(PRWEB) December 2, 2010
Singapore’s reputation as a 'Food Paradise' is now taken to the next level with the launch of the two Integrated Resorts – Marina Bay Sands and Resort World Sentosa. According to analysis done by Singapore company setup portal SingaporeSetup.com, the potential market for the restaurant business in Singapore is well beyond the resident population of nearly 5 million. The Singapore Tourism Board estimates that visitor arrivals will hit 11.5 to 12.5 million this year and aims to raise the number to 17 million by 2015.
SingaporeSetup.com asserts that both the IRs are anchoring a range of fine-dining restaurants, featuring internationally acclaimed celebrity chefs. These latest additions are adding to the vibrancy of Singapore’s food scene that has an array of food services, ranging from the most comforting and simple hawker-fare to the most alluring fine-dining sensations. The gourmet map of the tiny island state is expanding insatiably and there is a lasting potential for opening a restaurant in Singapore.
As per the latest statistical records available the F&B sector generated S$5.6 billion. The direct costs in terms of food purchases, employee remuneration and leasehold expenses are the major elements of cost accounting for an estimated 79% of the cost. The recent inflation in food prices led to a plunge in the profit levels of the food establishments, which largely absorbed the rise in costs to sustain the business. SingaporeSetup.com’s analysis shows that typical food establishments in Singapore range from 300 sqft stalls to 3000-5000 sqft fine diners. Depending on the location and ambience, the rent for the space can range from S$10- S$30/sqft.
The Singapore food service market was able to maintain a positive performance when all other industries were distressed by the economic crisis. Many new outlets were opened even amidst the crisis to capitalize on the low rentals of F&B spaces.
The analysis also found that the staff remuneration costs can be considerably managed by striking a balance between the local workforce and foreign workforce. Singapore's Ministry of Manpower allows foreign workers to be employed in food services; however, the work passes are provided based on a quota system which is pegged to the number of locals employed in the establishment. Having a competent team is critical to a food service establishment, therefore talent cannot be compromised for the sake of cost saving.
According to Ms. Catherine Lee - a senior editorial board member of the SingaporeSetup.com site, “Singapore has an unrivaled reputation for having the most sizzling Food and Beverage (F&B) industry and has rightfully assumed the sobriquet "Gastronomic Paradise of the East". The opportunity and the time are right for foreign entrepreneurs desiring to setup a restaurant business in Singapore. Apart from researching the market, setting up a Singapore company and securing an entrepreneur pass should be the first step towards establishing a restaurant business. The company registration is essential in order to sign the tenancy agreement with the space owner and also to open bank accounts to issue cheques for rental deposits and other expenses. In order to operate a food service business, the establishment must secure a Food Shop License from the National Environment Agency, which issues the license only after inspecting the proposed premises of the service. Therefore the road to prosperity in Singapore's F&B sector starts with company setup and licensing.”
More information about starting a business in Singapore can be found at http://www.SingaporeSetup.com.
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