You have been dreaming about starting your passion project in F&B for a long time. You finally decide to open your very own F&B outlet. You are super excited because you get to be your own boss, make your own decisions, do what you love, and work at your own time. However, in the midst of all this excitement, you might be feeling a little overwhelmed about how to start your journey as an F&B entrepreneur. Fret not, because we are here to clear your worries! In this article, we shortlist 5 top things that you need to know and ask yourself before starting out in the F&B industry.
The service style of an F&B business is vital as it is a determining factor for your restaurant's layout, menu, inventory, food prices, and the décor. In order to determine your service style for your business, the first thing that you have to figure out is the different types of service characteristics Singapore has. By doing this, it helps you to understand how these service styles are like in SG so that you can provide a wholesome experience for your customers.
Did you also know that the service styles used in different settings help to shape your customer’s perception of your brand and your restaurant as a whole? For example, if you are serving food in a fine dining restaurant and your service style mimics a coffee shop service style which is casual and your service staff speaks in a loud voice, it wouldn’t sit right for the customers and they might not return because of that.
Taking over an F&B business is commonly referred to as buying the entire business at an agreed rate from the previous tenant. It commonly includes the name, brand, logo, equipment, licenses, and the physical unit of the previous business.
Often, people are quick to judge that there must be something amiss with the business if the F&B owner decides to sell the business. However, in reality, some F&B owners sell their business due to them being at different life stages, and/or they might not be excited to work with their existing business model anymore. Instead, taking over a business may bring you more pros than cons such as not having to worry about your licenses, décor, the direction of operations.
For example, starting a restaurant from scratch requires lots of time and effort, trial and error to determine if you are doing things right for your business. Whereas, when taking over a business, all these problems are more or less settled as they have been established for a period of time.
Always remember that what is no longer working out for someone else might be a step to your entrepreneurial dream, so stick to your beliefs and go for it!
Before we get to the location that you desire, you have to know what you are planning to sell as different preparation methods might pose some restrictions on the units you consider. For example, a pop-corn stall only requires a pop-corn machine and a sink. There is no need for an exhaust hood and ducting, a stove and grease trap, as compared to a Chinese restaurant.
Next, remember to survey your neighborhood. If you happen to notice your neighbors selling similar food items as you, it is not necessary that you have to move or change up your menu. This could mean that your neighborhood has a high demand for the food items that you are selling, which is a bonus for your F&B business. For example, Tanjong Pagar is known to be the place for Korean food. Despite the saturation, it is still a popular spot because if one shop has too many people waiting in line, customers who are unwilling to wait will switch to neighboring shops.
Opening your F&B business in a strata mall as compared to a commercial shopping mall is very different, so do your homework before signing a tenancy agreement. Strata malls are commonly located near residential estates and are more welcoming to new, unproven brands. On the other hand, for commercial malls, there is the Gross Turnover (GTO) component to consider when calculating your rent. If you plan to open your F&B business in a shopping mall, be prepared and budget your operation cost and menu prices accordingly.
A very important aspect of a food business’ foundation is the people who work behind the scenes and they are known as your mobile team. They are the ones who you can rely on and support in order to build and grow your business along the way.
A starting team commonly consists of individuals who are able to make great decisions, build relationships, drive employee productivity, create a positive environment for their co-workers, and empower people. These are the people who will be capable of handling and planning the menu, setting up the Standard Operating Procedures (SOPs), and developing the culture for the staff in the restaurant.
It is always better to go ahead with a supplier who can consistently deliver fresh quality produce to you as compared to a supplier who offers you a lower cost in the price of the ingredients. Without a supplier that is consistent in their offerings, it may disrupt your business operations as you would have to source for a supplier when your ingredients have gone grim, resulting in higher cost!
One pro-tip that you can take note of is that before selecting the suppliers that you want to work with, you may visit them and observe how they operate. The differentiator between a good supplier from a bad supplier is the way they pack vegetables/fruits together. Some vegetables/ fruits release ethylene gas and some categories of ingredients are sensitive to such gas. For example, apples, blueberries, tomatoes are foods that produce ethylene gases and broccoli, garlic, cauliflower, and unripe bananas are ingredients that are very sensitive to the gas. By placing them together, it will result in your ingredients rotting. Hence, it is vital to see if your suppliers are storing the ingredients properly before selecting them as your food supplier.
All in all, there are many things you need to consider before setting up your F&B business, the 5 things mentioned above can be a good starting point for you. Opening an F&B business in Singapore is not the easiest but it can be very rewarding, and we have guides for just about everything you need to know. So remember to invest time and energy for it, plan your steps, do your research on your target market, location, to grow your F&B business!
Caroline Yap is the editor and intern at iCHEF Singapore. She manages iCHEF Club, a growing community of F&B owners in Singapore – organizing events, an online newsletter, and the F&B Entrepreneur Bootcamp, the only regular workshop on opening a new restaurant in the country. In her spare time, she loves drawing, painting, and creating new visuals. Her love for Korean food runs deep such that you can spot her at any famous Korean Restaurant in Singapore.
