Starting an F&B business in Singapore is exciting but also one of the most challenging ventures. While passion for food is important, every F&B entrepreneur must first deal with three big realities: rental costs, licenses, and operating expenses.
Understanding these upfront helps avoid common pitfalls and ensures your startup is built on a sustainable foundation.
1. F&B Rental Costs in Singapore
Rental is often the biggest fixed cost for F&B businesses. Rates vary widely depending on location, size, and foot traffic:
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Prime areas (Orchard, Marina Bay, CBD malls): $8,000 – $20,000/month for small units.
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Heartland malls & town centres: $4,000 – $8,000/month.
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Standalone coffee shops or hawker stalls: $1,500 – $4,000/month.
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Cloud kitchens (delivery-only): $1,500 – $3,000/month (much cheaper than dine-in).
Tip: Many F&B startups overcommit on rental and leave too little for marketing. A smart approach is to balance location with budget, and allocate 20–30% of your budget to digital marketing.
2. Licenses Required for F&B Startups
Before opening, every F&B startup in Singapore must secure the following key licenses:
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Food Shop Licence (from SFA – Singapore Food Agency)
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Required for any restaurant, café, or eatery.
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Hawker stalls need a Hawker Stall Licence instead.
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Halal Certification (optional)
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Needed if you want to market food as halal-certified.
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Liquor Licence (if selling alcohol)
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Different classes depending on hours and type (beer, spirits, dine-in, takeaway).
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Import Permits (if bringing in food products from overseas).
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Music Rights Licence (COMPASS / RIPS)
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If you plan to play music in your outlet.
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Environmental Health Requirements (NEA)
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Proper kitchen exhaust, grease traps, and waste disposal systems must be in place.
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3. Other Costs F&B Startups Must Plan For
Beyond rental and licenses, these costs can make or break your budget:
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Renovation & Fit-Out: $30,000 – $200,000 depending on size, concept, and theme.
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Kitchen Equipment: Ovens, fryers, fridges, POS systems ($20,000 – $80,000).
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Manpower Costs: Salaries, work permit fees, training.
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Utilities: Water, electricity, gas — $1,000 – $5,000/month.
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Marketing & Branding: Logo, signage, social media, influencer campaigns, digital ads.
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Inventory & Supplies: Ingredients, packaging, cleaning supplies.
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Insurance: Fire, accidents, public liability.
4. F&B Rental vs Cloud Kitchens
Many new F&B entrepreneurs are turning to cloud kitchens to avoid high rental. These are centralised kitchens meant for delivery brands.
Pros:
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Lower rental cost.
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Focus purely on food and delivery.
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Faster setup.
Cons:
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No walk-in traffic.
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Reliance on food delivery apps (which charge commissions).
Explore operators like GrabKitchen or Smart City Kitchens as alternatives to traditional dine-in spaces.
5. Balancing Costs With Growth
It’s not just about paying rent — it’s about making sure you have enough left to grow. Many F&B startups in Singapore make the mistake of spending all their funds on rental and renovation, leaving nothing for marketing and customer acquisition.
That’s why it’s important to set aside a budget for digital marketing strategies — from social media and influencer campaigns to paid ads. These ensure consistent traffic and sales beyond location-based footfall.
Learn more about our digital marketing services for SMEs.
Conclusion
Starting an F&B business in Singapore comes with high upfront costs — especially rental, licenses, and setup expenses. But with careful planning and the right marketing strategy, startups can thrive even in this competitive industry.
Whether you’re opening a café, restaurant, or cloud kitchen, success lies in balancing costs with visibility. A strong digital marketing plan ensures your efforts in rental and setup actually translate into paying customers.
Ready to Launch Your F&B Startup?
At W Creates Digital, we specialise in helping F&B startups in Singapore stand out with social media marketing, influencer collaborations, video content, and digital ads — so you can grow smarter without overspending.
WhatsApp us: +65 8119 4484
Email us: hello@wcreatesdigital.com
Ask us for a free quote today and turn your F&B dream into reality.