AS Singapore emerges from the pandemic, it is critical for the food services sector to reposition itself to seize new opportunities and adopt solutions to future-proof operations, said Minister for Trade and Industry Gan Kim Yong on May 19.

The Food Services Industry Transformation Map (ITM) 2025 will shift the focus towards catalysing innovation to create new revenue streams and encourage ready and able food companies to capture new growth opportunities.

Gan launched the refreshed ITM - the second of the 23 sectoral ITMs to be publicly launched - at the official opening of Restaurant Asia 2022 and the Restaurant Association of Singapore (RAS) Leadership Symposium. The event, which is held at Marina Bay Sands Convention Centre, is expected to welcome an estimated 8,000 visitors, with over 180 exhibitors from 15 countries.

There are four key thrusts to the ITM:

• Catalysing innovation to drive new revenue streams

• Growing home-grown regional brands and supporting internationalisation

• Grooming digital champions and strengthening competencies of businesses

• Stepping up job transformation and creating quality roles for locals

To help businesses catalyse innovation and drive new revenue streams, Enterprise SG said it will work with more FoodInnovate partners such as IPI Singapore, SATS and larger enterprise to provide knowledge sharing, food product R&D, and go-to-market networks.

The ITM will also guide food services companies to improve their green branding.

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Meanwhile, a specially-curated market accelerator programme will be rolled out for companies looking to make their first overseas foray in Q3. The programme will provide a structured curriculum of knowledge sharing and connect food services companies with potential partners.

Separately, the FEC Lifestyle Cluster Subcommittee will look to replicate the success of enclaves like Dempsey Hill to create new lifestyle nodes and develop “innovative and authentic experiences” at locations like Pulau Ubin and Gillman Barracks.

The subcommittee will also pilot precinct-level sustainability projects, such as aggregated use of reusable packaging for food deliveries within precincts.

Speaking on the sidelines of the event, RAS vice president Keith Chua said the official launch of the ITM is a “logical extension of what many of us are already doing”.

But the extent to which digitalisation and automation can benefit all members - especially smaller players or those serving niche markets - will vary.

“I’m sure all can benefit from some degree of automation but (based on the way we measure productivity), the results will vary. But this will improve the industry as a whole - businesses that are manpower intensive, if they can automate and release some of their manpower, this can be shared across the industry and that will certainly help remove some of the constraints on manpower.”

The ITM was first introduced by Enterprise SG in 2016, in partnership with the industry, unions, and other government agencies. The Food Services ITM then focused largely on digitalisation and adoption of manpower-lean formats and technology to improve productivity and reduce manpower reliance.

As of 2021, close to 90 per cent of food services SMEs have adopted at least 1 digital solution. In terms of back-of-house processes, enterprises with multiple outlets have established central kitchens to automate their operations and gain economies of scale. Other companies have also ventured into R&D and productive business formats such as ready-to-eat meals, said Enterprise SG.

F&B players such as Mr Bean and Select Group for instance, have developed ready-to-eat (RTE) options to expand on their offerings.

For Mr Bean, the company has evolved from selling basic and traditional soya milk and beancurd to developing soy-based FMCG products such as soybean pre-packed drinks, jellies and snacks.

Select Group meanwhile has, since completing the RTE project in 2019, seen their revenue for their Taste Asia line of RTE products grow 20 per cent year-on-year over the last 2 years. It plans to export its RTE meals to new overseas markets such as Australia the European Union, and the Middle East.

Online sales have also grown, with the pandemic accelerating the shift in consumer behaviour towards convenience and food delivery. Compared to pre-Covid-19, the proportion of online sales out of total sales for the food services industry grew by more than 3 times, from less than 10 per cent in 2019 to 30 per cent in 2021, said the agency.

On the jobs and skills front, more than 2,600 individuals have been upskilled and reskilled. The food services industry contributed S$4.0 billion to Singapore’s economy and employed about 220,300 workers in 2021.