It was announced today that local food court operator Kopitiam Investment will be acquired by NTUC Enterprise with an undisclosed figure by the end of the year which will bring all of Kopitiams outlets islandwide under the NTUC umbrella, including the Lau Pa Sat Festival Market.
In a statement, it was said that NTUC Foodfare, the F&B arm of NTUC Enterprise, and Kopitiam will still operate as separate entities after the deal, complete with their own management team and staff.
"Customers, employees, stall tenants and other stakeholders can be assured that business will continue as usual," the joint statement said. In response to queries, Channel NewsAsia reports that business as usual means that existing customer loyalty programmes will remain and Kopitiam’s store value cards can still be used.
The statement goes on to say that the new arrangement will see both companies “work together to leverage mutual capabilities and seek out common opportunities for synergies, including the use of technologies".
Kopitiam chairman Lim Bee Huat said, “NTUC Enterprise and Kopitiam are both committed to protecting the interests of our customers and the livelihood of our stall tenants,” adding that he is confident that NTUC Enterprise will bring Kopitiam to new heights.
As the fine details of this new deal are unclear, so it is still uncertain what kind of cost-saving measures NTUC Enterprise will be putting in place for the Kopitiam stall vendors.
But with the acquisition of Kopitiam, this would likely mean NTUC Enterprise is in the position to monopolise the industry with both NTUC Foodfare and Kopitiam under its control.
We'll have to wait and see what the new deal encompasses exactly.