Singapore’s dynamic food and beverage industry experienced a turbulent yet transformative year in 2025, characterized by unexpected high-profile closures contrasted sharply with the influx of international flagships and the rise of niche food trends like home cafés and endemic matcha mania. As the year draws to a close, the local dining landscape reflects a paradoxical mix of business fatigue and innovative entrepreneurial spirit, prompting collective introspection among diners and industry veterans about affordability, sustainability, and changing consumer habits. This retrospective analysis synthesizes the key industry conversations that shaped the culinary climate, relying on keen observation and community feedback gathered from queues, group discussions, and widespread media coverage throughout the year.
The Year of Unexpected Closures
The most defining narrative of 2025 was the relentless wave of F&B closures, fostering a palpable sense of disbelief that eventually evolved into fatigue among local food enthusiasts. High-profile local ventures, including beloved institutions like Keong Saik Bakery and the entire Privé Group portfolio, ceased operations. The downturn spared no sector; even reputable international chains like Burger & Lobster and Eggslut retreated from the market, signalling widespread operational challenges.
This volatility extended even to the upper echelons of dining, with several Michelin-starred restaurants dimming their lights permanently. The departure of nine one-starred establishments served as a stark reminder that critical acclaim does not guarantee commercial longevity in Singapore’s highly competitive environment. Industry commentary quickly zeroed in on escalating operating costs—particularly soaring rents and persistent manpower shortages—as primary culprits, exacerbated by recent shifts in local dining frequency. However, this struggle galvanized the community, inspiring readers to actively seek out and champion homegrown neighborhood businesses.
Rise of the Home Café Phenomenon
Counterbalancing the formal market contraction was the proliferation of hyper-local, low-key home cafés. Operating out of unassuming HDB flats or landed property front yards, these quirky establishments, inspired by pioneers like Ground Floor Coffee and Kopikhoo, captured immediate public interest due to their novelty and exclusivity.
Concepts like Two Sisters Smoothie and Knead Kopi demonstrated the potential of these semi-formal operations, providing unique offerings ranging from bespoke fruit smoothies to traditional local breakfast sets. Critically, these ventures generally do not require a formal Singapore Food Agency (SFA) license, provided they adhere to stringent food safety regulations. Often run as side hustles, home cafés offered consumers an alternative dining experience characterized by significantly lower prices and a compelling sense of discovery, capitalizing on a community desire for authentic, intimate food experiences.
Singapore: The Gateway for International Brands
Despite the domestic closures, 2025 cemented Singapore’s status as a coveted launchpad for global F&B brands. Amidst the economic uncertainties, the consistent volume of international operators choosing the island state for their first overseas outpost was remarkable.
The enthusiasm for Japanese cuisine remained paramount, welcoming acclaimed venues like Tokyo’s Udon Shin and Pizza Studio Tamaki, alongside upscale dining experiences such as Ginza’s Nikuya Tanaka. South Korea contributed Gwanghwamun Mijin, an institution specializing in cold buckwheat noodles. Perhaps most vibrantly, Australian frozen yogurt brand Yo-Chi revitalized the froyo market, drawing long queues. This trend highlights Singapore’s attractiveness as a regional test kitchen, although it consistently raises the crucial question of whether international standards and quality can be faithfully maintained in a new environment.
The Unstoppable Force of Matcha Mania
Matcha transformed from a niche specialty to an endemic fixture in Singapore’s café culture this year. Far from just a coffee alternative, the green tea powder inspired unparalleled creativity, multiplying beyond simple lattes into experimental concoctions involving fruits, local flavors like blue pea and taro, and indulgent desserts.
This surge in popularity occurred ironically after a late-2024 supply shortage, which seemingly heightened consumer curiosity. The trend also fuelled vigorous debate among purists who championed traditional koicha and usucha preparations, versus the majority who embraced milk-based flavored drinks. Regardless of preparation, matcha’s perceived health benefits and distinctive flavor profile ensured its pervasive presence, solidifying it as a core component of the modern Singaporean drinking repertoire.
Mainland Chinese Chains Expand Aggressively
While other international brands entered cautiously, F&B chains from mainland China arrived swiftly and decisively. Beyond established names like Haidilao, the market saw a rapid proliferation of newer chains offering highly competitive pricing and operational efficiency. Zhejiang cuisine was represented by Longjing, known for its opulent interiors and viral desserts, while Hunan powerhouse Xiang Xiang Hunan Cuisine rapidly expanded its footprint across the island.
This expansion wasn’t limited to dining halls; beverage outlets like Luckin Coffee and tea specialists like Chagee became ubiquitous fixtures in commercial districts. These chains offer a modern, efficient, and often wallet-friendly alternative to traditional dining, suggesting that the influence of mainland Chinese culinary concepts will continue to grow, reshaping the average Singaporean’s dining options for years to come.