SINGAPORE – Deciding whether to continue running an established family business or venture into the corporate world can be a difficult choice.
This is the dilemma faced by 32-year-old Rachel Lim in early 2023 when her mother, Kelly Soon, expressed her desire to retire and “give away” the restaurant she founded in 2006.
Kelly Jie Seafood restaurant, formerly known as Toa Payoh Mellben Seafood, is a well-known eatery with a loyal customer base. Soon, a single mother who had raised three children ran the restaurant almost every day for 17 years. She was almost 60 when she decided to call it quits.
This prompted Rachel and her sister Zara Lim, 27, to consider taking over the restaurant their mother had founded. At the time, Rachel had a successful career as a bank consultant, while Zara was freelance in the real estate sector.
In an interview with Yahoo Finance SingaporeThe sisters talked about the transition from a career in business to the family business in the second generation.
On your own
Zara, who is now in charge of the restaurant’s marketing efforts, said the transition hasn’t been too difficult for her. As a freelance real estate agent with a valid license, she was able to continue working while also handling marketing for the restaurant. So when her older sister Rachel suggested she take over their mother’s business, Zara was quick to agree.
However, Rachel found the decision to leave her job at the bank “very difficult” because she was “doing very well” there. She said that at the time of her resignation, she was earning a six-figure annual salary and still had some commissions “locked up” because the bank pays commissions progressively for top earners who reach a certain amount.
Despite earning a good salary as a customer service representative at a bank, Rachel admitted that she didn’t enjoy sales. Although she knew how to do her job well, she said it was very stressful and tiring.
When her mother suggested giving the restaurant away to another relative who was in the industry, Rachel began to reconsider the idea of taking over.
Rachel was unsure if she would be able to return to her previous income and was also afraid of the potential conflicts that would arise if she took over her mother’s job. This fear was based on her previous experience when she had worked full-time in the restaurant for a year before going to college.
“We argued and stuff. She still wasn’t ready to let go,” Rachel recalled. “Later, when she told me she just wanted to give up, I started to think about it. As a relationship manager, I also learned to be patient. That really sharpened my skills. I became more mature in dealing with things.”
We hope that our story can help those in the same situation to take over from their first generation founders. It’s a real shame when your parents have spent years building something, especially when everyone loves the brand, and then you just close because no one wants to take over.Zara Lim, Kelly Jie Seafood
Their interpersonal skills also came in handy when it came to managing and earning the respect of the restaurant’s staff, many of whom were seniors who had worked there since the beginning. Admittedly, the sisters said they did a lot of “judging” of each other, and there were instances when changes they made, such as changing the restaurant’s menu, were met with resistance.
“I have to be very careful with every decision I make and be clear about what I say. But luckily things are going well so far,” Rachel said.
Takeovers by the second generation
It’s been just over a year since the Kelly sisters took over Jie Seafood, and they’ve learned invaluable lessons while running the restaurant.
“Life is a rollercoaster; it doesn’t always go smoothly. And it’s always good to have setbacks – you just have to deal with the situation and move on,” Rachel said. “You really have to put your ego down… if you’re wrong, you just apologize.”
Younger sister Zara was much more optimistic about the prospect of second-generation takeovers. Given that many second-generation families in Singapore refuse to take over from their parents, Zara found this “pathetic”.
“We hope that our story can help those who are in the same situation to take over from their first generation founders. It’s a real shame when your parents have built something up over the years, especially when everyone loves the brand, and then you just close because no one wants to take over,” said Zara.
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