Fuluxe, Partner for Hotel & Restaurant Refinement in Singapore

Let’s face it: Singapore isn’t just a thriving metropolis – it’s a global food haven. People fly here just to taste Michelin-starred hawker delights, try in high-end fusion cuisine, or grab quick bites in hipster cafes. In fact, Singapore’s food scene is so diverse, some folks joke that our national pastime is eating.

But here’s the thing: actually opening a restaurant in Singapore can be a rollercoaster if you don’t know where to start.

So if you’re an aspiring restaurateur (or just super curious person), buckle up.

We’re about to explore the nuts and bolts of getting your eatery off the ground, from budget planning to must-have essentials, without drowning you in hard business jargon.

Why Your Dream Restaurant Needs Proper Planning

You might wonder, “Can’t I just rent a space, set up some tables, and start cooking?”

Well, imagine you’re trying to whip up your signature dish without prepping your ingredients. Sure, you’ll end up with a meal of some sort – but the taste, texture, and overall experience might miss the mark. That’s exactly how it goes when you skip planning a restaurant in detail. Singapore’s F&B industry remains a high-stakes battlefield. While official 2025 closure rates aren’t yet available, 2024 trends paint a sobering picture: roughly 40% of new F&B businesses still struggle to survive their first two years, with costs, competition, and compliance hurdles driving failures.

To avoid that outcome, let’s chart your path to success, starting with financial considerations – since managing finances can often be the most challenging aspect. 

Counting the Costs: What’s the Real Budget?

While 2025 closure rates remain unconfirmed, industry analysts project that 35- 45% of new F&B businesses in Singapore will shutter within their first two years, driven by 2024’s record-high operational costs (rents up 35% in prime areas), labor shortages, and intense competition from foreign entrants like China’s tech-driven F&B chains.

1. Rental & Renovation

• Rental: If you’re eyeing a spot in areas like Tanjong Pagar or Holland Village, expect those five-figure rents each month.
• Renovation: Think floors, lighting, kitchen layout, interior design, and more. Budget at least S$50,000–S$200,000, depending on your vision and the unit’s existing condition.

2. Licenses & Permits

• You’ll need a Food Shop License from the Singapore Food Agency (SFA). Fees vary, but plan for a few hundred dollars.
• If you’re serving alcohol, you’ll need a liquor license from the Singapore Police Force.
• Additional licenses might come into play (like if you’re selling tobacco or have outdoor seating).

3. Equipment & Inventory

Commercial-grade stoves, refrigeration units, and specialized appliances (like coffee machines or pizza ovens) can cost anywhere from S$10,000 to S$50,000 for a basic setup.

Don’t forget your initial food inventory. Depending on your menu and supplier contracts, that could be S$5,000–S$20,000 for your first major stock-up.

4. Staffing Costs

Salaries in the F&B sector have risen in recent years to stay competitive. A recent MOM (Ministry of Manpower) report indicated a median monthly salary of around S$2,500–S$3,000 for entry-level service staff, and it climbs higher for experienced chefs. Factor in training, uniforms, staff meals, and potential levies for foreign workers.

1. Branding & Marketing

Social media ads, influencer outreach, and initial promotional events can set you back S$2,000–S$10,000 – and that’s just to get the buzz started.

When you line up all these costs, the overall budget for a small to mid-sized restaurant in Singapore could easily land between S$150,000 and S$400,000. It might sound daunting, but it’s all about being realistic with your numbers and planning your cash flow (including an emergency fund) so you don’t run out of steam right after launching.

The Must-Have To-Do List: From Concept to Opening Day

So you’ve sorted out your budget – or at least have a clearer sense of it. Now what? Think of launching a restaurant like assembling a puzzle; every piece matters.

1. Define Your Concept and Target Audience

Is your restaurant a plant-based café aimed at health-conscious millennials, or a late-night burger joint for partygoers? Defining your concept early helps with everything from branding to menu design. Imagine you’re an avid baker who dreams of blending French pastry skills with local Singapore flavors — like pandan croissants or salted egg yolk danishes. That’s your niche, and it shapes all your decisions moving forward.

2. Pick Your Location Wisely

You’ve heard the phrase “location, location, location” a million times, but it’s a cliché for a reason. High foot traffic areas like Orchard might sound tempting, but if your concept is a quiet, cozy hideaway for artisanal tea, maybe a tucked-away space in Tiong Bahru is a better fit. A 2023 study by Cushman & Wakefield found that F&B outlets near MRT stations tend to attract 20–30% more walk-in customers — so if you’re betting on walk-in traffic, keep proximity to public transport in mind.

3. Sort Out Legalities and Paperwork

Think of this as the somewhat boring yet absolutely crucial part of the process. You’ll need:

• Business Registration: Register your business with the Accounting and Corporate Regulatory Authority (ACRA).
• Food Shop License: Obtain this from the SFA.
• Work Permits and Employment Passes: If you’re hiring foreign staff, navigate the Ministry of Manpower’s guidelines carefully.
• Halal Certification (Optional): If you want to cater to Muslim customers, you’ll need certification from the Islamic Religious Council of Singapore (MUIS).

Lastly, your best bet is to create a timeline, so you’re not scrambling last minute. And yes, we know it’s not fun reading all the fine print — but better now than paying fines later.

4. Design Your Menu and Kitchen Layout

Your menu should resonate with your concept. If you’re a brunch café, think fancy avocado toast variations, cold brews, and maybe a baked-goods corner. But be mindful: every dish you offer means extra ingredients, more prep time, and added complexity. Keep it concise when you start– it’s easier to add new items later than to remove them off the menu.

As for layout, efficiency is the name of the game. A recent Food & Beverage Trends Survey by KitchenPlus Asia found that restaurants with open, flow-friendly kitchens could reduce service times by 15%. Fewer staff collisions, fewer wasted steps. Plus, customers often enjoy seeing the magic happen behind the counter.

5. Hire and Train Your Team

Whether it’s friendly servers, a sous-chef who can perfectly poach eggs, or a social media manager to handle TikTok reels, your team is the lifeblood of your business. One trick? Train them to be brand ambassadors. That means teaching them your story — why you started, what sets your food apart, and how you want diners to feel. Remember, a warm smile and knowledgeable explanation about a dish can turn a first-time customer into a regular.

6. Market Like You Mean It

We’re in the digital age, folks. So beyond just plastering your restaurant name on a big signboard, you’ll want:

• Social Media Teasers: Show behind-the-scenes shots of your kitchen or staff taste-testing the menu.
• Influencer Collaborations: Love them or hate them, influencers can bring in crowds. A quick tasting session posted to Instagram can do wonders.
• Soft Launch Events: Invite local food bloggers, your friends, and even neighboring business owners to get feedback. Word-of-mouth can snowball if your concept resonates.

The All-Important Essentials: Don’t Overlook These

Now let’s talk about what you absolutely can’t ignore; those tiny details that may not be flashy but are crucial for success.

1.Quality Suppliers

Fresh produce, reliable meat sources, top-notch coffee beans — whatever you’re serving, your supplier relationships will make or break you. Make time to visit local wet markets or wholesalers in places like Pasir Panjang Wholesale Centre. Negotiate contracts, ensure stable prices, and keep backup suppliers on speed dial.

2. Efficient POS System

We’ve all seen that painfully slow queue when a payment machine crashes at the worst possible moment. A solid Point-of-Sale (POS) system that handles orders, billing, and inventory tracking can be a lifesaver. You’ll thank yourself when you’re swamped during the Sunday brunch rush.

3. Food Safety & Hygiene Standards

Singapore takes hygiene very seriously. Remember the scandal when a rodent was spotted in a popular restaurant’s display window? Don’t be that place. Regular pest control, rigorous staff hygiene training, and abiding by NEA (National Environment Agency) guidelines are non-negotiable.

4. Customer Relationship Management

Whether it’s collecting emails for a loyalty program or simply remembering a regular’s coffee preference, personal touches build loyalty. A 2021 Harvard Business Review report found that 65% of consumers are more likely to return to a business that knows their purchase history.

5. Adaptability

If the pandemic taught us anything, it’s that the F&B industry can change in a heartbeat. Consider adding delivery or takeaway options right from the start. Keep an eye on emerging trends (like plant-based proteins or zero-waste cooking) so you can pivot if the market shifts.

Real-World Inspiration: Learning from Others

Take the example of The Coconut Club, which started small, focusing on a hyper-specialized dish — nasi lemak. Their commitment to using premium coconuts for the rice quickly turned them into a must-visit spot. People queued for hours just to try it, and they leveraged social media to share their story of passion and quality. The lesson? Sometimes narrowing your focus can help you stand out in a crowded market.

Or think about Kafe UTU [CONFIRMED BY  KEVIN], a café in the Outram Park area that blends African-inspired flavors with a cozy, art-filled environment. They capitalized on an Instagram-friendly ambiance and a unique menu, ensuring that even first-time diners have plenty to post about.

Budgeting Beyond the Opening: Think Long-Term

Sure, getting the doors open is exciting, but sustaining a restaurant in Singapore’s competitive market requires continual planning. Keep some funds aside (some experts suggest at least 3 to 6 months of operating expenses) as a buffer. If foot traffic dips or you need to invest in new equipment, having that rainy-day fund will help you breathe a little easier.

Pro Tip: Run monthly or even weekly financial checks. Look at your inventory turnover, labor costs, and profit margins. Identifying issues early — like too much wastage or underperforming menu items — lets you fix them before they damage your bottom line.

Your Roadmap to Success: Putting It All Together

Now that we’ve walked through the key steps, let’s distill it into a straightforward roadmap:

1. Lock Down Your Concept: Know your niche and your audience.
2. Crunch the Numbers: Draft a realistic budget (add at least 10% for surprises).
3. Secure the Location: Weigh foot traffic, rent, and your brand vibe.
4. Check Legal Requirements: Licenses, permits, and any certifications you need.
5. Plan Your Menu & Layout: Balance creativity with practical efficiency.
6. Build a Rock-Solid Team: Invest in training and building a positive culture.
7. Market with Personality: Use social media, local influencers, and community events.
8. Stay Flexible: Monitor trends, adapt quickly, and keep a buffer for emergencies.

The Memorable Takeaway: Go Beyond Good Food

Singapore is a culinary hotspot, which means the bar is high. It’s not enough to just serve delicious dishes; you’ve got to create an experience that resonates with people. Picture a family celebrating a birthday in your restaurant, or a couple having their first date over your signature dessert. Those moments are priceless – and they’re what keep diners coming back for more.

Next time you catch yourself daydreaming about opening your doors to a crowd of hungry foodies, remember: the journey isn’t only about business plans and licenses, it’s about passion, persistence, and personality. If you keep that in mind (and keep a close eye on your finances), your restaurant in the Lion City has every chance to boom.

Ready to take-off?

Congratulations on doing your inaugural research and taking the first steps towards opening your restaurants Singapore! With careful planning, a dash of creativity, and a sense of humor to get you through the busy times, you’re well on your way to establishing your presence in Singapore’s vibrant food scene.Now it’s time to put your plans into action! Get your kitchen ready, perfect your menu, and prepare to welcome eager diners. We’re all on this culinary journey together. Good luck, and bon appétit!