More restaurants in Singapore will risk closing down if revenue and costs continue at circuit breaker levels and dine-ins are not allowed.

62 per cent of restaurants saw revenues drop by half or more in April 2020

According to a survey by Chope, 62 per cent of restaurants had seen their revenues drop by 50 per cent or greater in April 2020, compared to the same month in 2019.

This is based on the responses of 150 establishments who are not allowed to offer dine-in services after circuit breaker measures were implemented on April 7.

"The shortfall in revenue is likely due to diners not ordering in at the same rates as they would when they used to dine out," Chope claims.

Additionally, restaurants that decided not to operate during the circuit breaker period would have experienced zero revenue.

More than 2/5 restaurants will not be able to operate beyond two months

Before the circuit breaker period, delivery and takeaway only contributed less than 10 per cent of revenue for 88 per cent of the restaurants surveyed.

It was also the first time 42 per cent of the restaurants had offered delivery services during the circuit breaker.

While restaurants may have upped their takeaway and delivery offerings during the circuit breaker period, they have not been able to generate enough revenue to offset the losses.

42 per cent of restaurants have also reported that they will not be able to operate beyond two months if revenue and costs continue at circuit breaker levels.

Another 39 per cent have said that they would not be able to last beyond six months.

"The high cost of working with logistics or third party delivery providers is the biggest challenge faced by restaurants," Chope reports.

Some restaurants still have not received rental waivers

Only 57 per cent of the restaurants surveyed have received rental rebates, or have heard from their landlords that they would be receiving them, according to the survey.

Meanwhile, 12.7 per cent of restaurants have not heard from landlords on rental waivers, nor have been told that they would not receive rental rebates as of May.

In light of all these circumstances, many restaurants have had no choice but to reduce their operating costs.

11.4 per cent of the restaurants surveyed had already retrenched full-time staff as of May, while 41.8 per cent have implemented pay cuts.

More than 25 per cent of the restaurants have also said that they would consider further retrenchments if dine-in suspensions continue.

Dine-ins not allowed even after circuit breaker ends on June 1

On May 19, the Covid-19 Multi-Ministry Taskforce announced that dining in at F&B outlets will continue to be disallowed even after the circuit breaker ends on June 1.

This prohibition is expected to last minimally four weeks, and possibly longer.

After this, restaurants and eateries will gradually be allowed to offer dine-in services if they can provide a safe environment for patrons.

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