Singapore F&B industry needs to diversify to feed itself

THE food and beverage (F&B) industry is at the threshold of a major change in how it operates and survives. With the pandemic accelerating changes, and new safety measures being imposed, companies have to rapidly transition to the new restaurant reality and "feed" themselves in new ways.

FEED OFF-PREMISE

The first change they can look at is increased investment in off-premise dining. Over the past few years, customers worldwide have shown a growing preference for off-premise dining. Here in Singapore, over half of the people I surveyed back in February ordered food for delivery at least once a week. Delivery has been concentrated primarily among fast food and casual restaurants, but not particularly prevalent among full-service restaurants. This is because some full-service restaurants still count on their higher-margin dine-in business, and eschew delivery service providers (DSPs) such as GrabFood, Deliveroo and Foodpanda for their substantial commission (usually about 20-30 per cent).