F&B business openings slow so far in 2024, but observers say industry remains attractive

FOOD and beverage (F&B) businesses have been opening at a slower rate in Singapore this year, but observers believe the industry remains attractive despite rising costs.

For the first nine months of 2024, the formation rate of F&B entities – that is, the rate at which these businesses are being set up – was the lowest in eight years. The number of formations divided by the total number of live businesses was 11 per cent, down from 14 per cent in the year-ago period.

This was even though the absolute number of formations, at 2,937, was the second-highest in the last eight years, according to data from the Accounting and Corporate Regulatory Authority (Acra).