Known for its modern infrastructure and multicultural society, Singapore boasts a variety of food options ranging from cheap street food from hawker stalls to world-class fine dining restaurants. This progressive nation has always been a major player in the food & beverage industry thanks to its unique local cuisine and various successful restaurant chains.
For many years, Singapore’s food industry was a continuously growing market. That was, until the 2020 pandemic set the industry back, as shutdowns and quarantines were implemented throughout the city. Many restaurants had to shut down operations and close for business as revenue slowed down and profits declined.
However, through both the efforts of the government and local industries, restaurants were able to make major adjustments during the pandemic through smart restaurant innovations and proper discipline. Now, Singapore has firmly established itself as one of the world’s best culinary destinations thanks in part to food technology, innovative practices, and government support.
How State Support Helped the Restaurant Industry
One of the main reasons for Singapore’s booming food industry is the swift and calculated response from the Singaporean government. Since the nation is extremely active in global trade, many measures have to be implemented to ensure sufficient supply of products within the country.
The pandemic proved to be a great challenge to Singapore’s F&B industry because 90% of its food supply is imported from other nations. To circumvent this, a collective effort from the food industry, the government, and the public had to be done to ensure no shortages occur. To this end, the Singapore Food Agency (SFA) implemented what is collectively known as the Three Baskets plan.
This plan revolves around Singapore diversifying their food source so that the nation’s supply chain will remain uninterrupted even if a couple of suppliers were short. Singapore tapped into a network of food sources for a constant supply of resources and alternative food options. Officials worked closely with importers from neighboring countries such as Thailand, Malaysia, and Vietnam to make sure operations went smoothly despite the lockdowns.
Secondly, while the Singaporean government wanted to ensure a steady stream of supplies via importation, they also wanted to boost local production. To this end, the SFA also tried to reduce the country’s reliance on imports by supporting locally grown agriculture and local food laboratories for food technology projects and research. Being a world leader in biotechnology, Singapore’s food industry was heavily supported by lab grown produce, and this attracted many food startups from other countries to migrate to Singapore and set up their businesses.
These startups then ended up becoming major suppliers to local restaurants and helped establish Singapore as a food tech hub. Not only did they supply products, they also provided efficient delivery services and online systems for a significantly improved user experience.
Lastly, the SFA supported local companies to expand abroad and profit off newer markets. These companies benefited from the extra land area they were able to work with in other nations to grow more produce and generate more supplies. These companies would then export these supplies back to Singapore to support their local supply chain.
The Impact of Food Tech on the Local Industry
The efforts of the Singaporean government –and the companies involved in Singapore’s food & beverage industry –significantly boosted the productivity of local restaurants. Food tech startups have been supplying restaurants with various ingredients, like the US company Eat Just which supplies restaurants with lab-grown meats.
Because of the focus on biotechnology, the Singaporean government was able to both support local industries and attract foreign companies to join forces in solving the food supply issues brought about by the pandemic. Not only that, several Michelin-starred chefs also ended up starting their own restaurants in Singapore due to the success of the food industry.
Food startups such as those that specialize in insect protein, alternative dairy products, and more vegan products were funded as a means to provide more food choices to Singaporeans.
Other startups such as food marketplaces and inventory management systems for groceries and the like were also funded by the government. These startups are known to have advanced AI and machine learning capabilities to ensure fast and reliable user experience for all their users.
The government also maintained excellent coordination among suppliers and local businesses in order to ensure that owners would have a direct supply of everything they needed to keep their restaurants running. Through the efforts of both businesses and the state, the industry was able to maintain a sustainable equilibrium in both supply and demand.
What We Can Learn From Singapore’s Success
There is a lot to learn from how Singapore’s restaurant industry survived the pandemic. One of the key takeaways from their emergence is just how much technology can really help minimize the impact of issues brought about by world crises.
As much as tradition is a part of many restaurants to this day, technology has proven that maintaining the status quo is sometimes not enough to keep business afloat. You have to adapt to changing times if you want to survive for the coming years. Thankfully, there are plenty of restaurant technologies you can invest in today to help you maximize your revenue.