Starting a food business in Singapore can be an exciting journey. With the country’s vibrant food scene, there is plenty of opportunity to grow your food and beverage business. In this guide, we walk you through the necessary steps that will help you get up and running, including registration, food safety, and compliance.
Steps on how to start a food business in Singapore
Step 1: Understand the market
Before entering the food and beverage business, it is important to study the local market. Analyse consumer trends, identify your target audience and study your competitors. Additionally, consider the type of establishment you would like to run. Will it be a hawker stall offering affordable meals, a trendy café in the city centre, or a niche restaurant specialising in unique cuisines? The business model you select will decide the way forward for you.
Step 2: Choose your business structure
To officially start your food business in Singapore, you will need to register your company with the Accounting and Corporate Regulatory Authority (ACRA).
Common business structures for F&B ventures include:
- Sole proprietorship
- Simple and cost-effective.
- Ideal for small-scale businesses.
- Limited to Singapore Citizens, Permanent Residents (PR), and EntrePass holders.
- Private Limited Company (Pte Ltd)
- Offers limited liability protection.
- Provides access to government grants and tax incentives.
- Suitable for larger operations or when seeking investment.
Most entrepreneurs in Singapore choose the Private Limited Company structure due to its flexibility and benefits.
Step 3: Register your business
After choosing your business structure, go ahead with the registration. Key steps include:
- Selecting a unique business name: Your business name has to be approved by ACRA and should not be the same as any other operating or registered entities.
- Preparing documents: The documents needed include the company constitution, shareholder details, and a local registered address.
- Appointing directors and a company secretary: At least one director must be a resident of Singapore.
- Paid-up capital: The minimum requirement is SGD 1.
After submitting your application, you will receive your company registration documents via email, typically within a day.
Step 4: Apply for licenses and permits
Singapore’s strict regulations ensure that food establishments maintain high standards of safety and hygiene. Depending on your business type, you may need the following licenses:
- Food shop license: Issued by the Singapore Food Agency (SFA).
- Liquor license: Needed if you plan to serve alcohol.
- Halal certification: For businesses catering to the Muslim community.
- Import license: Necessary if you are importing food or ingredients.
- Good and services tax (GST) registration: Mandatory if your annual turnover exceeds SGD 1 million.
Employees handling food must also complete the Basic Food Hygiene Course to ensure compliance with local standards.
Step 5: Budgeting and financial planning
Opening a food business in Singapore requires substantial investment.
The key costs involved are:
Rental costs:
- Core Central Region: SGD 12–18 per square foot.
- Outside Central Region: SGD 6+ per square foot.
Staff costs:
- Part-time staff: SGD 7 per hour.
- Full-time staff: SGD 1,800–2,000 per month.
- Head chefs: SGD 5,000–6,000 per month.
Licensing fees:
- Food Shop License: SGD 195 annually.
- Liquor License: SGD 1,329–1,740 (two years).
Proper budgeting helps you to utilise resources effectively and avoid unexpected costs.
Step 6: Choose the right location
Location is a major factor in your food business. Food businesses located in popular places include hawker centres, shopping malls, and business districts. Consider the following in choosing the location for your food business:
- Accessibility: The site should be accessible by public transport and on foot.
- Target audience: Choose a location that best fits your customer demographics.
- Budget: The rental cost should be balanced with the potential revenue of the location.
Step 7: Hiring and training staff
A common challenge for every F&B business in Singapore is finding and retaining staff. With the shortage of local manpower, many turn to hiring foreign workers but are limited by several regulations.
Consider these strategies to build a strong team:
- Clearly define roles such as chefs, servers, and managers.
- Provide training to ensure high standards of service and food safety.
- Offer competitive salaries and incentives to retain talent.
For smaller establishments, assigning multi-tasking roles can help reduce labour costs.
Step 8: Source ingredients and equipment
Reliable suppliers are crucial to the quality and consistency of your food. When choosing a supplier, opt for
quality, reliability, and price. Negotiate better deals by forming long-term contracts.
Step 9: Marketing your food business
Marketing is an essential activity to bring in customers and build your brand.
Consider the following strategies:
- Social media: Instagram and Facebook are great platforms to highlight your food and interact with customers.
- Online listings: Create an account with GrabFood and FoodPanda to increase your visibility.
- Promotions: Give discounts, run loyalty programs, or exclusive offers during your launch phase.
Collaborate with local influencers to extend your reach and build credibility in the market.
Start your food and beverage business in Singapore with confidence with SmartCity Kitchens
Turn your passion for food and beverage into a successful business venture by partnering with SmartCity Kitchens. We are your recipe for success. We will help you open in just a few weeks. Leave the time-consuming construction, permitting, and installation to us. Check out our 8 facilities operating in Singapore today that meet both SFA Food Shop License (FSL) and Food Processing License (FPL) needs. See you soon!
