From talent shortages to soaring rents, Singapore’s bar industry stalwarts share their thoughts on the challenges ahead and how they plan to tackle them. Nimmi Malhotra Find out more.
Last year was a busy one for Singapore’s bar industry, with a flurry of new menus and guest changes. We’ve seen new bars, independent or hotel-owned, open all over the island every month. In addition, the city hosted the SG Cocktail Festival, which hosted the World’s 50 Best Bars (and ranked 4 on the coveted list), as well as Barcelona’s first Asian edition of Bar Convento, which led to the beverage industry. It attracted a wide range of people.
However, despite this great year, the industry faces some significant challenges in 2024. “Economic uncertainty, rising costs of living, rising rents and potential talent issues collectively contribute to a challenging environment,” said Vivian Pei, vice president of Singapore Cocktail Bar. says. She is a past president of the World’s 50 Best Bars Association and Senior Academy.
Staffing remains the biggest issue. “The Singapore government still doesn’t understand the dynamics of the hospitality industry,” Pei says. “Very restrictive work assignments have created a major staffing headache for venues.” Many Singaporeans do not consider bartending to be a coveted career option, so bars are are unable to attract sufficient talent. As a result, the industry relies heavily on international talent who must overcome strict government controls on work visas.
Some industry executives are hopeful about staffing challenges. Colin Chia, who runs Nutmeg & Cloves, The Last Word, and the newly opened Taiwanese cocktail-on-tap concept Draftland, which is among his favorites, wants to “reshape young people’s perceptions” and encourage participation in the hospitality industry. We hope to encourage this.
Collaboration with government agencies such as the Ministry of Manpower and the Singapore Tourism Board is also important, he said. “Their support is critical, especially in navigating the complexities of hiring foreign professionals and addressing pressing issues facing the industry,” he says.
Indra Katano, co-founder and managing director of Jigger and Pony Group, takes a more holistic approach. he says: “Singapore’s workforce shortages are always severe, so bars must strive to be an employer of choice.”The group has developed He PONY Academy, a platform for training and professional development, and is working closely with the government. We work with them to develop recruitment and development programs.
But Pei, who works in bars of all sizes, is acutely aware that small, independent bars with limited financial resources and operational scale bear the brunt of these problems. “Increased operating costs and rising rents add to the financial burden,” she says. “Taken together, these factors could create a more challenging environment for independent bars than for larger bars.”
That’s not all. Singapore’s cocktail market is booming with the likes of White Shades, a recently opened four-storey modern playground on Boot Tat Street, and industry veteran Andrew Pang’s mental wellness and wellness-inspired Bar Spectre. , competition is increasing with new entrants and progressive bar concepts.
“There’s a lot of competition for cocktail dollars,” Pei said. “This will continue to be the case as more new bars are scheduled to open in the future.”
In addition to internal competition, Huang Ji Jun, owner of independent bar No Sleep Club, points out that Singapore’s prices are much higher than in neighboring Asian countries. “We realized that travelers prefer to go to those countries for value for money.”
Peter Chua, founder of independent microbar Nighthawk, predicted the Asian city competition when he won the Best Design Award at the World’s 50 Best Bars last October. he said: “I don’t think it’s a problem. I think it’s a good challenge. We in Singapore have to prove what we’re doing and show that we deserve the position we’re in. yeah.”
So where do we go from here? “You have to be creative to survive,” Jun says, noting the resilience and creativity these bars have focused on during the pandemic. “Just a bar is no longer enough. The bar experience has to be more than just good drinks and snacks.”