Restaurateur Chef Bob says business 'bleeding' as food costs rise amid Middle East conflict
Despite the steep price hikes for ingredients, the celebrity chef who runs 9Yards is not passing on the added cost to his customers for fear of “scaring them away”.
Chef Bob says his business is "bleeding" with the rising costs of ingredients due to the Middle East conflict. (Photo: Mediacorp, 9Yards)
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Chef Bob (TV personality and entrepreneur Shahrizal Salleh), who runs 9Yards, a casual eatery specialising in nasi lemak, said his business is currently hit by rising ingredient costs. He attributes the price hikes to the ongoing Middle East conflict.
Located at Village Hotel Changi, the 60-seater opened last November and serves nasi lemak from S$6.90 for a chicken wing set to S$9.90 for options like beef bulgogi, alongside snacks and drinks. The brand also has an outlet in Kota Warisan, Malaysia.
In a recent Facebook post, the chef shared that coconut milk prices have jumped from S$4.70 to S$6.30 per litre – a 34 per cent increase that significantly impacts his food cost. While his suppliers did not explicitly state the reason behind the hike, he said the cause is clear.
“We already expected it, because of the ongoing war. With the oil price hike, it’s a domino effect, everything else will also go up,” he told 8days.sg.
And it’s not just coconut milk. “Everything, even other raw materials and vegetables, has gone up at least 20 to 30 per cent, which is a significant hike because of the volume that we are cooking.”
“Vegetable oil used to be S$29 to S$35 for 17kg, right now [it] can go up to S$34 or even S$54 for 17kg,” he said, with a defeated chuckle.
That’s an increase of roughly 17 to 54 per cent. He explains that the wide price range comes down to quality. “It depends on the grade of cooking oil.”
As a result, he has had to make compromises. “So now, we have no choice but to go for the cheapest vegetable oil, which is also not as good for our health because the cheapest one might be [of] lower quality," he said.
“The price hikes are so steep and they include diesel, which vehicles use to deliver our ingredients.”
Despite rising costs, Chef Bob is not passing on the added costs to his customers – a decision he admitted is far from easy. “It’s very challenging because for F&B, our profit margin is already very slim. Any price increase will makan into this [already thin] profit margin.”
“It’s because we [are] scared to scare away our customers. If we increase our prices, we may lose even more in sales,” he reasoned.
He added that smaller operators like himself are at a disadvantage compared to larger restaurant groups that can buy ingredients in bulk and absorb costs more easily.
“Right now, if we can get 10 per cent profit it is good enough. I have kept my food costs at 30 per cent, but we are bleeding at the moment.”
To add to his growing list of challenges, the chef has just opened a new kopitiam, Rahsia Bidadari, at Alkaff Crescent in partnership with Singaporean entrepreneur Kai Emilio. “We just opened a kopitiam, and with the current price increases, we are shocked as money is flowing out, but there’s no money flowing in,” he lamented.
At the new eatery, his team operates multiple stalls selling drinks, nasi lemak (with a padang-style option), fried snacks, mamak stall food and wok-fried dishes. The kopitiam is currently in its soft launch phase, with its official opening slated for May 1.
Still, Chef Bob remained cautiously optimistic: “We need to bite the bullet for now. I believe things will stabilise soon. It all boils down to supply and demand, hopefully people will still go out and makan.”
For now, there is no fallback plan, as he put it plainly: “There’s no plan B for now, because we just opened the kopitiam.”
He added: “For now, we are stable for the next six months. After six months, we don’t know what will happen,” noting that this applies across all his F&B businesses, including 9Yards.
Beyond his own businesses, Chef Bob said the situation is affecting the wider F&B scene. “With all my peers in F&B, [rising food costs is] the talk of the town right now,” he said.
Despite the challenges, the chef's approach has been guided by his focus on long-term customer trust.
“In business, we just need to put in the effort because I believe it is all pre-destined. Whatever we do, we need to be genuine,” he said.
He emphasised keeping prices fair and food standards consistent, adding: “When we offer food, it needs to be at a price that customers can accept, we need to be affordable and trustworthy”.
Amid rising costs and the ongoing Middle East conflict, he hopes diners will be more understanding of the pressures F&B businesses are facing behind the scenes.
“Sorry to say this, but people are very entitled right now. It doesn’t mean just because they pay for the food, they can talk bad about a business,” he says. “You can make or break a livelihood [with words] but they don’t see that, they just want to go viral,” he added, referring to the trend of negative food reviews on TikTok.
With no clear signs of costs easing, he said operators like himself can only adapt and push forward, all while hoping customers will continue to support local businesses like his during this trying period.
9Yards is located at #01-05 Village Hotel Changi, 1 Netheravon Rd, S508502. Open Friday to Saturday from 8am to 3am; Sunday to Thursday from 8am to 10pm. More info via Instagram.
This story was originally published in 8Days.
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