Due to the current COVID’19 situation, Pubs/Bars are unable to open during Phase 2 and owners are worried about making ends meet. Some are considering waiting it out until Phase 3, while others are thinking of changing their Pub/Bar license to a Foodshop license in order to resume operations. However, changing an outlet’s concept from a bar to a restaurant is more complicated than getting an induction cooker and serving some dishes. What does SFA consider to be the difference between a Pub/Bar and a Restaurant, and what does it take to change your existing license?
Singapore is operating in 3 phases with regulations meted out. On 19 June 2020, Phase 2 of the circuit breaker was opened and dine-in services in F&B establishments are allowed. However, Pubs/Bars/Entertainment outlets are still unable to open.
To determine whether you can open your F&B business, you may look at your SFA license - Foodshop (Restaurant /Food Caterer/Snack Bar).
Examples:
Besides that, the government has imposed a time restriction on the sale and consumption of alcohol in all F&B establishments where it will be prohibited by 10.30 pm daily. Failure to adhere to the sale of alcohol regulations will result in facing a penalty of up to S$10,000, imprisonment of up to six months for first-timers and up to $20,000, imprisonment of up to 12 months for second offenders, and closure of your F&B establishment.
1. What is a Foodshop (Restaurant)?
According to the Urban Redevelopment Authority (URA), Foodshop refers to cafes, restaurants, coffee shops that sell food along with alcohol and do not provide live entertainment. The focus of the F&B business should be placed on the sale of food for consumption and not on the sale of liquor and alcoholic drinks. Most of the revenue earned must be placed on the sale of food and to sell alcohol, restaurants must obtain an alcohol license.
A restaurant cannot be used as a bar and the restaurant must:
Make food available to customers at all times
Be equipped with proper kitchen design else it would not be approved during the SFA Inspection.
Click here for the checklist of proper kitchen design.Provide adequate dining area with indoor seating for customers to consume their meals
Not convey an impression of a Pub/Bar like-concept in their shopfront, banners, and on social media platforms.
E.g. Dimly lighted, bar stools, Big alcohol posters in the shopfront, and on social media platforms.
2. What is a Pub/Bar?
Pub/Bar refers to premises used to sell alcoholic drinks for consumption. Finger foods are sold here but the focus here is placed on the sale of alcoholic drinks.
Pub/Bars are often accompanied by live music which might give off loud noises that would affect the community living in that area. Thus, proper soundproofing must be done to reduce noise disturbance and it must not be located near residential, commercial premises.
To open a Pub/Bar, you must obtain a liquor license. There are 2 different types of alcohol licenses (Class 1A and 2B) you can choose from and without the license, it is an offense to sell alcohol. Alcohol licenses are given based on the location you are opening at. A certain number of licenses will be given and this is based on the available slots on the location that you apply for. To apply for a liquor license, click here.
Pub/Bar owners must remember that after trading hours as stated on your liquor license, your staff will not be able to sell liquor/beer over the counter/on the premises. However, if your business has a license to sell it on an Online website, customers can still purchase them online.
3. How to get a Foodshop and Alcohol License?
You must have an SFA license to operate as an F&B establishment. If help is required in opening your F&B business, iCHEF can provide a POS system that is designed for restaurants (and pre-approved under PSG with 80% subsidy)
Foodshop (Restaurant) selling alcohol with the consumption of food
Food Shops that are approved for restaurant use have to :
Obtain a separate planning approval from URA to be able to apply to sell alcoholic beverages in the day/night. - If owners do not apply for a new planning approval from URA, their main business should remain as a restaurant and not the sale of alcoholic beverages. Alcoholic beverages should come off as an accompanying product to the consumption of food.
Food Shops need to obtain an alcohol license (Class 1A or Class 1B) to permit them to sell alcohol. Without the alcohol license, Foodshop owners cannot sell alcoholic beverages to their customers.
To be eligible for a Liquor license, you must:
Not have any suspended/canceled license by local authorities, not be under investigation/convicted under any offenses, and uncooperative with the Singapore Police Force in respect to any investigations conducted in relation to the liquor license/renewal of a license.
A Singapore citizen, Permanent Resident (PR). If you are a foreigner, you must possess a valid work permit or employment pass.
Be an involving party if you are applying on behalf of societies registered with the Registry of Societies (ROS)
E.g. Applying for an alcohol license for Teochew Lee Clan society, 1 of the members has to endorse it.Be the owner of the business/ A partner of the partnership
Register your business with ACRA. You are not required to register for ACRA if you are representing a society or applying for an alcohol class 2B license
Possess a valid hawker license issued by National Environment Agency if you are applying for a Class 2B license
Other than getting an SFA license, Pub/Bar owners have to obtain one of the 2 classes of licensing below in order to sell alcoholic beverages. The 2 classes of licensing differ from the sale of duration, to when and where they can supply and distribute liquor.
To find out more on the different types of extension to your trading hours outside of your liquor license, click here.
Pub/Bar Owners who do not abide by these regulations will be found guilty and be liable to pay a fine not exceeding S$10,000.
4. Opening a Pub/Bar during COVID’19
Pubs/Bars will not be allowed to open until Phase 3 as live performances include singing which holds a higher risk of the COVID’19 transmission in a constraint space. As such, under the current circumstances, if you want to apply and get approval to open a Pub/Bar, you would have to wait until Phase 3 when things resume back to normal.
Pubs/Bar owners have this misconception that as long as there is the sale of food in their F&B premises, they would be able to operate them. For Pubs/Bars to operate during Phase 2, the business must hold a new SFA license that says Foodshop (Restaurant/ Food Caterer/ Snack Bar).
To apply for an SFA license, iCHEF can help you reapply for an SFA license.
Changing from a Pub/Bar to a Foodshop(Restaurant)
A new application is needed to operate as an foodshop:
Change the business operation and the theme to suit the eatery - The primary sale must come from food and not alcoholic beverages. Alcoholic drinks may be accompanied along with the consumption of food- Shopfront, banners and social media platforms must not portray the look of a drinking place. E.g. No big alcohol posters placed in the shop, on social media platforms, no bar stools, no dart machines
Renovate to fit the foodshop theme - Pub/Bar Owners will have to renovate their shop to fit their theme. Simply adding equipment (Microwave, Airfryer ,etc) does not count and it will not work. E.g. (If the food sold is going to be Korean Fried Chicken, the equipment used and the setup of the shop should fit the theme) It is important to also take note of the kitchen/food preparation area must be at least 10 square meters.
Apply for a new license- Pub/Bar owners have to apply for a New SFA License and meet all the necessary requirements of SFA. Application will not be approved if the setup looks like a Pub/Bar.
* Refer to Point 1 for the meaning of a Foodshop
If you are looking to convert your Pub/Bar license into a Foodshop (Restaurant) license, iCHEF are the experts in helping F&B businesses to open where they can provide a POS system that is designed for restaurants (and pre-approved under PSG with 80% subsidy).
“Changes Made are Irreversible”
All in all, there is a significant commitment when deciding to change from a Pub/bar to a food shop as a substantial sum has to be pumped into the shop for its renovation cost. Renovations done have to provide a perception of a restaurant instead of a Pub/Bar. Besides that, once you change your license to a food shop, you are unable to change it back to a Pub/Bar. (E.g. If Phase 3 happens and you wish to operate your business as a Pub/Bar, you must reapply for an SFA license and an alcohol license). Remember that changes made are irreversible and it must be in line with the plans for your 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.
