Commentary: As more restaurants shut, is it time to rethink Singapore’s F&B rules?

SINGAPORE: We’ve all seen the headlines: Crystal Jade La Mian Xiao Long Bao closes after 20 years in Holland Village. Wala Wala Cafe Bar ends its 32-year run. Ang Yong Seh, the 65-year-old co-owner of Xin Ming Road Bak Kut Teh dies after working 18-hour days to pay off COVID-19 pandemic debts.

And in their shadow, a growing number of home-based food and beverage (F&B) businesses are flourishing.

As at June 2025, more than 150 F&B businesses in Singapore are operating out of residential properties, from Housing and Development Board flats to landed homes. From cafes like Knead Kopi in Bukit Timah to informal eateries like Little Social in Tanjong Pagar, these home-based players are popping up all over the island. Meanwhile, each week seems to bring news of yet another licensed F&B establishment closing.

Licensed F&B owners have voiced concerns of an uneven playing field, saying they shoulder high overheads, strict regulatory checks and multiple agency approvals, while many home-based operators face far fewer compliance obligations. They question whether current regulations are keeping up with the realities of Singapore’s F&B landscape.

THE WEIGHT OF COMPLIANCE

Before the pandemic, Ang Yong Seh’s stall was struggling to meet monthly costs including S$9,000 in rent and S$4,000 in employee salaries. During COVID-19, daily revenue sometimes dropped to just S$100 a day. Over three years, this accumulated into more than S$100,000 in debt, even though he worked seven days a week, taking only four days off during Chinese New Year.

Kanada-Ya’s parent company cited similar pressures when placing the ramen chain’s Singapore subsidiaries under creditors’ voluntary liquidation – “challenging conditions of Singapore’s F&B sector, including elevated operating costs and soft consumer spending patterns”. Despite signature menu items like black garlic ramen that initially drew crowds, the chain couldn’t survive.

As a former restaurant owner, I can tell you that licensed F&B outlets shoulder an enormous burden well before serving their first customer.

Rent in prime locations can exceed S$20,000 monthly. You don’t have to run a fancy fine-dining joint for fit-out costs to reach six figures. There are various regulatory requirements that businesses must meet, across agencies such as the Urban Redevelopment Authority (URA), Singapore Food Agency (SFA), National Environment Agency (NEA), Singapore Civil Defence Force (SCDF) and Building and Construction Authority (BCA).

On top of that, daily costs are compounded by things like utilities, safety inspections, staff training and wages, Central Provident Fund contributions, pest control, professional fees, regulatory delays, and so on.