Daniel Ong Says His F&B Business is ‘Game Over’ With $60K Expenses Monthly & Pleaded for Help

The coronavirus isn’t just hurting people’s health.

It’s also hurting people’s livelihoods: you might not have friends who’re infected with the virus but you’d definitely have friends who’ve gone on unpaid leave or lost their jobs.

And for bosses, it hurts them even more because this unforeseen outbreak could break a business within days, rendering them bankrupt in a month.

And Daniel Ong, an outspoken radio DJ and TV host who’s also well-known for both the one-half of Twelve Cupcakes and the ex-husband of Jamie Teo, is showing us the numbers.

No Crowd in CBD But Still Have to Pay Rental

If there’s something you need to know about Daniel Ong, it’s that he’s a good businessman.

The brain behind Twelve Cupcake turned the $80K business into a multimillion F&B chain that has stores in almost every mall you step in, and sold it in 2017 to a listed company.

That made him so rich, his house has an indoor garden filled with fake plants that serve as an air well:

Yes, I know: it’s precisely because we don’t know what the heck is an air well that makes it so exclusive.

The man’s still running countless businesses, but one of which is so in the red that it’s “game over”.

Plead for Help in Instagram

Rookery Singapore is a café in the day and restaurant bar at night—a perfect combo for an F&B outlet in CBD. It has three outlets there: at China Square, Hong Leong Building and Capital Tower.

Founded by Daniel and his two friends, it even had live bands, making it one of the goody places to unwind after a long day at work in the competitive CBD.

View this post on Instagram

Let’s celebrate the end (well almost) of another week. Get smashed over some wicked tunes, with the one and only @shirlynandtheunxpected . . . From 8pm till late. Only at Rookery China Square. . . . Rookery China Square 20 Cross Street # 01-19 S048422 Phone: 6304 7991 . . . Opening Hours: Mon to Wed 8am to 11pm Thurs/Fri 8am to 1am Sat 11am to 8.30pm

A post shared by Rookery Singapore (@rookerysg) on Mar 19, 2020 at 3:18am PDT

But there’s, of course, just one problem, as shown by this taxi driver:

CBD is now as empty as my bank account.

Since all the premises are offices, many people have been told to work from home instead.

And that poses a serious problem for a business like Rookery Singapore which depends solely on high footfall from the CBD crowd.

Daniel Ong posted this hours ago, pleading his landlord to give him a chance:

View this post on Instagram

Ran outta space…continued… In the coming days, if the government decides to have a no dine in rule for restaurants. Or a shut down of any sorts. It’s truly game over. For the whole industry. Many have asked me to consider a take away and a online alternative. Ta pau. Truth is, we are in the CBD. Half now work from home. No workers means no sales. Also it’s difficult running a take away biz in a space that costs 25k. And staff that cost 40k. Stall holders rents are much lower to make any sense. But we will try. I owe it to my team to try. The only way now is if there’s such a measure, that you waive rentals. Cash flow is severely affected. Like all businesses now… like hotels…no sales means we can’t even make ends meet. Pay staff. Or suppliers. We are asking for you to look at us as partners. Giving us a 2-4K discount on a 25k rent really just delays the inevitable. On behalf of all small biz owners in all the malls, and cafes, and commercial buildings. And everyone affected in the service and retail space… Just. Give. Us. A. Chance. When times are good… we pay GTO. On top of rent… we’ve also paid rentals that have doubled or tripled over the years. It’s a give and take relationship. Can you be on the other side for once? I’m pleading. Coz past this next few weeks… we are all not going to make it. Defaults at 50% or more. It’s dire now. And we can’t wait for two weeks for an email reply for you to check with your bosses…we are going down now. Now. We are in this together. ?????? #sgunited #singapore #covid #savefnbsg #struggling #sinking #help #savejobs #save #singaporeans #staff @hengsweekeat @leehsienloong @[email protected] @straits_times @fraserspropertyretail @citydevelopments

A post shared by Daniel Ong (@daniel_ong_singapore) on Mar 28, 2020 at 12:39am PDT

In his caption, he mentioned that the space costs $25K (most likely per month lah) and manpower costs $40k a month.

With many people in CBD telecommuting, they’re hit very badly.

While other F&B businesses can depend on food delivery to at least tide over the extremely slow period, he can’t do so since there’s no one near his restaurant at all.

Or in the words of the taxi driver, “Bo lang.”

According to the post, there is been $2k to $4k discount on the rental, which most probably is encouraged by the Government’s earlier measure that reduces property tax so that the savings can be passed down to tenants like Daniel Ong.

However, Daniel wrote that the amount just “delays the inevitable”.

He then alleged that rental has doubled or tripled through the years, and pleaded for the landlord to “be on the other side for once”.

It seems like the landlord is checking with their bosses on Daniel’s request, but Daniel claims that he can’t wait for two weeks for an email reply.

In his post, he tagged a few developers (maybe his landlords?) and even tagged our PM Lee Hsien Loong, DPM Heng Swee Keat and NTUC Head Ng Chee Meng, together with The Business Times and The Straits Times.

The guy’s going all out, man.

Solution: Waive Rent for 2 to 3 Months?

In an earlier post, he posted this which is less emotional with facts:

View this post on Instagram

Thank you. ? Had a small rant in stories about the situation on ground on the singapore FnB scene in SG. ?? I received hundreds of replies. ??Solidarity, words of encouragement, solutions, some with just standing shoulder to shoulder with me. With all my heart. ❤️ Thank you. Truth is, being a small business owner is so damn tough. Through all the ups and downs, the losses, the tough work. The daily challenges. The never ending meetings. And more. It never ends. But through this covid episode, my heart goes out most to my teams… they believed in me. They count on me. And I cannot help but feel like I’ve let everyone down. ? I’m writing this plea as a small operator of 3 restaurants to landlords in singapore. And am representing hundreds and hundreds of small businesses in echoing the need for your support. We need your help now.. If not now… then never. Coz we WILL cease to exsist. Like @willcookwilleat said…” You are a garden, and when we bloom… your garden looks good… and what is a garden without flowers?” We are dying here. Ina business of single digit profits. Having your top line decline by 70-80% only means there’s no way we can sustain this. No matter how deep your pockets. Over the years, you’ve made hundreds of millions for your organization and shareholders. It’s time to support the very people who fill your malls and properties. Waive rents for 2-3 months. Give us a fighting chance. As at right now, we are not going to make it. If you do not do anything meaningful, defaults will happen, no one will open anything in this climate, and your properties will remain empty till the end of year or till when a cure is found. It’s a lose lose situation. Or you can dip into your deep reserves to help tenants this year… The retail Industry may not recover if too many players go bust during this period and it affects your long term profitability. You are protecting profit, we are just trying to survive and help our fellow singaporeans and livelihood and Jobs. Do the right thing. Follow the example of our countries leaders and help us all in our time of need. @leehsienloong @hengsweekeat

A post shared by Daniel Ong (@daniel_ong_singapore) on Mar 28, 2020 at 12:22am PDT

In it, he said that business has dropped by 70% to 80%, and sought for a waiver of rental for 2 to 3 months for a “fighting chance” if not they’re “not going to make it”.

Which’ll of course lead to the next question: Isn’t the Government helping?

Government’s Resilience Budget

Just two days ago, DPM Heng announced the Resilience Budget, a second support package for Singapore businesses and Singaporeans who are hit badly by the COVID-19.

This package costs the Government a whopping $48.4 billion, with $17 billion coming from Singapore’s reserves.

Does any of them help Daniel’s business?

Let’s take a look.

• Property tax rebate increase (but whether the landlord will pass the savings to tenants is another story altogether)
• Wavier of rental for 0.5 to 3 months for Government-managed properties (doesn’t seem to apply to him as his place is in a commercial building)
• More business loans (a feasible solution for him to tide over this stormy period)
• More training funds (not relevant to him)
• Government paying 50% of wages for each Singaporean for F&B sector (very relevant to him; every Singaporean employee in his restaurant will have 50% of their salary being paid for by the Government!)

So, while everything looks gloomy, there might still be help.

But of course we peasants who live in HDB with no air well won’t understand the pain. We should be glad that we’re still drawing a salary at the end of every month?

Erm…we are, right?

Boss?