This COVID-19 article featuring tips for F&B businesses in Singapore was last updated on 01 April 2020: We have added a few new tips in response to Singapore’s latest regulations.
As we all already know, COVID-19 has taken way too many lives, robbed of people’s freedom and is destroying innumerable businesses. Unfortunately, experts have cited the likelihood of the virus staying until the end of 2020. It’s even probable that it might become part of our lives like the seasonal flu. Nobody knows when this nightmare will end, or if it will ever end.
The number of COVID-19 cases is growing with each passing day and uncertainty grows as stricter new measures are constantly rolled out. With no tourists in sight due to travel restrictions and fewer Singaporeans dining out, many F&B businesses in Singapore will soon cease operations during this pandemic. Sadly, some have already closed down.
When Singapore raised its alert level to DORSCON Orange on 7 February 2020, bars and restaurants were badly hit. But F&B businesses took an even bigger blow in the last week of March when the government decreed bars, nightclubs and entertainment spots to close till 30th April 2020. Social distancing was mandated and groups were to be capped at 10 people.
During this insanely critical phase, it is of utmost importance to stay calm and stay safe. Health should be over wealth. Although at this point, majority are just trying to survive. We know it’s easier said than done, especially when companies are responsible for the livelihood of many. So what can bars, restaurants and other F&B businesses do during this crazy crisis?
Don’t expect the virus to miraculously disappear overnight. Drop assumptions that the government can save your business. Don’t wait for a mandatory lockdown to react. It’s time to take action now. While we have never dealt with a situation like this before, we hope that these tips are at least helpful in providing some guidance to those who feel lost and helpless.
#1 Appeal for Rent
Soaring rent has always been a problem for Singapore’s F&B businesses. But this issue has been even further amplified during COVID-19 when eateries have reported losses of up to 90%.
While Jewel Changi Airport has offered a 50% rent rebate to its tenants, not all landlords were willing to do the same.
Former DJ Daniel Ong recently revealed in one of his Instagram posts that one of his restaurant venues has been paying a monthly rental fee of S$25,000 and his staff cost approximately S$40,000. This is the plight of many restaurant owners and most are struggling to survive during COVID-19.
Fortunately, a statement was released on 01 April 2020, that restaurants will be protected under the Covid-19 (Temporary Measures) Bill – that’s expected to take effect in mid April.
According to Channel News Asia, “even though a restaurant was unable to foot their rent in February and March, the landlord cannot evict them, repossess their premises, or sue them.”
The Parliament will be introducing more information with regards to this issue next week.
#2 Deliveries
More people are working from home and choosing to dine in amid the COVID-19 outbreak. If your restaurant isn’t offering food delivery services, it’s seriously about time you do so. You can still feed your regulars and even reach new customers!
In a recent interview held by Today Online, a university student revealed he hardly used food delivery services before Coronavirus, but now spends ~S$100 a week on food deliveries. Clearly, a lot more people are now choosing to dine in instead of dine out.
There are numerous food delivery platforms in Singapore i.e. Deliveroo to partner with. The platform allows customers to select a ‘contactless delivery’ option, where food is dropped directly at their doors. This way, customers and drivers can avoid contact with each other.
DBS SME customers can also enjoy preferential rate with Oddle, where online menus, integrated payment and delivery systems could be set up in just three days.
But the process doesn’t end there. Get creative! Perhaps throw in a surprise voucher or a note of encouragement along with your package. Who knows, you might get a repeat order and that will certainly help with cash flow.
#3 Dining Vouchers
Give your family, friends and loyal customers a chance to support your business during this challenging period. Let them purchase discounted gift cards and dining vouchers so that cash flow can increase and keep your business going.
Bangkok hospitality group Foodie Collection (which owns one-Michelin-star restaurant 80/20 and award-winning bar Vesper) is offering gift vouchers which will definitely help them to cope with revenue losses during the city’s mandatory bar closure.
There’s no shame in asking for help. Go on Patreon and allow both loved ones and kind strangers to tide you over. Perhaps $5 allows them to redeem a coffee at your venue and $15 will grant them a free cocktail. The options are endless. What can you offer?
#4 Ensure Safety
People are still dining out in Singapore and it’s your responsibility to keep your venues safe. Sanitise chairs, tables and doorknobs consistently throughout the day.
Employees who are unwell should not be allowed to work, hand sanitisers should be readily available and spaces between tables should be widened to ensure a distance of at least one metre.
Tech startup Waitrr facilitates contactless ordering systems and non-contact payment – which will not only save time but also protect customers and staff. As overall waiting time is reduced, the total number of people in the restaurant is lowered and risks of exposure are therefore minimised too.
Share the precautionary measures undertaken by your establishment on your social media platforms, so that your customers would feel comfortable and safe to dine in.
#5 Discounts for Healthcare Workers
Many restaurants such as Lady M Singapore and Old Chang Kee have given out free food to hospital staff. While not every business can afford freebies, what you can do is to consider giving a discount to say thank you.
For instance, Vietnamese restaurant Red Sparrow is offering a 50% off total bill to healthcare heros.
#6 Offer Credits instead of Refunds
Are your customers seeking cancellations for their private events and requesting refunds? Events with >250 people are currently banned in Singapore and who knows, events might even soon be capped at no more than 50 people.
Update: Singaporeans are advised to avoid holding and participating in social events and gatherings involving more than 10 persons at any one time. These include private celebrations like birthdays and weddings.
If your customer is requesting to cancel their private event at your establishment, consider offering them credits (to spend at your venue) or a complimentary change of date. This will not only build goodwill but also facilitate cash flow.
#7: Think Out Of The Box
Singaporean pastry chef Janice Wong is offering affordable monthly edible subscription boxes that feature sweet treats and hands-on activities.
If you are a chef/owner, why not offer online cooking classes to your customers who wish to dine at yours but are afraid/unable to leave home? Come up with cooking kits and encourage couples to do something fun during their quarantine.
Bars can also consider offering takeaway bottled cocktails like Atlas Bar Singapore. Be innovative and diversify your offered services and products.
#8: Partner with Local Brands
Carousell and Unilever have joined forces and are helping >2,500 local eateries and hawkers to go online — at no additional costs. This movement is a great option for those who are looking to avoid delivery commissions. As one in four Singaporeans currently use Carousell, the filter makes it easy for them to support nearby hawkers by ordering takeouts in advance and avoid crowds.
At this point, many are quarantined or separated from their loved ones. How do you make an isolation experience better for these individuals?
For example, local bakeries can partner with local florists to create heartwarming parcels that make quarantine fun and less miserable.
What interesting packages can you come up with that will make people smile?
#9: Sell Bottled Cocktails at Temple Cellars
Cocktail bar owners that have been forced to shut can now sell their bottled cocktails at Temple Cellars and they are not taking any cut. Yes, 100% of proceeds go back to you. Drop them an email at confess@templecellars.com or drop them a message via Instagram.
This cost-free collaboration is currently available until 30th April 2020.
#10: Free rent at Furama Riverfront
Furama RiverFront’s lobby has recently undergone a facelift and the newly revamped space is now offering affected F&B local businesses a rent-free solution.
How it works: F&B businesses can continue selling their products and serving their regulars in the hotel during COVID-19. It’s also a great way to tap into another market without incurring extra costs! Interested parties can send an email to germaineyap@furama.com.
#11: Free Supper at Barbary Coast for F&B folks
Barbary Coast is offering complimentary supper throughout April 2020. This offer is available to anyone that works in the food and beverage industry, from Tuesday to Saturday to the first 20 people who RSVP via WhatsApp (+6588694798).
Barbary Coast will be posting their supper plate of the day on Instagram Story, so keep your eyes peeled!
#12: Speak to Customers
Your customers are spending more time online than ever before. Facebook, Instagram and WhatsApp have seen a 40% increase in usage since the Coronavirus outbreak.
But that doesn’t mean you pretend that COVID-19 doesn’t exist and sell your products/services like an annoying salesperson. It’s time to connect meaningfully online. Clear confusion and let people know if you are open/closed during this pandemic. Share with them how your venue has taken measures to keep everyone safe and be genuine about it.
If your business is not in operation during this period due to regulations, why not seize this opportunity to share untold stories of your brand. How did you start your bar/restaurant? What’s the inspiration behind your name? Your struggles? How can you continuously engage your customers even when your venue is temporarily closed?
#13: Is it Time to Renovate?
If you have been meaning to revamp your interiors but couldn’t find the time to do so, perhaps this is the best time to close temporarily and renovate!
Hopefully, Coronavirus will be over in Singapore when you reopen for business. Or at least under control so that more people are comfortable going on with normal life.
#14: Plan for a Comeback
Some places have closed due to mandatory closures and some places have reduced operation hours in response to COVID-19. Why not take this spare time to hone your skills and prepare for an epic return where you hopefully emerge stronger.mBrainstorm fresh new ideas for your menus and marketing campaigns. There’s so much you can do!
#15: Don’t Flout the Laws
Following the recent nightlife ban, many places were confused on whether they had to close down. Smoke & Mirrors announced ‘See you in May’ and ‘We’re Still Open’ within 24 hours.
It’s not their fault. Everyone was equally confused too. But authorities have made it clear – venues that are allowed to remain open ultimately depend on their license. For instance, Paulaner Brauhaus can still operate as usual as they hold a restaurant and brewery license. For now, that is.
F&B owners have to be mindful of their operations and adhere to regulations enforced. Otherwise, they risk being jailed up to six months, or fined up to S$10,000. Or both. These rules include safe distancing of sitting/standing at least one metre apart and the temporary ban of public entertainment such as live music performances.
We heard the police are constantly patrolling hotspots. This is definitely not the time to test the waters.
#16: Invest in Digital Marketing
This might sound counterintuitive, when it seems like everyone is frantically slashing budgets. But you should not eradicate marketing efforts, especially when your restaurant is still in operation.
When it comes to digital marketing, every dollar spent on advertising could reach hundreds more people. If one out of the hundreds were to convert into a walk-in customer, you would have gained a return on investment.
The good news is that people still need to eat every day and not all hope is lost. Instead of feeling dejected, ask yourself – what can you do differently with your business this time to generate sales?
Uncover Asia is run by The Social Nugget (a boutique digital marketing agency focused on helping F&B brands grow).
#17: Communicate Internally
With drastically reduced revenues, most F&B businesses are unable to pay their staff as per normal. But I’m not suggesting you fire your team or slash their salaries unreasonably.
Everyone is well aware of COVID-19’s impacts, so be honest with them and explain the situation. If you see real value in your employees, do your best to keep them. Come up with reasonable arrangements to keep everyone afloat. Retrenchment should be the last resort.
Here are a few alternative approaches:
A] Clearing annual leave
B] No-pay leave
C] Pay cuts
D] Allow them to take on other part-time jobs
#18: Advertise, For Free
Uncover Asia wishes to do its part for the community during COVID-19 too. Do contact us at admin@uncoverasia.com should you know of a local business in need. We will gladly feature bars and supper spots for free on our website to support them.
To support local bars and supper spots during COVID-19, Uncover Asia is offering free features on our website.
#19: Preparing for an Unpredictable Future
You are in deep water if you are STILL refusing to make any adjustments to your business.
When it was abruptly announced that bars, nightlife and entertainment venues are to close for at least 35 days until 30th April 2020 (date might be extended, depending on circumstances), business owners, bartenders and customers were shocked. But it was a brutal reminder that anything could happen during this period. The near future is still beyond unpredictable. A lockdown may be enforced or your restaurant might be forced to close.
Remember that most businesses are in the same boat as you. This is the time where you need to look into your cash flow and ask – how long more can your business survive if you were to continue on this trajectory? How can you minimise losses? What other ways can you generate sales? COVID-19 might lead to the demise of many businesses, but it doesn’t have to be yours. Remember, you always have a choice to put up a spectacular fight for your staff and yourself, or you could choose to give up.
What would it be?
1 Comment
Janet Lim
April 5, 2020 at 8:38 pmWell done. A responsible coverage/contribution.