SINGAPORE: According to a report from Reuters on Thursday (Apr 9), 2025 is seeing more closures in the food and beverage (F&B) sector each month than in previous years due to higher operating costs and diners choosing to spend less.
This is making quite an impact on Singapore’s dining scene, which is famous not only in the region but also around the world. All types of eating establishments are affected, from high-end restaurants to hawker stalls to Michelin-star eateries.
The report cited data from the government as showing that this year, an average of 307 F&B establishments have closed. Last year, the average was 254; in 2023 and 2022, it was 230.
“The ratio of closures to openings in 2025 and 2024 was higher than before and during the pandemic, pointing to a shrinking sector,” Reuters further pointed out.
One restaurateur who spoke to Reuters said that he would not renew his eatery’s lease in August and chose to close it after nearly 10 years. The co-founder of Wine RVLT, Alvin Goh, told Reuters that the restaurant has been in the red since June 2023, with the owners using their own funds to make sure rent, salaries, and suppliers are paid.
Dining out saw a resurgence in 2022 when establishments began to open again after the pandemic; since then, fewer people have been dining out, and those who do are spending less. At the same time, the costs of goods, utilities, rent, and salaries have gone up.
This trend is expected to continue this year due to high operating costs. At the same time, a sizable number of Singaporeans are choosing travel over dining out, including one man who spoke to Reuters, saying that eateries in other Southeast Asian countries are 30% to 40% less expensive than in Singapore.
Reuters also quoted food blogger Seth Lui as saying that the closures could strike a blow to Singapore’s culinary legacy as well as its reputation as a foodie capital in Asia. Mr Lui said, ”We will start to see more fast food-style concepts with automation and franchise brands everywhere rather than having unique, quaint concepts.”
When shared on a local Reddit thread, the report sparked many strong reactions from commenters, several of whom pointed to the high cost of rent as one of the biggest causes of the closures.
By far, the most popular comment was from a Reddit user who laid the blame on “LANDLORDS CHARGING HIGH RENTS TO PAY OFF THEIR OWN DEBTS.”
Another wrote, “They keep trying to convince people that rent isn’t the only issue, and inflation is the blanket reason for everything rising, but rent is usually one of the biggest reasons.”
A Reddit user agreed, writing, “Local food businesses all closed by the operation costs, from rental, labour to ingredient imports.”
A commenter said they were sad to see “So many small local f&b businesses are being replaced by yet another malatang/mixue/luckin/generic chain who can afford the rent.”
One agreed, writing, “Yeah, I’d rather support my local zi char place instead of those foreign franchises. Because once the zi char places go, there is no coming back.”
“Terrible, can really see the varieties decreasing in the span of a few years,” another pointed out.
On another note, a Reddit user asked, “Isn’t it what people expected? Outside dining is too high, so people start to cook at home. Outside, one steak costs S$40 to S$50, and you still have to worry about the quality. I can buy it for s$20 and cook it myself. Aglio olio for S$15 when it’s just pasta, olive oil, garlic and chilli padi.” /TISG
Read also: Diner stunned by restaurant’s ‘insane’ price markup, says their Bee Hoon increased from $8.50 to $10.80
