The big players simply do not care: Flor Patisserie refutes Ervin Yeo, questions rent model’s sustainability

Flor Patisserie, a Japanese‑style cakeshop based in Siglap Drive, launched a forceful rebuttal on 9 June 2025 against Ervin Yeo, Chief Strategy Officer of CapitaLand Group. In a LinkedIn post, Yeo defended existing market dynamics, but the patisserie questioned the sustainability of Singapore’s rent model. “To them, your craft, your perseverance in offering something fresh—something not churned out days in advance from a central kitchen—is nothing more than a datapoint on their rental yield curve. " "And if that number doesn’t align with their projections, it’s goodbye to you and hello to the next trendy concept,” the shop lamented. Flor Patisserie argued that big landlords view rent purely as numbers on a spreadsheet—with no empathy for the dreams and efforts of small‑scale operators.

The rent hike that sparked outrage

Last month, Flor Patisserie revealed that its Siglap Drive outlet is closing after their landlord allegedly demanded a 57 per cent rent increase—from S$5,400 to S$8,500 per month—upon lease renewal. The shop described this as emblematic of the broader “social cost of landlords exchanging the hopes and dreams of young Singaporeans for greater profits.” In the Facebook post on 9  June, the patisserie owner upheld rent as a fixed, immovable weight. The shop acknowledged other pressures—labour shortages, rising costs of ingredients and goods, sluggish market demand—but stressed that rent, the owner argued, erodes both margins and morale when driven by short‑term profit chasing.

CapitaLand’s Ervin Yeo cautions against rent control, calls for flexible policies to support retail

In his LinkedIn post earlier the same day, Yeo cautioned against rent control, asserting that artificially suppressed rents can undermine business reliability. He likened rent controls to hawker‑centre models, where stallholders—due to minimal rents—operate erratically, weakening customer trust. He warned rent suppression would destabilise retail and F&B ecosystems, adding that vacancy taxes would likely have limited effect since landlords were naturally driven to lease due to mortgage obligations. Yeo also cautioned against protectionist policies that would disproportionately target Chinese brands—observing that Western entrants receive less scrutiny. Yeo further highlighted the efficiency of Chinese retail and F&B chains, citing centralised logistics and scale economies. He cautioned that improperly applied policies could hamper Singapore’s open, competitive ethos, which he believes raises industry standards. Yeo recommended temporary Development Charge (DC) relief as a better alternative to rent control. He said land now comprises around 70 per cent of development costs—up from 4 per cent in the 1980s. He pointed out that retail rents in Singapore remain below pre‑pandemic levels, with URA data showing rents in central and suburban areas down over 22 per cent between Q4 2019 and Q1 2024. Occupancy Cost (OC)—a measure of rent affordability—stood at 17.1 per cent for CapitaLand’s malls and 16 per cent for Frasers REIT in 2024, suggesting sustainable levels. Yeo also cited that retail sales have grown faster than rents since 2018, noting CICT’s 8.8 per cent rental reversion in 2024 merely reflects gradual adjustments in leases, not steep hikes seen in individual properties.

Yeo’s rent comments spark wider debate on policy gaps and landlord-tenant alignment

Yeo’s colourful comparisons and economic defence soon drew sharp criticism from business leaders and political figures. GE 2025 independent candidate Jeremy Tan and Metro department‑store CEO Erwin Wuysang‑Oei voiced concerns about the impact of rising commercial rents on SMEs. They dismissed simplistic explanations, instead citing structural issues like speculative land acquisitions. Many commentators challenged the ability of Occupancy Cost to reflect real pressures on retailers. Calls mounted for a comprehensive review of Singapore’s rental‑policy framework. Several business leaders stressed the need for stronger landlord‑tenant alignment. Proposed measures included ecosystem models featuring shared KPIs, integrated loyalty schemes, and joint marketing efforts—designed to deliver sustainable success for both parties.

SGTUFF challenges landlords’ stance, pushes for urgent rental reform to protect SMEs

On 12 June, Singapore Tenants United For Fairness (SGTUFF) responded to landlord defences, highlighting the pressing need for rental‑structure reform to ease SME burdens. They suggested short‑term reliefs and long‑term policy changes, such as rental caps tied to inflation and rethinking national land‑use and urban planning frameworks. In a sarcastic rebuttal to Yeo’s claim that no tenant had complained rent was too low, SGTUFF said: “We have never heard any landlord complaining that rentals are too high either.”

KF Seetoh weighs in

On 16  June, veteran food critic KF Seetoh entered the debate. He emphasised that the issue extends beyond the divide between home‑based and commercial eateries. Seetoh pointed to the supremely high costs of doing retail and F&B in Singapore, noting that competition touches even HDB neighbourhoods and hawker‑centre bids. He further cited the manpower crunch: if national agencies struggle to recruit locals and increasingly rely on foreign labour, SMEs have little hope of securing sufficient local staff. He criticised main stream media discussions comparing upscale restaurant groups (like Unlisted Collection) with more traditional eateries (like Lucky Garden), calling such comparisons shallow. “No one broke any laws. It’s the laws itself that needs fixing. " "That's what needs to be look at majorly. Otherwise, spare us another page or post about closures and hardship in the SME industry. It's not news.”