Haidilao to close Clarke Quay outlet on Aug 31; exit follows three earlier outlet closures
The Clarke Quay outlet had marked the brand’s entry into Singapore
[SINGAPORE] Popular Chinese hotpot chain Haidilao is closing its flagship Singapore outlet in Clarke Quay on Aug 31 as its lease expires.
A text message was sent to Haidilao members on Wednesday (Aug 13) to inform them of the closure.
The Clarke Quay outlet, which operates in a space managed by CapitaLand, opened in 2012 and marked the brand’s entry into Singapore. Spanning more than 1,000 square metres, the outlet can seat about 350 guests.
In response to queries from The Business Times, a Haidilao spokesperson said the company regularly reviews its outlet network. “The conclusion of the Clarke Quay outlet’s lease is part of this ongoing process and is not indicative of a large-scale closure exercise.”
The spokesperson added: “Our focus remains on enhancing our offerings and introducing new dining concepts to meet evolving customer preferences in Singapore.”
When considering the opening and closures of stores, Haidilao examines various factors, including guest accessibility and operational efficiency, said the spokesperson.
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The company reviews leases on a case-by-case basis as they come up for renewal. “At this stage, we have no announcements regarding further closures,” it added.
A spokesperson for CQ @ Clarke Quay, where the outlet is, said: “Given (Haidilao’s) strong presence across the island, we have mutually agreed that it is time for (its) unit to be refreshed with a new tenant at the end of its lease.”
Ervin Yeo, CapitaLand’s commercial management chief executive and group chief strategy officer, noted in a LinkedIn post on Thursday that a location like Clarke Quay has to “constantly refresh itself and bring in interesting destinational concepts that will drive footfall”.
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“The dynamic is different from suburban or town malls, where there is more natural footfall,” he added. “Given that Haidilao was no longer a singular destination location, we had conversations since last year, and explored a brand refresh or a new dining concept.”
The replacement tenant, whose rent is lower than Haidilao, will take over the vacated space back-to-back, said Yeo. Meanwhile, Haidilao’s Clarke Quay team will be redeployed to nearby outlets at Plaza Singapura, 313 @ Somerset and Wisma Atria.
The closure of the Clarke Quay outlet follows Haidilao’s recent shuttering of three suburban restaurants – in Bedok, Pasir Ris and Punggol – after a period of rapid expansion.
A Haidilao spokesperson previously told BT that the brand’s key business considerations include labour costs, outlet locations and rental expenses.
In a report on Wednesday, Savills Singapore highlighted the softer demand for retail space in the central region. Weak market sentiment continues to weigh on leasing demand for retail space, with islandwide retail vacancy rising to 7.1 per cent on-quarter in Q2 2025.
Retail trade in the central region has been less resilient to rising rents and business operational costs, leading to a weakening demand for retail space, it noted. The vacancy rate in the region rose to 8.2 per cent in Q2 2025, compared to 7.6 per cent in the previous quarter.
Notably, the Downtown Core area – where Clarke Quay is located – saw slower take-up in the recorded quarter, with occupied space shrinking by 75,000 square feet.
Vacancy rates in the Orchard and fringe areas remained relatively flat due to limited supply, said the Savills report.
Central region rents rose by 0.9 per cent in Q2 2025, reversing from a 0.5 per cent decline in the previous quarter, data from the Urban Redevelopment Authority showed.
The rental index in the central area and fringe area also saw a rebound in the recorded quarter, rising by 0.7 per cent and 0.9 per cent on-quarter, respectively.
According to Savills’ basket of retail properties, the average monthly rent in the Orchard area inched up 0.5 per cent on-quarter to S$23.30 per square foot (psf), while that of the suburban area rose 0.4 per cent to S$14.80 psf.
Savills expects the Singapore economy to see subdued growth in the second half of the year, amid uncertainties caused by tariffs and a tapering of non-oil domestic exports, after businesses front-loaded their exports to beat potentially higher tariffs.
“This could spill over into domestic-oriented sectors such as retail and food and beverage, which have reported muted performance in the first half of the year,” it added.
“Although the distribution of government consumption vouchers could help to lift the retail sales activity, overall retail sales in the next few months are forecast to head sideways due to similar performances in economic numbers and cautious hiring sentiments,” said Savills.
It also noted that the recent signs of softening in resident employment could dampen spending power in the Republic, while the strong Singapore dollar continues to divert spending abroad for value products.
The consultancy expects a higher tenant turnover rate as underperforming stores vacate.
“While prime units will usually soon get filled up by new tenants, landlords may have to offer shorter leases or more attractive rental incentives to keep the less prime units occupied.”
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