In a city known for its vibrant food scene, a troubling trend is emerging—over 3,000 food and beverage (F&B) outlets in Singapore have closed their doors in 2024 alone.
This marks the highest wave of closures since 2005, according to CNA.
A key factor behind this downturn is the rising operating costs, which are straining sales and impacting overall business performance.
F&B industry causalities
The financial pressure has been felt across various segments of the F&B industry, including cafes, fine dining establishments, and long-established brands in Singapore.
One such casualty is the popular bakery-cafe Tigerlily Patisserie. In an Instagram post last year, the business announced its permanent closure, with its final day of operations being April 30, 2024.
According to Tigerlily Patisserie’s co-founder, Chef Maxine Ngooi, the two main reasons for its closure were “the exponentially increasing costs of operations,” and that the bakery-cafe’s “rental lease (expiry) was coming up.”
Michelin-starred establishments have not been spared either, with several high-profile restaurants closing their doors in 2024. These include Sommer, Chef Kang’s, Braci, Beni, La Dame de Pic, and Sushi Kimura.
Not all bad news
According to CNA, analysts attribute the slowdown in Singapore’s F&B industry to the strong Singapore dollar, which has encouraged more Singaporeans to spend overseas.
Additionally, weaker tourism demand from China is further adding pressure on the country’s hospitality sector.
However, these closures haven’t dampened the spirits of F&B entrepreneurs—3,793 new establishments opened in Singapore last year, outpacing the closures. This includes Joji’s Sandwich Parlour—a sister café of the viral American-themed retro diner Joji’s Diner.
Since last year, Singapore has also seen an influx of international F&B businesses establishing a presence in the city-state, such as Canadian coffeehouse Tim Hortons. American fast-food chain Chick-fil-A has also announced plans to open its first outlet in the city-state in late 2025, marking the brand’s first foray into Asia.
- Read more articles we’ve written about Singaporean businesses here.
Feature Image Credit: Adobe Stock
