If it’s not already clear from the headlines, 2024 has been a tumultuous year for Singapore’s F&B scene, with more than 3,000 closures—the highest in nearly two decades.
And it seems like 2025 is shaping up to be no better, judging from the wave of exits in recent months.
Rising rents, escalating ingredient costs and a persistent manpower crunch amid a highly competitive industry have pushed well-loved names like homegrown pancake chain Fluff Stack and Japanese hawker chain Mentai-Ya to shutter.
At the same time, some players seemed to have weathered the storm better: fast-casual restaurants. Sitting between quick-service outlets like hawker stalls and full-service dining, these spots typically offer affordable, higher-quality meals in a casual setting, priced between S$10 and S$15.
Often leaner in operations, sharper in branding, and more tech-integrated, these players have not only survived but in some cases, expanded.
Could this business model offer a more sustainable blueprint for those hoping to break into and survive in Singapore’s competitive F&B industry? Here’s what several fast causal operators and F&B veterans told us.
A compelling value proposition
According to Jonathan Lim, founder of Oddle, the fast casual business model works in Singapore because it “fits how people live now.”
At a time where the macro environment is uncertain, consumer confidence is shaky, and discretionary spending is tightening, value-for-money becomes top of mind for most.
“So the formats that serve the most people will always be the majority. Fast casual fits that mould. It’s built for everyday eating.”
Take homegrown fast-casual pasta chain TWYST, for example. While many pasta restaurants in Singapore charge premium prices (often upwards of S$20), TWYST offers customisable, affordable bowls designed for everyday dining, with prices starting from S$8.50.
And the concept clearly seems to have struck a chord. Since its launch in December 2021, TWYST has managed to expand to 13 outlets, each having achieved considerable success serving more than 2,000 pastas a day on an overall basis.
Another major draw of fast casual restaurants is the freshness of ingredients.
Though they cost a little more than traditional fast food, customers generally feel they’re getting significantly better value both in food quality and overall dining experience.
And for most diners, that’s good enough. “Most people can tell the difference between bad food and good food. But they can’t always tell good from great. That closes the gap between casual and premium in the eyes of the customer,” added Jonathan.
Takagi Ramen, for instance, places a strong emphasis on the use of fresh ingredients in their ramen. Its signature Hakata-style noodles are handmade daily, while its tonkotsu soup is boiled for over 12 hours.
Each bowl is enriched with ingredients like shiitake mushrooms, bonito flakes, and kelp—imported directly from Japan.
That commitment to quality has translated into strong results: Takagi Ramen achieved over S$20 million in annual revenue in its most recent year and has grown to 13 outlets, nine of which operate 24 hours a day.
“In these times of economic uncertainty and belt-tightening, fast casual offers a compelling value proposition,” said Yang Kaiheng, the director of Takagi Ramen. “It’s an attractive ‘trade-up’ from hawker centres, or a ‘trade-down’ from full-service dining.”
A leaner model that’s easier to scale
Fast casual also makes more sense operationally. Smaller teams, smaller spaces, faster table turns—it’s a leaner model that’s easier to scale, especially in the face of rising costs.
Ee Chien Chua, an F&B veteran who previously ran Whimsical Inc.—a group that once managed three concepts including one of Singapore’s pioneer cocktail bars, Jekyll & Hyde—has seen firsthand how those costs could eat into margins.
“Traditionally, F&B has operated on pretty thin margins, between 10 to 15%,” he said. But with manpower, rental and ingredient costs rising across the board, those already thin margins shrink fast.
At Jekyll & Hyde, before it closed in Dec 2023, he remembered his chef pointing out that cooking oil prices had climbed 60% and chicken 30% amid inflation and macroeconomic conditions.
“You can’t pass all of that on to the customer,” Ee Chien said. “You’re essentially immediately going from what was a thinly profitable business to what is a fully loss making business.”
That’s where the fast casual business model could offer a way forward.
According to Takagi Ramen’s Yang Kaiheng, the concept offers a more “manpower-lite” business model, generally requiring less overhead than a traditional restaurant.
These eateries trim costs by utilising tech, implementing self-order systems via kiosks or QR codes. Diners pick up their food when they’re ready and clear their own trays after eating.
That lean setup is especially advantageous in today’s manpower crunch. Even as F&B closures hit a near 20-year high, Singapore still saw more than 3,790 new eateries open in 2024—outpacing closures by around 700. With more restaurants competing for a limited labour pool, staffing has become one of the industry’s toughest challenges.
The menus of fast casual restaurants are also typically smaller and more condensed, focusing only on popular, fast-moving food ingredients. “This provides fast-casual restaurants with stronger negotiation power with food suppliers and results in a more efficient supply chain management system,” added Kaiheng.
With more streamlined operations, TWYST, for example, developed “clear and strong SOPs,” allowing each pasta to be cooked in just 45 seconds despite offering over 210 customisation options.
The team designed them to be “foolproof,” so even anyone without prior experience could step in after a simple training.
“When paired with strong branding and customer engagement strategies, the [fast casual] format is actually both scalable and sustainable,” said Han Zhongchou, one of TWYST’s founders.
Knowing “the math”
Fast casual in Singapore looks poised for growth, thanks to its leaner manpower requirements, streamlined operations, and ability to scale efficiently. Its focus on affordability, quality, and speed makes it a resilient model in today’s challenging F&B landscape.
That said, as Jonathan cautioned, success isn’t guaranteed simply by format.
Some fine dining restaurants do well, some fast casual concepts flop. What matters is whether [they are] built to generate consistent revenue.
Jonathan Lim, founder of Oddle
At the end of the day, he shared, restaurants are businesses. “And all businesses run on one equation: revenue minus cost equals profit. If the revenue isn’t high enough, the rest doesn’t matter—so, know the math.”
Ee Chien echoed the same thoughts. “You need to make sure that you really understand the economics around it, like, what really is your break even, and what are your actual costs?”
Too many F&B operators don’t take into account hidden costs, including overtime pay and other overheads, and that, according to the F&B veteran, is what actually kills these businesses more than the top line numbers.
For those entering Singapore’s F&B scene, the takeaway is clear: fast casual offers opportunity, but only operators who understand their numbers may be able to thrive.
- Read other articles we’ve written on Singaporean businesses here.
Featured Image Credit: Oddle/ Ee Chien Chua via LinkedIn