Finance

Surviving the Storm: Singapore's Restaurants Adapt to Tough Times

2024-11-16

Author: Siti

SINGAPORE – The culinary landscape of Singapore is currently facing one of its toughest years yet. As we enter 2024, the forecast for restaurants across the island remains dismal, with many chefs and owners grappling with challenges even worse than they anticipated.

Every segment of the food and beverage industry is feeling the pressure – from casual eateries to fine dining establishments. The robust Singapore dollar has made dining out considerably more expensive for both locals and tourists. With many opting to save their dollars for overseas adventures, the demand for dining in Singapore has plummeted. A recent increase in the goods and services tax has further compounded this issue, driving many patrons to travel across the Causeway for more affordable meals and entertainment options.

Chef Petrina Loh of Morsels, located in Dempsey Road, expresses the sentiments shared by many: "The cost to eat out has escalated so much that for most occasions, I prefer home-cooked meals. If I'm not celebrating something special, why would I spend so much?"

Similarly, Chef Joel Ong, who co-owns Enjoy Eating House, shares the sentiment: “Every month feels like we’re waiting for a miracle, questioning, ‘Will next month be better?’”

Surprisingly, even Michelin-starred restaurants are not exempt from this downturn, with notable names like Sommer and La Dame de Pic shuttering their doors under the weight of declining patronage despite their prestigious accolades.

Famed restaurant groups, such as Japan Foods Holding and TungLok, have publicly issued profit warnings, anticipating net losses for the first half of the fiscal year.

Statistics from the Accounting and Corporate Regulatory Authority reveal the grim reality: in 2023, 3,616 food businesses opened while 2,748 ceased operations. Thus far in 2024, slightly fewer businesses (3,301) have opened, with 2,747 already shutting down, highlighting the struggle of local eateries to stay afloat.

Chef Anthony Yeoh, owner of Summer Hill, aptly likens the dining scene to "slow dancing in a burning room." With numerous dining venues offering remarkable cuisine and atmospheres, many restaurants are finding themselves with dwindling customer bases.

In the midst of adversity, restaurateurs are deploying creative strategies to navigate this challenging climate:
Total Football Tactics

At **808 Eating House** and **Province**, situated at 153 Joo Chiat Road, chefs Eugene Chee and Law Jia-Jun emphasize a lean operational model. They cross-train staff and share responsibilities to cut costs, likening their approach to the concept of Total Football in soccer.

While Chef Chee has reported a 7% increase in revenue this year, Chef Law is battling high cancellation rates at Province. Adjustments to reservation policies, including requiring diners to cancel 72 hours in advance, aim to secure better planning and reduce waste.

Honest Cuisine

**The Black Sheep Cafe**, managed by Chef Ratha, focuses on providing honest, no-frills European dishes. Despite facing workforce challenges, the cafe has seen a resurgence since August as regular customers return. Maintaining a menu that prioritizes quality while finding ways to streamline operations is a priority, with exciting new garnishing ideas in the works.

Cutting the GST

Chef Loh from **Morsels Restaurant** has taken an innovative approach by halting the collection of Goods and Services Tax (GST) for diners due to her revenue levels. She emphasizes customer-friendly changes while proactively managing costs, such as locking in lower utility rates and sourcing equipment during sales. Unique culinary events and partnerships with specialty suppliers are also on the horizon as she seeks to entice diners back.

Catering to Diverse Diners

**Asap & Co**, Singapore’s only upscale halal steakhouse, has found a silver lining amidst the gloom. Owner Isrudy Shaik reports a 25% revenue increase due to a growing base of Muslim diners from Indonesia and the Middle East drawn by social media attention and influencer endorsements.

Innovating through Social Media

**Enjoy Eating House** is adapting to the changing influence of social media, focusing on building Chef Ong’s personal brand on platforms like Instagram. Engaging content featuring restaurant recipes aims to create a loyal following even amidst lower foot traffic.

Trolley Brunch Renaissance

Chef Anthony Yeoh's **Summer Hill** executed a creative pivot by introducing a Trolley Brunch service, resurrecting a concept from his earlier restaurant. By innovating with small dishes delivered from trolleys, he successfully drew crowds back and established a sought-after dining experience.

As Singapore's restaurant scene navigates these turbulent waters, adaptability and creativity are proving crucial to stay afloat. With various tactics in play, industry insiders are cautiously optimistic about the resilience of their businesses. As they say, it's all about survival – and some are doing it with flair.