Several eateries struggle under dine-in curbs

One week into the tightened restrictions that kicked in on May 16 for food and beverage (F&B) outlets, it is deja vu for the owners of new eateries Asador Singapore in Joo Chiat Place and Low Tide in Club Street.

Their barely two-week-old venues have been forced to adopt a takeaway and delivery model, with no dining in allowed under the new phase two rules.

It is a repeat of what happened to the owners around this time last year. Asador is the second venue after Next Door Spanish Cafe for co-founders Houssein Rodriguez and Joseba Madina, both 33, while Low Tide owners Jay Gray, 31, Desiree Jane Silva, 34, Abhishek Cherian George, 35, and Joseph Haywood 35, had earlier opened Sago House.

Next Door Spanish Cafe in Siglap opened just a few weeks before the circuit breaker last year, while dive bar Sago House in Chinatown started with home deliveries on the second day after the restrictions kicked in.

But their first venues not only survived the circuit breaker from April 7 to June 1 last year, but thrived enough for them to consider expanding this year.

Now with two venues each, and fixed costs like rent, the situation seems bleaker.

"We decided to open Asador as we had a captive audience in Singapore with people who can't travel... so we wanted to open as soon as possible and take advantage of the situation," said Mr Rodriguez, a Spaniard who has been here for more than nine years.

Now, they have consolidated kitchen operations for both restaurants at Asador, and do 20 to 25 deliveries a day, and around 40 on the weekend.

But it is barely enough to cover costs.

"We don't have any big investors... We put in all our own money, our savings. Right now, we are able to survive until the end of the month, if not I need to find another line of cash flow," added Mr Rodriguez, who has a total of 40 employees at the two venues.

It is a similar case for Low Tide, a dual-level bar and eatery. "It's harder this time because not only are we on a prime site like a corner shophouse in Club Street with higher overheads, it is fully staffed with a team of eight that we hired before we opened," said its co-founder Mr Gray, who is British. The owners also have a staff of seven at Sago House to look after.

"We barely had the chance to get the word out and we are already expecting to see losses," he said.

"There are suppliers and staff who need to be paid, and if this goes on for three months, we will need to look at refunding the business."

While several other businesses like gyms and education and enrichment centres are feeling the pinch, the F&B sector is seen as being among the worst hit.

KPMG Singapore partner and economist Paul Kent said: "Aside from taxis and private-hire drivers and tuition centres, in particular, we expect players in hospitality to be the hardest hit."

A spokesman for the Restaurant Association of Singapore (RAS) said F&B concepts across the board saw reduced sales of between 40 per cent and 90 per cent over the first few days of tightened restrictions under phase two. While its members are more prepared this time, the RAS said this does not necessarily result in increase of food delivery sales. "Consumers also have more options this time round, resulting in spreading consumption across a much broader base, and thinning revenues for each F&B brand."

Several restaurants are feeling the effects of this.

"The sales from takeaways and deliveries can never match the sales of dine-in customers, and it is not even 20 per cent of the sales we used to make," said Mrs Nagajyothi Mahendran, director of Samy's Curry in Dempsey, which has seen sales on weekdays plummet.

At Old Bibik's Peranakan Kitchen in Joo Chiat, director Adrian Loh said business had dropped by almost 70 per cent. "We used to do at least $1,000 to $1,200 per weekday, but the last few days' sales have averaged $300 per day including sales via our online platforms."

Hawkers and coffee shop operators have also been severely hit, with a 50 per cent to 70 per cent drop in sales, according to the Federation of Merchants' Associations, Singapore (FMAS). Not all can pivot to deliveries.

"Senior hawkers and wet market owners who are not tech-savvy are suffering the most," said FMAS president Yeo Hiang Meng.

Businesses may have to take drastic measures if the restrictions extend beyond June 13.

"As a company rule, I don't want to fire anyone... We will need everyone once dine-in starts again," said Mr Rodriguez. "I want to be ready to reopen."