Blending innovation and tradition into a recipe for success

SAMUEL Yik doubled down on innovation to push Dian Xiao Er to the forefront of Singapore’s food and beverage (F&B) scene.

When Yik opened his first Dian Xiao Er outlet in Chinatown more than 20 years ago, he was a newcomer to the F&B industry, armed only with a vision to offer herbal roast duck – a dish not commonly seen among Singapore’s casual dining options.

Despite having no culinary background, he sourced recipes from renowned herbal roast duck establishments in Malaysia and tailored the flavours to appeal to the Singaporean palate.

However, the entrepreneur encountered significant setbacks early on, including an 18-month government project that repaved the roads outside his restaurant, employees who quit on opening day and disruptions stemming from the Sars epidemic.

Yet, these hurdles only sharpened his determination to establish a superior dining experience, and the brand has since proven to be a hit with consumers here. Yik dedicated himself fully to making his business a success – managing end-to-end operations and serving tables.

Through sheer hard work and grit, he overcame the company’s teething problems, and steadily guided Dian Xiao Er into a successful restaurant chain with 19 outlets across the island today. For his achievements, Yik was crowned EY Entrepreneur of the Year in the Food and Beverage category for 2024.

Serving up smart solutions

Embracing technology has been a defining feature of Yik’s strategy – an approach that has transformed the Dian Xiao Er experience for both customers and staff. “With an ageing population, hiring qualified staff has become increasingly challenging, which made me recognise that relying solely on manpower is no longer viable in such a competitive industry,” Yik explained.

“Furthermore, in the cut-throat landscape of the F&B sector, gaining a competitive edge is essential. Our focus on technology not only streamlines operations, but also positions us to adapt swiftly to market trends,” he added.

By shifting to a paperless environment and implementing digital solutions, Dian Xiao Er has managed to reduce wait times, enhance service quality and increase operational efficiency.

Digital tools such as e-tipping and self-ordering have not only improved the dining experience, but also helped staff focus on delivering superior service. Yik decided to set up a central kitchen in 2020 to standardise the quality and flavours of Dian Xiao Er’s dishes across the entire chain.

“By establishing a central kitchen, we ensure consistent food quality across all the outlets by standardising recipes and preparation methods, fostering trust and loyalty among customers,” Yik said. This move not only safeguards quality, but also allows Dian Xiao Er to allocate resources more efficiently, particularly as it deals with Singapore’s tight labour market.

Investing in the midst of crisis

The Covid-19 pandemic put Yik’s resolve to the test, as the F&B sector faced unprecedented disruptions. True to his entrepreneurial spirit, Yik turned this challenge into an opportunity, as he prioritised staff retention and development.

“While many companies opted for retrenchment, we chose to do the opposite. We decided to invest in human resources, utilising the downtime to retrain our staff and enhance their skills so that when the market rebounded, we were better prepared to serve the customers,” he explained.

The strategy paid off: Not only did Dian Xiao Er weather the pandemic, but it also emerged with stronger operations, thanks to investments in the central kitchen and enhanced delivery services to keep the business growing even when dining out was not feasible.

Going digital to spur expansion

Yik aims to expand Dian Xiao Er beyond Singapore by franchising the brand. Key to achieving this are digital and technological solutions designed to streamline operations and elevate customer engagement. One such initiative is an integrated membership system, which will consolidate member data globally and allow franchisees to access insights that inform expansion and operational strategies.

The company will also implement a Customer Relationship Management system with a referral programme, turning customers into brand ambassadors to strengthen loyalty and community ties. Furthermore, it plans to launch a training platform that will equip its franchisees with the tools to deliver consistently high service standards, regardless of where they are located.

“By digitalising training processes, we will enhance hiring and onboarding, ensuring a strong and skilled workforce. This commitment to quality staff training will significantly strengthen our branding efforts and position Dian Xiao Er as a leading dining experience in both local and international markets,” said Yik.

He advised aspiring entrepreneurs in the F&B industry to focus on the key areas of product, passion, perseverance, people and branding. He believes success starts with a standout product that aligns with market demand, offering growth potential and a unique identity for the brand. Passion is equally important, as treating the business like a personal hobby keeps motivation high and inspires the team.

Meanwhile, perseverance is key to overcoming setbacks, while investing in people by fostering a positive culture and strong core values leads to a loyal, engaged team that drives the vision forward. Finally, he stressed the value of branding, which connects with customers and builds loyalty, creating a foundation for long-term success.

Said Yik: “Focus on these key elements, you can then navigate the complexities of the F&B industry.”