- Strategic fit with NTUC Enterprise Co-operative Limited’s social mission of serving the interests of our community in Singapore
- Complements existing cooked food business to serve quality meals at affordable prices
- Increases accessibility of affordable cooked food
Singapore, 21 September 2018
- NTUC Enterprise Co-operative Limited (NTUC Enterprise) is set to acquire home-grown food court, coffeeshop and hawker centre operator, Kopitiam Investment Pte Ltd and its subsidiaries (Kopitiam), as part of NTUC Enterprise’s social mission to ensure that cooked food remains affordable and accessible to the Singapore community. The transaction is expected to be completed by the end of 2018, subject to certain regulatory approvals and other customary conditions.
- Today, NTUC Enterprise and its eight social enterprises provide access to affordable and quality goods and services in areas like health and eldercare, childcare, daily essentials, cooked food and financial services.
- Specifically in the area of cooked food, through NTUC Foodfare Co-operative Limited (NTUC Foodfare), NTUC Enterprise provides affordable, quality and healthier meal options. To moderate the cost of dining out, every stall at an NTUC Foodfare coffeeshop and new hawker centre1 offers consumers a budget meal priced from $2 and $2.80, respectively. NTUC Foodfare also operates a social outreach programme, Rice Garden, designed with lower-income consumers in mind. Rice Garden offers affordable and nutritious2 meals priced from $1.503. In 2017, Rice Garden alone served more than 4.5 million meals. To promote healthier dining habits, every food stall at all NTUC Foodfare coffeeshops, food courts and new hawker centres1 offers at least one healthier meal option. NTUC Foodfare is also committed to the preservation of Singapore’s hawker culture and aims to protect hawkers’ livelihoods by offering opportunities for skills development and placements.
- “The acquisition of Kopitiam complements NTUC Enterprise’s existing cooked food operations by NTUC Foodfare. Kopitiam and NTUC Foodfare share the common objective of making quality cooked food affordable and accessible to all. We will leverage our combined strengths to contribute to improving the vibrancy and resiliency of this daily essential sector in Singapore, with the ultimate goal of creating better experiences for our customers, and opportunities for our employees and other stakeholders,” said Mr Kee Teck Koon, Executive Director, NTUC Enterprise Co-operative Limited.
- Founded in 1988, Kopitiam, a trusted home-grown brand, has grown into a well-recognised operator of 56 food courts, 21 coffeeshops, 3 hawker centres and 2 central kitchens. It serves about 350,000 meals a day nationwide, employs more than 1,000 staff and manages more than 1,000 food stalls.
- “Kopitiam started from humble beginnings and we have built the brand into a successful household name. Today, our customers enjoy a good selection of cuisine at affordable prices. NTUC Enterprise and Kopitiam are both committed to protect the interests of our customers and the livelihood of our stall tenants. We are confident that NTUC Enterprise will bring Kopitiam to new heights in serving our community. The Kopitiam management team, led by Mr Alden Tan, is committed to continue growing Kopitiam,” shared Mr Lim Bee Huat, Chairman, Kopitiam Investment Pte Ltd.
- Upon completion of the transaction, NTUC Foodfare and Kopitiam will continue to operate separately, with their respective management teams and employees remaining in place. Customers, employees, stall tenants and other stakeholders can be assured that business will continue as usual. Meanwhile, both entities will work together to leverage mutual capabilities and seek out common opportunities for synergies, including the use of technologies.
- NTUC Enterprise is dedicated to helping Singaporeans stretch their dollar. The combined footprint of NTUC Foodfare and Kopitiam will strengthen our ability to provide affordable cooked food, thereby carrying out our social mission of moderating the cost of living. NTUC Enterprise is exploring ways to extend some of our existing initiatives such as increasing the number of Rice Garden stalls at various consumer touchpoints. Other potential new initiatives include the extension of healthier food options, such as the distribution of diabetic-friendly meals.
1 New hawker centres refer to Bukit Panjang hawker centre, Kampung Admiralty hawker centre and Pasir Ris Central hawker centre
2 Every Rice Garden offers at least three healthier choice meals
3 A mixed rice set comprising one meat and two vegetable dishes costs $1.50 for ComCare and NTUC Foodfare Privilege cardholders; $2.00 for senior citizens, students, full-time National Servicemen and Union members; $2.50 for the general public
About NTUC Enterprise Co-operative Limited
NTUC Enterprise Co-operative Limited (“NTUC Enterprise”) is the holding entity and single largest shareholder of the NTUC social enterprises. NTUC Enterprise aims to create a greater social force to do good by harnessing the capabilities of the social enterprises to meet pressing social needs in areas like health and eldercare, childcare, daily essentials, cooked food and financial services. Serving over two million customers, NTUC Enterprise wants to enable and empower all in Singapore to live better and more meaningful lives.
About Kopitiam Investment Pte Ltd
Founded in 1988, Kopitiam Investment Pte Ltd’s (“Kopitiam”) portfolio spans 80 outlets islandwide, including the famous Lau Pa Sat Festival Market. Kopitiam outlets are known for diverse, authentic and affordable food choices in convenient and comfortable settings. Kopitiam offers customers a unique stored-value card for cashless dining at all its food outlets, which is currently used by approximately 1.8 million cardholders across Singapore.