Singapore’s F&B Scene: Why Are So Many Restaurants Closing?

Singaporeans love eating out, but lately, the F&B industry has been in turmoil. Even big names like Eggslut have shut their doors, leaving many wondering: Why are so many restaurants closing, while new cafes keep popping up every month?

A discussion on r/askSingapore revealed several factors at play—high rent, unsustainable hype, and changing consumer habits. The F&B industry has always been high-risk, but recent closures highlight deeper issues.

High Rent: The Biggest Killer

One of the most common reasons for restaurant closures in Singapore is rising rental costs. Landlords in prime locations charge exorbitant prices, making it hard for businesses to survive unless they have a steady stream of customers.

"While many would blame the high rent, it is not the only reason. If many shops are closed, the landlords couldn’t fill the vacancies, rent will fall."
— u/highwind85

Yet, rental prices rarely drop in Singapore. Instead, landlords hold out, knowing there will always be someone willing to pay.

"There are some coffeeshops I patron that have empty stalls for months. I asked the shops there and they said the rental is scary high for its area."
— u/SometimesFlyHigh

Even in office buildings, rental prices don't make sense.

"The rental for a canteen stall at my office is higher than my office rental 💀."
— u/suplinny

With landlords prioritising profit over business sustainability, many restaurants are forced to close once their lease is up.

The Hype Factor: One-Time Visits Aren’t Enough

The F&B scene in Singapore is fast-moving. New restaurants and cafes rely on hype and social media to attract customers—but the novelty wears off quickly.

"One post on social media to flex that you tried it before, and that’s that. Not likely to warrant a repeat visit."
— u/mecha_power

Even big names aren’t immune. Eggslut, a brand that once generated long queues, couldn’t sustain interest.

"Would you specifically jio someone to go Eggslut to eat, more than once?"
— u/ClaudeDebauchery

Many trendy cafes offer the same standard menu—pasta, coffee, pastries—making it easy for customers to move on to the next big thing.

"How many people are there who want to eat the same thing every day? How do these cafes differentiate themselves from the hundreds of other similar cafes?"
— u/SG_wormsblink

Without a strong base of returning customers, businesses fizzle out fast.

Overpriced Food: Customers Are More Budget-Conscious

Dining out in Singapore has become expensive, with many cafes charging $20+ for a basic meal. Consumers are becoming more selective, especially with inflation driving up costs.

"Not sure why so many entrepreneurs think the mass market is willing to pay $10-$20 for EVERY meal."
— u/Particular-Song2587

Eggslut, for example, was deemed too expensive for what it offered.

"Think of a really good sandwich you can make yourself for $10, then triple the price."
— u/CheekyWanker007

"It costs $30 for a sandwich at Eggslut?? Good riddance."
— u/MrGoldfishBrown

Many customers would rather spend on hawker food or home-cooked meals than keep up with the high costs of cafe dining.

China Brands Entering, Local Brands Struggling

Some users noticed that while many local or Western brands are closing, China-based F&B chains are expanding.

"Only China brands are coming in and staying now, because they can afford to lose money in their Singapore outlets for the sake of boosting their international appeal."
— u/DuePomegranate

These brands often price their food aggressively to attract customers, making it harder for smaller businesses to compete.

"They price stuff way cheaper than market rate or are willing to pay higher rent, which just drowns out local businesses."
— u/RubyRascal4

This shift in the market could mean even tougher conditions for independent F&B businesses.

F&B in Singapore: A High-Risk Business

Starting an F&B business in Singapore isn't for the faint-hearted. Many new cafes and restaurants don’t survive beyond their first year.

"Two-thirds of new F&B businesses will close within a year. That’s very normal, both in Singapore and other countries."
— u/SG_wormsblink

Some entrepreneurs underestimate costs, leading to financial burnout before they even break even.

"They project their revenue and expenses incorrectly, and either it takes too long to become profitable, or they run out of money before that point."
— u/DuePomegranate

Even successful businesses struggle when landlords refuse to renew leases or increase rent drastically.

"Some closures are because landlords want to change the retail mix, and if it’s the only shop, they will have to close down."
— u/leo-g

The Takeaway: Sustainability Over Hype

Singapore’s F&B scene will always have new entrants, but only those with a sustainable business model will survive. Hype alone isn’t enough—businesses need reasonable pricing, a loyal customer base, and a long-term plan.

For diners, the message is clear: Don’t be surprised if your favourite new cafe disappears within a year.

Is there a future for small F&B businesses in Singapore, or is the industry doomed to be a revolving door of closures and openings?