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Business Times
a day ago
- Business
- Business Times
Beyond coffee, Joe & Dough serves up wholesale bakes and new formats overseas
[SINGAPORE] Set up to bring good coffee to the masses, cafe chain Joe & Dough now does much more: from supplying pastries to hotels and restaurants, to opening new concepts in Indonesia, including a Thai buffet restaurant. In 2009, couple Damien Koh and Dawn Wee opened Joe & Dough: a cafe located in Hitachi Tower in the central business district (CBD). 'We were interested in the coffee segment and thought it would be nice to be able to work towards a common dream,' said Koh. 'So the initial premise was very simple: we just wanted to make good coffee accessible.' The cafe began with a modest coffee menu, before introducing artisanal sandwiches such as parma ham with apricot chutney – which ended up contributing 70 per cent of revenue. But soon after, in 2010, their sandwich supplier passed away. Koh and Wee responded by setting up a bakery arm, dubbed Bakeri, to take production in-house. In doing so, they knew that production capacity would be too high for Joe & Dough alone. The company therefore started supplying bread, pastries and cakes to hotels, supermarkets and restaurants. Today, their bakery arm contributes to about 35 per cent of revenue. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up Joe & Dough was set up with the aim of making good coffee accessible. PHOTO: TAY CHU YI, BT 'The bakery was a painful process that took time to build, but it gave us capabilities that made us more competitive,' said Koh, noting that this vertical integration helped the company manage costs and boost margins. After setting up their second and third outlets – in Suntec City in 2010 and Marina Bay Link Mall in 2011 – Koh and Wee decided to expand Joe & Dough more aggressively. Between 2013 and 2014, Joe & Dough opened six more outlets. This was supported by moving its central kitchen to a space spanning 11,000 square feet, up from 2,200 sq ft before, with a 15-fold increase in production capacity. But with rising competition in the CBD, Koh found that expansion did not necessarily mean better performance. 'We felt like we were duplicating the business without necessarily working on it.' This prompted a shift in strategy. Rather than saturating the local market, the company explored opportunities in Indonesia, where Koh saw a gap for regional cafe brands with local flavours. Explorations in Indonesia The company partnered Indonesian consumer goods conglomerate Maspion Group to open its first outlet in Jakarta in 2018. This was a full-fledged bakery cafe that Koh and Wee expected to have greater lifestyle appeal, compared to the lean model used in Singapore. 'In Singapore, we focus a lot on productivity and streamlining,' Koh noted. 'But overseas, it's also about brand identity and standing out. We positioned ourselves as having the best croissant in Indonesia, something that would anchor the brand and keep us top of mind.' Indonesia's lower operating costs also allow for offerings such as edible cookie cups, which would not be cost-effective in Singapore, observed Koh. 'What works there can't always be transplanted back.' Today, Joe & Dough has 21 outlets: 15 in Singapore and 6 in Indonesia, with two more opening in Jakarta and Surabaya this year. But with Jakarta's cafe space also becoming saturated, Koh and Wee have branched out into two new concepts there: Thai buffet restaurant Noya, launched last December, and Japanese retail bakery Kooma, opening this September. 'We want to leverage our existing knowledge and network in other markets to try out new business formats that are complementary,' said Koh. 'Joe & Dough is a cafe, Kooma is a small takeaway shop and Noya is a full-service restaurant.' Koh hopes to open another five to ten outlets annually, across the three brands over the next three to five years. The company is also considering new regional markets. Joe & Dough's overseas strategy focuses on identifying strong partners and markets where the cafe model can be sustained. Cafes typically have lower revenue per square foot and lower average customer spend than fast casual restaurants, said Koh. With entry to Indonesia already costing between S$70,000 and S$100,000, it is important to evaluate new markets carefully before entering, he added. In 2024, the group's revenue was over S$10 million, with 65 per cent from business-to-consumer channels and the rest from business-to-business sales by Bakeri. About half of this business-to-business sales is from supermarkets, and the rest from wholesale contracts with restaurants and hotels. Despite Singapore's sophisticated consumer base, Koh sees limited examples of local cafe brands achieving significant regional or international scale. 'We operate in a tough environment with tight labour and high costs. You need a clear proposition to succeed abroad.' Citing reports that Singapore's F&B industry is making a loss overall, Koh said: 'If you come in and your eyes are not wide open, just wanting to be another cafe, the odds are stacked against you. So understanding your reason and knowing what you have to offer is very important.' This is the first in a series on how veterans of Singapore's cafe scene are adapting to stay relevant.
Business Times
22-07-2025
- Business
- Business Times
No one to be left behind in Singapore's AI push, says Tan Kiat How
[SINGAPORE] The government is doing all it can to help companies, workers and citizens harness the potential of artificial intelligence (AI), said Senior Minister of State for Digital Development and Information Tan Kiat How at an event on Tuesday (Jul 22). 'We are putting in place the infrastructure, the investment ecosystem to help companies and workers make full use of this technology', he said in a speech at the DBS 'Live Fulfilled' employee carnival. To help small businesses adopt AI, the government is running programmes such as SMEs Go Digital, which provides financial support for the adoption of advanced digital tools such as Gen AI, he said. There are also efforts to ensure that companies stay safe from potential cyberattacks – whether they are large enterprises often facing online threats, or smaller businesses that are still vulnerable. By supporting the integration of AI in companies' work processes, the government is also giving workers the opportunity to learn the right way to use AI tools, Tan noted. In addition, ambassadors from the SG Digital Office are teaching the elderly digital skills such as Gen AI. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up Tan gave the example of a grandmother using Gen AI to find a simplified recipe for fish and chips, which she wanted to cook for her grandson. 'We are not leaving anyone behind (in the adoption of AI)', he said. He believes that AI will not steal the jobs of human workers because there are many tasks it cannot perform. In the tech sector, AI can generate code efficiently – but someone needs to define what the code should do and whether it is reliable. Although the nature of jobs may change, 'in Singapore, especially when we don't have enough people, there will always be jobs', he said. Companies may be anxious about using AI, so large institutions such as DBS can 'lead by example' through active adoption of the technology, he noted. DBS introduces AI career coach At the carnival, DBS launched iCoach – a Gen AI-powered virtual coach for its employees. The program can be accessed by the bank's offices in Singapore, Indonesia, India, China, Hong Kong and Taiwan, a spokesperson from the bank said during a product demonstration. iCoach's knowledge base was developed jointly with Marshall Goldsmith, a career coach with more than four decades of experience working with managers and executives. The virtual coach provides employees with personalised, on-demand career guidance to help them navigate the workplace. Available around the clock, it draws on DBS' roles, functions and internal mobility pathways to deliver relevant career advice. Seventy per cent of coached employees made improvements in work performance, relationships and communication, and 80 per cent reported higher self-confidence, data from International Coaching Federation and Better Up Career Coaching indicated. In response to The Business Times' query on whether iCoach will be used widely by DBS employees, the bank's spokesperson said the launch event was a key attempt at raising awareness of the tool. Employees also have access to human resource software that may guide them to iCoach, she added.
Business Times
22-07-2025
- Business
- Business Times
Leaving no one behind in Singapore's AI push: Tan Kiat How
[SINGAPORE] The government is doing all it can to help companies, workers and citizens harness the potential of artificial intelligence (AI), said Senior Minister of State for Digital Development and Information Tan Kiat How at an event on Tuesday (Jul 22). 'We are putting in place the infrastructure, the investment ecosystem to help companies and workers make full use of this technology', he said in a speech at the DBS Live Fulfilled employee carnival. To help small businesses adopt AI, the government is running programmes such as SMEs GO Digital, which provides financial support for the adoption of advanced digital tools such as Gen AI, he said. There are also efforts to ensure that companies stay safe from potential cyberattacks – whether they are large enterprises often facing online threats, or smaller businesses that are still vulnerable. By supporting the integration of AI in companies' work processes, the government is also giving workers the opportunity to use AI tools and learn the right approach to it, Tan noted. In addition, ambassadors from the SG Digital Office are teaching the elderly digital skills such as Gen AI. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up Tan gave the example of an auntie using Gen AI to find a simplified recipe for fish and chips, to cook for her grandson. 'We are not leaving anyone behind (in the adoption of AI)', he said. He believes that AI will not steal the jobs of human workers because there are many tasks it cannot perform. In the tech sector, AI can generate code efficiently – but someone needs to define what the code should do and whether it is reliable. Although the nature of jobs may change, 'in Singapore, especially when we don't have enough people, there will always be jobs', he said. Companies may be anxious about using AI, so large institutions such as DBS can 'lead by example' through active adoption of the technology, he noted. DBS introduces AI career coach At the carnival, DBS launched iCoach – a Gen AI-powered virtual coach for its employees. The program can be accessed by the bank's offices in Singapore, Thailand, India, China, Hong Kong and Taiwan, a spokesperson from the bank said during a product demonstration. iCoach's knowledge base was developed jointly with Marshall Goldsmith, a career coach with more than four decades of experience working with various managers and executives. It provides employees with personalised, on-demand career guidance to help them navigate the workplace. Available around the clock, the virtual coach draws on DBS' roles, functions and internal mobility pathways to deliver relevant career advice. Seventy per cent of coached employees saw improvements in work performance, relationships and communication, while 80 per cent reported higher self-confidence, indicated data from International Coaching Federation and Better Up Career Coaching. In response to The Business Times' query on whether iCoach will be used widely by DBS employees, the bank's spokesperson said the launch event was a key attempt at raising awareness of the tool. Employees also have access to human resource software that may guide them to iCoach, she added.
Business Times
18-07-2025
- Automotive
- Business Times
Japan's SMEs ready to adapt to Trump tariffs
[TOKYO] Small and medium-sized (SME) firms such as Mitsuwa Electric that form the backbone of Japan's economy have weathered many storms over the decades, and company president Yuji Miyazaki is hopeful they will also withstand Donald Trump. As part of a campaign against friend and foe, the US president has threatened 25 per cent tariffs on imports of Japanese goods from Aug 1, having already imposed tough levies on its vehicles, steel and aluminium. However, Miyazaki said that he was confident. 'We are providing very specialised products for specialised industries, where it is difficult to change suppliers or supplying countries just because of boosted tariffs,' he said on a tour of the 92-year-old firm. 'I'm not worried too much, because if American companies can't produce parts on their own, they have no choice but to import those parts regardless of tariffs,' the descendant of the firm's founder said. With 100 employees, Mitsuwa Electric is not a household name. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up But like millions of other SMEs that account for 99.7 per cent of Japan's companies, it is world-class in its specialist niche. It began making light bulb filaments and now produces coils, rods, needles, plates, pipes and wires for a range of goods including car lights, photocopiers and X-ray machines. In 2022, it won a Guinness World Record for the smallest commercially available metal coil, with a diameter around half that of a human hair. Mitsuwa's customers are across Asia, Europe and North America and include Japanese engineering giant Toshiba and Toyota-affiliated parts maker Koito Manufacturing. Miyazaki said the impact of US tariffs on the company's business is limited so far, with one auto sector customer asking it to lower prices. 'All we can do is to adapt to any changes in the business environment,' Miyazaki said. Diversify to survive Prime Minister Shigeru Ishiba has sent his tariffs envoy Ryosei Akazawa to Washington seven times since April to try to win relief from the tariffs. US Treasury Secretary Scott Bessent was due to meet Ishiba and Akazawa on Friday (Jul 18) in Tokyo. But the prime minister's apparently maximalist strategy of insisting all tariffs are cut to zero have been criticised in some parts, especially as Aug 1 approaches. US-bound exports of Japanese vehicles – a sector tied to eight per cent of Japanese jobs – tumbled around 25 per cent in May and June. The lack of a deal is not helping Ishiba's popularity ahead of the upper house elections on Sunday that may end Ishiba's premiership after less than a year. What bothers Japanese firms is Trump's unpredictability and the complexity of the tariffs, according to government-backed SME support organisation Jetro. Since February, the group has received more than 2,000 enquiries from members about US tariffs, with a flood of requests since June asking for 'the latest information' as the deadline approaches. Mitsuwa Electric boss Miyazaki admits worrying about Trump's threat of pharmaceuticals tariffs of 200 per cent, or if medical equipment is targeted. Together with its broad product range, the diversification of its customer base has shielded it so far, he said. This is also vital for other firms to survive, said Zenkai Inoue, an SME expert and professor at the Kyushu Institute of Information Sciences. 'I'm proposing a 'tricycle strategy', which means you have to have (at least) three customers in different regions,' he said. 'For SMEs, securing financial stability by asking banks for their funding is important to survive for the time being, then the next step would be expanding their sales channels to other markets,' he said. Inoue added that some Japanese firms had been slow to prepare for Trump's tariffs, even after he said he would during his 2024 election campaign. 'There was a time when Japanese companies, having heavily relied on the Chinese market, (were) hurt badly by a sudden change in China's policy. But some of them have not learnt a lesson enough from that experience,' he said. AFP
Business Times
16-07-2025
- Business
- Business Times
Singapore SMEs return to expansionary mode in Q2, but momentum may not last: OCBC
[SINGAPORE] Small and medium-sized enterprises (SMEs) in Singapore rebounded into expansionary territory in the second quarter of 2025, according to the latest OCBC SME Index released on Wednesday (Jul 16). This was due to broad-based improvements across industries, as exporters continue to front-load exports to get ahead of US President Donald Trump's looming tariffs. The quarterly index, which tracks the business health and performance of SMEs, inched up to 50.5 in Q2, from 49.9 in the fourth quarter. A reading above 50 signals increased business activity compared to a year ago, while a score below 50 indicates a contraction. The index is compiled from the transactional data of more than 100,000 OCBC SME customers in Singapore, each with annual revenues of up to S$30 million. On a year-on-year basis, collections from customers grew by 5.8 per cent, while payments rose by 4.5 per cent. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up However, Linus Goh, OCBC's head of global commercial banking, cautioned that the second-quarter improvement may just be a temporary blip caused by front-loaded exports. 'Whether the timelines down the road also leave some room for some more front-loading, it is hard to say,' he added. 'But to the extent that it does, then perhaps there will be still a bit more trade running in the second half (of the year).' A separate business outlook poll by the bank revealed that businesses expect the outlook for the rest of the year to worsen or remain unchanged. Over half of the 1,600 respondents expect business conditions to stay the same or get worse in the next six months, while 43 per cent anticipate improvement. Meanwhile, close to 50 per cent of respondents said they were negatively impacted by the ongoing Trump tariff issues and uncertainties. SME owners also expect to face greater fluctuations in exchange rates and interest rates (31 per cent) and further disruptions to supply chains (28 per cent). Export-oriented growth The front-loading of exports was the biggest leading indicator for improvement in the export-oriented industries, said Goh, particularly manufacturing and wholesale trade. The manufacturing index grew to 50.6, driven by strong performance in the consumer products segment. This was despite the sector being weighed down by businesses in precision engineering, as well as electronics and semiconductors. Meanwhile, the sector's collections and payments increased 1 per cent year on year (yoy) and 0.4 per cent yoy, respectively. In contrast, the transport and logistics remained in contraction mode, but improved marginally to 49.8, supported by SMEs in the logistics segment. Similarly, the information and communication technology (ICT) sector inched higher to 49.3, marking its 12th consecutive quarter of contraction. The sector was weighed down by the data processing and software development, as well as the IT consultancy segments. Domestic sectors buoyed too Domestically oriented sectors have also benefited from trade activity. The food and beverage sector (F&B) rebounded back into expansionary territory, with a reading of 50.6. This was fuelled by growth in the wholesale trade segment, with collections and payments rising 10.4 per cent and 10.7 per cent yoy, respectively. Despite the spate of restaurant closures, the F&B services segment also returned to expansion in the second quarter, rising to 50.3. The business services, building and construction, and healthcare sectors also returned to expansion mode with readings all just over 50. In contrast, education remained contractionary at 49.7, weighed down by weaknesses in formal education and commercial schools as well as a slowdown in business activity for early childhood education SMEs.
