Deep Dive Singapore's restaurant closures: Why is it closing time for some in the F&B scene?
Mar 25, 2026
Debbie Yong, a restaurant industry watcher and brand strategist, and Mustaffa Kamal, co-founder of The Black Hole Group and seasoned F&B operator, discuss Singapore’s tough dining landscape. They explore operational complexity, rent pressures and market crowding. Conversations cover industry cycles, under-capitalisation, innovation to stay relevant and what meaningful support for local brands could look like.
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Closures Are Cyclical Not Catastrophic
- Restaurant cycles are historical and cyclical, not uniquely catastrophic now.
- Debbie Yong cites past crises like SARS and notes enduring brands began during downturns, showing volatility can breed resilient winners.
Model Worst Case Rent Before You Sign
- Control rent exposure by modelling worst-case revenue scenarios before signing leases.
- Debbie Yong and Mustaffa say aim for rent under ~20% of revenue and stress testing for dips prevents rent from blowing up your P&L.
Lease Renewals Can Trigger Margin Collapses
- Tenancy culture (three plus three years) creates renewal shocks that can upend margins.
- Mustaffa notes landlords commonly raise rents 30–50% at renewal, which can make a previously viable P&L unsustainable.