Singapore’s renowned culinary landscape has taken a hit over the past year due to numerous closures, impacting everything from budget-friendly hawker stalls and medium-sized establishments to high-end Michelin-starred eateries. These businesses cite increasing expenses alongside reduced consumer spending as contributing factors.

The average number of closures in the food and beverage industry has been 307 per month this year, an increase from 254 monthly closings in 2024 and approximately 230 per month in both 2023 and 2022, according to government statistics.

Alvin Goh, one of the founders of Wine RVLT, will contribute to the numbers later this year.

He mentioned that he won’t extend his lease once it expires in August, following nearly ten years of offering natural wines and small plates in the affluent Asian financial center home to six million inhabitants.

“Since June 2023, we have been operating at a loss. To cover expenses like rent, wages, and supplier payments, we have had to inject additional funds,” he explained.

Similar to other business owners, Goh has faced increasing expenses related to products, utilities, rent, and wages. His customer base has shrunk, and those who still visit his establishment are spending less compared to the heightened demand witnessed in 2022 when restrictions were eased post-pandemic, as Goh described it.

The proportion of closings compared to openings in 2025 and 2024 exceeded previous levels seen both before and during the pandemic, indicating a declining industry.

Since last year, closures have impacted various types of eateries, including affordable hawkers’ stalls all the way up to upscale venues like Smoke & Mirrors and several Michelin-starred dining spots such as Art by Daniele Sperindi and Sommer and Braci.

Maybank economist Brian Lee anticipates that business shutdowns will stay at an increased level throughout 2025. He mentioned that high operating expenses coupled with many Singapore residents preferring travel over eating out are contributing factors.

One of them is Glenn Chew, aged 26, who operates in the field of public relations. He mentioned that he frequents other Southeast Asian cities where eating out costs approximately 30-40% less compared to Singapore.

The worry is that these closures could result in the disappearance of the island’s culinary traditions and its reputation as a leading destination for Asian cuisine, according to food blogger Seth Lui, who is 40 years old.

He stated that we’ll begin noticing an increase in automated fast-food style establishments and widespread franchise brands instead of distinctive, charming concepts.

Nevertheless, individuals like Jay Gray, who is 34 years old and co-owns Club Street Laundry—a restaurant that debuted this year—are optimistic. This marks his sixth business endeavor over the past eleven years.

He believes strongly in the Singapore market and feels confident that focusing on hospitality, which is crucial, will ensure sustainability.

According to last year’s Cost of Living Survey published by the American consultancy firm Mercer, Singapore ranked as the second priciest location globally for expatriates following Hong Kong.