Money-saving hack? Diners paying for CNY reunion meals in advance to avoid 1% GST increase next year

Here's one way to save money for the upcoming Chinese New Year, especially if you intend to eat out at restaurants.

Shin Min Daily News reported that diners in Singapore are choosing to pay for their pre-booked reunion dinners upfront to avoid footing the additional one per cent goods and services tax (GST) to be implemented on Jan 1, 2023.

Restaurants have also been marketing their festive dining packages for pre-ordering, minus the extra tax, as an incentive.

Samuel Yik, founder of restaurant chain Dian Xiao Er, told the Chinese evening daily that about 70 per cent of customers who pre-ordered their meals have chosen to pay in full. Yik shared that others who are afraid of last-minute changes usually put down a deposit of 50 per cent.

Paying for next year's meal at this year's prices is something that is allowed at restaurants under the Tung Lok Group as well, according to its chief executive officer, Andrew Tjoe. He added that it was a consensus reached between the restaurant and its customers.

Tjoe gave the analogy of how it's like "tailoring an outfit and paying in full, but collecting it only next year".

He observed, however, that many customers who decide to pay the full amount in advance usually book multiple tables, such as for company events during Chinese New Year.

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With up to seven or eight tables per booking, the one per cent saved is no small amount, said Toe.

A spokesperson from Pu Tien shared that diners in the past few years have also paid in full when making their takeaway orders for Chinese New Year, but did so more for the convenience.

She added that some customers who chose to pay for their dine-in meal upfront this year have cited the GST increase as the reason.

Not all F&B owners, however, are in agreement over the practice.

Eric Chua, the second-generation owner of Teochew restaurant Chin Lee, told Shin Min Daily News that with continual price increases, it's untenable to charge this year's prices for next year's menu.

"Even if the customer requests to make payment in advance, we will charge them according to next year's prices, inclusive of the eight per cent GST."

Another restaurant operator whom Shin Min spoke to said payment is seldom collected upfront as most of their customers are regulars, and that they will be billed on the day itself.

With less than six weeks to go before the Lunar New Year celebrations, it seems many people have already made their dining reservations. 

According to Yik, Dian Xiao Er restaurants have seen a 20 per cent increase in advance bookings for the Chinese New Year.

He attributed this to the many restaurant closures during the Covid-19 pandemic.

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"There are fewer options now and many customers may worry that they can't get a reservation on their required date or time slot," he shared.

The 13 Chinese restaurant brands under the Tung Lok Group are also between 70 per cent to 100 per cent booked for reunion dinner, The Straits Times reported. 

Jade restaurant at The Fullerton Hotel Singapore is also fully booked for dinners on the eve, first and second day of Chinese New Year.

Speaking to Shin Min Daily News, Tjoe shared that demand could be higher as it is the first year that dining restrictions have been lifted since the Covid-19 pandemic took hold.

candicecai@asiaone.com

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