Singapore’s food and beverage industry has long been a powerhouse of culinary innovation, attracting global recognition for its diversity, quality, and depth. Yet, 2024 has marked a turning point—one that has shaken even the most seasoned restaurateurs. On the surface, the industry appears to be thriving, with more new restaurants opening than closing. But dig deeper, and you’ll find an unsettling reality: the closures aren’t just numbers. They represent the downfall of well-established, once-thriving institutions that were forced to shutter despite years of success.
Some of the most notable closures of 2024 include Michelin-starred establishments like La Dame de Pic, Tippling Club and Braci, as well as long-standing names like Osteria BBR by Alain Ducasse and Violet Oon Singapore at Jewel Changi Airport. These closures send a powerful message: in today’s landscape, reputation and accolades are no longer enough to guarantee survival.
The challenges that define this era of dining go beyond operational difficulties. Consumers themselves are evolving—becoming more financially cautious, prioritizing value over prestige, and shifting towards experience-driven dining. The influx of Chinese F&B investments, spanning beyond Chinese cuisine into Japanese, Korean, and fusion concepts, has also introduced a new layer of competition that many homegrown businesses struggle to keep up with.
The Singaporean dining scene is not dying, but it is undergoing a transformation. Those who fail to adapt will be left behind. The question is: who will evolve and rise above the fray?
This post isn't just about recounting the struggles of the F&B industry—it is about understanding the forces at play and, more importantly, figuring out how to thrive amidst them.
A Crisis of Sustainability, Not Creativity
Ask any chef or restaurateur in Singapore today, and they’ll likely tell you the same thing: it’s brutal out there. It’s not for lack of talent or ideas—if anything, Singapore’s dining scene remains vibrant with innovation. But creativity alone is no longer enough to survive.
The culprits?
Soaring rents: The cost of keeping a prime location is relentless, forcing many restaurateurs to operate at thinner and thinner margins.
Escalating labor costs: The struggle to hire and retain talent means higher wages, making profitability even harder.
Changing consumer : Diners are becoming increasingly selective, looking for better value rather than sheer novelty.
This isn’t just an industry in distress—it’s an industry at a crossroads. The closures of high-profile establishments in 2024 illustrate the severity of the situation. One-Michelin-starred La Dame de Pic at Raffles Hotel shuttered, marking a significant loss for the fine dining scene. Similarly, Osteria BBR by Alain Ducasse, another esteemed venue at Raffles Hotel, also closed its doors. Other notable casualties to name a few included Tippling Club, Sommer, Braci, and Violet Oon Singapore at Jewel Changi Airport, each of which had carved out a strong reputation in the industry. These closures highlight the intense pressures restaurateurs are facing, from rising costs to evolving consumer preferences.
The Financially Savvy Consumer & The Death of Blind Loyalty
Perhaps the biggest disruptor in this cycle isn’t inflation or rental hikes. It’s the consumer themselves.
Gone are the days when diners flocked to the latest trendy restaurant without a second thought. Today’s consumers are more discerning, more financially conscious, and far less willing to splurge mindlessly. Adding to this, rumors of an exodus of high-net-worth individuals from Singapore have begun to circulate, raising concerns about a direct impact on the fine dining scene. These individuals, who once formed a significant segment of the high-end restaurant clientele, are now either leaving the country or scaling back on extravagant spending. The effects are being felt across the industry, with luxury establishments struggling to maintain their once-loyal base.
Consider these shifts:
Deliveries and takeaways are increasing: The rise of remote work has shifted dining habits, with more consumers opting for high-quality meals at home instead of dining out regularly.
Casual dining is on the rise: Pubs, wine bars, and affordable concepts have seen stronger growth than high-end dining.
Overseas dining is eating into local spending: A surge in travel means Singaporeans are allocating more of their F&B budgets abroad further encouraged by a strong Singapore dollar.
Consumers are “trading down”: Whether it’s opting for hawker-style concepts over mid-range restaurants or choosing affordable set menus, spending is becoming more calculated.
This doesn’t mean Singaporeans have stopped spending on dining—it means they’re prioritizing value over hype.
And herein lies the greatest challenge for restaurateurs: how do you convince a consumer who is more careful with their dollar that your restaurant is worth it?
The Influence of Chinese F&B Investments
Another factor reshaping the industry is the influx of Chinese F&B brands setting up shop in Singapore. These brands increasingly see Singapore as a strategic entry point into the ASEAN market, thanks to its business-friendly environment and cultural familiarity. With a focus on market expansion, many Chinese brands are leveraging Singapore as a testing ground for international growth, bringing new competition into an already saturated market. Notably, these investments are not limited to Chinese cuisine alone—many Chinese companies are also launching brands that offer Japanese, Korean, and other international cuisines, further diversifying the competitive landscape.
Survival is About More Than Just Good Food
The industry needs to adapt—and fast. The days of simply relying on aesthetics, Michelin stars, or imported ingredients to justify premium pricing are over.
What works today?
A well-defined value proposition – What does your restaurant stand for, and why should people come back? Vagueness is fatal in a saturated market. Consumers today are bombarded with dining choices, and without a clear identity, restaurants risk fading into obscurity. Establishments that succeed are those that not only offer great food but also communicate a compelling story, a strong brand identity, and a unique dining experience that resonates with their target audience. Whether it’s through a commitment to sustainability, an exclusive ingredient sourcing strategy, or an immersive dining concept, clarity and distinction are key to securing customer loyalty in an increasingly competitive landscape.
Smart menu engineering – Pricing needs to make sense. Restaurants must offer thoughtful, well-priced dishes that hit the sweet spot of affordability and quality. This involves understanding not just ingredient costs but also consumer expectations and spending behaviors. Successful menu engineering goes beyond setting attractive price points—it incorporates strategic menu design, optimal portion sizes, and a mix of high-margin and popular items. Restaurants that master this balance can create a perception of value while maintaining profitability, ensuring that diners feel they are getting the best experience for their money without compromising on quality.
Operational efficiency – High overheads will kill any restaurant that doesn’t streamline its operations. Digital ordering, leaner staff models, and supply chain optimizations are no longer optional. Restaurants must embrace automation where possible, from self-service kiosks to AI-driven inventory management, reducing reliance on high labor costs while increasing accuracy and efficiency. Leaner staffing models do not mean sacrificing service quality but rather leveraging technology to allow staff to focus on enhancing the dining experience. Additionally, a well-optimized supply chain—one that takes advantage of bulk purchasing, local sourcing, and predictive analytics—can significantly cut costs and improve sustainability. Those who fail to embrace these efficiencies risk being left behind in an increasingly competitive industry.
The Road Ahead: Who Will Thrive?
The F&B industry in Singapore isn’t dying—but it’s changing in ways that demand a sharper, smarter approach.
Restaurateurs who succeed in this climate will be the ones who:
Know their audience intimately and tailor their offerings accordingly. This requires more than just demographic analysis; it demands an in-depth understanding of consumer behaviors, preferences, and evolving dining habits. Successful restaurateurs stay ahead by actively engaging with their customers, collecting feedback, and continuously refining their menus and service models. By leveraging data analytics, social media interactions, and real-time market trends, they can anticipate shifts in demand and proactively adapt their offerings to meet consumer expectations. Restaurants that truly connect with their audience build lasting loyalty and establish themselves as indispensable dining destinations.
Strike a balance between quality and affordability, rather than banking on prestige. In today’s market, consumers are more discerning than ever, expecting both excellence and value in their dining experiences. Restaurants must carefully position themselves to deliver high-quality ingredients and well-crafted dishes while ensuring their pricing remains accessible. A strategic approach to sourcing, portion sizing, and operational efficiency can allow establishments to maintain profitability without alienating cost-conscious diners. The key lies in creating a menu that feels indulgent yet justifiable, offering guests the satisfaction of a premium experience without the guilt of overspending.
Adapt to shifting consumption habits, whether through casual dining formats, takeaway-friendly concepts, or experiential dining. Consumers today seek flexibility, convenience, and a sense of connection with their dining choices. This shift has led to the rise of hybrid dining models where restaurants offer both in-house experiences and seamless takeout or delivery options. Additionally, experiential dining—where meals are intertwined with storytelling, cultural themes, or interactive elements—has gained traction, appealing to diners looking for more than just food. Restaurateurs who embrace these evolving preferences and innovate accordingly will be better positioned to capture and retain consumer interest.
This is no longer an era where “build it and they will come” applies. Today’s restaurant owners must fight for every dollar, every reservation, and every returning guest.
Singapore’s dining scene will always be dynamic, but those who don’t evolve will find themselves swept away by the tide. The industry doesn’t need more restaurants—it needs smarter, more resilient ones.
Final Thoughts
The F&B business has never been easy, but in 2024, it’s a battleground where only the sharpest will survive. While closures will continue, so will opportunities—for those who can read the consumer shift, tighten their operations, and truly define their value. This means going beyond just good food and ambiance; it requires a deep understanding of market trends, strategic financial management, and an ability to offer a compelling reason for diners to return. Restaurants that stay ahead will be those that evolve with consumer behavior, embrace innovation, and operate with precision in an increasingly challenging landscape.
The question isn’t whether the industry will recover—it’s who will still be standing when the dust settles.