How much profit can a hawker stall make?

[sam_fox]

Rather a wide range, I guess, what with size, location, what it offers and a host of other variables.

A local friend is thinking of starting a small stall, just 2 or 3 family members, maybe two, max three main dishes at lunch time rush and a few more at other times.

Can anyone give me even a rough idea of how much they can expect to make?

Thanks.

[Old Mike]

The results of tenders for rental of hawker stalls are published. The highest I have seen is just over $2000 a month at Maxwell food centre.
Assuming that rental is 25% of his income, he could expect to be making around $10,000 a month, before utilities.
Further assuming that about 50% of the cost of the dish is ingredients, this would mean selling around 300 meals a day, which is on the high side for a small undertaking.
So maybe half of that $10,000?
Rentals in the heartlands are siginificantly cheaper.

[sam_fox]

The results of tenders for rental of hawker stalls are published.

Thanks very much, Mike, I had not realized that, but have now googled and found some very useful information.

http://app.nea.gov.sg/cms/htdocs/article.asp?pid=977 seems a good page, as do others. It links "14 Nov 2008    List of successful tenderers" at http://www.nea.gov.sg/cms/hd/HD_successful%20tenderers_%20Nov08.pdf      There seems o be a very wide disparity, though, from sub $100 to over $2,000. It must be, as you say, location, probably coupled with the nature of the busienss.

The rest of what you said was useful too. It seems to be reasonable and consistent. So - a reasonable local income in return for a lot of hard work.

Thanks again for you rhelp.

[TheWrathOfGrapes]

The best profit margins are from the drinks stalls - more than 50% gross margin and more.  Rentals are cheaper in the HDB coffee shops. Location matters, but not that much. If your food is good, delicious and reasonably priced, customers will flock to your stall, no matter where you are. And if you are able to attract a steady stream of taxi drivers, then it means you have struck the right combination - good food and fair price (these taxi drivers really know how to sniff out the popular food joints).

Previous, Johnson Duck tendered something like $16,000 a month for a stall at Newton Circus, but couldn't keep it up for much longer than a year.

See link for more details.

http://www.wallstraits.com/community/viewthread.php?tid=6724&page=2