What Do You Need To Know To Start a Business in F&B?

Singapore is known as a food haven and nominated as one of the best food destinations in Southeast Asia. With its melting pot of different races and cultures, you’re sure to find something that you like.

That’s why it comes as no surprise that food-preneurs look to Singapore as their destination to set up their food and beverage business.

While setting up a business in Singapore is a relatively straightforward process as ranked in the Worl Bank’s Ease of Doing Business report, it doesn’t mean that it doesn’t come with its challenges as well.

Starting an F&B business in Singapore

  1. Making a restaurant business plan

As with starting any business, making a restaurant business plan forms the foundation of a business.

Take into account budgeting for things such as rental, manpower, licensing, as well as kitchen equipment and furniture for your restaurant.

  1. Registering your business

Based on your business needs, you can choose from a range of business structures, from a partnership, sole proprietorship, companies, limited liability partnership, limited partnership, and public accounting firm.

You will then need to purchase a business profile from the Accounting and Corporate Regulatory Authority (ACRA) in order to be able to report details and information about your business. This includes the registration number (UEN). You will need this business profile to set up future accounts for your business, such as bank accounts.

  1. Apply for a license

Singapore is known to be a well-regulated country, with strict rules and regulations when it comes to the food and beverage industry with a number of licenses you would need to register for prior to opening your business.

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This includes licenses such as the food shop license, basic food hygiene course, liquor license, importing of food license, Central Provident Fund (CPF) as the basics.

  1. Sourcing for suppliers

Obtaining supplies for your restaurant may take up to 20% of your revenue. That’s why

searching for the best suppliers offering the best price while maintaining quality is important for your business.

  1. Forming partnerships and delivery

As a new F&B business, expanding your reach to a wider audience would help to grow your business. That’s why forming partnerships by working with food delivery companies such as Grab Food or Deliveroo may help. You may also opt to create your own delivery website through platforms like Oddle.

Key takeaways

If you’re looking to set up a food and beverage business in Singapore, researching and preparing will help to ensure that it’s a smooth process. It starts from registering your company to applying for licensing. Next proper budgeting and taking the time to search for a good location as well as sourcing for good suppliers are just as important. Last but not least, forming partnerships or setting up a delivery platform will help your restaurant to expand to a wider audience.

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