SINGAPORE — NTUC Enterprise is set to buy over home-grown food centre operator Kopitiam by the end of the year for an undisclosed sum, the two entities announced on Friday (Sept 21).
The sale to NTUC Enterprise, subject to regulatory approval and other conditions, will bring Kopitiam's 80 establishments including food courts and hawker centres, under its fold.
NTUC Enterprise — the largest shareholder of the labour movement's social enterprises —declined to disclose the value of the deal.
After the takeover, NTUC Foodfare – which is overseen by NTUC Enterprise and has 33 food centres – 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," the two organisations said.
NTUC Enterprise and Kopitiam are both committed to protecting 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. – Mr Lim Bee Huat, chairman of Kopitiam Investment
The transaction is part of "NTUC Enterprise's social mission to ensure that cooked food remains affordable and accessible to the Singapore community," NTUC Enterprise and Kopitiam said.
Right now, to keep costs low for consumers, NTUC Foodfare's outlets offer budget meals.
Each stall at its coffee shops offers such meals from S$2. At its Bukit Panjang, Kampung Admiralty and Pasir Ris Central hawker centres, these meals start from S$2.80.
The only exception is the food courts that it runs, which do not offer budget meals. Instead, union members can buy "value meals" with savings of up to 15 per cent.
Asked if these arrangements would be expanded to Kopitiam food centres after the sale, a spokesperson for NTUC Enterprise said that it does not have the specifics of the initiatives that may be rolled out, as the transaction has not been completed.
"We are exploring ways to extend some of our existing initiatives, such as increasing the number of Rice Garden stalls at various consumer touchpoints," she said, referring to NTUC Foodfare's social-outreach programme offering affordable and nutritious meals from S$1.50 to lower-income consumers, among other groups.
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. - Mr Kee Teck Koon, executive director of NTUC Enterprise
Other initiatives that could be expanded include healthier food options, such as diabetic-friendly meals. More details will be announced after the sale is completed, the NTUC Enterprise spokesperson said.
Kopitiam, which was founded in 1988, operates 56 food courts, 21 coffee shops, three hawker centres and two central kitchens, dishing out about 350,000 meals daily. It manages more than 1,000 food stalls and employs over 1,000 people.
NTUC Foodfare runs 14 food courts, 10 coffeeshops and nine hawker centres.
On whether Kopitiam's popular prepaid stored-value cards will continue to be in use, NTUC Enterprise's spokesperson said there are no plans to change existing customer-loyalty programmes at this point.
Users may also continue to use NTUC Foodfare's applications and union membership cards at NTUC Foodfare outlets, added the spokesperson.
The deal could make NTUC Enterprise the largest operator of food centres here. When asked how it would seek to prevent anti-competitive practices from creeping in after the deal goes through, NTUC Enterprise did not respond directly, saying it was in the process of "seeking the necessary approvals".
TODAY has contacted the Competition and Consumer Commission of Singapore for comment.
https://www.todayonline.com/singapore/ntuc-enterprise-buy-over-kopitiam-deal-expected-years-end
