More businesses packing up in Ipoh

It just reflects the tough economic times we are having that more businesses, those that I have had some remote interests in, are packing up.

The Secret Garden, which is located just around the corner after KPJ Hospital has closed, presumably looking for buyer. Earlier last month they claimed that they were closed for renovation, and would be reopened again early December 2019. That did not happen. Let’s see if they reopen for Chinese New Year in 2020.

Peninsula Cafe, which is located on Jalan Gopeng, Taman Chateau’s side, is up for sale too. They are currently still operating, but I saw an advert on my Facebook news feed recently that they are trying to sell their business for RM150,000. The advert seems to have been put up since last month.

Peninsula Cafe for sale
Both businesses are set in a bungalow, with ample of space around. The Secret Garden has been around for ages. The business they run there is certainly more sound than Peninsula Cafe. They try to serve fine dining type food. It is a nice place for a drink in the evening, with live singing as well sometimes. They can do big functions, like wedding. Peninsula Cafe positions itself to be more like a children friendly cafe, but classy enough for adults. They often have birthday events going on there, because they offer some decorations for the occasions. It is a neat value added service, but it is not easy to run a business this way, with tiny tiny parties for couples and all. Rental for bungalow like The Secret Garden is apparently only around RM4k a month the last time I heard few years ago. Still it is difficult to sustain such business. Think wages for workers is the killer, easily in the range of RM20k and above?

Bubble tea businesses are another one that we will see more of them struggling. One I am aware of is trying to be offloaded for about RM100k, after probably 6 months in business? Many predicted the frenzy will die down very quickly. Yet the sentiment did not deter more bubble tea shops from propping up in Ipoh.

My business can barely hold up to last year’s level, which was already nothing to shout about. In a way it is not as bad as some businesses are experiencing. We had a strong second half to thank for, luckily. But having said that this December is the worst December we had so far.. So it is another tough year ahead, again. Happy New Year!!

 

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