Forum: Give viable F&B operators a fair chance to survive

As a food and beverage (F&B) and hospitality operator, I am worried that the high number of business closures in the sector is slowly being treated as “normal” in Singapore.

In 2024, 3,047 F&B outlets shut down – the highest in nearly 20 years. From Jan 1 to Oct 23, 2025, there were 3,357 new retail food establishments, but also 2,431 closures.

Data from the Ministry of Trade and Industry shows that over 60 per cent of the outlets that closed in 2025 had been registered for five years or less, and 82 per cent of those younger businesses had never turned a profit. These are not just numbers. Behind every closure are owners, teams and suppliers who did not get a fair chance to stabilise.

The reasons are familiar to anyone in the industry: rising rents, higher food and utility costs, and chronic manpower shortages – now combined with rising wage floors and tighter consumer spending. More diners are also heading to Johor Bahru to stretch their dollar, which hurts weekend revenue for restaurants here.

Strong players will always adapt, but when churn reaches this level, it suggests structural stress, not just “weak concepts”.

When small operators disappear so quickly, Singapore loses more than shop units. It loses neighbourhood brands that give each estate its flavour, training grounds for young hospitality talent, and the diversity that makes its food culture special.

Over time, the field tilts towards only large, well-capitalised groups, while promising start-ups and family businesses fade away.

A coordinated response could make a difference.

First, government agencies could study in detail why so many outlets fail before the fifth year, and publish practical guidelines for new operators on areas such as leases, menu engineering and cash-flow planning.

Second, early-stage support schemes could prioritise operators that show sound business discipline and responsible employment practices, so viable businesses are not lost in their most fragile years.

Third, landlords could explore more sustainable rental models, with a fairer sharing of risk instead of front-loading everything on tenants.

Singapore’s F&B scene has always been resilient and creative. With targeted, data-driven support, it can reduce unnecessary closures while still keeping standards high and competition healthy.

Madan Kishor