Singapore becomes China’s culinary launchpad as restaurants flee home market woes

SINGAPORE: As China’s once-prosperous food and beverage industry confronts increasing challenges, many Chinese eateries, cafes, and tearooms are now focusing on Singapore. From tech-driven tea outlets to expensive dining establishments, these brands view Singapore as a launchpad for their international growth. This move is also changing Singapore’s culinary landscape, but what is driving this movement, and what consequences does it have for Singapore’s food ecology?

Escaping a tough market back home

“It’s really tough to operate in China now. Many brands are choosing to expand abroad,” said Josie Zhou, overseas GM of Hunan cuisine chain Nong Geng Ji.

Bubble tea brands like Mixue and ChaPanda, along with coffee chain Luckin Coffee—all well-known in China—are now eyeing Singapore as a way to escape a crowded market where even major players like Starbucks are struggling. Starbucks’ market share in China fell from 34% in 2019 to just 14% in 2023, as local businesses quickly surpassed the U.S. brand with faster service, lower prices, and technology-driven operations.

Singapore: A smart launchpad for global ambitions

Singapore offers more than a varied and affluent customer base. With its huge Chinese community and robust global status, the city-state serves as a perfect market for testing products/services and building brands.

“If we can build our brand in Singapore, brand awareness can spread to Malaysia, Vietnam, and even Indonesia,” said ChaPanda’s Singapore manager, Joanna Jia.

Some operators view Singapore as just the beginning. For instance, Yong Fu intends to develop its brand in London, New York, and Paris by 2026, utilising its accomplishment in Singapore as a prototype.

Opportunities for some, challenges for others

The presence of Chinese brands elevated concerns among home-grown industries. The Singapore Tenants United for Fairness, on behalf of 700 business owners, disapproved of the irregular playing field, asserting that even tiny Chinese SMEs are habitually bigger than Singapore’s major resident businesses.

“When an SME from China is often even larger than our local large enterprises, it should be clear that our small businesses are not on equal footing with such players,” the group stated.

Rents in prime areas are rising, supply is tightening, and the city’s culinary identity is changing. Food critic KF Seetoh cautioned that the influx risks diluting Singapore’s rich culinary diversity.

Nonetheless, industry experts believe the migration is unlikely to slow down. With conditions in the Chinese market remaining tough, as economist Erica Tay put it, the exodus of Chinese food and beverage brands to Singapore—and beyond—seems to be just beginning.

In essence, Chinese food chains are not just trying to survive; they are actually using Singapore in order to thrive, grow, and expand globally.