Coffee shop operators welcome changes to budget meal scheme, but say challenges remain

Coffee shop operators welcome changes to budget meal scheme, but say challenges remain


SINGAPORE: Coffee shop operators welcomed changes to the budget meal initiative, which will no longer be mandatory amid efforts by the Housing and Development Board (HDB) to make the scheme more sustainable.

From Saturday (Jan 10), existing rental coffee shops are no longer required to offer budget meals at tenancy renewal, while privately owned coffee shops can opt out with immediate effect.

Operators can now decide whether to participate in the initiative, in exchange for more discounts on rent or Temporary Occupation Licence (TOL) fees.

HDB has also standardised the requirements for budget meals, reducing the range from between two and six budget meals to three fixed meal options.

The three options include an economy rice option consisting of rice, one meat dish, and two vegetable dishes, a halal meal option and a breakfast item. The requirement to provide two budget drinks remains unchanged.

Budget meals are typically priced at around S$3.50 (US$2.70), and drinks are priced at around S$1.20.

Mr Hong Poh Hin, chairman of the Foochow Coffee Restaurant and Bar Merchants Association, said the standardisation helps operators define what a budget meal is.

“Because last time when they never clarify clearly, people will say, for example, noodle soup – how to define whether it’s budget or not budget?” he said, adding that some stalls had provided limited sets of budget meals due to the low profit margin.



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