03/09/2026
2,101 F&B businesses closed in 7 months. 2,594 opened. Same rent, same CPF, same market. So it was never the cost.
Yet 83% of employers just named manpower cost their top challenge for 2026.
Here's the part nobody's saying out loud.
It definitely wasn't rent.
Rent actually fell as a share of F&B business costs — from 26% down to 17% since 2019. Retail rents have risen slower than inflation and slower than the economy. Rent caps have already been ruled out by the government.
That fight is over. In a land-scarce country, rent going up is weather. You don't file a complaint against a typhoon. You prepare for it.
CPF and LQS? Also weather. Announced years ahead, identical for every competitor. Which is exactly why they can't explain why the shop that closed, closed — and the one next door didn't.
So what did the survivors know?
They bet there were still customers worth chasing.
Food caterers grew 13.7% as diners moved to events. Fast food grew 4.8%. Meanwhile six in ten of the F&B businesses that shut in 2025 had been around five years or less — and 82% of those had never recorded a single profitable year. That's DPM Gan Kim Yong's own number, in Parliament.
That is not a cost problem. That is a listening problem.
And here's the painful part.
When you freeze wages and cut the training budget, you're not saving money. You're switching off the only people in your business who know why customers stopped coming.
Your staff know. Your customers know. Nobody ever properly asked them.
MTI said it plainly: cost pressure came "more from non-rental components," and to survive, businesses "must continually innovate their offerings."
Innovate for whom? Based on what? You cannot innovate for a customer you have never truly heard.
This is exactly why we built HEARyou.
Not another AI tool to help your staff type faster. A way for any business — including the SMEs employing nearly 70% of our workforce — to genuinely hear their customers and their people, in their own words. Four weeks. A fraction of what a consultancy charges.
48% of employers say they'll prioritise AI in 2027. Point it at the right thing.
Because manpower is not your cost. Manpower is the only thing you've got that can go find your next customer.
Cost is the weather. Demand fit is the boat.
Stop cursing the sky. Go check the shape of your boat.
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If your 2027 plan is a wage freeze, ask yourself one question first: when did you last properly hear what your customers actually want to buy?
More Singapore employers plan wage freezes and increased AI focus in 2027 amid rising costs and cautious business outlook, says SNEF survey of 320 firms. Read more at straitstimes.com. Read more at straitstimes.com.