Industry Analysis

According to Singstat, there are a total of 7679 food and beverage (F&B) establishments in Singapore as of 2016. With a majority under others operating as a hawker stall.

Establishments spends a staggering 79.1% of their total cost on the cost of goods sold and fixed cost such as rental. Hence the quality and standards of food largely determine the selling price of a dish as these costs cannot be avoided. As such, the F&B industry is a highly competitive industry. However the F&B industry is also proved to be one of the most resilient industry to economic downturns, hence one of the most stable.

Threat of New Entry - Medium

We will enjoy the first mover advantage but there is still a risk of other interested party starting a similar business since the Barrier to Entry is low.

Threat of Substitution- Medium

There are a wide variety of food options in school but during lunch, Chop Chop!'s no queue concept and fuss free collection will entice students and hence, lowering the possibility of substitution.

Supplier Bargaining Power- High

As we are a small establishment and a new venture, we do not have the bargaining power in term of price and hence we will be a price taker.

Buyer’s Bargaining Power- Low

The competitive prices are Koufu and the high demand give students a very low bargaining power. After all food is a necessity that every student needs.

Competitive Rivalry- Low

Due to the over demand and under supply, the sheer number of students dining during peak hours has already given each stall a long queue. Hence we do not see this as a threat to Chop Chop!

In NTU, there are also a wide variety of food options catered for students, ranging from low priced hawker food to fast food restaurants and even fine dining restaurants. Most of these are currently located at North Spine Plaza. The South Spine has currently a Koufu food court and a Co-Op cafe at the hive. Hall canteens also serve as a convenient food place for many in NTU. As such, students do have a wide variety of food options.

Unfortunately, despite the large variety of food options, there are still a huge problem when students want to have lunch during lunch hour. Short lunch breaks limits the possibility for students to have their lunch at a later timing, and NTU staff at the same time will be having their lunch. This chaotic queue is seen almost every weekday at the Hive and Koufu. Students that do not have time will join the stall with the shortest queue (survey) and even so, they would spend 10-30 minutes of their lunch break just queuing for food.

Of course there are different approach that we can use to solve this problem. The first being to stagger the lunch time hours just like how we had recess during or primary and secondary schools. But that is definitely not feasible since NTU adopts a free timetable bidding system where students can choose when they want to have their lessons.

As such, the next best option will be to increase the food supply during lunch hours.

In this fast moving society, Chop Chop! aims to offer students an additional dining option, giving them a new alternative to explore. Chop Chop!'s business model is a simple buy and resell food stall. This concept allows us to be very versatile in terms of the type of food Chop Chop! will sell.