IT Brief Asia logo
Technology news for Asia's largest enterprises
Story image

Will the good times continue to roll for Singapore’s food and beverage industry?

By Contributor
Wed 9 Dec 2020
FYI, this story is more than a year old

Article by SYSPRO chief executive officer for APAC Rob Stummer.
 

During this pandemic, Singapore’s food and beverage sector has had to grapple with immense challenges due to circuit breaker measures that stopped Singaporeans from eating at dine-in restaurants or fully embracing food delivery and takeaway. It is becoming clear as time goes on that this global health crisis has been the food and beverage (F&B) sector’s biggest bane, and boom, to date. 

Encouraging signs show that this crisis is bringing the F&B industry together to ensure there is a future for the businesses involved and to ensure that Singaporeans are fed safely. Whilst some in the sector struggle to stay afloat and many are shutting their doors for good, others are booming in the most trying times. 

The question is, which F&B businesses will be able to overcome any potential obstacles to ensure they continue to thrive through this challenging period?

The food delivery revolution

The food delivery sector is still in its infancy in Singapore, and growth has been modest. Adoption of digital technology and the use of food delivery apps has been slower here than in other APAC countries because takeaway food is generally very cheap and Singaporeans prefer to source their food from hawkers than to pay delivery fees.

Whilst some Singaporeans are still reluctant to order food delivery amid concerns over high commission fees charged to their favourite local eateries by the food delivery companies, such as Food Panda and Uber Eats; the sector is still booming. 

The opportunities for food delivery services are undeniable, and we have seen some acquisitions in this sector because of the new opportunities. A well-known Singaporean tycoon has announced that he will open 1,000 ‘cloud kitchens’ across Asia, Europe and the United States to crack the lucrative home-delivery dining market. 

These centralised operations can produce a variety of cuisines for a selection of established restaurants and avoids the costs of traditional city restaurants including expensive property leases, high profile chefs and experienced wait staff and can even be in business parks.

Upmarket restaurants are closing

Even before the pandemic, upmarket restaurants were suffering from cashflow issues, and because of the ban on dining in, many have relied primarily on food delivery or takeaways. 

Sadly, many of these restaurants are now closing their doors permanently or struggling with significantly reduced capacities since many Singaporeans are preferring to stay at home to eat.

Takeaway takes off

As well as food deliveries, the local takeaway food sector has soared, and businesses are keen to take advantage of the boost in demand. The Koufu Group has announced that it will acquire a group of four companies that are the biggest suppliers of fried food and dough products in Singapore, and which have been resilient during the circuit breaker period.

The brands acquired include Deli Asia, Deli Snacks, Dough Culture and Dough Heritage. The Deli Asia group has built new production facilities and a warehouse that manufactures and stores products locally. This will provide critical synergistic effects for Koufu, and will broaden its manufacturing capabilities, inject intellectual know-how to increase productivity within its existing food production and storage processes, and strengthen the security of its supply chain.

Embracing home cooking

Many of the food and beverage companies that supply direct to consumers, including supermarket chains, have been thriving during the pandemic as people have switched to having meals at home, with many embracing home cooking.

Supermarket chain Sheng Siong saw a 30% increase in revenue during the first quarter of 2020, which was attributed mostly to COVID-19. Demand and sales rose when the Singaporean Government moved the country from Dorscon yellow to the second-highest alert level of orange in early February. During this period, there was a sudden surge in demand for non-fresh products and Sheng Siong’s sourcing strategy had to be diversified to cope with this switch in demand. 

Bottlenecks turn a boom to a bane

Whilst businesses that have shut their doors may need some time to rethink a possible re-entry into a market where paradigms have shifted, those who are riding the boom for takeaways, home deliveries and home cooking, need to be aware of the risk of potential bottlenecks that could abruptly end their short-lived boom.

F&B manufacturers could face serious production bottlenecks due to delays in sourcing ingredients internationally from countries experiencing a second wave or due to the shipping delays many are suffering from. 

Those that are not agile enough to monitor and manage their supply chain and inventories and forecast demand may face a new challenge of overstocked supplies as demand becomes fragmented across a competitive market and loyalty thins.

Competitors that have full supply chain visibility and can switch supplier when a delay arises can quickly take over, resulting in rapid loss of market share.

Those enjoying a boom could easily face a threat of excess inventory and over-supply when competitors saturate the market with products at lower costs or higher competitive advantage if market conditions are not adequately monitored.

Embracing technology to move fast

For the fortunate few in the F&B sector who are enjoying the boom, having the right supply chain management technology to market competition in place will help them to be agile enough to react quickly to an issue that will keep the boom from turning into a disastrous bane.

To keep feeding Singaporeans safely, F&B companies will need to embrace technology not only to take advantage of the new consumption models but also to ensure that they are operating as efficiently and profitably as possible. This will not only save jobs, and protect their businesses, but it will ensure that food gets to the people that need it when they need it.

Related stories
Top stories
Story image
Red Sift
Entrust expands strategic partnership with Red Sift
Entrust has expanded its strategic partnership with Red Sift to make it easier for businesses to adopt Brand Indicators for Message Identification (BIMI) standards for email identification and security.
Story image
Hybrid Cloud
Barracuda expands cloud-native SASE platform
"The expansion of Barracuda's cloud-native SASE platform for hybrid deployment models and IIoT environments solves a number of challenges."
Story image
Digital Transformation
Digital transformation increasing business complexities
A new survey suggests businesses must re-examine their digital transformation approach to better help employees adapt to change.
Story image
Data Protection
Information management capabilities to meet privacy requirements
Organisations with customers or operations across more than one country face a spate of new and proposed privacy and data protection laws.
Story image
SpaceX
Australian space tech startup secures SpaceX support
Space Machines Company has secured the support of SpaceX as a launch partner in carrying SMC's Optimus Orbital Transfer Vehicle to space next year.
Story image
Kubernetes
Sysdig unveils new Kubernetes troubleshooting and cloud innovations
Sysdig has introduced two new innovations that look to help bolster cloud services and simplify Kubernetes troubleshooting.
Story image
Training
Trojan cyber attacks hitting SMBs harder than ever - Kaspersky
In 2022 the number of Trojan-PSW detections increased by almost a quarter compared to the same period in 2021 to reach 4,003,323.
Story image
Cybersecurity
Cybersecurity prompts upgrade for 1.3 billion electricity meters
ABI Research finds Advanced Metering Infrastructure (AMI) and cybersecurity concerns are prompting the upgrade of 1.3 billion electricity meters by 2027.
Story image
Multi Cloud
Red Hat updates dev tools, empowers use of hybrid and multicloud
Red Hat has unveiled updates across its portfolio of developer tools, designed to help organisations build and deliver applications faster.
SonicWall
Find out how you and your business can prevent being caught out by everything from ransomware to cryptojacking.
Link image
Story image
Cybersecurity
More than 40% of banks worried about cloud security - report
Publicis Sapient's new report finds security and the lack of cloud skills and internal understanding of business benefits are big obstacles for banks moving to the cloud.
Story image
New Relic
New Relic launches vulnerability management platform
New Relic has introduced New Relic Vulnerability Management to help organisations find and address security risks faster and with greater precision.
Story image
CrescoData
SPS network now available to CrescoData eCommerce customers
CrescoData, a Pitney Bowes Company and PaaS business in the commerce space, says its customers can now connect to the SPS Commerce Retail Network.
Sift
Navigating digital fraud and dispute can be tough. The Q4 2021 Digital Trust & Safety Index by Sift can give helpful insights to your business on keeping safe and prepared online.
Link image
Sift
Knowing the mechanics of retail fraud can greatly improve your chances of preventing an online attack. Read the new infographic by Sift to discover how your business can be prepared.
Link image
Story image
Sustainability
SoftIron named global leader for efficient DC infrastructure solutions
SoftIron has been named a global leader for supplying energy-efficient data infrastructure solutions for core-to-edge data centers after an assessment by Earth Capital Ltd.
Story image
Ransomware
Alarming surge in Conti Ransomware Group activity - report
A new report has identified a 7.6 per cent increase in the number of vulnerabilities tied to ransomware in Q1 2022.
Story image
Rackspace
Skills shortages hold orgs back from capitalising on cloud 2.0
Organisations are becoming more comfortable with sophisticated 'cloud 2.0' technologies, even as they confront difficulties in hiring and retaining IT talent.
Story image
DDoS
NT selects Radware to improve telecom cyber defenses
National Telecom Public Company (NT) has chosen Radware to strengthen the cyber defences of its international telecommunications infrastructure.
Sift
Connected e-commerce apps are the future of retail and higher revenue growth. Read the new ebook by Sift to find out how to maximise your business potential.
Link image
Story image
Cyber attacks
Devastating cyber attacks expected to hit energy sector
Energy executives anticipate life, property, and environment-compromising cyber attacks on the sector within the next two years.
Story image
ChildFund
ChildFund launches new campaign to protect children online
ChildFund says WEB Safe & Wise aims to protect children from sexual exploitation and abuse online while also empowering them to become digitally savvy. 
Story image
Employment
Tech job moves - Forcepoint, Malwarebytes, SolarWinds & VMware
We round up all job appointments from May 13-20, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Artificial Intelligence
Gartner reveals top three tech trends for banks this year
Gartner says generative artificial intelligence, autonomic systems and privacy-enhancing computation are gaining traction in banking and investment services.
Story image
Women in Technology
Huawei webinar emphasises the importance of women in tech
Industry findings by Coursera discussed as part of a webinar jointly organised by Huawei and Reuters Events found 6% more women enrolled in tech courses this year than in 2021.
Story image
Ransomware
APAC organisations fail to disclose ransomware breaches
85% of organisations in APAC were breached by ransomware at least once in the past five years, but only 28% publicly disclosed the incident.
Exabeam
Find out how a behavioural analytics-driven approach can transform security operations with the new Exabeam commissioned Forrester study.
Link image
Story image
Surveillance
i-PRO releases smallest AI-based surveillance camera on the market
The new i-PRO mini network camera is now available, with a pocket-sized form factor and full AI analytics functionality.
Story image
Sustainability
Equinix announces milestones on sustainability commitments
Equinix has released its 2021 Sustainability Report which outlines progress, innovation and accomplishments on key ESG commitments.
Sift
Having secure retail solutions can be a make or break factor for a customers satisfaction. Sift has the expert tools and expertise to keep retail practices safe and customers happy.
Link image
Story image
Logistics
Dematic robotic solutions win big at Singapore technology awards
Dematic has won the Robotics-Logistics award at the recently concluded Singapore Business Review Technology Excellence Awards.
Story image
Migration
Let’s clear the cloud visibility haze with app awareness
Increasingly, organisations are heading for the cloud, initiating new born-in-the-cloud architectures and migrating existing applications via ‘lift and shift’ or refactoring.
Story image
Data Center
Preventing downtime costs and damage with Distributed Infrastructure Management
Distributed Infrastructure Management (DIM) can often be a lifeline for many enterprises that work with highly critical ICT infrastructure and power sources.
Story image
Sift
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
DaaS
NetApp launches Spot PC, a new Desktop-as-a-Service solution
This is a new managed cloud DaaS solution with security, automation, observability and optimisation capabilities, designed for the needs of today.
Story image
Manhattan Associates
Shortening the click-to-customer cycle through smart technologies
Speed of delivery without accuracy is a dealbreaker for consumers. How can retailers operating in an omnichannel environment overcome the challenge of click-to-customer cycle times.
Story image
Vectra AI
Vectra’s inaugural Partner of the Year Awards revealed
APAC companies Baidam, Firmus, ShellSoft and Macnica have been recognised in Vectra AI's inaugural Partner of the Year Awards.
Story image
GapMaps
GapMaps Live to improve brand decisions on physical locations
GapMaps has released its latest service GapMaps Live, giving more insights and features to help brands make better decisions about physical locations.
Story image
Data Protection
Barracuda launches new capabilities for API Protection
"Every business needs this type of critical protection against API vulnerabilities and automated bot attacks," Barracuda says.
Story image
Silver Peak
The path to an adaptive, modern network
Managing and securing the network looks different than it did just two years ago—especially given that most of these networks are made up of multi-generations of infrastructure stitched together over time.
Story image
Digital Signage
MAXHUB's Digital Signage range to bolster boardroom productivity
The new MAXHUB Digital Signage technology is purpose-built to make every kind of team meeting more effective.
Story image
Alteryx
Alteryx releases updates, empowers data insights for enterprise
Alteryx has released new advancements designed to aid enterprises with cloud analytics, democratise insights and ensure data governance.
Story image
Sustainability
Aligned Data Centers increases sustainability-linked loan
Aligned Data Centers has increased its sustainability-linked loan from $375 million to $1.75 billion to speed up the next phase of its strategic growth.
Story image
Managed service provider
Barracuda MSP Day 2022 highlights MSP opportunities
Barracuda Networks has released a report showing global services-related MSP revenue is set to increase by more than a third in 2022 compared to 2021.