherits the name.
“I think there’s a lot of value and nostalgia in the Tom’s Palette name, and we don’t want to hand it over to the wrong person,” Faith says.
Should no suitable successor emerge, she quips: “The recipes will sit in my laptop, the equipment on Carousell listings, and the brand in my memory.”
Tom’s Palette started out at Shaw Tower in 2005
Tom’s Palette was founded by Chronos Chan and Eunice Soon at Shaw Tower in September 2005.
The couple ran the gelato shop for 17 years. According to The Straits Times, Chronos brought in an investor to help grow the business in 2022, but left nine months later after the two parties did not see eye to eye.
He subsequently launched home-based online business Ethos Gelato Lab in May 2025.
Over the years, the brand has built a following for its unconventional and locally inspired gelato flavours, including Pi Pa Gao, Kueh Bangkit and Soya Bean You Tiao.
Fan favourites returning before potential closure
In the lead-up to October, Tom’s Palette is bringing back some of its most-requested creations for a final Encore Collection.
Three returning flavours will be released every Tuesday at 6pm. These include Soya Bean You Tiao, Taiwanese Sesame Brittle and Mao Shan Wang. The gelato will be sold in limited quantities online and at both shops.
The first Chocolate Series, available till Aug 20, features Nasty Mix, Mocha Macadamia Nut and Melt & Sizzle Version 2.
“We’re all feeling a bit burnt out”
Faith says the team has not made plans for life after Tom’s Palette. For now, they intend to rest before deciding what comes next.
“We haven’t made plans yet. To be honest, we’re planning to sleep for two weeks after all this is over, take a step back, and then think about the future when we’re rested,” she says.
While she does not rule out the possibility of Tom’s Palette returning someday, she adds: “For now, we’re all feeling a bit burnt out trying to keep the brand alive. It hasn’t been an easy journey.”
Tom’s Palette is located at 51 Middle Rd, #01-01, S188959, and Blk 212 Hougang St 21, #01-333, S530212. Both outlets are expected to close around Oct 18, unless a suitable buyer is found. More info via its Instagram and website.
Photos: Tom’s Palette
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