As a multicultural country, Singapore is home to diverse cuisines and delicacies. Throughout the years, it has been considered an influential food destination on a global scale.
However, with the emergence of the pandemic back in 2020, the F&B industry experienced a pivotal shift in doing business. Many have witnessed significant revenue loss due to mandatory lockdowns and restrictive safety guidelines. Others were forced to close down and lay off workers due to their inability to gain profit. Apart from these, F&B businesses also had to grapple with the changes in food consumption behaviour amongst their consumers.
Because of these challenges, businesses have recognised the need to evolve in order to survive these uncertain circumstances and remain relevant in the future. Across the industry, companies have had to modify their structures, offer new services, or seize new opportunities to adapt to the changing times.
What’s more, the government has offered S$1.1 billion worth of relief packages for affected industries, including F&B. This should aid business owners in restarting or modifying their operations to thrive in the new normal. With these implementations in place, the economic forecast shows promising potential for the F&B sector in 2022 and beyond.
In this day and age, every business is shifting online to connect and cater to their consumers. That’s why leveraging innovation and digitalisation is crucial to emerging strongly in this industry. One way to do so is to develop online-to-offline strategies to engage with consumers more holistically.
To assist you in succeeding with this endeavour, the government has even expanded the Productivity Solutions Grant to support digital marketing efforts. Additionally, it has launched The Innovation Advisors Programme and FoodInnovative to assist F&B businesses in designing and innovating their products.
The Innovation Advisors Programme allows new business owners to connect with industry veterans and, together, find innovative solutions to help their start-ups thrive. Through the guidance of these experts, emerging entrepreneurs can also get valuable information on effective ways to develop strategies and create new products. Furthermore, industry veterans can connect new businesses to the right partners so they can be further led in the right direction.
Meanwhile, FoodInnovative is a platform that supports F&B companies in producing and commercialising their products. With multiple agencies involved, the platform gives access to several networks and production facilities to assist businesses in finding partners, suppliers, and accelerators.
Besides digital transformation, another way to prepare for company incorporation is to invest in human resources and redesign jobs.
Through innovation and industry developments, job requirements have evolved. Now, the workforce in the food and beverage industry needs to be multi-faceted and flexible. For instance, a restaurant manager may double as a social media manager that oversees company ad campaigns and regular postings. Alternatively, cooks can also take the role of content creators who can help establish the tone and brand voice of the company’s online presence.
Therefore, modifying roles and finding individuals with a versatile skill set has become a necessity in the F&B industry. Not only does this help save costs on hiring multiple manpower but, more importantly, it ensures operational efficiency.
While it’s important to establish your unique brand first, you might want to consider possible collaboration opportunities with government agencies, top industry players, or other organisations to strengthen your competitiveness.
Collaborating with other brands can give you a significant advantage in the industry moving forward. Some of the benefits include:
- Gaining access to a broader consumer base
- Offering exclusive products and promos
- Expanding knowledge and skills
- Speeding up production
- Doubling profits while reducing overall expenses
But before you can reap the benefits of this strategy, be sure to do prior market research to find the perfect organisations to collaborate with while understanding shifting trends.
F&B Industry Trends You Need to Know
In 2022, experts believe that the industry trends revolve around flexibility, convenience, and sustainability. Leveraging these trends can give you the upper hand in knowing what type of F&B business to set up this year.
- Pop-up restaurants
A pop-up restaurant offers a fun, and engaging experience consumers can’t get elsewhere because it generally entails a sense of exclusivity and prestige. For example, a pop-up restaurant can latch on themes based on popular culture to drive buzz and attention. Other times, it can highlight limited offerings to entice consumers. Offering dining experiences that are unique and share-worthy are usually what sets this trend apart.
Especially now that consumers are yearning to get out of the house and experience something new, putting up a pop-up restaurant can be a brilliant way to gain traction with your business.
Although conceptualising a pop-up restaurant can be demanding and time-consuming, the payoff is always worth it.
Another trend that’s shaping the industry is delivery. When the pandemic emerged in 2020, and the government announced mandatory lockdown, delivery services became a saving grace for consumers nationwide. With this service available, Singaporeans can benefit from wide accessibility and convenience. Major companies like GrabFood, Deliveroo, Foodpanda, and Pickup have experienced increasing demands in the past two years. Moving forward, experts believe that the demand for these services will only continue to grow in 2022 and beyond. In fact, by 2025, food delivery services are expected to contribute to around 40% of total restaurant sales.As such, you can incorporate delivery in your business plan, whether that be an in-house service or in partnership with third-party providers.
- Green kitchen
With the growing awareness of social and environmental issues, consumers have become more conscious of supporting eco-friendly and sustainable businesses. One of the most pressing issues influencing the industry is pollution due to plastic waste. Restaurants and delivery services typically use excessive amounts of plastic straws, cups, utensils, and packaging that directly contribute to the negative environmental impact. So, to reduce plastic waste, the solution is not to get rid of disposable wares altogether but to find eco-friendly alternatives. Setting up a business that focuses on reducing waste is not a passing trend but an essential movement in the corporate world. By choosing green options, you can stand out from the competition and make a positive change in the environment.
- Self-serve restaurants
To enhance flexibility and convenience, you can likewise choose to set up a self-serve restaurant with pre-made menu and personalisation options. This is a great way to give consumers the ability to customise their dining experience. Some examples of self-service businesses include vending machines and automated tellers. By investing in this innovative solution, you can increase efficiency and reduce staffing requirements.
While these industry trends can help you kickstart your F&B business plan, you still need to implement best practices to ensure long-term success.
Best Practices to Implement When Starting an F&B Company
With the ongoing health crisis, the best practices you need to consider should revolve around health, cleanliness, and hygiene.
- Health and cleanliness
Every Singapore company needs to prioritise health and cleanliness in order to enhance the consumer experience. By making sure that your premises are regularly cleaned and disinfected, your customers will feel safer and more comfortable when engaging with your business.
Performing daily employee temperature checks, wearing protective gear, and following cleaning standards are some of the procedures you need to enact to guarantee the safety of your restaurant.
- Food hygiene
In addition, paying attention to food hygiene is critical when running an F&B business. The quality of your food can make or break your business. As such, doing regular quality control checks before selling any product should be a practice you follow.
- Operational monitoring
Finally, to confirm that all guidelines and procedures are strictly followed, you need to monitor daily operations. Carrying out regular inspections and audits are necessary to protect the quality and reputation of your business.
Now that you have a better idea of what you need to consider when setting up a successful F&B business, be sure to engage with corporate services to guarantee a smooth process of company registration in Singapore.