Business Times Article on 26 May 2007

FOR restaurateur Rodney Holt, an Australian who also has four Stiff Chilli restaurants in Bali, opening his Italian eatery in the less-than-ritzy Jalan Besar came about for two reasons. Rental, and the appeal of a part of Singapore that isn't 'sanitised or pasteurised'.

'I like the area,' he says. 'It's real, and I had a good feeling about it. Also, because the place is not so developed, rents are reasonable. I've seen The French Stall in Serangoon which is doing very well, so I thought it didn't matter where you are in Singapore because it's quite easy to travel around. It's not like Jakarta which takes two hours to go around the block. Singaporeans like food and they are prepared to travel to find it.'

Having opened in January, business was slow initially, 'considering we didn't even have a sign', he says. 'But people were curious and through word of mouth, each month has been busier than the one before.'

It also helps that with a lower rent, it's easier to weather through the teething period without the pressure of having to earn money quickly. Indeed, one of the reasons Mr Holt opened in Jalan Besar is that he used to have a gelateria in Bugis Junction, which he closed down because it didn't make financial sense. 'We were limited to doing ice cream because there was already a pasta place there so we couldn't do pasta. And the rent was going to go up if we had extended the lease.'

He adds: 'You need to have a longer term horizon. If I was in a shopping centre the returns would be immediate. Sales would be immediate because you would have people trying your products but all that reflects in the higher rent.'

Going the slower route, business is still good as more people learn about his home-style Italian cooking which features pastas made in Bali, as well as a range of organic products that he is looking to import to Singapore as well.

But why did he want to open in Singapore when costs are much lower in Bali? Mr Holt, who spends half his time here and half in Bali, says: 'Because of recent events in Bali like the bombings, the idea was to spread our risks and not put everything into one basket. I like Singapore, it's very user-friendly for businesses.'

He also likes Jalan Besar, where he lives above the restaurant 'in a classic shophouse'.

And like regular Singaporeans, 'we can walk down to Tekka mall and buy our seafood'.

 

Courtesy of Business Times.