Lost $1 million in 2025 on just one restaurant.
Ben Yeo Shutting Fancy Chinese Restaurant After Suffering $1Mil Loss Over 2 Years
“Our mistake was spending too much on renovations. It’s very difficult to recover our [$1mil] start-up cost,” says the Mediacorp actor.
Ilsa Chan
02 Jan 2025 at 20:58
Tan Xiang Yuan, the modern Chinese restaurant opened by Mediacorp actor
Ben Yeoand his four partners, will be closing its doors after two years.
Situated in a two-storey conservation house in Little India, the restaurant, which offers mid- to high-end Chinese cuisine, has been “bleeding money” to the tune of $1 million, so they decided to cut their losses and shut the business.
“Our mistake was that we spent too much on renovations. It’s very difficult to recover our start-up cost,” admits Ben, 46.
The chic restaurant, which
opened to much fanfare in November 2022, cost almost $1 million to set up. The bulk of the cost was spent on renovations and outfitting the detached house — around $800K.
“If we had spent less, we would probably still be operating. It’s the start-up investment that killed us,” he tells
8days.sg.
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Incurred losses of $20K to $40K on bad months
Ben and his partners, who also own zi char concept
Charcoal Fish Head Steamboat Restaurant, retro-themed
kopitiam Tan Xiang Chai Chee and
beer garden Playground, had projected the restaurant would break even within two years.
However, operating at its current location at Little India has been challenging. Not only is there a lack of parking and shelter in the vicinity, the business takes a big hit during the rainy season as the majority of their 80 pax seating is outdoors.
“We foresaw these problems, but we didn’t think they would affect us so badly,” shares Ben.
“When business was good, we made money but even then, it was not fantastic. But in bad months, the losses were tremendous, around $20K to $40K per month. Perhaps this location is not suitable for our concept.”
Mulling closure for a year
The decision to shut was a difficult one and something the guys had been mulling about for a year. The business had turned a small profit in the first year and they expected the second year to be more challenging.
“Despite this, we decided to take the risk and push on for another year. However, business took a turn for the worse, partly due to the economy and competition from overseas brands. 2024 has been bad for F&B,” he says.
Tan Xiang Yuan’s last day of operations will be on February 12, the last day of Chinese New Year, and Ben has invited customers to visit the restaurant for its last hurrah.
“We had initially planned to close in December, but there were a lot of bookings for Chinese New Year. We didn’t want to disappoint our customers, so we pushed back our closing. We hope to let our regulars spend the last CNY with us at this location,” shares Ben.
Besides CNY set menus, there are also promotions like $1 Peking duck or free Typhoon Style Lobster (around 500g), worth $98, with an order of their Signature Seafood Steamboat (from $98 for about five pax). This will be available till their last day (excluding eve of CNY).
Open to making a comeback
However, this may not be goodbye for good.
Ben does not rule out Tan Xiang Yuan making a comeback in future should a suitable location become available: “Our customers like our food, so perhaps we will offer a slightly different concept like private dining. Most importantly, it will be in a smaller space so overheads are not so high, and we can better manage the business.”
Moving forward, he will focus on growing their Charcoal Fish Head Steamboat brand, which has three outlets in Kallang, Woodlands and Chai Chee.
According to Ben, the brand is “doing okay” and they hope to open one more outlet in 2025.
“Our goal is to have more tourists recognise our brand, so when they come to Singapore, our fish head steamboat outlets will be one of their must-visit places,” he says.
Tan Xiang Yuan will operate until Feb 12, 2025, at 1 Dickson Rd, S209493. Open daily 12pm-2.30pm; 5.30pm-9.30pm. Tel: 8058 5527. More info via Instagram.
Photos: Kelvin Chia
