Bars get innovative to mitigate sales loss from earlier closing times, capacity cuts

Singapore

IT has been over three months since people were allowed back into watering holes. Still, it is far from business as usual for bar owners as they remain challenged by restrictions on group sizes and a 10.30pm curb on alcohol sale.

Bars The Business Times spoke to said that overall seating capacity has shrank by up to 50 per cent.

Haji Lane craft beer bar Good Luck Beerhouse, for instance, saw its seating capacity halved when Outdoor Refreshment Area (ORA) permits - which allow tables to spill out of premises - of food establishments at Haji Lane were revoked by authorities in a move to discourage congregation.

Having to shut their doors by 10.30pm, on the other hand, meant sacrificing hours worth of revenue.

Good Luck Beerhouse's owner Kevin Ngan said that the bar could be looking at a 30 to 50 per cent jump in revenue should restrictions be lifted.

Over at restaurant and cocktail bar Jekyll & Hyde, owner Chua Ee Chien said that the outlet would be generating an additional 15 to 20 per cent in revenue if they could stay open till 12am.

And as safe-distancing measures put a stop to large-scale gatherings, boutique bottle shop Temple Cellars could no longer hold events, which contributed to their revenue. Its annual sake festivals over the past two years drew some 1,500 attendees each time.

Against this backdrop, Jekyll & Hyde's Mr Chua pointed out that allowing people to meet in bigger groups at places of worship or at weddings contradicts the restrictions imposed on the food and beverage (F&B) industry. "The restrictions have been preventing us from generating incremental revenue to maintain the business and keep it more sustainable," he said.

P.O.D Bistro's owner Mary Woon said that while she is glad business has resumed under Phase 2, she is looking forward to further easing of restrictions. "We are hoping maybe under Phase 3, the government will ease the timing so people can at least not be rushed to go home," she added.

To be sure, the stream of customers returning to bars had been encouraging for some industry players after the prolonged "circuit breaker" period.

Said Jeremy Reynolds, founder and managing director at Eastern Craft Holdings: "Since we went into Phase 2, business has been better than I expected, but that's obviously relative to during the circuit breaker and everybody was worried about what it would be like."

This was in part due to "pent-up demand and a level of boredom", noted Mr Reynolds, adding: "There is money to be spent so people are just going out and spending when they can."

Against this backdrop, some bars are fully-booked on weekends. P.O.D Bistro's Ms Woon said that they often have to turn away customers who did not make a reservation during peak hours.

On weekdays, however, crowds remain thin for bars located in town or near the central business district (CBD), according to industry players.

With the vanishing nightlife, there's not much point heading down to town or the CBD area if you're not going to stay out late, said Eastern Craft's Mr Reynolds.

Likewise, at Temple Cellars, the crowds are thinner on weekdays, particularly during the later part of the night, said co-founder Jasmin Wong.

But these bars are also gaining traction from residents living in the vicinity amid stay home measures.

"We have seen an uptick in the day drinking crowd, comprising mainly residents in the Robertson Quay area as well as other work-from-home folks," said Ms Wong.

Mr Reynolds noted that bars under Eastern Craft's portfolio that are located in the suburbs are doing better than those in town.

JiBiru Craft Beer Bar in Orchard Road, for instance, has seen about a 10 per cent drop in business. Meanwhile, for outlets located closer to residential areas such as restaurant and craft beer bar Malthouse along East Coast Road, business has rebounded closer to normal levels.

Money problems aside, getting customers to adhere to virus safety measures has proven to be a challenge as well.

On Tuesday, two F&B outlets were ordered to close for 10 days, while 13 outlets were fined for breaching Covid-19 measures. Some 21 diners were also fined for flouting rules such as intermingling between tables.

Mr Reynolds said that some of Eastern Craft's bars had received bad reviews for getting customers to adhere to basic rules such as putting on their masks promptly after eating or drinking.

Said a bar and restaurant operator who declined to be named: "One struggle we have as an F&B operator is managing customers who disregard the five-to-a-table rule or attempt to mingle around even when advised repeatedly not to. It is disheartening when an inconsiderate act by a few customers can have a harsh impact on restaurant operators everywhere."

With prolonged virus safety measures in place, industry players have been pushed to find new ways to make up for the loss in revenue amid Covid-19 measures in place. Food for one has been a key area of focus for many.

"We have expanded to provide food offerings across brunch, lunch and dinner, which we never had before," said Jekyll and Hyde's Mr Chua.

"Instead of just being an evening destination, we are moving towards being an all-day dining destination serving Mod-Sin (modern Singapore) cuisine to maximise the usage of the space," he explained.

Good Luck Beerhouse, on the other hand, had added burgers to their menu to keep things "fresh and dynamic for returning patrons" while P.O.D Bistro overhauled their old menu in August and is now serving up Thai food.

To manage the reduced seating capacity, Good Luck Beerhouse adopted a reservation system to manage the crowds and each table is given two hours to dine so that the bar can take in more customers.

"After a month, strong reservation numbers gave us the courage to take on another unit on the lane to resolve our capacity issues," said Mr Ngan.

Bar owners are also looking to cater to the needs of customers in the new normal.

Jekyll and Hyde has been offering online cocktail-making masterclasses as well as customisable bottled cocktails that can be used as gifts for guests at wedding receptions or as corporate gifts.

To appeal to those looking to crack open a cold one during work hours, Temple Cellars introduced free Wi-Fi, earlier opening hours and swapped out their high bar tables for low ones, which are more suitable for those who plan to work there.

There was also a silver lining amid the pandemic that supported Temple Cellars' plans to scale up.

"The commercial rental sector has softened due to the pandemic, and this presents opportunities for those looking to expand," said Ms Wong.

Temple Cellars had since secured a spot for a new outlet in Binjai Park that will launch this month.