The wave of nightlife closures in Singapore has shown no signs of slowing, with at least two outfits shuttering at the end of last month: multi-concept venue 1939 at Keong Saik Road and Junior the Pocket Bar at Ann Siang Hill.
The numbers, by now, are familiar. A record-high 3,047 F&B businesses shuttered in 2024, and 307 closed per month in the first quarter of this year.
While specific figures for bars are not available, the effects of nonstop wind-downs are certainly felt. Other casualties incurred earlier this year include Lumo, which folded in March; a month earlier, Ballroom at Barbary Coast closed its second-floor location at North Canal Road, leaving sister concept Deadfall Cantina on the first level.
But what exactly is behind the decline of Singapore’s bar scene? After all, considering the city-state’s success in the world of drinks — with numerous entries on coveted lists such as Asia’s 50 Best Bars — one would imagine business is booming for players here.
That, however, isn’t quite the case. Jay Gray, who runs several F&B businesses here, including Idle Hands at Ann Siang Hill, says profitability is becoming an increasingly difficult goal. “I would say I can count on my hands the number of independent bars that are paying their bills on time and have cash left over at the end of the month,” he tells Options.
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“We all have similar business issues,” says Gray of his peers in the industry. “I would say most of us have had to take one or two other jobs to keep our dreams alive.” His other ventures include The Cocktail Advocate, a
consultancy through which he works with entrepreneurs and business owners to “help them get the most out of their business, whether it be a brand, distillery or bistro”.
Behind the bar
Gray points to labour as one of the key challenges facing the local bar scene. While he notes that Idle Hands “still turns a profit”, he says finding talent to grow the business — which opened in the middle of 2024 — is his “biggest issue right now”. Idle Hands, he adds, “isn’t the kind of bar where you can just hire someone who makes drinks”, with guests returning for conversation and connection.
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Compounding this labour crunch are prevailing quotas on the number of foreign workers that companies can hire. As part of the services sector, F&B businesses can hire Work Pass and S Pass holders up to a maximum of just 35% of their total workforce.
“I have had job advertisements out for around six months, and I think I have had three Singaporean candidates,” says Gray, who is himself in the city-state on an Employment Pass. “Why are we making it so difficult to hire foreigners who would love to host, serve, create and grow the Singaporean hospitality scene the way we did 10 years ago?”
Concurring, White Shades founder Bai Jia Wei says that sustaining a strong pool of local talent in the F&B industry is becoming harder. The younger generation, he adds, “often prioritises rapid recognition or financial gain”, things that a career in F&B is often unable to offer. The median monthly income of full-time workers in the sector was $2,616 in 2024, according to data from the Ministry of Manpower.
The industry is also a difficult one to get used to, Bai notes. “[Few young locals] are willing to commit to the long hours, physical demands and steep learning curves that the industry entails … Over time, I believe foreign talent will continue to play a crucial role in keeping the industry vibrant.”
Rising costs
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Perhaps the challenge that’s been discussed the most in recent months is rent, with several F&B business owners having come out to discuss their rental woes on public forums. Knight Frank noted in an April report that, in the first three months of 2025, the average gross rent of prime retail spaces in Singapore grew to S$27.90 per square foot per month, up 0.3% from the quarter before.
Bai, who is also co-founder of Stay Gold Flamingo on Amoy Street, notes that such increases over the past few years “often outpace revenue growth”, though he declines to share specific figures for White Shades — a four-storey outfit in Boon Tat Street — citing contractual obligations.
Operating a multi-concept venue like White Shades also “naturally comes with higher fixed costs”, and these have continued to rise. “Unless there are significant changes in policies or support mechanisms, such expenses are likely to remain a strain.”
Over at The Elephant Room, co-founder Yugnes Susela says rent at the bar’s new Tanjong Pagar Road location is “approximately 20%” higher than its previous home along Keong Saik Road. This, he adds, “creates pressure to increase volume while maintaining … quality and attention to detail”.
But rent isn’t the only cost that has risen for bars here. Ingredients, too, are becoming more expensive.
“The post-pandemic landscape has also seen ingredient costs rise by roughly 15% to 25% across the board,” says Susela. He adds that speciality ingredients — several of which he sources from India for The Elephant Room — have been hit particularly hard, with black pepper from Kerala and kokum from Goa being among those that have become more pricey in recent times.
Also limiting profitability are constraints on the sale of liquor; any business in the city-state intending to serve or supply alcoholic drinks must obtain a liquor licence from the police. “Singapore’s alcohol licensing restrictions can be challenging,” says Susela. The Elephant Room has a licence that allows it to operate till 2am on Fridays and Saturdays.
Few shelling out
Besides the difficulties of running a bar in and of itself, demand is also slipping as people reconsider where and how they spend their dollars.
“Consumers have become more cautious with discretionary spending,” says Bai. “People still want to dine and drink out, but are looking for value-driven options … Consumers are more likely to spend where they feel the product, service, and ambience justify the price tag.”
He adds that at White Shades, guests would previously order “two to three cocktails” per visit, but now opt for just one or two. This has naturally led to lower bill totals: “Where the average bill per person used to hover around $65, it’s now closer to $40.”
Idle Hands’ Gray notes as well that spending habits have “changed a lot” over the last two years, adding that for one of his businesses, the average bill has fallen by 60%.
One major source of lost clientele, he says, is the “two generations of drinkers” that were “pretty much lost” during the Covid-19 pandemic: those in university around 2020 and those who entered the workforce around the same period.
“They were robbed of the experiences that previous generations had, like taking a girl you met in a class out, or impressing your boss by taking them to the new cocktail bar that only a few people know about,” he says. “You can’t really do that if you’re working and studying from home.”
One other industry insider, asking to remain anonymous, points out that those seeking a late-night out also lack affordable transport options, with “night rider” bus services, operated by public transport providers SMRT and SBS Transit, were discontinued in 2022. Fares on private-hire vehicles and taxis typically surge once the clock strikes midnight; this, says the source, adds to cost considerations for consumers, particularly those who are younger.
Seeking more
Harry Apostolides, co-founder and group CEO of Cé La Vi at Marina Bay Sands, says consumers today are “more discerning than ever, seeking unique, meaningful encounters that justify a premium spend”. “There’s a growing preference for versatile, meaningful experiences that go beyond the traditional night out or simply enjoying a cocktail.”
At Cé La Vi, Apostolides says he’s observed local guests exploring the multi-concept venue’s different sections, which comprise a bar, restaurant and club lounge. With each providing a different vibe, going from one to another ensures the evening stays interesting, he adds.
Still, Apostolides notes that “not all venues in Singapore have the same opportunities” as Cé La Vi, a larger outfit situated in one of the city-state’s major attractions.
Even then, size alone may not matter, as evidenced by 1939’s shuttering last month. Bai shares that White Shades, which opened in 2023, is “under evaluation”. The venue may “downsize significantly” from its current four floors or even close, according to a May report by The Straits Times.
The road to adaptation will therefore have to be different for smaller and less-resourced venues.
For Susela, this means a growing focus on storytelling and branding. “Establishments that rely solely on technical cocktail preparation without telling a compelling story are finding it harder to differentiate themselves,” he says. “The bars that seem to be thriving are those with clear identities and missions beyond simply serving drinks, which fortunately is a direction the industry as a whole is moving toward.”
From a structural perspective, Susela believes the government could create “more flexible licensing categories”, which would allow bars to operate till later. Bai, too, hopes for such flexibility, in addition to more inclusive support schemes for small businesses.
Peter Chua, co-owner of Night Hawk, says looking within is also important. “Right now, the best strategy is to mitigate costs and to be more prudent with the spending of cashflow. Most bars, ourselves included, also do things to diversify our revenue like offsite events, retail goods and consultancies. Some venues also strategize by capitalising on the times when consumers are willing to spend like a holiday/special event.” Chua is also brand ambassador and head of education for Bar Convent Singapore, a trade event that connects players in the bar industry and showcases innovations in the space.
Of course, for all these efforts to bear fruit, consumers must also return to support the concepts they enjoy.
“If we don’t use it, we lose it,” says Gray. “Our bar scene in Singapore is working day and night — literally — to be more dynamic, inviting and entertaining for guests of all backgrounds, but if we don’t support it, that favourite place of yours won’t be around for long.”
