As Singapore’s economy continues to grow, the city-state is expected to see a rise in the number of Chinese restaurant chains entering its food and beverage (F&B) market, according to Dellen Soh, chief executive of Minor Food Group. These entrants bring streamlined kitchen operations, competitive pricing, and visually appealing concepts that may challenge established local food businesses.
Soh, who also leads Minor Food Singapore—a subsidiary of Thailand-listed Minor International operating around 120 outlets under 24 brands such as Sanook Kitchen, Poulet, and Mamma Mia—described the trend as more than a simple test of local taste preferences. “They are here to sweep the market,” he said, noting that Chinese chains deploy business models refined in China’s highly competitive F&B sector, often with ambitions for broader regional expansion. These concepts include a variety of offerings, from hotpot and grilled fish to coffee and tea.
The influx is transforming Singapore’s dining landscape and posing pressures on local operators, many of whom have struggled to keep pace in menu innovation, staffing efficiency, and pricing strategies. Soh highlighted that survival in this environment may require revising existing business models, with some longstanding hawker stalls and local brands potentially fading as their owners retire and successors are increasingly hard to secure. Additionally, he observed that businesses with heavier operating models face difficulties competing against leaner, more efficient global chains.
Singapore is viewed as a rigorous yet strategic proving ground for these foreign chains due to its dense population, extensive dining culture, and cosmopolitan consumer base. Soh emphasized the importance of profitability combined with consistent customer return. “If you can make it in Singapore, you can make it anywhere else in South-east Asia,” he said.
The challenge posed by rising rental costs remains a key concern for F&B operators in Singapore. Soh advised business owners to thoroughly understand lease commitments and develop operational models robust enough to cover expenses. He suggested adopting the perspective of landlords, who favor tenants that attract crowds and can afford higher rents. “Overseas chains bring fresh concepts, attract crowds, and can afford rents that some established businesses cannot. This is what the landlord wants,” Soh explained.
He contrasted rental capabilities, noting that older operators typically support rents between S$10 and S$14 per square foot, whereas some Chinese chains may offer upwards of S$25 per square foot. Minor Food’s scale grants it leverage with landlords, allowing the company to rotate or refresh concepts within the same location, minimizing downtime and conversion costs. Soh pointed out that this adaptability helps make locations economically viable, while operators resistant to change face the risk of being replaced.
Regarding the future of hawker culture, Soh recognized its central role in Singapore’s food identity but acknowledged challenges in scaling traditional stalls into chains. He noted that customers often perceive changes in taste when a beloved hawker is replaced, even if recipes are standardized. Moreover, many veteran hawkers discourage successors due to the demanding nature of the trade. However, Soh expects new hawker-style concepts to emerge, often initiated by chefs transitioning from established restaurants. He stressed that culinary expertise alone is insufficient for success without the stamina required for consistent daily operations.
Overall, the competitive dynamics in Singapore’s F&B sector appear poised for continued intensification as new players seek to capitalize on the city’s vibrant dining scene and strategic location in Southeast Asia.