Want to set up a café in Singapore: Here’s what you need to know

Singapore is the food capital of Asia. The city-state with a diverse culture provides a range of cuisines and experiences to satisfy different appetites. From Japanese and Korean to American and French, from street food to a lavish experience at a plush restaurant, you can choose from a range of offerings to satiate your cravings. Food and beverages are an important part of Singapore’s culture. The food and beverage industry is also one of the largest contributors to Singapore’s economy. Plus, the rise of the social networking sites has placed the food and beverage sector in an attractive place. It offers budding entrepreneurs with a lucrative opportunity.

It is needless to say that new restaurants and cafes keeping popping up at every nook and corner of the city-state. Many young entrepreneurs dream of building their café to take the culinary world by a storm. If you’re one of them, then let us tell you that while the market is lucrative, it is also quite competitive. Thanks to the same social media platforms and the demand that boosts its growth.

But, that doesn’t mean you drop your dream of having your own café. However, make sure you consider these crucial factors before you start a café in Singapore.

Think about the business capital

No business can run without money. And, when you want your food and beverage concept to bloom in Singapore, then it is going to take a good amount of money to do so. It is no secret that Singapore has a high cost of living. The rental and labour costs are high. Don’t forget the expenses on design, construction, and the necessary equipment. Depending on the size of your café, it may take anything from around $50,000 to $600,000 or more. If you think that you’ll cut costs on renovations or labour, then that may not be a good idea. A café business is such, where everything from the ambience to food quality and service plays an important role in its success. So, instead of compromising, take a look at the government grants available or raise capital through crowdfunding.

Pick the right location

Every location is good, but choosing the right one is extremely important. Many restaurant and café owners tend to cut down on costs by compromising on the location, and end up regretting their decision. List down details like the cuisine your café will serve, the size requirements, open space if any, and any ideal areas that you prefer. This will help you find the perfect location to set up your café. You can use newspapers, online sites, or simply contact a real estate agent to help you find a place for your café. Remember that most rental places will require you to pay some months of money in advance.

Obtain registration and necessary licenses

The food and beverage industry is highly regulated. After all, it is the question of consumer’s health. If restaurants fail to maintain hygiene or uses low-quality ingredients, it can cost the nation an outburst of illnesses. Since you want to open a café, you will need a set of licenses before you commence operations. Some of the common licenses for food and beverage businesses include the Food Shop License, Basic Food Hygiene Course, Liquor License, and Halal License, to name a few. Also, incorporate your café business. When you budget for your café, ensure you account for all these legal expenses.

Prioritise Marketing

How will people buy from you if they don’t know you exist? And, even if they are aware of your café, what is it that will compel them to visit it? These are some of the questions that you should address way before you start building your café. Picking a theme could be your first step to a good marketing strategy. A theme-based, photo-worthy concept that distinguishes you from the rest is good enough to draw the interest of the crowd. The next step is to market your café. Social networks and restaurant search forums are the best places for a café to be on. People resort to the internet to decide places for an evening date or dinner. A website can also be helpful, though it might be an addition to your costs.

Pay attention to service standards and manpower

Apart from the food, the experience customers have at your café can make or break your business. Even if you serve delectable food, people will give low ratings if the service is not up to the mark. From the head chef to the cashier, the people you choose will determine your café’s success. Don’t make the mistake of hiring cheap, inexperienced labour. It is okay to pay a little high and hire people who have some experience and good communication skills. If needed, provide training and development. Such costs are investments that can pay you later.

Just like you need the right ingredients in the right proportion for a perfect recipe, you need to ensure you have considered all these factors in your food and beverage business plan. It is also recommended to hire a food and beverage consultant to help you get the right guidance to start a café in Singapore.

Business Loan from 1st Credit SG

If you need some cash to setup or run your cafe business may connect with 1st Credit SG. We are offering business loan with lowest interest rate. 1st Credit SG Pte Ltd approve by Singapore Ministry of Law to operate as a licensed money lender.

We are located at 149 Rochor Road #01-07 Fu Lu Shou Complex Singapore 188425.
Reach us at +65 6266 5422. 

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Setup a new cafe in Singapore is quite costly and tedious
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