WHAT does it take to succeed in the F&B business? Hard work and open- mindedness, according to Nancy Lim. No family recipe was passed down over the generations to help her run her top-rated chicken rice business - she had to pick up her food preparation skills from scratch.
Her business has evolved with the times to grow in stature, currently boasting four outlets in Singapore and six overseas - in Hong Kong, Guangzhou and Manila.
Mdm Lim, 45, recounts that 'three days' was the deadline given by her mentor to have a go and see if she had the potential to succeed in the chicken rice business. 'But it was never a problem as I love to cook.'
Mdm Lim, whose only job experience was helping out part-time at her mother's confectionary store, took charge of her first chicken rice stall at Whampoa food centre in December 1986. The rest, of course, is history. Nan Xiang Chicken Rice now has its first restaurant-style eatery to its name, after the addition of its Square 2 @ Novena outlet in May last year.
Mdm Lim counts receptiveness to feedback a key element of her business strategy. Citing a drop in business immediately after her takeover of the Whampoa outlet, she believes a learning attitude is more than enough to compensate for any lack of culinary experience.
'I had to learn from scratch - so not much experience. But I can improve as I go along,' she says. Under her supervision, the business pays close attention to Singaporean taste buds. 'We will always ask customers what they think of the rice, what they think of the chilli, and then improve the recipe.'
It is a strategy that has met with success over the years. Nan Xiang was rated one of the five best chicken rice stalls in a Straits Times report published on National Day in 2005. While the financial investment in the Novena outlet is yet to be fully recouped yet, this is only the first year, and establishing a stable customer base is more important. Mdm Lim expects the outlay to be covered soon and plans to take the business to a new level in the years ahead.
This is no idle talk - Nan Xiang's Novena arm is Mdm Lim's pioneer effort to capture a more upmarket demographic of chicken rice lovers. 'My regular customers love the food we serve, but they find it hard to bring their friends, maybe because it's noisier and less comfortable in hawker centres,' she says in reference to her Whampoa, Tiong Bahru and Lau Pa Sat stalls, all of which have admittedly less than cosy ambience. Indeed, Novena is a great location to reach out to a new customer base. Her restaurant is just at the entrance of Square 2 @ Novena, near the MRT. 'It was a good idea in terms of attracting a more cosmopolitan crowd,' says Mdm Lim's sister Monica, citing a group of Indonesians who began to frequent the place for their chicken rice fix.
Nan Xiang says a key part of its business strategy is to focus on food quality. This means reaching out to traditional customers and young potential regulars. Mdm Lim rattles off a list of revisions to her recipe based on feedback from customers: vegetable oil to replace unhealthy chicken oil, focus on making a good broth to ensure the final product is tasty, put loving care into preparing the rice, and buying better-quality ingredients.
Besides improving the core chicken rice dish, efforts at introducing variety have also been made. Previously, customers could order fried tofu in thai sauce and opt to have their rice served in traditional Hainanese ball form, but more items are to feature on a revamped menu. This new selection, Mdm Lim reveals, includes dishes such as fish maw soup and fish head curry.
Of course, running the business alone would be a tall order - Mdm Lim runs the four local outlets with the help of her two sisters Monica and Shirley. She shares her preference to ensure food quality control by keeping both the supervising duties compact and familiar.
'I can rely on my family to help me out with this business better since we are close and can communicate easily,' she says. 'This is a family effort.'
The key drivers of Nan Xiang's business include the status of chicken rice as a perennial favourite among Singaporeans. By incorporating feedback into its food preparation and maintaining its basic qualities - sauce, rice and chicken - Mdm Lim's brand of chicken rice has grown in reputation by word of mouth.
Of course there is plenty of competition because chicken rice is a local staple. But she remains confident that Nan Xiang will continue to do well: 'We are more willing to put in quality ingredients to get a better taste and this is to our advantage.'
One headache is that chicken rice is difficult to sell at higher prices, so high turnover is vital to remain profitable. This runs against the practicality of choosing areas with more human traffic - rents in such places are much higher. On the flip side, locations with lower rents don't cut it, as potential revenue is significantly lower. Furthermore, labour laws are a big constraint in that there is a cap on foreign employees more willing to accept tough working conditions and long hours, which drive up costs.
Nan Xiang stresses menu adaptation will remain a part of its long-term practice. It hopes to maintain its food quality, grow its business volume and ride out the crunch of additional restaurant locations. Expansion plans are not confined to the existing hawker centre and eatery set-ups: Mdm Lim hints that 'we've got a plan to try out a fast-food style concept'.
For now, the chain is reaping the benefits of its customer-centric approach.
'We believe in service with a smile,' she says. 'It's rewarding to see the joy on customers' faces and see them coming back again and again to have our chicken rice.'
This article was first published in The Business Times on May 27, 2008
