F&B firms relieved over decision to allow dine in for two persons

Singapore

FOOD and beverage (F&B) operators are relieved to finally reopen to diners from June 21 after more than a month of closure, even if they can only host two people per table.

They also welcomed the extension of support under the Jobs Support Scheme (JSS), although some called for more immediate help as many firms may not be able to survive until September when the payouts are due. Most of the firms The Business Times spoke to had braced themselves for a further extension of the ban on dining in, based on the rising number of cases over the past week.

"Although we are slightly disappointed that we cannot resume dine in for five, we believe this decision to allow dine in for two is a good move," said Woon Tien Yuan, director of Killiney Kopitiam.

While the two-person rule will likely have little impact for establishments like pizzerias where food is usually shared, Pizza Express director of operations Sam Lim is hopeful that there will be a slight increase in sales regardless.

The increase to groups of up to five persons, which was expected to kick in on June 21 previously, will be delayed to mid-July.

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The JSS will be extended by three weeks starting June 21 at the current enhanced rate of 50 per cent for the F&B sector. This will be tapered to 10 per cent for another two weeks starting July 12.

In addition, the government will facilitate earlier vaccinations for staff in higher-risk settings including F&B establishments. A 14-day fast and easy testing (FET) regime using rapid tests will also be implemented by mid-July for such workers.

The gradual return of dining in and extension of JSS support will "hopefully provide some much-needed business relief for many of our F&B operators", said a spokesperson for the Restaurant Association of Singapore (RAS).

RAS also expressed appreciation for the priority that will be given to F&B staff for vaccinations. It will work closely with the authorities, RAS members and other F&B operators to put in place the necessary safe management measures (SMM) including the FET.

"We hope that with these additional SMM the number of new cases can be reduced, and the spread curve flattened, to allow us to welcome a larger group of dine-in customers, hopefully in a month's time," the spokesperson said.

Mr Woon of Killiney Kopitiam hopes the FET will have "good measures in place" to ensure it is rolled out effectively.

"The measures should also not make it cumbersome to the extent where it affects the daily operations and creates added workload for both employers and employees," he added. "Ultimately the goal is to make it fuss-free so that everyone can do it diligently yet effectively."

The additional cost on top of "an already long list of costs of business" is also worrying to Huggs Coffee managing director Lee Haoming, who hopes that the government will step in to help with this challenge.

Rohit Roopchand, chief executive of The Dandy Collection, expressed concern that the ban on playing recorded music in F&B establishments, also announced on Friday, will negatively affect the dining experience. He suggested that a maximum decibel level could have been mandated instead. "We are hoping that guests will be forgiving about that, because at our venues, music plays a big part in the experience," he said. The Dandy Collection houses brands including Neon Pigeon and Firangi Superstar.

Boon Tong Kee business development manager Jason Thian requested clarity on how many employees will be allowed to return to the workplace ahead of the reopening. The chicken rice chain will need to recall staff to wash the chinaware before Monday, as the dishes have not been used for some time.

Several firms also mentioned the need for more immediate help to mitigate the impact of the plunge in revenues since May.

"All the landlords are asking for rental. They say pay us first, then rebates will come later. Have they thought about the drop in revenue at our restaurants?" said Thomas Hong, chief executive of the Lao Huo Tang Group.

He added that while the government has provided half a month of rebates and urged landlords to follow suit, his outlets have not received any such help from landlords.

The situation will remain difficult for F&B establishments even after they are allowed to reopen because the two-person rule will further reduce dine-in capacity, said Collin Ho, CEO of the SF Group and founder of Collin's.

From a 25 to 30 per cent decrease in dine-in capacity prior to Phase 2 (Heightened Alert), eateries now face a 60 to 70 per cent capacity decrease.

"The impact on the dine-in business is considerable. However, landlords have not made any adjustment to base rent to reflect the reduced capacity," said Mr Ho, noting that CapitaLand and Fraser are among the "more responsible  landlords" that have offered some rent rebates for the Heightened Alert period.

"We urge landlords to extend deeper support and assistance to help tenants weather the challenging times," Mr Ho said.

READ MORE:

• Long and rocky road to year-end recovery

• Pro-business cautious reopening shows Singapore has come a long way from circuit breaker

• Fast and easy testing can help assure customers, but firms worry about mounting costs