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2023-09-16

Singapore’s F&B Sector at a Crossroads: Navigating Manpower Crunch and Technological Innovations Amidst Pandemic

Singapore's F&B Sector at a Crossroads: Navigating Manpower Crunch and Technological Innovations Amidst Pandemic

Singapore’s Food and Beverage (F&B) sector is grappling with a significant workforce shortage exacerbated by the COVID-19 pandemic. Despite the challenges, the industry saw a net increase of nearly 1,500 new companies in 2021, the highest in the past 30 years, indicating an oversaturation and intensifying competition for the workforce. The government emphasizes the pressing need to enhance productivity and reduce labor reliance in this sector, one of the least productive industries in Singapore.

Many F&B businesses have turned to technology to mitigate the workforce crunch. For instance, The Soup Spoon implemented self-ordering kiosks at all its outlets, and Dian Xiao Er invested in machinery to simplify the duck-roasting process, reducing workforce needs. However, the rapid implementation of technology has also met resistance, especially in establishments where personal service is a significant part of the customer experience. The government encourages the adoption of digital solutions and offers grants to support businesses in this transition. Despite the push for automation, the sector still faces a “perfect storm” of rising costs and other challenges brought about by the pandemic.

As the sector navigates these challenges, it stands at a crossroads where balancing technological advancements with the human touch will be crucial in defining the future landscape of the F&B industry in Singapore.