Singapore – Singapore’s food and beverage (F&B) sector is undergoing a significant contraction, with an average of 307 outlet closures per month recorded in 2025. This marks a sharp escalation from 254 monthly closures in 2024 and 230 in 2022–2023, raising alarms across Southeast Asia’s hospitality and retail industries.
This downward trend cuts across all segments, from casual hawker stalls to high-end dining establishments. One notable casualty is 1880, an exclusive members-only club located in Robertson Quay, which announced its permanent closure on June 18 due to declining member visits and reduced spending.
“The frequency of visits and member expenditures has steadily fallen. We require a comprehensive operational restructure,” the management stated via a press release, as reported by Channel News Asia.
The closure of 1880’s Singapore location comes shortly after its Hong Kong branch ceased operations in May 2025, less than a year after its grand opening—underscoring how even elite establishments are vulnerable amid rising operational challenges.
Core drivers of the crisis include escalating rental costs, raw material prices, and labor expenses—a triple blow that has left many businesses struggling to meet their fixed obligations. The recent shutdown of New Scissor-Cut Curry Rice, a heritage brand in Geylang with three decades of history, is a poignant example. “Rent and operating costs have become unbearable,” lamented the owner.
Adding to the pressure is a notable drop in consumer spending. Singapore remains one of the most expensive cities globally, ranked second after Hong Kong in Mercer’s 2024 Cost of Living Survey. Consumers are becoming more cautious, cutting back on discretionary spending, including dining out.
Industry observers warn that the closure wave may intensify unless government intervention is introduced. Business owners have called for targeted support, such as tax relief or rental subsidies, to prevent a surge in layoffs and preserve industry diversity.
“Without meaningful support, only large, capital-heavy chains will survive. Small and mid-sized operators will be wiped out,” said a coffee shop owner in Chinatown, reflecting a growing sense of urgency among local entrepreneurs.
This mass closure trend not only threatens thousands of jobs but also risks eroding Singapore’s rich culinary identity. For a country that has long positioned its F&B sector as a pillar of tourism and lifestyle, the economic and cultural implications are profound.
