Dining Reservations

With this year's weakened economy outlook, chefs and restaurateurs share their plans to ride out headwinds, such as mounting operational costs and a re-calibrated demand in a saturated market.

- GRACE MA

While last year was abuzz with high-profile restaurant openings and chef collaborations, some restaurants are bracing themselves for a challenging year ahead with rumbles of a turbulent economy.

According to the Accounting and Corporate Regulatory Authority, 3,405 new food and beverage businesses were opened from January to November 2023. In the same period, 2,544 companies also ceased operations, pointing to a high turnover rate of eateries in a competitive landscape.

On the fine-dining front, chefs and restaurateurs have noted a drop in reservations since mid-2023 as diners have been going on revenge travel sprees and are tightening their dining belts locally. Adding to the blues is the increase in Goods and Services Tax to nine per cent that was implemented this month and Singapore's standing as the most expensive city in the world in 2023, according to the Economist Intelligence Unit.

Loh Lik Peng, chief executive officer of the Unlisted Collection group of restaurants, remarks: "There is little doubt that the majority of the public will face more financial constraints this year. Inflation and the cost of living remain a concern, as well as higher interest rates for loans and mortgages."

Loh, who also has restaurants in Sydney, London, Shanghai, and Dublin, says that fine-dining in these cities weathers the same conditions. He says: "It all points to a similar direction. Consumers are more careful with their spending, so businesses need to be aware of that. Cost of living pressures is now a global issue because of inflation and high interest rates."

His hospitality group runs 17 restaurants in Singapore, including Zén, Cloudstreet, Nouri, and Burnt Ends, and over 20 restaurants and hotels overseas.