Singaporean asks if Chinese F&B brands should be limited in commercial spaces

SINGAPORE: Noting that some have expressed concern that too many food and beverage brands from China have been “popping up across Singapore,” a local Reddit user asked if the government should actually regulate the types of businesses allowed in commercial areas.

Limiting foreign brands would help preserve a neighbourhood’s identity, u/bangsphoto wrote in their post, adding that this might even slow down gentrification. They cited Chinatown as an example of an area that has shifted toward catering to tourists. However, they also voiced concerns that “putting limits could also make things stagnant,” as foreign brands bring variety.

The issue, they added, is by no means only a Singaporean problem, with cities around the world dealing with the same.

For them, “some light zoning or planning to protect the character of certain areas makes sense,” but room should be provided for different concepts to also come in.

Hello, Chinese brands

Singapore has certainly seen a rapid influx of Chinese brands such as Mixue, Chagee, Luckin Coffee, ChaPanda, Haidilao, Nong Geng Ji, Xiang Xiang, and other chains. There are now 85 Chinese F&B brands with over 400 outlets, according to Reuters, more than double in about a year. Mixue and Chagee, for example, have dozens of outlets each, and Luckin Coffee expanded rapidly to 60+ stores in a short period.

This has not been done randomly either, with Singapore chosen as a part of a launchpad strategy for many Chinese brands due to cultural familiarity and a Chinese-speaking population. The intense competition and weak demand in China have also been factors for brands to expand internationally.

Many of the brands have certainly found success in Singapore, especially among younger people, who are apt to find Mixue’s offerings, for example, attractive due to their low prices. Additionally, social media savvy has helped brands get established quickly.

What Redditors are saying

A commenter wrote that steps toward regulation are being taken already: “URA currently limits which shophouses in Kampong Glam can be used for dine-in F&B, as well as souvenir stores.”

Others, however, pointed out that regulating brands may not be that easy.

“Shopping malls (private) try their best to get a mix. But if space is vacant for too long, not good on revenue. NEA (gov) already doing that. Property owners (private) don’t really care, as long as got business owners that can pay, it’s usually fine with them, but if space is vacant for too long, not good on revenue. Coffeeshops/Food Courts (private) try their best to get a mix. But if space is vacant for too long, not good on revenue.”

“For heritage areas, a hard yes to regulating the ratio of different types of business. Subletting has to be actually monitored and regulated. For heartland areas, honestly, it depends on what the locals want, and demand will dictate supply anyway, but you need the tourism money, and if you want to keep visitors coming, you gotta invest in keeping up that image,” added another.

One pointed out, “Free market economics. The only restrictions you will see is in NEA hawker centres. The government shouldn’t be nosy and intervene on what businesses are allowed in here.” /TISG

Read also: ‘I really don’t get it’: Singaporean wants to know the appeal behind Chagee, Luckin Coffee