...lai liao...Unfair If Home-Based Diners Who Could Earn $1Mil Annually Exempt From Govt Regulations, Says Ex-Restaurateur

Full_Cream_Milk

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they are damn expensive. went to one with a group of friends before, was about 2.5k serving 10+ people for the meal.

if they serve only dinner for 4 days a week already close to 500k excluding cost of ingredients.
They serve what?

Giraffe meat ah?
 

WarMage87

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funny how gov dont allow air bnb but allow such private home based dining biz. if im the boss, i will charge another $150 for overnite makan. jiak bah bah liao then u can go upstairs and sleep. :LOL:
Cause hotel owners complain mah.

And hotel owners = big time stakeholders

FnB owners = small-time stakeholders

Who do you think gov will listen to leh
 

NoSouL

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I had dinner at the said million dollar home business Sam Wong's house before.

His terrace is segregated into 3 or 4 eating rooms, some big and some small. Some can accommodate 12 pax, some 8. I think overall 30 pax is accurate.

He charges $130 per diner and his food, some good some okok. His specialty duck soup was pretty good. Crayfish kway teow was ok ok only

The thing is, he is always full house, and I am not surprised when the article says he is fully booked till Mar 2026.

So not surprising that his revenue is close to a million. With lesser overhead, I believe his profit margin can reach 50% or more. His only costs are ingredients, condiments, electricity, water and gas.

if he can 1 shot do 30 pax, who else is working other than him?
his family? or helper? or his staff also stay in the house and registered the address to his nric?

1 of the home business rule is only the people staying in the house can do it, which means he is not allowed to hired outsider to help.

if he gets his helper to help, is that a violation?

and there should be a restriction to the number of pax. if home tuition is restricted to maximum 3 students at the same time, I don't see why home restaurant can serve 30 pax at the same time.
 

dnsfpl

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earn 1m impossible lar, revenue also tough liao

1 000 000 / 360 (5 days off per year) = $2.8k revenue per day lei

unless you sell atas food, 2 rounds of 10 pax per round, $140 per pax

how to get so many walk in customers daily
 

dry_county

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It’s obviously a legal offence to operate a commercial restaurant/cafe at a residential address, avoid taxes, regulations etc. Another issue is food hygiene.

But the whites are closing both eyes because of high rentals due to uncontrolled inflation.

Same goes for PMDs and bicycles on roads, disregarding traffic rules but LTA/TP act blur live longer. They have no answer to rising COE prices and foreigners reserving these good delivery/ride jobs for sinkies.
In before: rental costs are unrelated to food prices….:(:(:(
 

BamBam

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earn 1m impossible lar, revenue also tough liao

1 000 000 / 360 (5 days off per year) = $2.8k revenue per day lei

unless you sell atas food, 2 rounds of 10 pax per round, $140 per pax

how to get so many walk in customers daily

you guys never read the article? the duck fellow charge 130 per person, 30 person per day.
 

WarMage87

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Based on the detailed information available about Lucky House Cantonese Private Kitchen, I can provide a reasonable estimate of their annual revenue.

Key Operating Parameters

Lucky House operates under the following business model:

Pricing and Capacity:

  • Current price: S$130 per person for a seven-course dinner15
  • Maximum capacity: Over 30 people per session1
  • Operating schedule: Monday through Friday, 6:30-10:30 PM3
  • Consistently fully booked with waitlists extending over two years1
Historical Growth:

  • Started in 2016 charging S$80 per person for 6-8 people, 1-2 times per week1
  • By 2019: Serving about 20 people every weekday at S$130 per person1
  • Has since expanded to accommodate 30+ people by adding a third dining room1

Revenue Calculation

Given the operating parameters, here's the revenue estimation:

High-End Estimate (Full Capacity):

  • 30 people × S$130 = S$3,900 per day
  • S$3,900 × 5 days × 52 weeks = S$1,014,000 annually
Conservative Estimate (Accounting for Variables):

  • Average 25 people × S$130 = S$3,250 per day
  • Accounting for holidays and potential closures (assume 48 operating weeks)
  • S$3,250 × 5 days × 48 weeks = S$780,000 annually

Estimated Annual Revenue Range: S$780,000 - S$1,200,000

This estimate aligns with discussions in industry forums where home-based dining businesses of this scale are reported to potentially earn around S$1 million annually1. The business benefits from no rental costs, minimal overhead, and maintains a 60% profit margin1, making it highly profitable compared to traditional restaurants.

Factors Supporting Higher Revenue:

  • Consistently fully booked with multi-year waitlists1
  • Premium pricing comparable to high-end restaurants1
  • No rental or significant overhead costs1
  • Established reputation since 20161
The revenue likely falls closer to the higher end of this range given the consistent demand and full booking status mentioned across multiple sources.
 

WarMage87

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Estimated annual topline (gross) revenue for Lucky House Cantonese Private Kitchen

Key operating facts (from press coverage)

• Current price per diner: about S$130 for a 7-course dinner. 1
• Typical seating capacity after the latest expansion: “up to 30 diners a night.” 2
• Operating schedule most often quoted: five evenings a week (Monday–Friday). 2

Revenue scenarios

  1. “As-is” / typical load
    30 diners × S$130 × 5 nights / week × 52 weeks ≈ S$1.0 million a year
  2. Conservative (smaller parties, breaks, public-holiday closures)
    20 diners × S$130 × 5 nights × 50 weeks ≈ S$0.65 million a year
  3. Optimistic (full 30-seat house, occasional S$150 special menus, 50 working weeks)
    30 diners × S$150 × 5 nights × 50 weeks ≈ S$1.1–1.2 million a year
Indicative range

Taking these realistic low- and high-side scenarios, Lucky House likely books about S$650,000 to S$1.2 million in gross revenue per year, with the midpoint (and the figure quoted by industry observers) sitting very close to S$1 million.
 

WarMage87

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Home-Based Private Dining Business (Lucky House Model)

Top-Line Revenue:

  • Gross Revenue: S$130 per person × 30 people × 5 days × 50 weeks = S$975,000
Cost Structure:

  • Food Costs (25-30%): S$243,750 - S$292,500
  • Utilities & Gas: S$15,000 - S$20,000
  • Marketing/Social Media: S$5,000 - S$10,000
  • Equipment Maintenance: S$5,000 - S$8,000
  • Total Operating Costs: S$268,750 - S$330,500
Bottom-Line:

  • Net Profit: S$644,500 - S$706,250
  • Net Profit Margin: 60% (as confirmed in search results)3

Traditional Restaurant (Comparable Scale)

Top-Line Revenue:

  • Gross Revenue: S$975,000 (same for comparison)
Cost Structure:

  • Food Costs (25-30%): S$243,750 - S$292,500
  • Rent: S$180,000 - S$240,000 annually
  • Staff Wages: S$150,000 - S$200,000 annually
  • Utilities: S$30,000 - S$40,000
  • Equipment/Maintenance: S$20,000 - S$30,000
  • Marketing: S$15,000 - S$25,000
  • Insurance/Licenses: S$10,000 - S$15,000
  • Other Overhead: S$20,000 - S$30,000
  • Total Operating Costs: S$668,750 - S$872,500
Bottom-Line:

  • Net Profit: S$102,500 - S$306,250
  • Net Profit Margin: 10.5% - 31.4% (though search results indicate average restaurants only achieve 3-5%)45

Key Differences

Cost CategoryHome-BasedTraditional RestaurantSavings
RentS$0S$180,000-S$240,000S$180,000-S$240,000
Staff CostsMinimalS$150,000-S$200,000S$150,000-S$200,000
UtilitiesS$15,000-S$20,000S$30,000-S$40,000S$15,000-S$20,000
Total Savings--S$345,000-S$460,000

Would Existing F&B Owners Transition?

Yes, the difference is substantial enough to motivate transition:

Financial Incentives:


  • Profit margin difference: 60% vs 3-15% (with most traditional restaurants at the lower end)45
  • Annual profit difference: Potentially S$300,000-S$500,000 more in net profit
  • Lower risk: No rental commitments, minimal staff costs, reduced overhead
Additional Benefits:

  • Flexibility: Can still maintain other businesses (like Lucky House owner's shoe business)3
  • Quality of life: Better work-life balance, family involvement possible
  • Market positioning: Exclusivity drives premium pricing and demand
Challenges to Consider:

  • Capacity limitations: Home-based operations cap at 30-40 people vs restaurant's higher volume potential
  • Regulatory compliance: Operating in residential areas with neighbor considerations
  • Brand building: Relies heavily on word-of-mouth rather than foot traffic
  • Scalability: Limited expansion options compared to opening multiple restaurant locations
Conclusion: The financial advantage is so significant (potentially 4-12x higher profit margins) that many F&B owners would seriously consider transitioning, especially those struggling with high rental costs and slim margins in traditional restaurant operations. The search results confirm that experienced chefs can earn S$10,000-S$15,000 monthly in private dining versus S$6,000-S$8,000 as restaurant head chefs3, making this transition highly attractive from a pure financial perspective.
 

wongwings

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If one is paying so much for such private dining, might as well go for hotel buffet.
 

babysimba

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Really is kena enslaved by the system and wants to continue being enslaved. If one buy a house, one should be able to do anything he wants with it as long as it is not immoral and doesn't affect the neighbors.

Yet they want to continue pay a huge chunk of their efforts to rentals/landlords.
 
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