Singapore F&B players see stronger festive demand, but retailers report uneven spending

[SINGAPORE] Hotels and restaurants are experiencing stronger year-end festive dining demand, with bookings coming in earlier – but the picture is more mixed for retailers.

Demand for French restaurant Brasserie Gavroche’s festive menus is 15 per cent higher this year, with reservations “coming in earlier and more consistently” than 2024, said manager Jean Colin.

This is especially for corporate set lunches and dinners. Its Christmas Eve dinner is fully booked, while its New Year’s Eve dinner is at 60 per cent capacity as at Tuesday (Dec 23) and is expected to reach 80 per cent.

“Overall, the festive period is shaping up to be more robust than last year, reflecting renewed confidence in year-end dining and business entertaining,” said Colin.

Reservations for W Singapore-Sentosa Cove’s two restaurants – the kitchen table and Skirt – began firming up from early November, “around one to two weeks earlier” than in 2024, said food and beverage (F&B) manager Bastiaan van Opstal.

By early December, both were 60 to 70 per cent booked for Christmas Eve, Christmas Day and New Year’s Eve, up from 50 per cent the same time last year.

Bar-restaurant-club Ce La Vi Singapore is fully booked for New Year’s Eve, while reservations for Christmas Eve and Christmas Day are “tracking ahead” of 2024, said co-founder and group CEO Harry Apostolides.

“This performance is occurring despite a challenging macro environment, with the strong Singapore dollar making the destination more expensive and visitors increasingly value-conscious.”

Ce La Vi’s S$11 million renovation of its restaurant bar, completed in June, is another contributing factor, he said.

While Christmas reservations for upscale microbrewery LeVeL33 are “developing at a steady pace”, demand for New Year’s Eve has been “exceptional”, said founder and managing director Martin Bem.

The wait-list exceeds 300 guests, making this year “one of the strongest on record”, with bookings made as early as January.

Hilton Singapore Orchard’s buffet restaurant Estate is fully booked on Christmas Eve and Christmas Day, with reservations coming in from late October.

New Year’s Eve dinner and New Year’s Day brunch are 80 per cent booked and “trending towards a near sell-out”, said general manager Michael Janssen.

“The early booking momentum shows continued demand for year-end celebrations, as well as sustained interest in festive buffet experiences during the peak holiday period,” he said.

In contrast, Pan Pacific Hotels Group (PPHG) has received more last-minute bookings, especially for Christmas and the New Year. It opened F&B bookings in mid-November.

Chief commercial and marketing officer Celine Du attributed this to “greater competition for discretionary spending in December with travel, social gatherings and corporate events overlapping”.

Still, as at mid-December, F&B bookings for PPHG were above 85 per cent capacity on average.

Both locals and tourists

Brasserie Gavroche’s Colin attributed stronger demand to reduced travel by locals – including residents and expatriates – who form at least 90 per cent of festive bookings.

“This does not indicate reduced spending power but rather a shift in festive habits, with more diners choosing to celebrate locally,” he said.

LeVeL33’s Bem, however, feels there has been a “stronger and earlier wave of outbound travel” this year.

At both LeVeL33 and Ce La Vi, two-thirds of bookings for New Year’s Eve are from overseas guests.

Said Bem: “Local residents tend to inquire and book later, which is why they now constitute the largest segment of our wait-list after we reached full capacity.”

Ce La Vi’s Apostolides said this year’s festive bookings are consistent with “broader improvements” in travel; year-end travel was still recovering in 2024.

Tourists make up 35 per cent of dining covers at W Singapore-Sentosa Cove’s restaurants this festive season. Said van Opstal: “Healthy inbound travel during the year-end period continues to support overall festive demand.”

Going for quality

Despite economic headwinds, F&B players have not seen cutbacks in festive spending.

“For individual diners, spending has remained stable and consistent with our observations from previous years, showing resilience in personal leisure and celebration budgets,” said Bem.

Instead, diners have become more selective, prioritising premium experiences and quality over quantity.

There is still an “evident willingness” to spend for special occasions, said van Opstal. For instance, guests are more willing to splurge on premium ingredients – such as caviar, truffles and high-quality seafood – during the festive season.

Similarly, Du has observed more “mindful consumption”, with diners spending “more deliberately” and “seeking good value and meaningful experiences over excessive indulgences”.

In response, PPHG’s restaurants have developed festive menus and buffets with “high-quality items, rather than copious selection at the buffet table”, she said.

Smaller, curated events

Apostolides said guests are “prioritising (dining) experiences with a clear value proposition”, citing Ce La Vi’s New Year’s Eve pre-ticketed and minimum-spend formats, and its festive set menus.

“Corporate entertainment has been more selective, with fewer but more premium gatherings,” he added.

PPHG’s restaurants have also seen a “slight dip” in large-scale, entertainment-driven events, with corporates opting for smaller gatherings “with greater emphasis on food quality and service”, said Du.

Similarly, W Singapore-Sentosa Cove’s events are “more curated and experience-led” as opposed to “high-volume banquets”.

There are also more non- or low-alcohol gatherings, with lower alcohol consumption “offset by a higher willingness to spend on food quality and overall experience”, said van Opstal.

At Brasserie Gavroche, corporate clients continue to want “premium festive experiences”, said Colin. This December, the restaurant hosted its highest-spending corporate event in its 14 years of operation.

Mixed retail spending

But a mixed picture emerged from retailers interviewed by The Business Times.

Some have seen muted sales. Footwear brand Pazzion has had a “more measured” festive season than 2024, with sales and footfall “slightly softer”, said founder and director Tom Ng.

He thinks consumers are staying cautious amid economic uncertainty, noting that they are spending more time in-store and being more deliberate. “Rather than impulse buying, they are gravitating towards pieces that feel versatile, comfortable and relevant for multiple occasions.”

Jewellery retailer By Invite Only’s footfall declined 30 per cent this festive period. Founder and CEO Trixie Khong attributed this to fewer tourists – possibly due to the strong Singapore dollar or impression that “Singapore is expensive or boring” – and more Singaporeans going overseas.

Consumers have also become “numb” to sales promotions, with monthly sales on e-commerce platforms reducing any urgency to make purchases, she added.

But others have seen better sales, partly boosted by tourists.

Fashion label Charles & Keith has had “low double digit growth” in year-end sales, said a spokesperson. In particular, sales and foot traffic spiked thanks to tourists attending Blackpink’s concert tour in late November.

Footwear brand Anothersole’s sales at its Orchard-based stores are up nearly 40 per cent in the fourth quarter, said co-founder and managing director Benny Chee. Tourist sales at its Takashimaya store rose three percentage points this November and December, though tourist sales at its Wisma Atria outlet fell two percentage points.

The brand achieved “exceptionally strong” sales in November, with footfall up 17 per cent year on year. But December’s footfall fell 15 per cent. “This dip suggests that consumers front-loaded their holiday shopping in November to take advantage of major sales or have left for their family vacations,” said Chee.

Even for retailers with slower sales, tourists have helped. For Pazzion, the gradual return of regional tourists has supported footfall, said Ng.

Tourist spending at By Invite Only rose 20 per cent after it launched its Miffy jewellery collection, with many even enlisting the help of local friends to make purchases, said Khong.

“Shoppers are still spending but the brand has to give them a good reason to do so,” she said. “People are also spending on things that make them feel good or special, rather than just practical considerations.”