In Singapore’s F&B scene, record-high closures this year have led some investors and owners to assume staffing should be easier — after all, shouldn’t there now be a surplus of available talent? The reality is the opposite.
Yes, more than 300 outlets are closing monthly. But new openings are outpacing closures, as seen in 2024’s numbers: 3,790 new F&B outlets, or over 316 per month. The industry is still expanding overall — and competition for good talent is fiercer than ever.
Highlights
The Fierce War for Talent
In this environment, labor is the new battleground. Even with automation, leaner menus, and AI-enhanced POS and kitchen systems, people remain the heart of the hospitality experience. The pain points I hear again and again from operators are:
- “We can’t find skilled cooks or baristas willing to commit.”
- “Our front-of-house team churns too quickly.”
- “We’ve hired, but training takes weeks — and many leave before then.”
It’s not just about filling vacancies. It’s about building a culture where people want to stay.
Retention is the New Recruitment
Hiring is expensive. Losing people costs even more. And yet, most owners still underinvest in retention — where profitability actually hides.
Winning operators are shifting from firefighting to culture-building. They focus on:
- Recognition – Celebrate wins publicly, give credit where it’s due.
- Respect – Fair scheduling, clear career paths, and real professional regard.
- Retention tools – Use tech that supports staff, not replaces them. From automated scheduling to digital training modules.
One of the best-performing outlets in a portfolio I oversee has some of the lowest turnover rates in the city. Their secret? Not pay bumps, but creating an internal culture where their people feel seen and heard. And the customers feel it too.
Tech: A Support System, Not a Substitute
Tech has a major role to play — but not in replacing humans. The most effective applications are about streamlining the tasks staff dislike, so they can focus on what makes guests return. For example:
- Digital ordering reduces admin so servers can upsell and connect with guests.
- AI forecasting enables humane, accurate scheduling.
- Smart kitchen systems cut stress, reduce waste, and improve efficiency.
Owners shouldn’t see tech as a labor substitute. It’s a value amplifier — for the team and for the guest.
What This Means for F&B Investors and Owners
Whether you’re deploying capital or operating outlets, the message is clear:
- Labour will remain tight — regardless of closures.
- The best talent chooses environments where they feel valued.
- Technology helps, but culture wins.
In a hyper-competitive market, your people are your product. And their energy, pride, and consistency are what your brand becomes.
Final Thoughts: Build for Humans, Not Just Customers
Singapore’s F&B sector is evolving. New brands are rising. Experiences are diversifying. But what hasn’t changed is this: it’s still a people business. Operators who lead with culture, empathy, and thoughtful tech adoption won’t just survive — they’ll thrive.
Editor’s Note:
This article, originally titled “Why Labour Is Still the Biggest Bottleneck in F&B—And What Owners/Operators Must Do About It,” 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.
