Eateries in foodie haven Singapore close as costs rise, spending falls

Closures in the food and beverage sector have averaged 307 per month so far this year, up from 254 per month in 2024 and around 230 a month in 2023 and 2022, government data shows.

Alvin Goh, a co-founder of Wine RVLT, is set to add to the statistics later this year.

He said he will not renew his lease when it runs out in August after almost a decade serving natural wines and bar bites in the wealthy Asian financial hub of 6 million people.

"We've been in the red since 2023 June. We've been topping up money to ensure that rent, salaries and suppliers are being paid," he said.

Like other operators, Goh has been hit by rising costs for goods, utilities, rent and salaries. He has fewer patrons and those who do dine and wine are spending less than during what Goh called the 2022 "euphoria of opening up" following the COVID pandemic.

The ratio of closures to openings in 2025 and 2024 was higher than before and during the pandemic, pointing to a shrinking sector.

Closures since last year have affected a range of establishments, from low-cost hawker stalls to rooftop bar Smoke & Mirrors and a string of Michelin-starred restaurants such as Art di Daniele Sperindio and Sommer and Braci.

Maybank economist Brian Lee expects closures to remain elevated in 2025. Operating costs remain high and many Singaporeans are prioritising travel over dining out, he said.

One of those is Glenn Chew, 26, who works in public relations. He said he travels to other Southeast Asian cities where dining out can cost 30-40% less than in Singapore.

The concern is that closures will lead to a loss of the island's culinary heritage and its status as an Asian food capital, said food blogger Seth Lui, 40.

"We will start to see more fast food-style concepts with automation and franchise brands everywhere rather than having unique, quaint concepts," he said.

Still, there are hopefuls like Jay Gray, 34, co-owner of Club Street Laundry restaurant which opened this year, his sixth venture in 11 years.

"I guess I believe in the Singapore market enough and I do believe if you focus on hospitality, which is the most important thing, you'll be able to sustain it," he said.