Haidilao to close Clarke Quay outlet on Aug 31; exit follows three earlier outlet closures

Business Times

2 days ago

[SINGAPORE] Popular Chinese hotpot chain Haidilao is closing its flagship Singapore outlet at Clarke Quay on Aug 31 as its lease expires.
A text message was sent out to Haidilao members on Wednesday (Aug 13) to inform them of the closure.
The Clarke Quay outlet, which operates in a space managed by CapitaLand, opened in 2012 and marked the brand's entry into Singapore. The Business Times has reached out to Haidilao and CapitaLand for comments.
The closure of the Clarke Quay outlet follows Haidilao's recent shuttering of three suburban restaurants – in Bedok, Pasir Ris and Punggol – after a period of rapid expansion.
A Haidilao spokesperson previously told BT that the brand's key business considerations include labour costs, outlet locations and rental costs. It had noted that some of its stores are shifting focus as they optimise resources and expand menu offerings.
The exit comes against the backdrop of softer demand for retail space in the central region. Savills Singapore on Wednesday noted in a report that weak market sentiments continue to weigh on leasing demand for retail space, with islandwide retail vacancy rising to 7.1 per cent on quarter in Q2 2025.
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Retail trade in the central region has been less resilient to rising rents and business operational costs, leading to a weakening demand for retail space, it noted. Vacancy rate in the region rose to 8.2 per cent in Q2 2025, compared to 7.6 per cent in the previous quarter.
Notably the downtown core area, where Clarke Quay is located in, saw slower take up in the recorded quarter, with occupied space shrinking by 75,000 square feet.
Vacancy rate in the Orchard and fringe area remained relatively flat due to its limited supply, said the Savills report.
Central region rents rose by 0.9 per cent in Q2 2025, reversing from a 0.5 per cent decline in the previous quarter, data from the Urban Redevelopment Authority showed.
The rental index in the central area and fringe area also saw a rebound in the recorded quarter, rising by 0.7 per cent and 0.9 per cent on quarter, respectively.
According to Savills' basket of retail properties, the average monthly rent in the Orchard and suburban area inched up 0.5 per cent on quarter to S$23.30 per square foot (psf) and 0.4 per cent on quarter to S$14.80 psf, respectively.
Savills expects the Singapore economy to see subdued growth in the second half of the year, amid uncertainties caused by tariffs and a tapering of non-oil domestic exports after businesses front loaded their exports to beat potentially higher tariffs.
'This could spill over into domestic-oriented sectors such as retail and food and beverage (F&B), which have reported muted performance in the first half of the year,' it added.
'Although the distribution of government consumption vouchers could help to lift the retail sales activity, overall retail sales in the next few months are forecast to head sideways due to similar performances in economic numbers and cautious hiring sentiments,' said Savills.
It also noted that the recent signs of softening in resident employment could dampen spending power in Singapore, while the strong Singapore dollar continues to divert spending abroad for value products.
The consultancy expects higher tenant turnover rate as underperforming stores vacate.
'While prime units will usually soon get filled up by new tenants, landlords may have to offer shorter leases or more attractive rental incentives to keep the less prime units occupied.'