Why are more restaurants closing now in Singapore?

Rents have reset higher, staffing is tight, and food and utility costs are up. Many outlets cannot lift prices enough without losing traffic. Delivery adds reach but often hurts margins. These pressures combine to push weak units below breakeven, leading to more restaurant closures, especially among single-store operators.

What support is available for F&B operators in 2025?

Authorities have outlined new programmes with grants, advice, and pilots to boost productivity and lower costs. Enterprise Singapore support includes capability building and digital adoption help. Operators can also explore outsourcing or shared services. The goal is to stabilise cash flow while improving efficiency and service quality.

How should landlords respond to rising closures?

Consider turnover-based rent, shorter review cycles, and targeted fit-out support. Use data-sharing clauses to track sales mix and delivery share, then adjust promotions and tenant mix. This approach can keep viable tenants trading, reduce vacancy risk, and protect long-term footfall and asset values.

What signals a resilient F&B concept for investors?

Look for strong unit economics, simple menus, and high table turns. Evidence of positive four-wall EBITDA, repeat customer cohorts, and controlled delivery reliance helps. Brands using automation, shared prep, and smart leases tend to withstand cost pressure better and are positioned for scalable growth.

Global Market Insights

January 12: Singapore F&B Shake-Out Meets New Govt Support Programs

ByHuzaifa Zahoor January 12, 2026January 12, 2026

The Singapore F&B sector is facing a shake-out as rising rents and labour costs pressure margins. On January 12, policymakers outlined new productivity, outsourcing, and grant support to help operators adapt. While restaurant closures Singapore are in focus, a longer-term foodservice market forecast still signals growth. We explain the drivers, how Enterprise Singapore support may cushion risk, and what landlords, lenders, and operators should track to protect cash flow and capture recovery.