Six months ago, the operator of the food court in Midview City told me that he is not continuing the lease, as the rental is going up by a large percentage. A few of the stalls could not survive and had moved out.
I just learned that the successful stalls are also moving out this week. They were uncertain about the terms of the renewal of their stalls and had signed up at other places to continue their business.
The management office had decided to operate the food court directly (most probably because they could not get another operator) and had offered to renew the tenancy for the existing stalls at the last minute (but they had already signed up elsewhere).
It is very wasteful for the existing stalls (which were doing well here) to move out and set up business elsewhere, and for the management office to look for new stalls to come in.
This is a consequence of the practice that is quite common in Singapore, where there is uncertainty of tenure and the prospect that rentals will continue to be pushed up, beyond an affordable limit. And in the process, there is so much wastage.
Singapore has many wasteful practices!
I just learned that the successful stalls are also moving out this week. They were uncertain about the terms of the renewal of their stalls and had signed up at other places to continue their business.
The management office had decided to operate the food court directly (most probably because they could not get another operator) and had offered to renew the tenancy for the existing stalls at the last minute (but they had already signed up elsewhere).
It is very wasteful for the existing stalls (which were doing well here) to move out and set up business elsewhere, and for the management office to look for new stalls to come in.
This is a consequence of the practice that is quite common in Singapore, where there is uncertainty of tenure and the prospect that rentals will continue to be pushed up, beyond an affordable limit. And in the process, there is so much wastage.
Singapore has many wasteful practices!
1 comment:
Greedy landlords trying to bleed more rent from stalls.
The kopishop at 1 Commonwealth went bankrupt & is replaced with Samsung service centre.
Peasants would rather eat behind at the coffeeshop in JTC or the 3 nearby hawker centres.
People ought to vote with their wallets more.
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