8 things to know before you start your F&B business
Singapore’s food and beverage scene is known for its diverse range of cuisines. From Asian to western, we have it all. Restaurants and food businesses are popping up everywhere. You might be one of these entrepreneurs that are looking to set up your own food and beverage business.
Before diving headfirst into setting up shop, there are some important aspects that you must know. Here are 8 things that you should know that could save you thousands of dollars.
Getting the right licences
To set up your food and beverage business, you need the right licences. However, information is not very easily found, and different people may give you varying information on what licences to apply for. Here is a government website that may help in your F&B license application.
Labour is scarce, and expensive
Manpower has always been a common challenge for food and beverage businesses. Ask any experienced F&B owner, and he will tell you about his struggles with scarcity, and the rising cost of manpower in Singapore.
Locals are demanding higher work pay and are unwilling to work the long hours that F&B requires and part-timers come and go often. On top of that, the quota for hiring foreigners is tightening up, making labour a major headache for F&B owners.
A quick fix for this is to use digital tools like iMakan, to reduce heavy manpower dependence on order taking staffs by digitalizing your ordering process. Food establishments like Swee Choon Tim Sum Restaurant, BBQ box, Song Fa Bak Kut Teh, etc, have also adopted iMakan
to help with their manpower hurdles.
Marketing Strategy
Before setting up shop, it is important to define your unique selling point and come up with a plan on how to get customers. Opening up a shop and praying that customers find you seldom works.
Test out your marketing strategy and see what works for your business before dumping your life savings into your shop, securing your road to bankruptcy. Look to some F&B establishments and get some ideas from their marketing strategy helps as well.
Getting the right location
Before committing to a location, decide on your target audience demographics. Spend some time on surveying different locations to see if your target demographic frequent the area you intend to set up shop.
Avoid rushing into decisions when choosing a location. It is easy to to make the mistake of compromising on location due to rent or impatience, which will be regretted eventually.
The chef
Did you know that some restaurants that were doing well close down overnight when their chef decides to leave? It is important to not depend on a sole person that knows how to cook.
Either learn it yourself, or take up preventive measures like legal agreements, giving equity as ownership and documenting cooking techniques along the way. Hiring someone to replicate the taste of your previous chef is not an easy task.
Service standard
Good food and good service go hand in hand. Even if you have really good food, but provide poor customer service, customers may not return, and returning customers are very important to an F&B business.
Getting a trusty POS system
Running an F&B operation can be complicated. Therefore, investing in a trusted POS solution is essential. A POS solution not only acts as a billing terminal but also helps in your operation management. For example, table management, inventory management, promotion management, and kitchen printing management as well.
Many food business owners have made the mistake of getting a cheap POS but eventually grow out of it. Investing in a trusted POS solution like MEGAPOS
helps you manage your operations effectively and does not trouble you with technical difficulties. In the long run, saving you extra money.
Look out for grants in Singapore to save you cost
There are grants put up by the government to help businesses defray the cost of acquiring equipment or solutions that boost productivity through digitalization. For example, the Productivity Solutions Grant
subsidises up to 80% pre-approved equipment and solutions, and the Digital Resilience Bonus
gives a payout of up to $10,000 to help businesses defray the cost of adopting digital tools.
In Singapore's bustling F&B scene, quick-service beverage outlets like bubble tea shops, coconut drink stalls, and fruit juice bars face the challenge of serving a high volume of customers efficiently while maintaining personalized service. Integrating self-ordering kiosks, QR ordering, and Customer Relationship Management (CRM) systems can revolutionize operations, enhance customer satisfaction, and drive revenue growth. 1. Flexible Order Customization Beverage kiosks often offer a variety of customization options—sugar levels, ice preferences, toppings, and more. Self-ordering kiosks and QR ordering systems allow customers to easily select their preferences through intuitive interfaces, reducing errors and ensuring orders are prepared to exact specifications. This precision enhances customer satisfaction and streamlines the ordering process. 2. Reduced Manpower Requirements By enabling customers to place orders directly through kiosks or their smartphones, staff can focus on preparing beverages rather than taking orders. This shift not only reduces the need for additional manpower but also accelerates service during peak hours, improving overall efficiency. 3. Increased Average Bill Size Self-ordering systems can be programmed to suggest add-ons or upgrades, encouraging customers to explore additional options. This automated upselling strategy has been shown to increase average order values, with some establishments reporting a 15–30% boost in sales. 4. Enhanced Customer Loyalty through CRM Implementing a CRM system allows beverage kiosks to track customer preferences and purchase history, enabling personalized marketing and loyalty programs. Offering rewards, cashback, or point-based incentives encourages repeat visits and fosters a loyal customer base. 5. Real-Time Menu Management With integrated systems, menu updates and item availability can be managed in real-time across all outlets. This centralized control ensures consistency, reduces the risk of selling unavailable items, and allows for quick adjustments based on inventory or promotions. 6. Data-Driven Insights Collecting data through QR ordering and CRM systems provides valuable insights into customer behavior and preferences. Analyzing this data helps in tailoring offerings, optimizing inventory, and designing targeted marketing campaigns, ultimately enhancing the customer experience and boosting sales. 7. Improved Order Accuracy Allowing customers to input their orders directly minimizes miscommunication and errors. Accurate orders lead to higher customer satisfaction and reduce waste from incorrect preparations. 8. Streamlined Operations Integrating self-ordering kiosks, QR ordering, and CRM systems creates a cohesive operational flow. Orders are processed efficiently, customer data is centralized, and staff can focus on delivering quality products, resulting in a more streamlined and effective business model. By embracing these technologies, quick-service beverage outlets in Singapore can enhance operational efficiency, improve customer satisfaction, and drive revenue growth. Implementing self-ordering kiosks, QR ordering, and CRM systems positions businesses to meet modern consumer expectations and thrive in a competitive market.
Starting an F&B business in Singapore? Learn how CRM systems boost loyalty, improve operations, and drive smarter marketing for restaurants and cafes.
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The recent implementation of a universal 10% tariff by the U.S. administration under President Donald Trump has introduced new challenges for Singapore's economy, particularly affecting the Food and Beverage (F&B) sector. Restaurant and café owners must proactively address these challenges to sustain their operations and profitability. Understanding the Tariffs Tariffs are taxes imposed on imported goods, aimed at protecting domestic industries and generating revenue. The current U.S. tariffs include a universal 10% levy on imports, with higher rates for specific countries. Singapore, despite its strong trade relations with the U.S., is subject to this 10% tariff. Impact on Singapore's F&B Sector Singapore's F&B industry relies heavily on imported ingredients and products. The imposed tariffs are likely to increase the cost of these imports, leading to higher operational expenses for businesses. This escalation in costs may necessitate price adjustments, potentially affecting consumer demand and profitability. Strategies for Mitigation To navigate these challenges, F&B businesses can consider the following approaches: Diversify Supply Chains : Exploring alternative suppliers from countries not affected by the tariffs can help mitigate cost increases. Optimize Operations : Implementing efficient inventory management and reducing waste can offset increased costs. Adjust Pricing Strategies : Carefully evaluating and adjusting menu prices can help maintain profitability without significantly deterring customers. Enhance Customer Engagement : Strengthening loyalty programs and personalized marketing can boost customer retention and spending. Government Support The Singapore government has expressed its commitment to assisting businesses affected by the tariffs. Engaging with relevant agencies can provide access to support programs and resources designed to help businesses navigate these economic challenges. Conclusion While the U.S. tariffs present significant challenges to Singapore's F&B industry, proactive strategies and leveraging available support can help businesses adapt and sustain their operations during this period of economic uncertainty.
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