Fast food sector in Singapore
Singapore’s food and beverage services sector is a billion-dollar industry. While fast food outlets comprised around five percent of all food establishments in Singapore, they contributed around 16 percent to Singapore’s total food service operating revenue. The quick-service restaurant business model, with limited table service and high table turnover, means that fast-food restaurants can keep their operating expenses low compared to full-service restaurants. This ensures that fast food chains have the highest per-square-meter operating revenue out of all food service establishments in Singapore.Despite the promising margins, fast-food outlets and quick-service restaurants face significant challenges. The COVID-19 pandemic resulted in slower sales growth and the need to adapt the business model to that akin to a fulfillment center relying on delivery services to bring the food to the customer. In 2020, the number of fast-food outlets that ceased operations was markedly higher than the formation of new fast-food outlets. Quick-service restaurants were also hit by staffing issues. The pandemic resulted in a considerable reduction in employment in the food service industry. One solution implemented by many fast-food outlets was the introduction of self-ordering kiosks, reducing the number of service staff needed.