Netizen urges Singaporeans to ‘do more’ to support local businesses as more restaurants shut down and payment woes hit food suppliers

SINGAPORE: A netizen urged other consumers and residents in the city-state to do more to support local businesses instead of only blaming high rents for the wave of restaurant closures, which had set off further problems in the food and beverage (F&B) industry.

The comment came amid growing concerns over late payments and falling revenues affecting Singapore’s food suppliers, who have been trying to help struggling F&B outlet owners—clients who had also become friends.

Channel News Asia (CNA) recently reported that suppliers are bearing the brunt, with some facing cash flow issues as customers who were supposed to settle their bills in 30 days are now taking up to 120 days.

Food suppliers who also have their own suppliers get their goods delivered within a month and pay upfront, but only get their money back three to four months later. Meanwhile, others who paid upfront were reportedly ordering less or turning to cheaper food supply alternatives, pushing down suppliers’ revenues by about 20% this year.

Last year, more than 3,000 outlets shut down, with over 200 closures a month, compared with just 170 during the pandemic. In April, Reuters reported that monthly F&B closures had risen to 307 this year, higher than in previous years, as operating costs climbed and diners spent less.

By July, the Monetary Authority of Singapore (MAS) noted that F&B sales had been declining for three years, while the Ministry of Trade and Industry (MTI) said last month that consumer-facing sectors will face lacklustre growth as locals spend more abroad.

While many blamed landlords and rental hikes as the root of the problem, one netizen noted that consumers and residents could do more to support local businesses, especially the smaller establishments and hawkers.

He said, “Yes, it’s a free market where survival is for the fittest, but it wouldn’t hurt if we just give some of them the benefit of even a little goodwill.”

“Are we individually gonna move the needles? Probably not, but neither will watching them die. Our local business ecosystem is fragile enough even without the rental issues; we don’t have to ridicule them with our cynicism,” he added.

Others shared how they tried to help. Some mentioned buying regularly from nearby food stalls at work, while others suggested skipping delivery apps so the money goes directly to shop owners instead of being taken by bigger corporations through commissions.

Still, one commenter argued that if the rental problem isn’t “nipped in the bud”, it would remain an issue regardless of how much Singaporeans “support local”.

“I say this with utmost cynicism after watching two friends close their F&B businesses due to landlords asking for a 40% rental hike after already doing a significant hike last lease extension,” he added. /TISG

Read also: ‘SG has become such an expensive place to do business,’ netizen says as Singapore’s ability to attract and retain talent drops amid rising cost of living

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