SINGAPORE — In a bid to expand the footprint of its economy-rice chain, Rice Garden, which offers cheaper meals to lower-income individuals, NTUC Foodfare is offering a package of benefits — including a one-time start-up grant of up to S$20,000 — to hawkers interested in setting up their own Rice Garden stalls.

The programme, launched today (Nov 27), is open to both new and existing food-stall operators. Apart from the start-up grant, stall owners will also receive a monthly grant of S$4,000. These stalls can operate anywhere, and not only in Foodfare’s coffee shops and food courts.

Foodfare, which currently has 15 Rice Garden outlets, all run by Foodfare staff, hopes to widen the reach of its Rice Garden brand with the initiative as well as provide a “great opportunity for … hawkers to do good while running a business and earning a living”, said Foodfare chief executive officer Perry Ong.

Rice Garden offers subsidised meals to NTUC Foodfare privilege and ComCare cardholders, who can buy an economy rice set consisting of one meat and two vegetable dishes for S$1.50. Concession cardholders can purchase the same meal at S$2.50.

Those who join the Rice Garden Business Community Partnership Programme will also offer subsidised meals, and sign a contract that runs up to three years.

They will have to place a refundable deposit of S$300 and set aside about S$2,000 for items such as crockery, uniforms and utensils.

Foodfare will also own any equipment paid for with the start-up grant.

The stall owners also have to commit to a monthly minimum bulk purchase of between S$5,000 to S$10,000 worth of sauces, pastes and pre-packed raw materials from the Foodfare Central Kitchen, depending on the size of the stall.

Purchases in excess of the bulk purchases would incur a 25 per cent administrative fee, but for every extra S$1,000 spent, the stall owner or hawker will be given a S$200 rebate.

Foodfare said the administrative fee is necessary as the bulk purchase prices are already cheaper than those of other suppliers. Stall owners also have to use healthier oils, and operate at least five days a week and serve at least two meals a day.

Apart from the financial aid, pre-opening support such as business-planning preparation and marketing launch programmes will also be provided, along with two weeks of job training. Stall owners and hawkers will also be provided with free collaterals such as menu signs and flyers.

Foodfare is aiming for at least 10 takers for the programme. Two have already joined: Kimly, which owns a chain of economic rice stalls, and Madam Diep Phuong Mai, an ex-Rice Garden employee.

Kimly has converted two of its stalls — in Ang Mo Kio and Serangoon North — into Rice Garden outlets. Kimly general manager Vincent Chia said that the sheer volume of customers served at the two stalls as a result of the cheaper meals more than offsets the low prices.

Commenting on the benefits of the programme, Mr Chia said S$20,000 should be enough to fully cover the costs of renovating, and purchasing equipment, for a small hawker stall.

The S$4,000 monthly grant, on the other hand, would be more helpful to smaller stalls and new entrants to the business. The monthly expenses for a large Kimly stall of about 140sqf at a coffee shop are about S$40,000, with around S$22,500 going to food costs, S$14,000 for hiring four full-time workers and one part-timer, S$1,500 to paying for gas and electricity, and S$6,000 for rent, he added.