Family matters at Ya Kun Kaya

Our father Loi Ah Koon was straightforward in his dealing with customers,” says 62-year-old Adrin Loi, executive chair of Singaporean food group Ya Kun International. “He was never petty. Sometimes, when customers could not afford it, they would get meals on credit, or even free. It’s harder to do it now of course, with the business being professionalized, but that was one reason why customers were loyal to him.”

“Ah Koon served more than food for the body,” writes Loi’s wife Jennifer on the Yakun website. “He dished out kindness as well. To those in want, he freely gave. To those who read, he circulated the dailies. To those who were regulars, he extended credit.”

Ya Kun Kaya’s toast and coffee are now household names in Asia, and even if some products have been added to the menu, “compared to other players in the industry, Ya Kun’s insistence on serving up a limited menu and achieving high quality standards is rare,” says William Koh in his book The Top Toast.

“These standards are the result of heavy involvement in research and development, as well as input from Ya Kun’s operations manager, Jimmy Ng, who has many years of experience in the F & B industry… As such, it is probably too costly for competitors to replicate Ya Kun’s tight control over food preparation, since copying its meticulous formula will sap one’s financial resources as well as time and energy.”

Last week, we discussed how Ah Koon built his original coffee stall in 1944 at Telok Ayer.

Because of his excellent reputation, the stall became famous, but Ah Koon and his wife still persevered. Ah Koon slept on the wooden countertop so he could serve hungry customers at dawn.

Patient and humble, people flocked to him.

“Our mother was a homemaker,” says Loi. “Aside from helping my father, she took care of us eight children. Our parents treasured family, and set good examples for us.”

After more than a decade, the stall moved across the street to Lau Pa Sat hawker center.

Christened “Ya Kun,” the pinyin equivalent of Ah Koon, it later won the “Most Courteous Stall Award” in the neighborhood. By this time, the children were already helping out, stirring kaya, grilling toast, serving customers.

Legacy

Loi, while doing his mandatory National Service requirement, would intersperse coffee stall chores with military duties. He would leave military camp at night and visit his father’s coffee stall to help out until morning, before returning to the base.

Having lived with multiple siblings in relatively cramped quarters, Loi is convinced cooperation is crucial for any enterprise to succeed. However, most of his siblings were not too keen in continuing the business.

Loi, the youngest son, and his brother Algie knew the stall had already attracted loyal customers, and they wanted to continue their father’s legacy.

The brothers asked their father if they could take up the baton. Ah Koon said, “This business is very tough work. Can you do it?”

In 1998, when Ah Koon fell ill, the brothers were up to the challenge. They renamed the stall “Ya Kun Kaya Toast,” borrowed money to relocate to Far East Square, built up the stall around their father’s rags-to-riches story, and within two weeks, the new stall had already recouped their expenses.

“Our father was so proud,” says Loi. “He lived long enough to see the stall opening. We took photos of him brewing coffee.”

Ah Koon died the year after.

“Given its unique history, the Ya Kun brand is not only valuable and rare but almost impossible to copy,” says Koh. “Family values are deeply embedded within the organizational culture as well, thus ensuring consistency between the brand and the way the business is run … [making] Ya Kun’s heritage branding a source of sustained competitive advantage.”

(To be continued)