Singapore’s F&B landscape is showing signs of fatigue. Several listed F&B groups have reported losses as consumers scale back discretionary dining and operators grapple with higher costs, manpower shortages and persistent inflation. The slowdown marks a sharp contrast to the strong post-pandemic rebound seen in 2022–2023.

Why Dining-Out Demand Is Softening

Consumers are tightening their wallets for several reasons:

• Higher cost of living — utilities, groceries, transport and mortgages have risen
• Shift to home-cooking and hybrid work, reducing weekday dining footfall
• Value-conscious behaviour as households prioritise essentials
• More promotions and discounts in supermarkets drawing spend away from restaurants

Even popular casual-dining brands have reported uneven sales despite strong brand recognition.

Rising Costs Hit Operators Hard

Cost pressures are squeezing margins across the F&B sector:

• Higher wage costs due to manpower constraints and upcoming PWM adjustments
• Increasing rents across malls and prime retail clusters
• Food inflation especially in proteins, imported ingredients and beverages
• Utilities and logistics cost increases driven by global volatility

Many operators report that even with steady revenue, profits are slipping due to rising operating costs.

Some Listed F&B Groups Have Slipped Into the Red

According to recent financial filings, several listed players are posting quarterly losses due to:

• Lower same-store sales
• Slower table turnover during off-peak periods
• Higher rental renewal rates
• Increased cost of goods sold (COGS)

Even brands with strong fanbases are feeling the margin squeeze.

Operators Explore New Strategies

To stabilise performance, major chains are experimenting with:

• Smaller-format concepts such as kiosks and grab-and-go outlets
• Tech-driven ordering, automation and manpower-light operations
• Menu engineering to control food cost variability
• Expansion into overseas markets with lower costs

Some firms are also rebalancing portfolios by shutting underperforming outlets.

TopBroker Insight

The F&B sector is known for its resilience, but the current phase highlights a shifting consumer mindset. Location and cost structure matter more than ever — which is why suburban malls and heartland clusters continue to outperform CBD dining strips. For retail landlords and investors, tenant mix strategy is now critical: essential services > lifestyle > discretionary dining.