On top of changing COVID-19 rules, F&B businesses now worry about rising costs

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SINGAPORE: Apart from “stop-start” changes in COVID-19 safety protocols, the pandemic is driving up pressure for food and beverage businesses on another front – rising costs. Food ingredients and wages, which typically account for about two-thirds of operating expenses for F\u0026B operators, are

by 2023, others like Mr Soh said. There will also be additional COVID-testing expenses when government subsidies come to an end this year.“It’s not just food ingredients. Everything from crockery, kitchen stoves and equipment, to installation fees and renovation costs – everything has gone up,” said Mr Loh, whose F&B group runs restaurants such as Meat Smith and Burnt Ends. “We are now fighting a battle on multiple fronts.

Mr Loh agreed, noting that there is “very strong price resistance in the market at the moment” with consumers being more cautious of every penny spent. Unlike bigger F&B operators who have economies of scale, owner and chef Bernie Tay said the restaurant can only adapt to the changes and"pray that consumers ride along with us".

Total employment in the F&B sector fell by about 8 per cent in June 2021 compared with December 2019. But the Government has helped the sector through initiatives such as the Jobs Support Scheme and the Food Delivery Booster Package, the minister said.

 

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