Break-even still not in sight for F&B outlets despite spike in takeaways

Some have had to offer discounts while paying hefty charges to delivery platforms

Tay Peck Gek

Published Mon, Apr 20, 2020 · 09:50 PM

Singapore

SOME listed food and beverage (F&B) players have seen a spike in delivery or takeaway volumes as a result of the "circuit breaker". But they claim the rise is nowhere near enough for them to break even.

Andrew Tjioe, chief executive officer of TungLok Group, told The Business Times that while the volume of takeaway or delivery orders have doubled as most people stay at home, the takings are not enough to break even.

"No way!" Mr Tjioe exclaimed, when asked if overheads could be covered. "You can never make profit, it's just to give you some cash flow... Managing cash flows is very, very important, you've got to make sure you have enough ammunition till the end of the year."

Amid keen competition, some companies have had to sweeten the deal with discounts, eating further into their wafer-thin margin - said to be 5 per cent or less. On top of that, they are typically charged a hefty commission by delivery…