Founder Bak Kut Teh Closing Bugis Branch, Opening China Franchise Outlet Instead

It has been a tough few months for Founder Bak Kut Teh. The beleaguered local bak kut teh chain first made headlines in July when its second-generation owner, Nigel Chua, issued an open plea on social media. In the plea, the 45-year-old called for public support to save his Covid-19-hit business, which he said was in imminent danger of closing “if we don't turn around in the next two months”. The chain, popular with tourists and stars like Jay Chou, saw a drastic drop in customers after Singapore closed its borders during the pandemic.

Netizens, however, lambasted the plea. Rumours swirled about Nigel’s apparently vast personal wealth — he later clarified with 8days.sg that contrary to online comments, he does not drive a sports car or stay in landed property (while he currently lives in a five-room HDB flat in Hougang, he co-owns three condominium properties with his father and sister). His Audemars Piguet watch, which he was spotted wearing in a heavily circulated press photo (above), was also a “second-hand” model.

When we anonymously checked on Founder’s four outlets a week after Nigel’s public plea was issued, his staff told us that while the eateries enjoyed a brief surge in sales, the foot traffic tailed off after just a few days.

Founder unexpectedly came under scrutiny again yesterday, when it was mentioned in an article by The Straits Times that the brand was opening an outlet in Chengdu, China. Considering the company’s current struggles, the move left netizens scratching their heads.

In an e-mailed statement shared exclusively with 8days.sg, a spokesperson for Founder explains that the upcoming Chengdu outlet is a franchised one that is funded and managed independently from Founder Bak Kut Teh Singapore.

The statement adds: “[We] would like to clarify that our China franchisee (not us) has actually planned for this shop opening more than a year ago [before the Covid-19 pandemic happened]. This new outlet opening is a pure franchise model which is 100% funded by our Chinese partners.”

Founder currently has four overseas franchised outlets bearing its name, in Hangzhou, Jakarta, Taipei and Ho Chi Minh City, and it earns a franchise income by taking a percentage of the outlets' sales.

In the same statement, the chain drops the bombshell that it’s quietly closing its Bugis branch tomorrow (October 1). The statement reveals: “In the meantime, business in Singapore is still dire. We are closing down our Bugis outlet starting from tomorrow, on October 1, 2020. Today is actually our last day of operations at Bugis.”

According to the statement, shuttering the outlet was a move to save Founder’s business: “Times are really hard, and we are really trying our best to keep the business in Singapore afloat. Please understand our circumstances, we hope this statement quells any further speculations. Thank you.”

PHOTOS: FOUNDER BAK KUT TEH