Singapore F&B edge shows signs of weakening after Food Republic’s ‘retreat’ in China’s food scene, analysts say

SINGAPORE: Singapore food and beverage (F&B) brands once stood out in China for their reputation for quality, hygiene, and reliability. That edge, however, is showing signs of weakening after Food Republic’s retreat in China’s food scene, analysts told the South China Morning Post (SCMP).

The hawker-style food court chain, which once operated more than 40 eateries across mainland China at its 2016 peak, just closed its first outlet in Beijing at Oriental Plaza on Monday (June 15) after its lease expired. It had been operating for more than 25 years. From 40, now, only four outlets remain, all in Shanghai.

Analysts said the reputation of Singapore F&B brands has faded as local rivals improved and price competition intensified.

Singapore University of Social Sciences associate professor Guan Chong said, “The ‘Singapore brand’ alone is no longer a value proposition,” and firms now need a “sharper proposition” to attract Chinese diners.

Consulting firm YCP’s managing partner and regional CEO for Greater China, Charles Wang, added that locals there “don’t buy generalist value propositions like ‘Singapore equals premium and quality’ any more.”

Besides the weakening pull of Singapore’s F&B brands, analysts said the food court chain’s exit also reflected pressure on the food court model itself, as locals gained more dining options after China’s malls started curating their own dining offerings instead of relying on third-party operators.

Analysts said that while food courts here are being squeezed, they are unlikely to face the same kind of decline seen in China, given how it’s embedded in Singaporeans’ “daily routines, office life, transport nodes, and malls.”

Still, it seems competition with Chinese F&B brands remains tight at home as they recorded the fastest foreign expansion operating locally, with the latest data from Market Research Singapore showing their numbers more than doubled from about 32 in mid-2024 to 85 by August last year. /TISG

Read also: ‘I try my best to support locals but sometimes they don’t make it easy to’: Netizen reacts to rapid expansion of Chinese F&B brands in Singapore