Restaurants Grapple With Competition Amid Influx Of Foreign Players

Singapore eateries launch new brands or concepts to woo price-conscious diners

- Chor Khieng Yuit

Veteran economist Song Seng Wun tracks the pulse of the Singapore economy in his own special way that might be best described as "bellynomics."

Mr Song trusts his gut on how the country is faring by regularly eating at a range of eateries around Singapore to get an on-the-ground view of how companies and individuals are coping.

These economic taste tests suggest to him that the food and beverage (F&B) industry here is facing some headwinds.

"We have one stomach, but now we have a lot more F&B options in Singapore," said Mr Song, economic adviser at financial services firm CGS International.

"There are more closures in 2024, but you are still seeing more restaurants being opened than those being closed."

Department of Statistics data underlines the point, showing that 1,204 restaurants opened in the first 11 months of 2024 but 856 closed, leaving a net 348 new outlets.

Mr Teo Tong Loong, the group business development director of restaurant operator ABR Holdings, said F&B is a very competitive industry.

ABR has been in the business for more than four decades and operates a number of brands, including Swensen's ice cream parlours and restaurants.

The number of people dining out is not increasing as fast as the number of F&B outlets, said Mr Teo, who is also chief executive of Swensen's Singapore.

Everyone is fighting for the same pool of customers, some of whom are more price- and health-conscious now, he added.

Mr Cheah Kun Cheng, 35, a procurement manager for a logistics company, eats out only after his trips to the supermarket or during dates with his fiancée so that he can manage his expenses better.

Mr Cheah, whose family used to run a cooked food store at the former Mediacorp campus, also eats healthy, home-cooked food every day.