Food Businesses to prepare for rising cost comes 2022.
Published. 1st Dec 2021
This article seeks to prepare our food business operators for rising costs in 2022 and for them to set their plans early to avoid potential operational and financial surprises at the last minute.
As the Food service industry is awaiting major easing of dining-in restriction comes Jan 2022. Other challenges are looming ahead. Cost increments across essential supplies, man power, energy, GST and additional Covid19 testing expenses.
Now: Supply Chain + Energy
Higher energy cost, supply chain disruption has led to cost increment of essential items like rice, oil, frozen food, vegetables and meat in the last few months. Some as high as 50% for certain food items. Caused by the pandemic as the supply chains are not able to recover as quickly to pre-pandemic levels. Do expect this cost increase to continue on till year 2023 or longer.
Sept 2022: Foreign Manpower quota tied to local qualifying salary.
- 1 local qualifying salary count. > A Singapore employee who earns the local qualifying salary of at least S$1,400 a month.
- 0.5 local qualifying salary count. > A Singapore employee who earns at least half the local qualifying salary, between S$700 and S$1,400 a month.
From September next year, firms that hire any foreign worker must pay all their Singapore workers a local qualifying salary at the minimum. Which will be set at S$1,400 a month for full-time workers and S$9 an hour for part-time workers.
Quote from todayonline.com
*We encourage business to utilized technology & automation to support manpower issues and ease workload to existing workers.
Expected end 2022: GST increment from 7% to 9%
Budget 2021: GST hike to take place between 2022 and 2025, ‘sooner rather than later’, says DPM Heng.
Covid19 testing expenses
As Singapore moves to endemic with Covid19, most F&B operators are being supplied with ART test kits at free or subsidized rates. This might cease.
Operating a business has never been easy. Planning for these challenges are the recipe for survival.
AllaboutFnB.sg is a merchant and suppliers resource platform. We gather all F&B related merchants and services and kinda beg them to provide discounts and deals for the retail food services. We hope you will find value in cost reduction and merchant partners selection for your business long term sustainability.