SINGAPORE: Singapore’s food and beverage (F&B) sector saw another drop in March, with total sales falling 2.8% year-on-year (YoY), following a 5.7% drop in February, Singapore Business Review reported, citing data from the Department of Statistics.
The total F&B sales in March were estimated at S$960 million. On a seasonally adjusted basis, sales in March were also down 3.2% from the previous month.
Of the estimated sales, 24.9% came from online transactions, up from 23.2% in February, showing more people are turning to delivery platforms and digital channels.
Among F&B segments, food caterers were the only group to see growth, with sales up by 19.6% YoY, while restaurant sales dropped 6.6%. Cafés, food courts, and other eating places saw a 4.2% drop, while fast food outlets fell by 3.6%.
Month-on-month (MoM) figures showed declines across every category. Restaurants were down 3.8%, cafes and food courts dropped 4.1%, fast food outlets dipped 0.8%, and even food caterers, despite the yearly rise, saw a 1.7% fall from February.
This marks the second month in a row where all F&B business categories posted lower sales compared to the month before.
While the industry is struggling, hiring in the sector reportedly surged. According to LinkedIn’s jobs report published in January, F&B assistants were the fastest-growing job in Singapore over the past three years, with a 92% jump.
However, that hasn’t translated into stronger business results.
In April, Reuters reported that closures of F&B outlets are now happening more each month than in past years, as businesses face higher operating costs and customers choose to spend less on dining out.
Still, amid F&B closures, new brands, local and international, continue to enter the market, making it harder for businesses to stay profitable. Knight Frank warned that this trend may be doing more harm than good for operators, diners, and the entire food business landscape. /TISG
Read also: Singapore F&B closures exceed 200 per month, higher than the pandemic’s 170 per month
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