Housing and Development Board coffee shops will no longer be required to offer budget meals, following changes aimed at making the scheme more sustainable for operators and stallholders. Instead of a mandatory requirement, coffee shop operators can now opt to participate in the initiative.
In a media release issued on Saturday, the Housing and Development Board stated that operators who opt in will receive incentives, such as discounts on rent or Temporary Occupation Licence fees. According to the Housing and Development Board, this approach allows for flexibility while still maintaining affordable food options for residents.
Optional Participation and Revised Requirements
Existing rental coffee shops are no longer required to provide budget meals when renewing their tenancies. Privately owned coffee shops can also opt out of the scheme with immediate effect. At the same time, the Housing and Development Board has standardised the budget meal requirements across operators.
Previously, operators were required to offer between two and six budget meals. Under the revised framework, operators who participate must now provide three meal options. These include an economy rice option with rice, one meat, and two vegetable dishes, a Halal meal option, and a breakfast item. The requirement to offer two budget drinks remains unchanged.
Budget meals are typically priced at about three dollars and fifty cents, while budget drinks cost around one dollar and twenty cents.
Concerns Over Costs and Quality
Housing and Development Board said coffee shop operators and stallholders had raised concerns about rising operating costs and low take-up rates. In 2023, some hawkers told CNA that they faced difficulties continuing the initiative due to increasing expenses.
Residents also shared feedback that the quality and portion sizes of budget meals varied across locations. Housing and Development Board noted that requirements differed depending on whether a coffee shop was rented or privately owned, leading to uneven offerings.
In October last year, CNA TODAY reported that none of the forty budget meals assessed met the Health Promotion Board recommendations.
Increased Support for Operators
Previously, rental coffee shop operators received a five per cent rent discount for one year when they joined the initiative. With the updated scheme, the same discount will now apply for the full 3-year tenancy period.
Privately owned coffee shops, which previously received no financial support, can now receive a Temporary Occupation Licence fee discount for outdoor refreshment areas. Housing and Development Board said operators must pass the full discount to stallholders.
“To ensure this, Housing and Development Board will require operators to sign a letter of undertaking and declare how the discount is being shared amongst the stallholders who are offering the budget meals,” it said.
Rent Transparency Measures
The Housing and Development Board will also begin collecting stall rent data to improve transparency. While most rents have remained stable over the past three years, concerns remain about high rental markups.
“By requiring tenderers to commit to tendered rent over a longer period, our aim is to encourage tenderers to bid prudently.”
