F&B industry fears looming 'correction'

Singapore

CUTS to the services sector's foreign worker quotas may be the latest blow to the food and beverage (F&B) services industry, which has come under pressure on various fronts.

While labour costs are a traditional bugbear, price competition is also a concern in Singapore's crowded market. And a possible pullback in consumer spending has emerged as a new fear, amid growing guidances for a worldwide economic slowdown.

"Diners are becoming more discerning and possibly price sensitive with regards to food purchased outside, possibly because of higher global uncertainty and its impact locally," said Singapore Management University finance prof…