[SINGAPORE] Sixty-year-old family business Swee Choon wants to take its dimsum to the Philippines, after having built a strong base of Filipino customers in Singapore.
Third-generation owner Ernest Ting hopes to formalise franchise plans by next year, betting on regional expansion as he steers through challenging conditions in Singapore’s food and beverage (F&B) sector.
In October, he went on an exploratory trip to the Philippines with Enterprise Singapore, where he pitched to potential franchisees. “The Philippines is a big franchise market, so we went to see and learn,” he said.
The Philippines was chosen because the casual restaurant already receives many Filipino tourists at its Singapore stores.
“I think we’re going to start more in South-east Asia first, because this could be our first franchise project,” Ting said, noting that potential partners in Cambodia and Thailand have shown interest.
While it is still early days yet, Ting already has some ideas for what the first Philippine store could look like.
In contrast to Swee Choon’s bustling 6,000 square foot Jalan Besar flagship, overseas franchise stores will adopt a smaller format of 900 to 1,000 square feet, similar to its Century Square outlet.
Swee Choon will also position itself as a more upmarket brand overseas – comparable to Din Tai Fung or Putien – to justify higher prices.
Without such a rebrand, the equivalent concept overseas would command prices 30 per cent lower than Singapore. A more upmarket concept would leave adequate margins for franchisees.
A franchise model is a more practical choice for Swee Choon’s lean team than self-expansion, Ting said. Opening company-owned stores overseas would require navigating unfamiliar regulatory environments and market dynamics.
Still, even with a trusted local partner, Ting is realistic about the challenges. Dimsum is not an easy concept to franchise, with its extensive menu of handmade items requiring specialised knowledge and central kitchen facilities, he said.
Macroeconomic conditions have weighed on Swee Choon’s topline numbers. As consumers tighten their purse strings and nightlife cools, sales revenue has slowed, Ting said.
The late-night business that once defined Swee Choon’s Jalan Besar flagship has since diminished. Once famous for queues stretching past 1am as clubbers sought post-drink sustenance, the shop is now quieter after midnight as younger consumers drink less and “sober parties” gain traction.
For the current financial year, Swee Choon is slightly below its revenue targets – though its performance remains more resilient than many of its peers, Ting said.
The key, he said, is maintaining price discipline. Swee Choon has not raised prices in 2025, betting that holding the line on affordability will preserve customer traffic even if it pressures margins in the short term.
“What we see in customer behaviour these days, they’re all about value,” Ting said. “If we give them good value for the amount they pay, for the dollar they pay, they’re generally willing to pay.”
The brand’s casual dining positioning – with dishes priced between S$10 and S$15 – provides some insulation from economic headwinds, he added. “People who don’t really want to spend too much on food… can still afford dimsum.”
Despite the contraction in Singapore’s nightlife, Swee Choon will maintain its late-night operating hours, as the post-10pm slot remains a “blue ocean”.
In the Farrer Park area, its flagship faces limited competition beyond fast food and Indian cuisine. Similarly, at heartland locations such as Ang Mo Kio, 10pm to 1am remains a peak period for delivery orders, he noted.
Beyond restaurants, Swee Choon has been diversifying into catering since late 2024. The move was primarily about optimising the central kitchen’s capacity without the risk and capital expenditure of opening new outlets.
The catering business focuses on dimsum with live stations – preparing items such as noodles and char kway teow on site – which differentiates it in a crowded market.
Weekend slots are now regularly booked for children’s birthday parties, with weekday corporate events providing additional revenue.
Still, Swee Choon’s inability to obtain halal certification – as many dimsum items use pork – limits access to large-scale government and corporate events.
Catering is thus not expected to become a big pillar of the business. Ting estimated that it will remain around 10 per cent of revenue, with franchise operations potentially reaching a similar proportion. Restaurant operations will continue to account for roughly 80 per cent of the business.
After opening five new outlets since 2021, Swee Choon is taking a pause on local expansion – but is nonetheless eyeing western Singapore as an underserved market where there is potential for new stores.
Ting sees Swee Choon’s inclusion in the SG Heritage Mark scheme as a “stamp of approval” – recognition that lasting 60 years in Singapore’s competitive F&B landscape is no small feat.
But he harbours no illusions that heritage alone will sustain the business. “Singaporeans complain a lot. Any small thing, they will complain. They are very unforgiving. They won’t come and say, ‘Okay, I’ll support you because you are a heritage business’.”
Instead, the brand invests heavily in marketing, particularly on social media, to maintain relevance with younger consumers.
Drawing a parallel with how McDonald’s introduces new menu items every few months, Ting noted that Swee Choon has limited-time offerings: mala fried siew mai when the flavour was trending; hairy crab dumplings during the seafood’s season; and chilli crab dumplings for National Day.
Ting sees Swee Choon as the “McDonald’s of dimsum” – offering fast service, competitive pricing and consistent quality.
“It’s like the fast food of dimsum. That’s what Swee Choon wants to be: fast service, no frills,” Ting said. “It’s not the best dimsum, there’s so many better dimsum out there in terms of big restaurants. But we are priced affordably with value and consistency, like McDonald’s.”
For now, Swee Choon is targeting 20 per cent year-on-year revenue growth, though Ting acknowledges that forecasting has become nearly impossible as consumer behaviour shifts unpredictably
“Same price, same quality, still giving people the premier flavours,” Ting said. “We are generally not so worried if we can keep it that way.”
Read more on The Business Times
