As the Chinese New Year approaches, bak kwa prices are witnessing notable increases, with some shops marking up their products by as much as S$18 per kg. For example, Lim Chee Guan's signature bak kwa will reach S$80 per kg this festive season, while Hu Zhen Long has raised its price from S$68 to S$78. Demand for this popular barbecued pork remains high, prompting businesses to prepare long in advance for the festive rush.
While the surge in sales during CNY significantly contributes to annual revenue, it's crucial for bak kwa shops to sustain operations throughout the year. A considerable portion of their profits comes from the festive season, but they also rely on a steady stream of customers, including tourists, to maintain business during the rest of the year. Some brands, like Bee Cheng Hiang, begin production planning a year ahead to ensure they can accommodate the seasonal influx of orders.
The profitability gained from the CNY rush helps cover ongoing expenses such as staff salaries and operational costs for several months. For bak kwa shops, the challenge lies in balancing seasonal demand with year-round sustainability.