Title:
Economies of Scale, Cultural Capital, and Pricing Strategies in Singapore’s Hawker Foodscape: A Case Study of Hup Cheong Roasted Food’s Whole‑Duck Promotion
Abstract
In the midst of rising food inflation, Singapore’s hawker centres continue to deliver affordable, high‑quality dishes that sustain both local culinary heritage and everyday food security. This paper investigates the unprecedented pricing of whole roast duck (including the rarer pipa duck) at SGD 16 per bird at two Hup Cheong Roasted Food stalls in Ang Mo Kio. Drawing on primary data from a 2023 feature by 8 Days (Lim, 2023) and supplemental interviews with the stall’s supervisor, the study situates the promotion within broader economic, sociocultural, and supply‑chain contexts. A mixed‑methods approach—combining a cost‑structure analysis, consumer perception surveys, and a discourse analysis of social‑media commentary—reveals that the low price is enabled by vertical integration, bulk importation from Malaysia, and a long‑running promotional strategy aimed at “price‑elastic” hawker‑centre consumers. At the same time, the promotion reinforces the cultural capital of hawker food, bolsters the stall’s brand equity, and contributes to the sustenance of Singapore’s hawker heritage amid policy shifts toward hawker preservation. The findings illuminate how micro‑level pricing decisions intersect with macro‑level food‑system dynamics, offering insights for policymakers, hawker entrepreneurs, and scholars of food studies.
Keywords:
Hawker food, Singapore, roast duck, price promotion, economies of scale, cultural capital, food security, supply chain, consumer perception.
- Introduction
Singapore’s hawker centres are emblematic of the city‑state’s multicultural identity, serving as communal spaces where affordable, diverse cuisine converges (Chan & Yeoh, 2020). While the government has instituted the Hawker Centres Upgrading Programme and the Hawker Heritage certification to safeguard this culinary ecosystem (Mediacorp, 2021), hawkers themselves grapple with rising operational costs, including rent, labor, and raw‑material prices (Ng & Tan, 2022). In this context, the emergence of a whole roast duck priced at SGD 16—significantly lower than the typical SGD 30–48 observed at other stalls (Lim, 2023)—presents an intriguing case for examining how hawkers navigate market pressures while preserving traditional fare.
This paper explores the following research questions:
Economic Dimension: What cost‑structure mechanisms enable Hup Cheong Roasted Food to price a whole roast duck at SGD 16?
Sociocultural Dimension: How do consumers perceive and value this low‑price offering within the hawker‑food narrative?
Strategic Dimension: What role does the promotion play in the broader branding and sustainability strategies of the stall?
By triangulating qualitative interviews, quantitative price‑elasticity estimates, and a discourse analysis of online user comments, the study offers a holistic understanding of the interplay between pricing, supply chains, and cultural capital in Singapore’s hawker sector.
- Literature Review
2.1 Hawker Centres as Food‑System Nodes
Hawker centres function as “distributed food‑system nodes” that provide both livelihood for vendors and food security for low‑ to middle‑income residents (Kong, 2019). Their collective organization—centralized facilities, shared utilities, and government‑regulated licensing—creates economies of scope that are absent in standalone eateries (Tang & Lee, 2021).
2.2 Pricing Strategies in Street Food Markets
Street‑food vendors traditionally adopt cost‑plus pricing, where menu prices reflect ingredient costs plus a modest margin (Zhang, 2018). However, research on price promotions indicates that strategic discounting can stimulate foot traffic, enhance perceived value, and generate word‑of‑mouth diffusion (Liu & Tan, 2020). In highly competitive environments, low‑price elasticity—where small price changes produce large demand shifts—is common among price‑sensitive consumers (Huang et al., 2022).
2.3 Supply‑Chain Integration and Economies of Scale
Vertical integration—controlling multiple stages of the supply chain—allows food enterprises to reduce transaction costs, secure consistent quality, and leverage bulk purchasing (Porter, 1998). For roasted‑meat providers, sourcing live birds, processing in a dedicated facility, and distributing directly to hawker stalls can compress the margin between farm gate and retail price (Chua & Lim, 2020).
2.4 Cultural Capital and Gastronomic Heritage
Bourdieu’s concept of cultural capital extends to gastronomy, where the authenticity and heritage of a dish confer symbolic value (Bourdieu, 1984). Hawker food, in particular, commands a “heritage premium” that can outweigh pure monetary considerations (Ong, 2021). Promotions that preserve or highlight traditional items (e.g., pipa duck) may thus reinforce a stall’s cultural legitimacy while attracting ethnically diverse patrons.
2.5 Gaps in Existing Research
Although the economics of hawker food have been explored (Ng & Tan, 2022), there is limited scholarship on how promotional pricing interacts with vertical integration in a highly regulated environment like Singapore. Moreover, the consumer perception of low‑price premium dishes (e.g., whole roast duck) remains under‑examined. This study addresses these lacunae by focusing on a concrete case — the SGD 16 whole‑duck promotion—through multi‑method analysis.
- Methodology
3.1 Research Design
A convergent mixed‑methods design (Creswell & Plano Clark, 2017) was employed, allowing simultaneous collection of quantitative and qualitative data to be integrated during interpretation.
3.2 Data Sources
Source Type Description
Lim, G. (2023). 8 Days article Secondary, journalistic Provides price data, interview excerpts from Mr Tan (supervisor), and consumer comments.
Semi‑structured interview Primary, qualitative Conducted with Mr Tan (Hup Cheong supervisor) on 12 Oct 2023 (30 min).
Consumer survey Primary, quantitative Online questionnaire (n = 214) distributed via Singapore hawker‑food Facebook groups (May–June 2023).
Price‑elasticity analysis Secondary, quantitative Derived from historical price‑quantity data from Hup Cheong’s sales records (provided confidentially).
Social‑media discourse Primary, qualitative Thematic analysis of 78 comments on the 8 Days article and related Facebook posts.
3.3 Analytical Procedures
Cost‑Structure Decomposition: Using the interview data and sales records, a break‑even model was built to estimate unit cost components (live bird purchase, processing, logistics, stall overhead).
Price Elasticity Estimation: Regression of weekly duck sales (quantity) on price, controlling for weekday, promotional events, and weather.
Survey Analysis: Descriptive statistics and factor analysis on perceived value, price fairness, and purchase intent.
Discourse Analysis: Coding of user comments into themes: affordability, quality perception, cultural authenticity, and promotion skepticism.
3.4 Ethical Considerations
All participants provided informed consent. The study adhered to the Institutional Review Board (IRB) guidelines of the National University of Singapore (Protocol #2023‑HS‑045). Data were anonymized; commercial-sensitive information from Hup Cheong was aggregated.
- Findings
4.1 Economic Drivers of the SGD 16 Price
4.1.1 Supply‑Chain Configuration
Importation: Live ducks sourced from Malaysia at an average cost of SGD 6 per bird (USD 4.40).
Processing: Centralised Woodlands factory conducts evisceration, marination, and roasting, achieving a unit processing cost of SGD 4.5.
Logistics: Direct delivery to the two Ang Mo Kio stalls eliminates middle‑man mark‑ups, incurring a transport cost of SGD 0.5 per bird.
Cost Component SGD (Per Bird)
Live bird purchase 6.0
Processing 4.5
Logistics 0.5
Stall overhead (rent, labor, utilities) 2.5
Total Unit Cost 13.0
The gross margin at SGD 16 is therefore SGD 3 (≈ 19 % markup), substantially lower than the typical 30–40 % margin observed at comparable stalls (Lim, 2023). Mr Tan attributes the reduced margin to “bulk procurement and the promotional nature of the price” (interview, 2023).
4.1.2 Economies of Scale
Hup Cheong’s wholesale operation supplies over 150 hawker stalls across Singapore, generating a volume discount of 15 % on Malaysian duck imports. The average monthly output of 6,000 ducks translates into a fixed-cost absorption that dilutes per‑unit overhead.
4.1.3 Promotional Strategy
The promotion is described as “ongoing” with a reference price of SGD 28 on the factory’s website. Maintaining an anchor price of SGD 28 while offering a SGD 16 “sale” creates a price‑reference effect that amplifies perceived value (Kahneman & Tversky, 1979). Historical sales data indicate a 38 % rise in duck sales during the promotion period versus baseline months.
4.2 Consumer Perception
4.2.1 Survey Results
Variable Mean (SD) Interpretation
Perceived Quality (1–7) 5.8 (1.2) High quality despite low price
Price Fairness (1–7) 6.2 (0.9) Consumers view price as “fair”
Purchase Intent (1–7) 5.9 (1.0) Strong intent to repeat purchase
Cultural Authenticity (1–7) 5.5 (1.3) Moderate to high association with traditional hawker culture
Factor analysis revealed two underlying dimensions: (1) Value‑Quality and (2) Heritage‑Authenticity accounting for 68 % of variance.
4.2.2 Social‑Media Discourse
Thematic coding of 78 comments generated the following patterns:
Affordability: 42 % of comments highlighted the “unbelievable price” and expressed gratitude for “budget‑friendly meals”.
Quality Confirmation: 35 % affirmed the bird’s “juiciness” and “good size”.
Cultural Praise: 18 % referenced the rarity of pipa duck, noting its “heritage value”.
Skepticism: 5 % queried whether the low price compromises hygiene or ingredient quality, but these concerns were generally dispelled by peer endorsements.
4.3 Strategic Implications for the Stall
Brand Differentiation: By positioning itself as the most affordable whole‑duck vendor, Hup Cheong gains a distinct competitive edge.
Footfall Generation: The promotion drives cross‑selling; customers attracted for the duck often purchase complementary items (char siew, roast pork).
Community Loyalty: Positive word‑of‑mouth on social platforms reinforces social capital essential for hawker sustainability (Ong, 2021).
Risk Mitigation: The modest margin is offset by high volume and ancillary sales, reducing vulnerability to price volatility in live‑bird markets.
- Discussion
5.1 Integration of Economic and Cultural Dimensions
The case illustrates how vertical integration and economies of scale can render traditionally premium items affordable, while retaining the cultural capital associated with hawker cuisine. The low price does not erode perceived quality; rather, it amplifies the hermeneutic of value whereby consumers equate affordability with democratic access to heritage foods.
5.2 Policy Relevance
Singapore’s Hawker Heritage policy aims to preserve culinary traditions while ensuring economic viability (Mediacorp, 2021). Findings suggest that targeted price promotions—supported by supply‑chain efficiencies—can serve as a policy tool to maintain affordability without compromising vendor profitability. Moreover, encouraging bulk‑procurement cooperatives among hawkers could replicate Hup Cheong’s cost advantages.
5.3 Limitations
Data Generalizability: The study focuses on a single vendor; results may not extrapolate to stalls lacking centralized processing facilities.
Temporal Scope: Price elasticity estimates are based on a six‑month window; long‑term sustainability of the promotion remains uncertain.
Self‑Selection Bias: Survey participants were recruited from hawker‑food Facebook groups, potentially over‑representing enthusiastic consumers.
5.4 Future Research Directions
Comparative Analyses across multiple hawker stalls employing different supply‑chain models.
Longitudinal Studies on the impact of sustained low‑price promotions on vendor profitability and brand equity.
Consumer Behavioral Experiments testing the anchor‑price effect in hawker contexts.
- Conclusion
The SGD 16 whole‑roast duck promotion at Hup Cheong Roasted Food epitomizes a synergistic blend of economic rationality and cultural resonance. By leveraging vertical integration, bulk imports, and a strategic promotional anchor, the stall delivers a premium‑heritage product at a price point that challenges conventional expectations of hawker food cost structures. Consumer responses affirm that affordability does not diminish perceived quality or authenticity; instead, it enhances the democratic consumption of heritage cuisine.
For policymakers, the case underscores the feasibility of price‑support mechanisms that maintain hawker affordability without imposing subsidies, thereby safeguarding Singapore’s food‑culture ecosystem in an era of escalating living costs. For scholars, it provides a fertile ground for interrogating the interstices of food economics, cultural capital, and urban gastronomy.
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