Over 370 HDB coffeeshops to offer budget meal and drink options by 2026

All 374 coffeeshops rented out from the Housing and Development Board (HDB) will offer budget meal options by 2026, said Senior Minister of State for National Development Sim Ann on Thursday (Mar 2) at the Committee of Supply debate.

Ms Sim was speaking on the subject of accessibility of amenities and affordable food, raised by Mr Louis Chua, Mr Henry Kwek, Mr Xie Yao Quan, Mr Gan Thiam Poh and Assoc Prof Jamus Lim.

Back in 2018, HDB launched the Price-Quality Method (PQM) framework where new tenders of rental coffeeshops were required to provide six budget meals as well as a budget drink.

Operators who successfully tendered for HDB coffeeshops under this framework typically provided budget food options averaging $3, shared Ms Sim.

This requirement will be extended to older coffeeshops due for their three-yearly tenancy renewal from May 2023 onwards. By 2026, the budget meal regime will be extended to almost half of all coffeeshops and cover all HDB towns.

According to Ms Sim, as a start, these coffeeshops will be required to provide budget prices for four meals instead of six, and two drinks as a condition for renewal.

To help rental coffeeshop operators and stallholders with this transition, they will be offered a rental discount of five per cent off their renewal rents for one year, from the time the new requirements are in place, she added.

Prices of the budget meals and drinks will be benchmarked against economically priced F&B offerings in nearby neighbourhood coffeeshops.

“We will consult operators and remain flexible in assessing their proposed prices, bearing in mind business sustainability,” said Ms Sim.