High Rental Cost in Singapore's F&B, How Start Ups Can Leverage Technology to Help Ease High Overheads

Running an F&B business in Singapore is no small feat especially when sky-high rental costs take up a huge chunk of your monthly expenses. For many F&B startups with limited budgets, this can feel like a constant uphill battle. While we hope that rental prices do come under control soon, in the meantime, F&B start ups have to adapt business strategies in order to survive. Here’s the good news: technology can help you operate smarter, reduce costs, and boost profitability without compromising customer experience.

If you’re starting a café, restaurant, or takeaway business in Singapore, here’s how you can use tech to fight back against rising rental costs.

1. Sacrifice some foot traffic, invest more in marketing

Instead of committing to a high-rental location, consider launching in a slightly quieter area, but boost brand awareness through online and offline marketing efforts.

• Lower Overhead, free up cashflow: By slightly sacrificing foot traffic for lower rental, you free up more cashflow that can be reinvested into marketing efforts to build up your F&B brand's awareness, which is a great long term strategy.
• Use Food Delivery Platforms: Leverage the reach that food delivery platforms have. Run aggressive promotions on these platforms to stand out, and let more consumers have a taste of your delicious food. Think of it as a marketing platform instead of a profit channel.

2. Implement Self-Ordering Kiosks & QR Ordering

One of the biggest ongoing costs for F&B businesses apart for rental costs is manpower. This is where solutions like Self-ordering kiosks and QR ordering systems comes in handy by allowing customers to browse, order, and pay directly on their own, reducing your need for counter staff.

• Shorter queues and faster turnover
• Lower manpower dependency
• Increased order accuracy

This tech is especially useful in small outlets where every square foot matters—you can serve more customers without expanding your physical footprint.

3. Use Inventory Management Tools for Demand Forecasting & Inventory Control

Don't under estimate that 2 bags of food wastage you throw out everyday. It really adds up.

Over-ordering ingredients leads to food waste, which is money down the drain. Inventory management tools can help can forecast demands based on sales history.

• Reduce wastage
• Keep inventory lean
• Ensure fresh, consistent quality

By ordering exactly what you need, you free up storage space and keep operational costs in check.

4. Apply Yield Management to Boost Off-Peak Sales

Keep your momentum going by reducing the sharp drop off in orders once it pasts lunch or dinner time. Dynamic pricing and targeted promotions during off-peak hours can fill empty seats and increase revenue.
For example:

• Offer lunch deals between 2–4pm
• Give loyalty points for dining during off-peak periods
• Run flash deals via your social media or ordering app

Even a small increase in utilization can have a big impact on your bottom line.

5. Invest in an Integrated POS System

Modern cloud-based POS systems do more than process transactions—they connect sales, inventory, CRM, and online ordering into one platform.

• Better decision-making with real-time data
• Easier inventory tracking and cost control
• Seamless integration with delivery platforms

An integrated POS also means you can run leaner operations without juggling multiple systems.

Conclusion: Smarter Tech, Lower Rental Impact

High rental costs are a reality for any F&B business in Singapore—but they don’t have to crush your startup’s growth. By combining space-efficient business models with smart technology, you can serve more customers, cut wasted resources, and run a profitable business—even in Singapore’s competitive F&B scene.

Looking for F&B solutions such as F&B POS systems, QR ordering, Self ordering kiosks and CRM solutions? Click here to contact us!