Strong CNY dining demand at Singapore’s hotels, restaurants despite cost-of-living woes

RESTAURANTS and hotels in Singapore have registered stronger Chinese New Year (CNY) dining demand from both families and corporates this year, despite renewed outbound travel and cost-of-living worries.

Reunion dinner slots are filling up faster and corporates seem to be spending more, said restaurants, with this being the second CNY since Covid-19 group-size restrictions were lifted.

During last year’s travel resurgence, many restaurants reported muted demand as diners headed overseas.

For some, this trend has carried over into the 2024 festive period. Restaurant group Putien’s CNY dine-in and takeaway orders have fallen from 2023 levels, with Putien Singapore general manager Jayden Xiao putting it down to more people being out of the country.

But a majority of Chinese restaurants contacted by The Business Times still reported higher festive demand.

Fully booked

Overall, CNY dining demand at Peach Garden Group this year is 20 per cent higher than 2023, and 30 per cent up from pre-pandemic levels, said the group’s general manager Darren Yew.

For Wah Lok Cantonese Restaurant at Carlton Hotel Singapore, dining demand is on a par with 2023, said the hotel’s general manager Darren Ware. Its reunion dinner slots on Feb 9 – the eve of CNY – have been booked out since last November.

Ware added that based on conversations with regular guests, more families went overseas during the 2023 CNY period after travel restrictions were lifted – but this year, overseas family members are returning to Singapore for reunion dinners instead.

Orchard Hotel Singapore’s Hua Ting Restaurant’s reunion dinner slots were similarly booked out in November.

Due to the strong demand, Hua Ting has since added more tables and increased overall capacity by 20 per cent compared with 2023, said Jacqueline Ho, general manager of Orchard Hotel Singapore.

Estate Restaurant at Hilton Singapore Orchard started receiving reservations for its reunion dinner buffets as early as mid-December 2023, and is almost fully booked. “It could point to the fact that the dining scene has become more competitive than before, with diners wanting to ensure they secure their seats earlier,” said a Hilton Singapore Orchard spokesperson.

Restaurant chain White Restaurant’s reunion dinner slots are fully booked – though the early demand came as a surprise for chief operating officer Sam Lim. In the preceding months, dine-in sales were “a bit slower”, he said.

Last year, family restaurant chain Dian Xiao Er’s reunion dinner slots were fully booked a month after reservations opened; this year, they were booked out in two to three weeks.

When reunion dinner reservations opened on Jan 3, there were customers queueing at its physical outlets to make bookings, said Dian Xiao Er’s senior manager for marketing communications, Terence Wong.

One possible reason for the surge in demand, he said, is Dian Xiao Er’s relatively “pocket-friendly” set menus.

He said: “Customers are still grappling with the effects of inflationary pressures, leading to heightened caution in their choice of a reunion dinner location. Our inquiries from customers revealed that many expressed concerns about the high set-menu pricing (elsewhere) this year.” 

Takeaway fervour

Even as dine-in demand has risen, CNY reunion dinner takeaways still appear to be going strong.

Not only did Dian Xiao Er outlets near residential areas – such as in Nex and Waterway Point – become fully booked for reunion dinners early on, they have sold out their takeaway reunion dinners.

Takeaway orders for Peach Garden’s CNY menu have risen 20 per cent from last year’s levels, which Yew said might reflect a shift in CNY reunion practices, with more opting to celebrate at home.

While families may be more cautious in their spending, corporates are opting for higher-priced menus, said restaurants.

Peach Garden said there was stronger demand for CNY dining among corporates this year, with clients opting for premium menus or requesting customised menus at a higher price.

The group’s demand for corporate catering rose 20 per cent from 2023’s levels, and 30 per cent from pre-pandemic levels, in tandem with overall CNY demand.

Carlton Hotel’s Ware observed that corporates have cut back on alcohol spending by 10 to 15 per cent – but overall budgets have not fallen, and are being spent on pricier menus instead.

Additional reporting by Paige Lim