SEHC – Social Enterprise Hawker Centre contract terms and conditions. Open your eyes before you signed.
Quoting from KF Seetoh, founder of Makansutra and highlighting the importance of F&B hawker contracts with Social Enterprise Hawker Center (SEHC) and exposing the facts of “Not so Social after all”. However, not all SEHC are the same, but one thing for sure, they are all in business, they are not in charity.
quote:
“No one looks after their interest and concerns, for starters. These so called experienced SEHC operators (I really don’t know who or what some of them are) were brought in to help them. But it seems they are helping themselves on the hawker tenants. They even want to advise on menu planning, gosh! Like they are the arbiters of our hawker food culture and even dictate how many calories each dish must be. Leave people to decide if they wanna eat healthy or sinfully please. It’s culinary freedom. Their 30 plus pages of no-choice-take-it-or-leave-it contracts are very heavy handed and draconian. It looks like a contract drawn up for our Singapore hawkers in Urban Hawker, New York (at least they can negotiate that one). You need a lawyer to interpret the reality of signing it.”
Not so Social 1: Container charge
Hawkers at a SEHC pay full cleaning and washing rates for utensils and crockery, yet this operator charges $6 per rack, image above (30-35 plates) for returning plates to stalls. This extra cost can reach $1,000 monthly, in addition to the $650 cleaning fee and $380 Service and Conservancy Charges. Creative pricing? No. Daylight robbery? Yes.
(Hawker’s clarification: the $650 fee covers table clearing and cleaning, while the management charges $6 per rack to wash and return the plates.)
Not so Social 2: Mandatory participation at your cost
A clause requires hawkers to offer a full meal at $3 or less, likely for low-wage earners and retirees. While hawkers would gladly help, in reality, wealthier customers often grab these cheap meals, requesting extras like chili, sauce, and utensils. Another clause demands hawkers provide 30 “pay it forward” meals monthly. Charity should come from the heart, not a contract.
Not so Social 3: 30% more for Gas Supply
Some hawkers sourced for and suggested a cheaper and equally reputable central gas supplier to the SEHC (up to 30% cheaper). It can amount to substantial savings over the long term, but it was shot down with a take it or leave it kind of response. Further read, no existing gas sub-meter and tenants will install it at their cost. Just wondering if the old tenant were to vacate, will they the SEHC ask them to remove or leave it for the next tenant. Cost saving for the LL.
Not so Social 4: $100 Absentee Fine
Hawkers at some SEHCs cannot take leave—annual, emergency, or for health—without prior approval from operators, or they face a fine. Falling sick requires advance notice, with a $100 daily fine for unapproved absences.
Not so Social 5: GTO
And, god forbid, they charge a profit percentage or what industry calls a Gross Turnover (GTO) if the hawkers hit a certain sales target or mark of up to 15%. Ridiculous!
Not so Social 6: Hidden Charge
Last but not least, a SEHC charge a monthly fee for that little space outside of the stall where suppliers come early and leave the goods at. That’s incredible, how do you justify this public built space. I ask, where do all these profits go to? Does it benefit the hawkers and the public at large? Remember what the role of a hawker centre is, from the get go.
A Big Question
In conclusion, the hawkers need a voice to advise them on their livelihood, to protect their business viability and understand what’s going to happen upon signing on the dotted line. However, will they understand the importance of it or will just simply abide and get-by trusting the social enterprise and the government will take care of everything. Let’s understand that SEHC is not a charity organization or Hawker Center Association where they live and let live. They shall survive 1st and then the tenants, you are your own business.