Restaurant and food business in Singapore (2025)

While Singapore is not the largest market in terms of F&B revenue globally (China leads with $1,607 billion in 2024), in terms of per capita revenue, Singapore is expected to reach $2,067 in 2024, indicating high consumption in this sector.

E-commerce is making an increasingly large contribution to the F&B market in Singapore. It is expected that by 2024, 3.6% of the total market revenue will be generated through online channels.

In addition to revenue growth, the F&B market in Singapore is also witnessing volume growth.

By 2029, consumption volume is expected to reach 2,559 million kg, with an annual growth rate of 3.4% by 2025. This shows that the demand for food and beverage consumption in Singapore is increasing.

The F&B market in Singapore is growing strongly, with growth in both revenue and consumption volume. Factors such as high consumption levels, the development of e-commerce and increasing demand from the population are contributing to the growth of this market.

• Large, potential market: With a large population and high standard of living, Singapore has an extremely vibrant F&B market. Singaporeans have diverse food needs and are willing to spend on new culinary experiences.
• Tourism development, attracting tourists: The thriving tourism industry has attracted a large number of international tourists to Singapore every year. This creates a large potential customer base for restaurants and eateries.
• Business support policy: The Singapore government always creates favorable conditions for businesses, especially small and medium enterprises. There are many financial support programs, training and consulting to help F&B businesses start and grow.
• Emerging culinary trends: The F&B market in Singapore always welcomes the latest culinary trends in the world. Restaurants and eateries can take advantage of these trends to create unique products and services to attract customers.

Although there are many opportunities, restaurant and food business in Singapore also faces many challenges:

• Competitive: The F&B market in Singapore is extremely competitive with the presence of thousands of different restaurants and eateries, from international brands to local restaurants.
• Expensive premises costs: Rental costs in Singapore are one of the most difficult problems for F&B businesses, especially in central areas.
• Strict food safety regulations: Singapore has very strict regulations on food safety. Restaurants and eateries must strictly follow these regulations to avoid being fined or closed.
• Skilled workforce: Finding and retaining skilled employees is a major challenge for F&B businesses.
• Find quality raw materials:Although Singapore is a major commercial hub, finding fresh ingredients, especially seafood, at reasonable prices is still a concern.

• Identify target audience: Who will be the main customers of the restaurant? Will it be locals, tourists, or a specific group? Clearly identifying the target customers will help the business shape the appropriate restaurant concept and style.
• Competitor Analysis: Carefully research competitors in the area to understand their strengths and weaknesses. From there, businesses can find gaps in the market and build their own competitive advantages.
• Choose restaurant concept and style: The concept will be the soul of the restaurant. Does the business want to create a cozy, modern space, or one with a strong traditional feel? The design style, menu, and service must all be consistent with the chosen concept.

Choose the right type of business

• In Singapore, there are many type of business different as Private Limited Company (Pte. ltd), Private Company, Partnership, etc. Businesses should choose the type that best suits their business size and goals.

Carry out business registration and business license procedures:

• Business registration: Complete the business registration procedures at the Accounting and Corporate Regulatory Authority of Singapore (Accounting and Corporate Regulatory Authority (“ACRA”)).
• Apply for restaurant business license: Apply for a restaurant business license at the National Environment Agency.
• Related licenses: In addition to the restaurant business license, you also need to apply for some other licenses such as fire prevention and fighting license, food hygiene and safety license, etc.

For foreign individuals/businesses, to establish a company in Singapore, the following factors must be met:

• 1 Singaporean Designated Director.
• Minimum 1 shareholder (shareholder can be a foreigner and hold 100% of the company's shares).
• At least 1 foreign director.
• 1 Singaporean Secretary.
• Minimum charter capital 1USD/ 1SGD.
• Office address in Singapore.

GLA supports company establishment in Singapore to help businesses fully meet the requirements of the Singapore Government with a quick company registration time of only 1-2 working days. 

Important note

The Singapore government does not require foreign owners of companies to be physically present in Singapore to operate and manage the company.

However, in case the business wishes to come to Singapore to supervise the restaurant/food stall business, it can apply for a work permit in Singapore as follows: Employment Pass (license allows businesses to work in Singapore for 2 years - can still reapply after expiration).

Or if you want to send employees to Singapore to work, the company can consider applying for work permits such as Work Permits, S Pass, Employment Pass, etc. 

• Important factors when choosing a location: Location, area, rental price, traffic connectivity, competition from other restaurants, and development potential of the area.
• Rental costs: The cost of renting premises in Singapore is quite high, especially in central areas. Businesses need to carefully consider their budget and financial capacity.
• Search for a place:
  • Convenient location: You should choose locations near residential areas, shopping centers, or tourist attractions to attract customers.
  • Suitable area: The floor area needs to be suitable for the restaurant scale and expected number of customers.

• Personnel requirements: Depending on the size and type of restaurant, the business will need to recruit positions such as chefs, waiters, managers, etc.
• Education program: Train employees on professional skills, product knowledge, and customer service attitude.

• Branding: Create a strong, unique and memorable brand.
• Effective advertising channels: Use traditional advertising channels such as flyers, billboards, and online advertising channels such as social networks, websites, SEO.
• Promotions: Organize attractive promotions to attract customers and increase sales.

To open a restaurant or eatery in Singapore, businesses need to apply for some important licenses such as:

• Business License: This is a mandatory document to operate a business in Singapore.
• Food Hygiene License: This license is issued by the National Environment Agency (NEA), ensuring that the restaurant complies with food hygiene and safety standards.
• Fire Safety Permit: This permit is issued by the Civil Defence and Fire and Rescue Department (SCDF), ensuring that the restaurant has the necessary fire safety measures in place.
• Liquor license (if applicable): If your restaurant serves alcohol, you will need to obtain an additional liquor license.

In addition, businesses operating in the restaurant and food service sector in Singapore need to pay attention to some of the following licenses and certificates:

Muslims make up a significant proportion of Singapore's population (17% of the population).

Therefore, if you want to attack the culinary field, a company established in Singapore must definitely achieve Halal certification (to confirm that the product does not contain prohibited substances as required by Islamic Law and meets food hygiene requirements during production).

The Halal Certificate is also a basis to prove that restaurants in Singapore fully comply with the regulations issued by the Islamic Council of Singapore (MUIS) - the HALAL certification agency in Singapore.

Note: Starting from August 8, all Halal Certification application processes are conducted online.

During the course of business, if a business wants to add alcohol service to its restaurant business in Singapore, the business owner needs to apply for a license. Liquor License from the Liquors Licensing Board.

Note: Applying for a liquor license also applies to retail sales of alcohol in restaurants.

The application process for a License can be done online and the Business License will be valid for 1 year.

If the restaurant sells dishes that require imported ingredients from other countries, the business owner needs to apply for a Registration Number with the Food Control Division of the Agri-Food & Veterinary Authority of Singapore.

Types of food that require an import license include:

• Spice.
• Raw food ingredients.
• Powdered food.
• Bottled water.
• Alcohol and liquor.
• Confectionery.
• Noodles.
• Drinks.

Applying for a food ingredient import license helps the government control the safety of food sources imported into Singapore.

Note: Business owners must be granted a General import/export license (also known as a Customs Registration Number - CR Number) by Singapore Customs before applying for a Registration Number with the Food Control Department (FCD).

Goods and Services Tax is a consumption tax, similar to Value Added Tax (VAT) in many other countries, levied by the Singapore government on domestic and imported goods and services. 

Businesses are required to register for GST when their annual turnover reaches or exceeds 1 million Singapore dollars (SGD).

Enterprises are responsible for submitting registration applications within 30 days from the start of the tax period in which the revenue reaches the above threshold.

The current GST rate is 9% and is calculated on the selling price of goods and services. Once registered, businesses will collect GST from customers and pay it to the state budget.

During tax filing, the GST rate levied on the restaurant's consumers in Singapore will be deducted from the GST payable by the restaurant on the items purchased.

Corporate income tax is a direct tax that businesses in Singapore must pay based on their taxable profits. For restaurants and eateries, the calculation and payment of corporate income tax has some special features.

The CIT rate in Singapore is generally stable at 17% which applies to most taxable profits.

However, the Singapore government regularly has tax incentives to encourage investment and business development, especially for small and medium enterprises.

Factors affecting corporate income tax:

• Business form: Depending on the type of business (private company, partnership, etc.), there are different tax regulations.
• Business sectors: Certain sectors may enjoy special tax incentives.
• Double taxation treaties: If a business has transactions with foreign partners, double taxation treaties may affect tax calculations.

Depending on the type and size of your business, you may have to pay additional taxes such as real estate tax, property tax, etc.

To understand tax regulations and ensure full compliance when opening a restaurant or eatery in Singapore, businesses should contact GLA.

GLA provides in-depth consultation, helping businesses understand the taxes payable, legal deductions and related procedures when operating restaurants and eateries in Singapore.

• You need documents such as: business registration certificate, restaurant business license, food hygiene and safety license, fire prevention and fighting license, alcohol license (if any), etc. 

To open a restaurant or eatery in Singapore, businesses need to apply for some important licenses such as:

• Business License: This is a mandatory document to operate a business in Singapore.
• Food Hygiene License: This license is issued by the National Environment Agency (NEA), ensuring that the restaurant complies with food hygiene and safety standards.
• Fire Safety Permit: This permit is issued by the Civil Defence and Fire and Rescue Department (SCDF), ensuring that the restaurant has the necessary fire safety measures in place.
• Liquor license (if applicable): If your restaurant serves alcohol, you will need to obtain an additional liquor license.

It usually takes about 2-4 weeks, depending on the specific case.

Costs depend on many factors such as restaurant size, location, design, menu, etc. Of which, rental costs, equipment, and personnel are always large expenses.

You have to pay taxes like goods and services tax (GST), corporate income tax, property tax, etc. 

Individuals/Businesses need a Liquor License from the Liquors Licensing Board.