Have you ever thought about opening up a restaurant or running a cafe or even importing food and beverage products in Singapore? If yes, this article will provide you information about F&B product registration in the country!

Overview of Food and Beverage Product in Singapore

Many individuals in the country have sought their fortunes in the F & B industry as Singaporeans themselves have always had a huge love for food. Singaporeans also love seeking out and dining at new restaurants.

This exciting business has become an inspiration for many entrepreneurs, however the industry can be so challenging. There are also many examples for both successful and failed of F&B businesses. SPRING Singapore study reported that nearly a quarter of all operating F&B businesses are new, while 57% of F&B businesses survive the first 5 years.

Despite all of this, there are still many F&B businesses starting in the country every year. If you plan to start your new F&B business or product, you will want to get the legal formalities properly, quickly, and affordably, so you can focus on your other part of setting up your business.

The Food and Beverage Product Registration License

Not all licenses will apply to all F&B businesses, so it’s a great idea to carefully review your business model and figure out which are the necessary licenses for you. There are a few that are compulsory for all F&B businesses, while others only apply to a specific type of F&B.

Securing these licences may not be a simple task of just applying for them. You might be required to spend additional resources and funds to make sure that you meet the relevant standards.

All food retail establishments must have a Food Shop License issued by the National Environment Agency (NEA) to be sure that they comply with the Code of Practice of Environmental Health (COPEH) and operational requirements for food shops including minimum kitchen size, refuse management, noise and cooking fumes control.

You will need to start on this earlier since the inspectors may require you to make changes to your restaurant or food shop that may need an additional renovation, which means additional time and cost to you.

Obtaining all the licenses and legal formalities, you will need to register your company, then register with the Central Provident Fund (CPF), after that you can secure Food Shop License from NEA, and lastly is to have employees take Basic Food Hygiene Training.

You might be a bit confused about the licenses that you need to get for your F&B business. In this part, here is a guide to help you better understand the different types of license and how much they cost!

The Types of Food and Beverage Product License

1. Food Shop License

You have to apply and have a food shop license approved for setting up your F&B establishment. The food shop license is tied to the physical outlet, and any previous license will have to write in to cancel the license before the new application is approved.

Before applying for a food license, the applicant will have to ensure that they satisfy the specifications in a pre-application checklist, which includes documentary, food shop design, and hygiene requirements.

The cost for the license is S$195 and valid for 1 year. You can apply for a license here.

2. WSQ Food Hygiene Course

Food handlers need to apply for this course to get certified for handling food. The WSQ course consists of 6 hours of coursework and 1.5 hours of assessment. A statement of Attainment (SOA) will be awarded to participants upon completion.

Food handlers who were registered and awarded more than 5 years ago can attend a refresher training course. You can attend the course provider that is listed here.

You need to pay S$8 - S$40.50 for the course, and you can apply via the Singapore Food Agency.

3. Liquor License

If you intend to sell liquor or beers, then you will need the Liquor License. There are several classes of the license you can apply for. Under the Customs (Liquors Licensing) Regulations, any sales of intoxicating liquors in Singapore will require a liquor license issued by the Liquors Licensing Board (LLB).

There are 8 classes of licensing available, which determine the hours, where, how, and for what purposes you can supply and distribute the liquor.

The cost is between S$110 to s$880 valid for 1 year, it is depending on the category of license you are applying for. You can click here to apply for this license.

4. MUIS Halal Certification License

There are 3 requirements for your food establishment, before applying for a MUIS Halal Certification license. They are:

1. Halal Requirements: raw materials used must be Halal and validated with supporting documents.
2. Staffing Requirements: a minimum of 2 or 3 Muslim staff employed in each premise with a Halal Certification application. For the catering or central kitchen services, it requires a minimum of three staff.
3. System Requirements: the applicant must comply with 10 principles of the Singapore Muis Halal Quality Management System (HalMQ).

You need to pay S$80.25 to S$1.219.80 for this license. Submit your application on LicenseOne.

5. Import License

An import license is generally required for food traders, but you also need to apply for one, if you are doing any of the following for your F&B business:

• Importing, exporting, or transshipping meat and fish products.
• Importing, exporting, or transshipping fresh fruits and vegetables.
• Importing fresh table eggs.

Different licenses are required too, but it is depending on the type of food you import. The cost that you need to pay is S$84 to S$378 valid for 1 year, depending on the type of food product you are importing. You can go to GoBusiness Licensing website to apply for this license.

In conclusion, before establishing your F&B business, you need to prepare everything and pick the license that fits for your business. Then, you can register for the F&B product license, so you can set up your business smoothly. If you are unsure about something, you can always contact us below. Viettonkin will always be ready to assist you!

The food and beverage industry across the cities in Indonesia have been hit hard by the outbreak, especially in tourist hotspots, Bali, Jakarta, and Yogyakarta. The revenue in this sector is declining as the physical distancing regulation has been applied. People would rather stay at home than go out or even take away the meals. This article will discuss the food and beverage industry in The Greater Jakarta.

Indonesia Food and Beverage Industries Situation During The Pandemic

According to data from PT. Moka Teknologi Indonesia, a homegrown startup that provides digital cashier services, told that a number of industries had experienced losses due to the pandemic, including the services and retails industries, but the food and beverage industries got hit hard.

13 cities in Indonesia experienced a significant decrease in their daily earnings, Surabaya in East Java and Bali were the two cities with the biggest fall sales. In Surabaya, the food and beverage industry has plunged by 26%, while in Bali, the industry has decreased by 18%, and followed by areas in Greater Jakarta, including Depok and Tangerang. However, the data did not mention how much in percent they had declined.

As a result, major restaurant chains that employ thousands of workers have chosen to temporarily shut down their operations. These are Ismaya Group, which has more than 20 restaurants, with more than 60 outlets, and the Boga Group, which runs more than 150 restaurants.

The government advice on staying at home to slow the spread of COVID-19 made the residents stay more at home, and it would have a huge effect on the food and beverage industry. This case has led to consumer habits to shift from dine-in to take-away food. Moreover, the business players must be able to survive for the next 3 or 6 months, and there needs to be a temporary change in business processes for the cash flow to remain positive. One of them is having a delivery service.

The Best Way To Survive During A Hard Time

A focus on takeout deliveries has become one of the keys to keep the daily income positive. Since the PSBB runs, there has been a change in consumer behaviour, as people would rather stay at home instead of going out. Some Indonesian food and beverage industry are already doing something to survive. For instance, Boga Kitchen, Ismaya Group, Lotteria, Solaria Group, and many more. Let’s get into the details below!

Having the delivery service can also help the customers to get the desired meal, as they might not have time to cook a proper meal. The service is one of the solutions that customers can use. Additionally, there are restaurants that have been rolling cheap promos or discounts, they can also utilize these to satisfy their cravings. The well-known restaurant chains, Ismaya Group is using Go Food to sell their meals, and offer a discount of the menus and restaurant tax.

Providing a ready to cook menu is also helping to increase the revenue in the midst of this outbreak. As people are working from home and might have a little time, ready-to-cook is the best option for them. You only have to do a simple step to enjoy your favourite meals. Offering the promos is also effective to survive in the business. Create a buy one get one free for takeout deliveries, or special packages for the breakfasting will work too, as we already entered the fasting month.

Not to forget to throw the discounts for the customers, just keep in mind that people will tend to buy things at a discounted price. Especially, during this time when the economy is unstable, the discounts will save them to buy the basic needs. Even if the restaurants have already had the best way to survive, however it could not separate from how the consumers are willing to buy the products. Furthermore, we can still help our Food and Beverage industries to keep their businesses open. Here the things that you can do!

How To Help Them

As we have to brace for further impact of the coronavirus, self quarantines, physical distancing, and city shutdowns have a large effect on the business. Many local dining and drink establishments have shut down and seen a revenue loss. Meanwhile, there are ways to help, at least things that you can take your part as a consumer. Here is how you can support them!

Dine out with precautions

The government has recommended safe distancing measures for food and beverage industry operators, including putting in place for a distance, at least a meter away from the next table. If you choose to dine in at the restaurant, please do it safely. Pick the restaurants which are spacious, well ventilated, and have standard hygiene measures, such as regular disinfecting of tables, chairs, and all of its spaces.

Order take out

Where dining out is not an option, or your favourite restaurant has not provided a dine-in service. You can always take out, but keep it mind to bring your own containers. It is not only for your peace of mind, but also to reduce wastage.

There is always delivery

You will love how you enjoy good food without leaving the house! There are plenty of food delivery apps that you can use. Such as, Go Food and Grab Food. Also, you can utilize their promos, whether it’s a discount voucher or free delivery within a certain distance. If you are extra precautions, you can ask the driver to put your food in the distance or hang it on your gate. Both ways are good options.

Shop the ready-to-cook

There are some restaurants that offer ready-to-cook packages. You can always make your favourite food at your own kitchen without the hassle. Some of them are partnerships with e-commerce, for example, Boga Group has opened their online store on Tokopedia, and they sell menus for you to cook in a very simple step.

At this time, binge-eating is one of the things that you can enjoy, or cure boredom. It is crucial to keep your diet in check to boost your immunity. With a lot of options to order takeout and delivery, you should fulfil the daily nutrition. Also, you can support them by getting your favourite and nutritious meals in your doorstep.

You can also read our article about Business Continuity Plan and an example from Vietnamese food and beverage businesses to cope with the coronavirus impact.

Vietnam is an ideal place in Southeast Asia to expand food and beverage business thanks to stable politics, favourable economic conditions, young population and an increasing middle class. As a result, Vietnam has become the target of many food and beverage giants as a dynamic market in Southeast Asia. 

In recent years, F&B (food and beverage service) industry in Vietnam has become familiar, in fact, McDonald's, Starbucks, KFC, Burger King, Pizza Hut, Loteria, and many others in the market of food and beverage tycoons in the world, all are present in big cities of Vietnam. Yet Vietnam still poses challenges for the food and beverage industry tycoons wanting to invest in the country.

Why Vietnam become the target of many food and beverage industry investors?

The vortex of growth

Vietnam is one of the countries with the young population, who tend to eat out, and has become a big potential market for the food and beverage industry. This not only attracts domestic investors but also foreign giants.

The food and beverage industry in Vietnam is experiencing a high growth rate with the presence of many domestic and foreign businesses. According to Euromonitor Market Research Company, the food and beverage market in Vietnam reached an average growth rate of 18% per year in the period of 2014 - 2019.

High development opportunities

Of all industries, the food and beverage industry have the opportunity to grow most rapidly because this is a basic human need. Especially in Vietnam market, there are many opportunities for businesses and food flavouring companies to grow thanks to the young population structure. Moreover, Vietnam's market is still not saturated, so there are still many opportunities for businesses to develop their products.

What are the challenges that foreign food and beverage industry have encountered doing business in Vietnam?

However, not every well-known food and beverage brands in the world can thrive in Vietnamese market, nor the noisy and series of check-in in the early stages can keep the businesses heat. There are certain barriers that confuse the food and beverage industry tycoons when investing in Vietnam which is mentioned as follow:

The shortage of human resources

Food and beverage industry in Vietnam is facing the problem of lack of human resources. The current speed of restaurant opening in Vietnam is very high, making the industry's human resources become scarce. Previously, when food and beverage businesses recruited, businesses often required many standards, checking a lot of information. However, according to some businesses, now they only need to recruit a sufficient number of employees.

Besides, human resources in Vietnam are abundant but there are limitations in culture, manners and skills that require employers to have appropriate recruitment, training, exploitation and utilization solutions. In addition, businesses must also comply with the provisions on labor relations, social insurance, health insurance, trade unions,etc.

Brand development issues

The problem of developing food and beverage brand is also very difficult to solve. A brand with more value can raise more capital, but in order to do so, it needs to expand the number of stores quickly and the form of choice is usually a franchise. However, the challenge of franchising can be clearly seen, to be consistent with the quality of the food and services provided. In Vietnam, it is common to see different experiences of going to the same brand but different locations.

The difference in culinary culture

Products that are suitable for the tastes and tastes of the people are still the core factors, which are the most important factors that make the success of a food and beverage brand developing in the chain. Therefore, the issue of taste is a top concern. The world's leading food and beverage brands bring to Vietnam eye-catching, novel products typical of Western cuisine. 

However, the majority of Vietnamese people have not really welcomed this new culinary trend, because Asian culinary culture is deeply ingrained in their mind. Meanwhile, food and beverage businesses that do not achieve wide coverage would be easy to lose.

In spite of the presence of the giant McDonald's, the burger is still not a favorite and daily dish of Vietnamese people. So when the purchasing power is not big enough, the market is too small, it is natural for brands with core products such as Burger King or McDonald's to meet.

The race to keep up with consumer's trend

The market of food and catering services has few barriers to entry but the elimination rate is very fast, so it is still a challenge for businesses that want to conquer. Vietnamese people are ready to experience new food services but they may get bored soon. To maintain their revenue, businesses must always be flexible in developing products and services.

In addition, there are other risks facing the food and beverage industry such as:

• Rental rates in prime locations in Ho Chi Minh City and Hanoi are quite high.
• Rental period is not long.
• Staff rarely consider serving in a restaurant a serious profession.
• The cost of transporting some food ingredients from the parent company to Vietnam is very high, resulting in the price of some international fast food chains in Vietnam too high compared to the needs of users.

In fact, the market shows that not every famous food and beverage brand in the world can survive the food and beverage "storm" in Vietnam. There have been many brands "leaving" from Vietnam market such as Tenren milk tea (Taiwan), Gloria Jean's Coffees (Australia). It is important for the food and beverage industry investors to understand customers and the environment doing business in Vietnam.

In short, food and beverage is a potential industry but also involves many risks. Especially encroaching on the Vietnamese market - an emerging market, long enough access time and clear, effective strategies are required. The above article is expected to provide investors with some useful notes for the F&B development plans in Vietnam. And at Viettonkin, we are ready to give investors thorough consultancy to achieve success in the food and beverage market in Vietnam.

You can also check our tips for helping food and beverage company to stay afloat during crisis.