Event report
Past Event | Fireside Chat: Opportunities and Challenges facing the Food & Beverage service business in Singapore
The French Chamber of Commerce in Singapore (FCCS) hosted a Fireside Chat on “Opportunities and Challenges Facing the Food & Beverage Service Business in Singapore”, featuring Mr. Emre Olcer, CEO of Phoon Huat Group, in a discussion moderated by Mr. Christophe Cazaux-Maleville, Founder & CEO of The Vintage Club.
This event brought together F&B industry leaders for a candid discussion on Singapore's dynamic landscape. The conversation clearly established that while structural challenges (cost of rental and manpower) persist, the opportunities for growth remain significant. Differentiation, authenticity, and the integration of sustainability were identified as the key drivers for future success.
Part 1: Persistent Challenges (Costs and Manpower)
The first part of the discussion focused on the two primary operational hurdles: increasing rental costs and the difficulty in securing manpower.
Rent and Manpower: Panelists unanimously agreed that pressure on rental costs and the shortage of skilled personnel are not transient issues. Projections indicate these factors will remain the biggest constraints for the sector in the short to medium term.
International Challenges: When comparing Singapore to other distribution markets, the panelists noted that while specific challenges (like quotas) vary, global pressure on the supply chain and the retention of talent are universal issues, with Singapore representing a particularly acute case due to its demanding market.
Other Constraints: A question posed to the audience highlighted other friction points, notably regulatory complexity and the constant need for innovation due to market saturation.
Commodities prices were also discussed.
Part 2: Multiple Opportunities for Growth
The discussion pivoted toward growth potential, offering an optimistic view of the sector's future.
Market Viability: Despite the high costs, the question of whether "it's still worth opening a restaurant or retail outlet in Singapore" received a positive response. The market remains attractive due to strong consumer spending capacity, the presence of international tourists, and Singapore's reputation as a gastronomic hub. Success, however, relies heavily on differentiation and a unique value proposition.
Digital Transformation: Digital transformation was largely viewed as an opportunity rather than a risk. Strategic use of technology can improve operational efficiency (reducing the impact of manpower shortages) and enrich the customer experience.
Sustainability as a Competitive Advantage: Sustainability is widely regarded as a major opportunity. Consumers are willing to pay a premium for ethical practices, local sourcing, or waste reduction initiatives. Integrating sustainability is no longer just a cost but a brand driver and a means of customer loyalty.
Suppliers as Partners: The role of suppliers was redefined. They should not be viewed solely as a cost but as strategic partners capable of providing fine product solutions ensuring quality, and aiding in the traceability and authenticity of the product story.
Conclusion and Outlook
The final Q&A session with the audience reaffirmed that leveraging new consumer demands and adapting to changing habits are essential for the future.
The event concluded with a show of hands to answer the question: "Who believes the next two years will be better/more fruitful than the last two?"
The majority of the audience raised their hands, indicating a general sentiment of cautious optimism. Despite challenges related to costs, human resources, and the supply chain, there is a strong conviction that differentiation, combined with authentic storytelling, represents the winning formula in Singapore's F&B landscape.
Read the Singapore government’s report here
For more information about the F&B and Hospitality Committee, please contact Coralie Vincens at cvincens(@)fccsingapore.com.
