Coffee Shop Market Heats Up: In the vibrant landscape of Singapore’s kopitiams, a coffee shop in Serangoon Central Drive is making headlines for its impending sale at a staggering S$40.5 million. The announcement comes on the heels of last year’s notable transaction where a kopitiam in Yishun fetched S$40 million, capturing attention for its high valuation. However, the record for the most expensive coffee shop sale in Singapore was set in July 2022, with a Tampines establishment commanding an eye-watering S$41.6 million.
Wan Jin Coffeeshop, located at 261 Serangoon Central Drive, is set to join the elite list of kopitiams that have crossed the S$40 million threshold. Spanning an area of 390 square meters or approximately 4,198 square feet, the coffee shop’s impressive valuation equates to nearly S$10,000 per square foot. This surpasses the per-square-foot prices of the Yishun kopitiam (S$9,361) and the Tampines coffee shop (S$6,964), making it a historic deal in Singapore’s property market.
While the caveat for the coffee shop, filed in September, reveals a remaining lease of 65 years, the buyer, identified as “AMK Food Court,” remains optimistic about the investment. AMK Food Court, the owner of Broadway Food Centre, sees potential in this strategic acquisition.
Wan Jin Coffee Shop, boasting 13 stalls including popular options like Fried Rice King and Yishun 925 Chicken Rice, is a bustling hub for locals. Its enduring popularity, evidenced by long queues at its stalls, has contributed to the high valuation. However, there is concern among the hawkers and locals about the potential impact of such a high sale price on stall rental prices. The sale of the Tampines coffee shop led to a reported rise in rental prices to S$10,000, prompting some stalls to relocate. Similarly, the Yishun kopitiam saw several stalls moving out following its S$40 million sale in July last year.
As the record-breaking coffee shop deal in Serangoon Central Drive unfolds, the spotlight is on whether this historic transaction will usher in changes to Singapore’s kopitiam landscape, particularly for the food stall holders and patrons who frequent these beloved establishments.
Our Reader’s Queries
What is the coffee shop trend in 2023?
One of the latest trends in the coffee industry is carbonation. Many independent coffee shops are now adding fizz to their beverages by using tonic or sparkling water instead of flat H2O. This innovative idea has gained popularity among coffee enthusiasts and has become a simple yet effective way to enhance the taste of coffee.
Is the coffee industry growing or declining?
By 2024, the Coffee market in the United States is expected to generate around US$11.4bn in revenue. Over the next four years, it is projected to grow at an annual rate of 3.01% (CAGR 2024-2028).
What is the trend in the industry of coffee shop?
Sales for U.S. coffee chains have surged by 10% from June 2021 to June 2022, bringing them closer to pre-pandemic levels. Additionally, the market has expanded as chains have increased their presence, resulting in a 2.8% increase in branded coffee shops compared to pre-pandemic numbers. Despite early COVID-related closures and staffing challenges, the coffee industry has shown resilience and growth in the face of adversity.
What is the future of the coffee shop industry?
The coffee shops industry is set to experience significant growth between 2023 and 2030. Currently, the market is growing steadily, and with the implementation of effective strategies by key players, it is expected to continue on an upward trajectory. This trend is projected to continue well into the future.