SURVIVING THE FOOD BUSINESS IN SINGAPORE – SURVIVING F&B
The challenges and obstacles to the retail food business / F&B Business in Singapore has never reduced. Hawkers, food court operators, cafes, restaurants as well as food kiosk operators face the same issues in Singapore. Rental, manpower, rising material costs, tightening policies, higher levies, quotas etc. Progressive manpower quota reduction and GST increase by 2021 will cause even more disruption and challenge to the food business.
For the good of Singapore economy, our government has to take unpopular approach which meant putting a squeeze to industries to remains competitive is a fact. A Wealthy Singapore mean a strong economy and a strong currency = a higher purchasing power. “Now. who doesn’t like that”
Good Food comes with a Price
For the food business to survive, be profitable. Hawkers and food business operators will have to balance the grumps and loath and pegged the price accordingly to inflation to stay in business. Absorbing it all is akin to taking a poison pill a day to a slow death.
Good food comes with a price. Neither Government is going to reduces taxes and increase quota nor Diners going to stop complain the food is expensive. Your landlord isn’t going to be kind to reduce rental by half. The disruption of retail sector by online shopping platform had many malls landlord convert the empty spaces to F&B. You are competing in a red sea where supply is in abundance and demands are pegged to the population.
The F&B Conclusion
So if you are already in F&B, one got to be extremely creative, hardworking, skilled in culinary, good in finances and not to mentioned market and marketing knowledge to compete now. Big or small food business had to managed their books, customer services quality, locations selections to rise up and transform for their business survival.
F&B in Singapore is still continuingly a hot cake business but.. no longer selling like “hot cakes”
and for those who hasn’t start.. before you even go into a location. Do your onsite research. See the crowd, weekdays and weekends, lunch and dinner, morning and evening, 24hrs or not. Calculate your food cost, profit margin, rental, manpower and whether its worth to go into the place. Also, GTO and other expenses.
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