Thinking of playing big boss man and opening a trendy, lifestyle tea joint in Singapore?

Slow down, cowboy. Better check if your bank account, your CPF, and your blood pressure can tahan first—because the local F&B game is an absolute bloodbath.

According to local entrepreneur Sebastian Ang—the seasoned brain behind modern wellness tea brand Amacha (which boasts five outlets across the island) as well as concepts like the sundry-shop speakeasy Mama Diam and the former HDB-themed café Lou Shang—setting up a single lifestyle shop will casually incinerate S$209,000 before you even hand a single cup of TCM-infused brew to a customer.

Let’s dissect this financial horror story, dollar by brutal dollar, to see where all your hard-earned cash disappears before you even flip the “Open” sign.

Phase 1: The Landlord Ambush (S$60,000 Upfront)

Right off the bat, before you even smell a tea leaf, retail rent comes swinging like an uninvited loan shark at S$15,000 a month.

Commercial landlords don’t operate on good vibes or optimistic business plans. To secure the space, you need to cough up a three-month security deposit plus your first month’s rent immediately.

Poof. S$60,000 vanishes into thin air just for the absolute privilege of turning the key in the front door.

Phase 2: The Renovation Bloodbath (S$85,000)

Next, contractors move in to systematically massacre your life savings. To make the space look like an aesthetic sanctuary, you are looking at:

• S$15,000 for custom carpentry, shelving, and sleek countertops.
• S$10,000 for high-traffic flooring and tiles.
• S$10,000 just to prepare and paint the walls.
• S$50,000—a heart-stopping fifty grand—gobbled up entirely by heavy-duty electrical works, complex plumbing, ceiling infrastructure, and industrial-grade air-conditioning to keep Singapore’s tropical heat at bay.

Phase 3: The High-Tech Toy Collection (S$49,000)

You can’t brew modern wellness tea in an old Milo tin or a cracked clay pot anymore. Today’s market requires heavy machinery:

• S$10,000 for an automated tea-brewing machine.
• S$13,000 for a sleek gelato machine (because herbal tea and ice cream go hand-in-hand now).
• S$17,000 lumped into a black hole of commercial fridges, ice-makers, specialized tea-brewers, and cup-sealing machines.
• S$9,000 combined for a high-tech POS system and large TV displays for digital menus.

Phase 4: The “Small Things” That Add Up (S$15,000)

Just when you think the bleeding has stopped, reality hits you. You still need:

• The initial bulk shipment of premium ingredients
• Advance salaries for your pioneer team
• Mandatory business insurance
• Utility deposits
• Dozens of administrative “small things”

This miscellaneous basket easily bleeds another S$15,000 out of your pocket.

The Grand Total: S$209,000 Gone… Before Your First Customer

Add it all up, and S$209,000 completely evaporates before a single person walks through the door.

Here is the ultimate plot twist that catches every rookie off guard: That staggering figure is only enough to get the doors open.

As Sebastian points out from his hard-won F&B scars, monthly overheads (rent, salaries, ingredients, and utilities) run continuously whether your business is booming or quiet. You still need a massive cushion of working capital to survive the agonizing initial months while waiting for Singaporeans to discover your shop and queue up in the heat.

So, the next time you drop eight or ten bucks on an artisanal, health-conscious, TCM-blended cup of tea, look the barista dead in the eye, nod respectfully, and slurp every single drop slowly. They earned every cent of it.

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