More restaurant closures, layoffs in Singapore loom despite delivery, takeaway surge
About two out of five restaurants offered delivery for the first time during the ‘circuit breaker’ period.
Solely offering delivery and takeaway leaves much to be desired for Singapore’s restaurants, expecting more closures and layoffs if dining-in restrictions are extended beyond its ‘circuit breaker’ period.
Online restaurant platform Chope’s latest survey revealed that 42% of restaurants reported that they will not be able to operate beyond two months. 81%, meanwhile, said they will not be able to operate beyond six months at the current rate of cost and revenue.
The survey, which acquired responses from over 150 establishments, was conducted after the shutdown was in effect since 7 April.
Currently, 11% of restaurants said they have retrenched staff with another 25% considering ceasing employment of more staff should the situation not improve.
About two in five (42%) restaurants surveyed offer delivery for the first time during the circuit breaker period, with delivery and takeaway contributing less than 10% of revenue for 88% of restaurants surveyed prior.
62% of restaurants that continued to operate on a takeaway and delivery basis saw at least a 50% decline in revenue compared to April last year.
Chope explained that revenue generated is “not sufficient” to offset the losses, with restaurants still facing the “high cost” of working with logistics or third-party delivery providers.
“Restaurants have spent enormous effort figuring out how to do delivery, but the data shows it's only helping marginally. Covering rent and salaries will require some easing off of dine-in restrictions, balanced carefully against public health concerns. When that happens, we're confident that diners' pent up demand will help get restaurants back on track,” The Chope Group founder and CEO Arrif Ziaudeen said in a statement.
Enterprise Singapore earlier offered a Food Delivery Booster Package, encouraging restaurants to consider offering food delivery by offsetting some costs to help them cope with circuit breaker measures in April and May. 43% of restaurants surveyed said they were on the fence when asked to rate how the support provided by the government had been sufficient thus far. On a scale of 0 to 10, the average score was 5.9 with 42.4% of restaurants rating either a 5 or 6.
By May, more than half (57%) of restaurants received rental rebates the equivalent of the property tax rebate, or have heard from their landlords that they will do so. However, 12.7% of restaurants have neither heard from landlords on rental waivers nor have been told that they would not receive rental rebates.
