Some F&B Statistics

Singstats (from Department of Statistics Singapore) indicated in 2020 that there were a total of 13,746 F&B establishments of which 5,200 are restaurants.  The top 3 business costs are:

1. Purchases of Goods and Materials

2. Remuneration

3. Renting of Office, Shops & Other Premises.

These accounts for 83% of total business costs.

Food Business in Singapore

There are many aspects to consider in food business in Singapore. Top of the list is Labour. Hiring and motivating staff can be quite challenging. The quota for hiring of foreigners is constantly restricted.

Getting the appropriate licenses is also difficult. There are liquor licenses, food shop licenses and these licenses have to be obtained from different governmental authorities.

Cost of starting the operations can also be challenging as the outlet need to be attractive, the kitchen must be very operational easily and there is the cost of rental if the business owner is not the owner of the premise.

Location, Location, Location

Then there is the infamous Location, Location, Location. It has to be easily accessed, availability of car park lots, obvious (preferably at road level), large enough to host enough seats and tables and most importantly, able to get a stream of patrons.

For someone who is keen to get a food and beverage shop, the tenure of the premise will be a key aspect. Depending on the location and Singapore Master Plan, the tenure could be freehold, 99-year leasehold or 999-year leasehold in general. For one who is looking for an investment on the longer term basis or to pass down to the next few generations, getting a freehold would certainly be the prime choice if the price is right. Some investors would need to study on the return of investment and gauge for themselves on the possible demand and supply of the potential patrons that the food operators could attract.