Over 3,000 F&B outlets in Singapore closed in 2024, highest since 2005

Over 3,000 food and beverage (F&B) outlets have closed in Singapore in 2024 alone.

According to a CNA report, the increase in closures marks the highest number of closures since 2005.

The closures are mainly due to higher operating costs that led to dwindling business.

Higher operating costs

Different types of food businesses had been affected, including bars and fine dining.

F&B businesses have also reported higher operating costs, resulting in lower business.

In an Instagram post on Dec. 6, 2024, wine establishment Wine RVLT said that it will not be renewing its lease and will cease operations in 2025.

The bar, located at 38 Carpenter Street, said that the business was "no longer sustainable" and that they have "decided to call it quits".

In the post, the bar highlighted that costs such as food, electricity and rent had increased during the Covid-19 pandemic but also noted that landlords "still pushed" for a 30 to 35 per cent increase in rent.

"BUT people stopped coming back and business didn't increase 30 to 35 per cent," Wine RVLT wrote.

New restaurant openings "outpace" closures

According to CNA, dining experts said that the "strong Singapore dollar" had been a contributing factor to the pattern of restaurants closing down.

As the strong currency had made the country "expensive", those living in Singapore tend to spend more abroad while the demand for tourism from China has also grown weaker.

However, around 3,793 new food establishments have also opened, outperforming the restaurant closures in Singapore.

Top photo via Unsplash