Singapore F&B scene remains festive despite surge in outbound travel

A YEAR-END rise in outbound travel has not weakened demand for festive dining and takeaways, with hotels and food and beverage (F&B) operators anticipating a further pick-up near Christmas.

As of mid-December, several hospitality and F&B players are nearly or already at full capacity for Christmas and New Year dining.

Demand has been mostly driven by locals, as tourist numbers are not yet back to pre-Covid levels, they added.

By end-November, fine dining French restaurant Saint Pierre was fully booked for its Christmas Eve and New Year’s Eve dinners. Locals make up 50 to 75 per cent of reservations for both occasions, said chef-owner Emmanuel Stroobant.

Hilton Singapore Orchard’s three dining outlets – Estate, Ginger Lily and Osteria Mozza – are almost fully booked on Christmas Eve and Christmas Day. “While the number of tourist visits has had a positive impact, most of the festive diners are still Singapore-based residents,” said a spokesperson.

Meanwhile, cocktail bar Atlas’s evening dining reservations and festive afternoon tea slots are nearly full for December, with a mix of locals and tourists. The bar has also seen a “notable increase” in demand for year-end company dinners and private events compared to 2022, said general manager Hayden Winch.

Hotels also reported an uptick in festive takeaways, as individuals return to hosting big gatherings at home.

The Orchard Hotel Singapore received 25 per cent more orders for its festive takeaways this year, compared to 2022, said general manager Jacqueline Ho.

Cutting back on spending

Even as the crowds keep coming, however, overall spending has not matched up to last year’s levels for some F&B players.

This November and December, the number of covers – that is, diners – has been comparable with 2022, yet spending is down 10 to 15 per cent across Unlisted Collection’s restaurants, pointed out chief executive Loh Lik Peng.

The group’s F&B concepts include modern barbecue joint Burnt Ends and fine-dining restaurant Cloudstreet.

Inflationary pressures have likely made consumers more “cautious” about spending, noted Loh. The group has observed similar expenditure patterns in overseas markets where it operates.

Amanda Phan, co-owner of casual bistro chain Grub, has noticed smaller groups of patrons cutting back on items such as drinks, alcohol and sides. “Diners seem to be a little bit more prudent,” she said. “But for bigger groups and families, they still do spend quite consistently at our branches.”

In contrast, Saint Pierre’s Stroobant said that spending power “remains high” among the restaurant’s upper-middle- to high-income customers “who do not tend to cut back when it comes to celebrating festive occasions such as Christmas and New Year”.

He added: “With signs of a slowing economy next year, however, we do notice that companies have started to be more careful with their corporate entertainment expenses.”

Saint Pierre has seen a 20 per cent drop in lunch bookings this December – a period “when companies organise staff gatherings and appreciation lunches” – compared with 2022.

“Then again, 2022 was the year of the restaurant rebound and recovery, so spending was at record levels. We had already anticipated a reduction in discretionary spending a few months ago,” Stroobant eadded.

Other operators agreed that pent-up demand likely contributed to 2022’s strong showing, as it was the first year since 2020 that festive events could take place without Covid-19 capacity limits.

Orchard Hotel Singapore saw year-end bookings nearly double in 2022 from 2019, possibly due to the post-Covid resumption of festivities, said general manager Jacqueline Ho.

“While fluctuations may occur (in 2023) due to increased travel, we are confident that our diverse offerings and promotional activities will maintain a steady flow of interest,” she added. “We anticipate this year to be equally strong, if not better.”

Expectations for year-end

Though more Singapore residents have been heading abroad, restaurants and hotels foresee demand ramping up towards year-end.

Saint Pierre tends to receive more bookings and orders from the second half of December, said Stroobant. “Our festive dining and takeaways remain stable, as compared with 2022 and 2019.”

Greater outbound travel has meant a “slightly slower” pace of festive season bookings for Sofitel Singapore City Centre this year, said general manager Jacqueline Poey. “(But) we are expecting the numbers to pick up closer to the date and reach similar levels of bookings as last year, as guests return from their travels,” she noted.

With more locals out of town this festive period, Grub’s Junction 8 branch has seen a 10 per cent drop in diners, while its other branch – located within hotel Novotel Singapore at Stevens – has seen a bigger 20 per cent drop, compared to 2022.

Tourist crowds have not made up for this. “We saw a lot of people holidaying in Singapore in 2022; the (spike) from Formula 1 lasted for the whole year. But it’s been quieter this December,” Grub’s Phan added.