If it’s not already clear from the headlines, 2024 has been a tumultuous yr for Singapore’s F&B scene, with greater than 3,000 closures—the very best in almost twenty years.
And it looks as if 2025 is shaping as much as be no higher, judging from the wave of exits in latest months.
Rising rents, escalating ingredient prices and a persistent manpower crunch amid a extremely aggressive business have pushed well-loved names like homegrown pancake chain Fluff Stack and Japanese hawker chain Mentai-Ya to shutter.
On the identical time, some gamers appeared to have weathered the storm higher: fast-casual eating places. Sitting between quick-service retailers like hawker stalls and full-service eating, these spots usually supply inexpensive, higher-quality meals in an informal setting, priced between S$10 and S$15.
Usually leaner in operations, sharper in branding, and extra tech-integrated, these gamers haven’t solely survived however in some instances, expanded.
Might this enterprise mannequin supply a extra sustainable blueprint for these hoping to interrupt into and survive in Singapore’s aggressive F&B business? Right here’s what a number of quick causal operators and F&B veterans advised us.
A compelling worth proposition
In line with Jonathan Lim, founding father of Oddle, the quick informal enterprise mannequin works in Singapore as a result of it “matches how individuals stay now.”
At a time the place the macro atmosphere is unsure, shopper confidence is shaky, and discretionary spending is tightening, value-for-money turns into high of thoughts for many.
“So the codecs that serve the most individuals will at all times be the bulk. Quick informal matches that mould. It’s constructed for on a regular basis consuming.”
Take homegrown fast-casual pasta chain TWYST, for instance. Whereas many pasta eating places in Singapore cost premium costs (usually upwards of S$20), TWYST provides customisable, inexpensive bowls designed for on a regular basis eating, with costs ranging from S$8.50.
And the idea clearly appears to have struck a chord. Since its launch in December 2021, TWYST has managed to develop to 13 retailers, every having achieved appreciable success serving greater than 2,000 pastas a day on an general foundation.
One other main draw of quick informal eating places is the freshness of elements.
Although they price slightly greater than conventional quick meals, prospects typically really feel they’re getting considerably higher worth each in meals high quality and general eating expertise.
And for many diners, that’s adequate. “Most individuals can inform the distinction between dangerous meals and good meals. However they will’t at all times inform good from nice. That closes the hole between informal and premium within the eyes of the client,” added Jonathan.
Takagi Ramen, for example, locations a powerful emphasis on using recent elements of their ramen. Its signature Hakata-style noodles are handmade each day, whereas its tonkotsu soup is boiled for over 12 hours.
Every bowl is enriched with elements like shiitake mushrooms, bonito flakes, and kelp—imported instantly from Japan.
That dedication to high quality has translated into sturdy outcomes: Takagi Ramen achieved over S$20 million in annual income in its most up-to-date yr and has grown to 13 retailers, 9 of which function 24 hours a day.
“In these instances of financial uncertainty and belt-tightening, quick informal provides a compelling worth proposition,” stated Yang Kaiheng, the director of Takagi Ramen. “It’s a gorgeous ‘trade-up’ from hawker centres, or a ‘trade-down’ from full-service eating.”
A leaner mannequin that’s simpler to scale
Quick informal additionally makes extra sense operationally. Smaller groups, smaller areas, quicker desk turns—it’s a leaner mannequin that’s simpler to scale, particularly within the face of rising prices.
Ee Chien Chua, an F&B veteran who beforehand ran Whimsical Inc.—a bunch that after managed three ideas together with one in every of Singapore’s pioneer cocktail bars, Jekyll & Hyde—has seen firsthand how these prices may eat into margins.
“Historically, F&B has operated on fairly skinny margins, between 10 to fifteen%,” he stated. However with manpower, rental and ingredient prices rising throughout the board, these already skinny margins shrink quick.
At Jekyll & Hyde, earlier than it closed in Dec 2023, he remembered his chef declaring that cooking oil costs had climbed 60% and hen 30% amid inflation and macroeconomic situations.
“You possibly can’t move all of that on to the client,” Ee Chien stated. “You’re basically instantly going from what was a thinly worthwhile enterprise to what’s a completely loss making enterprise.”
That’s the place the quick informal enterprise mannequin may supply a means ahead.
In line with Takagi Ramen’s Yang Kaiheng, the idea provides a extra “manpower-lite” enterprise mannequin, typically requiring much less overhead than a conventional restaurant.
These eateries trim prices by utilising tech, implementing self-order techniques by way of kiosks or QR codes. Diners decide up their meals once they’re prepared and clear their very own trays after consuming.
That lean setup is particularly advantageous in right now’s manpower crunch. At the same time as F&B closures hit a close to 20-year excessive, Singapore nonetheless noticed greater than 3,790 new eateries open in 2024—outpacing closures by round 700. With extra eating places competing for a restricted labour pool, staffing has turn into one of many business’s hardest challenges.
The menus of quick informal eating places are additionally usually smaller and extra condensed, focusing solely on in style, fast-moving meals elements. “This supplies fast-casual eating places with stronger negotiation energy with meals suppliers and ends in a extra environment friendly provide chain administration system,” added Kaiheng.
With extra streamlined operations, TWYST, for instance, developed “clear and robust SOPs,” permitting every pasta to be cooked in simply 45 seconds regardless of providing over 210 customisation choices.
The crew designed them to be “foolproof,” so even anybody with out prior expertise may step in after a easy coaching.
“When paired with sturdy branding and buyer engagement methods, the [fast casual] format is definitely each scalable and sustainable,” stated Han Zhongchou, one in every of TWYST’s founders.
Figuring out “the maths”
Quick informal in Singapore seems poised for progress, due to its leaner manpower necessities, streamlined operations, and skill to scale effectively. Its give attention to affordability, high quality, and velocity makes it a resilient mannequin in right now’s difficult F&B panorama.
That stated, as Jonathan cautioned, success isn’t assured just by format.
Some advantageous eating eating places do nicely, some quick informal ideas flop. What issues is whether or not [they are] constructed to generate constant income.
Jonathan Lim, founding father of Oddle
On the finish of the day, he shared, eating places are companies. “And all companies run on one equation: income minus price equals revenue. If the income isn’t excessive sufficient, the remaining doesn’t matter—so, know the maths.”
Ee Chien echoed the identical ideas. “You have to just remember to actually perceive the economics round it, like, what actually is your break even, and what are your precise prices?”
Too many F&B operators don’t take note of hidden prices, together with additional time pay and different overheads, and that, in line with the F&B veteran, is what truly kills these companies greater than the highest line numbers.
For these getting into Singapore’s F&B scene, the takeaway is obvious: quick informal provides alternative, however solely operators who perceive their numbers could possibly thrive.
- Learn different articles we’ve written on Singaporean companies right here.
Featured Picture Credit score: Oddle/ Ee Chien Chua by way of LinkedIn
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