Across Singapore, conversations about the state of F&B are becoming more anxious. From seasoned chefs to casual diners, there’s a growing perception that something is broken.
Michelin-starred restaurants are shuttering. Long-standing family-run eateries are calling it quits. And in 2025 alone, Singapore has seen an average of 307 F&B closures per month — a number that, at first glance, looks ominous.
It’s tempting to see this as a crisis. A shrinking industry. A wave of failures. But step back, and a very different picture emerges — one that reveals not decay, but renewal.
Highlights
The Bigger Picture: Creative Destruction in Action
Let’s put these numbers in perspective.
In 2024, the average monthly closure rate was 254. So yes, closures have increased — but so have openings. That same year, over 3,790 new F&B establishments launched in Singapore. That’s an average of 316 new openings per month — significantly outpacing closures.
This tells us something fundamental: the F&B sector in Singapore isn’t collapsing. It’s transforming.
What we’re witnessing is creative destruction — the natural shedding of outdated or misaligned business models, and the rise of more relevant, dynamic concepts that better reflect evolving consumer preferences.
The Rise of the Bold, the Relevant, and the Adaptive
Restaurant closures often dominate headlines because they’re dramatic. But we rarely hear as much about the quietly successful newcomers — those who are rethinking the F&B experience from the ground up.
Look closely at the types of concepts thriving right now, and you’ll see a clear pattern:
- UFO Burgers: A Korean street-food spin that blends viral appeal with affordability and portability — perfect for younger audiences who want both novelty and value.
- Specialty Soup Cafés: Minimalist spaces that focus on wellness, clean eating, and local ingredients — striking a chord with health-conscious urbanites.
- Multi-Sensory Fine Dining: Venues like Sensorium push the envelope by combining haute cuisine with immersive tech — soundscapes, scent diffusion, projection mapping — curating a truly experiential meal.
- Hybrid Concepts: Think F&B with a twist — coffee shops that double as art galleries, pet-friendly cafés that host adoption drives, or smoothie bars inside yoga studios.
These aren’t just gimmicks. They reflect a deep understanding of what today’s consumers value: authenticity, sustainability, storytelling, price awareness — and, at the premium end, exclusivity fused with experience.
Michelin ≠ Mass Appeal
One of the more intriguing signals in this shift is Singapore’s complicated relationship with the Michelin Guide.
Yes, the Guide confers international prestige — but that doesn’t necessarily translate to local loyalty. Even among well-traveled Singaporeans, Michelin picks are often met with suspicion or indifference.
My own mother-in-law, for example, is adamant that the “best soya chicken” is not the one crowned by Michelin — and she’s far from alone. In Singapore, culinary credibility often lies in grassroots channels: word-of-mouth, hawker culture, and long-standing neighborhood favorites.
This reveals a critical truth for operators: global accolades won’t save you if you lose local resonance. A restaurant that fails to adapt to the local palate or price expectations — no matter how refined — risks irrelevance.
Adapt or Exit: The New Mandate
The message is increasingly clear: evolve or be replaced.
Consumer tastes are changing — fast. Sustainability, plant-based options, wellness-focused menus, flexible dining formats, and digital engagement aren’t trends — they’re expectations.
And businesses that fail to deliver on these fronts will struggle to stay relevant.
But for asset owners, operators, and investors, this shift is less a threat than a clarion call for innovation.
At JLL and in my work advising hospitality portfolios across Asia-Pacific, I’ve seen firsthand how adaptive strategies lead to stronger outcomes. The best-performing F&B assets in 2025 aren’t necessarily those with legacy cachet — they’re the ones that:
- Reposition underperforming outlets with contemporary, story-driven concepts
- Pivot menus and pricing in near real-time, based on POS and footfall data
- Design venues with Instagram moments in mind — without sacrificing quality
- Tap into emerging demand clusters: halal fine dining, co-working cafés, or plant-forward tasting menus
The Real Story: A Market in Motion
Singapore’s F&B scene isn’t in decline — it’s in motion.
Yes, the turnover is high. But turnover isn’t always a bad thing. In fact, it often signals a healthy churn — where legacy concepts that no longer resonate make room for fresh ideas better suited to today’s tastes, values, and habits.
This doesn’t mean the industry is easy. It’s not. It’s dynamic, unforgiving, and increasingly competitive. But it’s also ripe with opportunity for those who understand the new landscape.
The winners will be those who stay curious, stay relevant, and stay connected to their audiences — not just through trends, but through data, dialogue, and design.
So the next time you read about another restaurant closure, don’t assume it’s the beginning of the end. More likely, it’s the start of something new.
And that’s a future worth betting on.
Editor’s Note:
This article, originally titled “Singapore’s F&B Closures Aren’t a Sign of Collapse – They Signal Renewal,” was contributed by Pierre Maréchal, Vice President of Strategic Advisory & Asset Management at JLL, with over 20 years of experience across Asia Pacific and beyond, advising hotel owners on asset performance, operator selection, and commercial strategy.
Views expressed are the author’s own. To pitch your story or share insights on hospitality, leadership, or business in Asia, contact the NIA editorial team.
Highlights
Read the Chinese article here.
