A Glimpse into the Food & Beverages (F&B) Industry in Singapore

Take a Look to See What is Happening Behind the Food & Beverage Scene in Singapore.

Breakdown of the Operating Expenses in F&B Industry in Singapore based on 2020 Survey. Top 3 Expenses (Percentage Against Operating Expenses) are: Cost of Goods (33.1%), Staff Salaries / Remuneration (33.0%) and Space Rental (16.9%).

Increase Number of F&B Companies being set up from 2010 to 2020. From the trend, it seemed that there is a growing entrepreneurship in Singapore. Growth was very steady which could be due to the growing consumerism in Singapore.

Except for 2020 (Outbreak of Covid-19 with Lockdowns), the Operating Revenue (OR) was on an increasing trend for F&B industry. Operating Expenses (OE) was also increasing at a relatively similar pace, highlighting that the growth in revenue may have been caused by price adjustment by the merchants to cover the growing expenses.

Moving on to examine the OR and OE per F&B Enterprises present in Singapore, there was a trend for both aspects of the businesses. The pace was similar but if we look at the Operating Surpluses per Enterprise, the decline was steeper, indicating that the OE was weighing more heavily on F&B merchants.

Will the OE continue to climb? From the statistics from Ministry of Manpower, gross salary including Employer CPF Contribution shows an increasing trend in general from 2010 to 2019. The above graphs are for gross salary at 20% and 50% Percentile. This trend is likely to continue, and the labour crunch in the F&B industry might exacerbate the situation further.

In the Retail Space, rental have dropped in 2017 and either remained flat or increased slightly above the rental price in 2017. And in Covid period (from 2020 to 2021), there was a slump in space rental as most were Working from Home. However, there might be a U-turn on the space rental based on performance in recent months of 2022

With this backdrop, can you still operate an F&B business and still look into expansion of business? The answer is yes. Touch Base with Blue Sky Tree & Find Out the "Hows".