Keong Saik Bakery to shut down Changi Airport outlet

"This decision comes amid the rising costs and competitive pressures many artisan bakeries face," founder and CEO Tan Yuzhong shared on LinkedIn on Wednesday.

Keong Saik Bakery outlet at Changi Airport. Photo courtesy of the airport

While high footfall does not always translate into sustainable sales, the company is "proud of the experiences we created at the airport and grateful to everyone who supported us there," he added.

The bakery launched its outlet in 2023 in Jewel, an area in Changi dedicated for shopping and entertainment.

Located on the mall’s ground floor, it has seating for about 20 customers.

The Business Times reports that a new tenant has been secured for the space, enabling Keong Saik Bakery to exit earlier than the original lease term of three years and four months.

As part of the arrangement, the bakery is covering the incoming tenant’s rent-free period. Discussions with the mall owner began in February this year.

Tan had previously highlighted the challenges faced by artisan bakeries in Singapore, citing rising operating costs, labor shortages, and weakening demand squeezing profit margins.

Besides Jewel, Keong Saik Bakery operates two other outlets at Luzerne in Bendemeer and Chip Bee Gardens. The Chip Bee outlet is its weakest performer, with sales halving from 2022 to the end of 2024, and some months’ takings not enough to cover expenses.

Tan added in his LinkedIn post: ""We believe in the resilience of local food businesses and the importance of community support. Every visit, every order and every word of encouragement makes a difference."

The company plans to extend its operating hours and improve its menu in the remaining two locations.