5 days ago
How to survive in the F&B business – top strategies from veteran chefs and restaurateurs
[SINGAPORE] Plan for the good, bad and ugly. Be ready for ugly, because it will happen and you will have to survive it.
These are the words that Paul Longworth lives by. The chef-owner of Encore by Rhubarb, who recently revamped his former one-Michelin-starred restaurant Rhubarb as a casual concept, credits this advice to his old friend Magdalene Tang of Mag's Wine Kitchen fame.
Paul Longworth, chef-owner of Encore by Rhubarb. PHOTO: ENCORE BY RHUBARB
The result is that his restaurant is still in business 11 years after opening Rhubarb in Duxton Hill in 2014, and where it still stands today.
Going by the current spate of restaurant closures – which reached a 20-year high of over 3,000 casualties in 2024, Longworth is one of the 'lucky' ones. In the past year alone, 10 one-Michelin-starred restaurants have closed, and Rhubarb could have been on the list had it not pivoted its business. The move may have cost it its star, but it gained a lifeline in the process.
Encore by Rhubarb is one of a group of restaurants that have navigated Singapore's challenging food and beverage (F&B) waters for 10 years and more. It's a network that includes three-Michelin-starred Les Amis and Odette, two-starred Saint Pierre and one-stars Burnt Ends, Candlenut, Labyrinth and Buona Terra. Stalwarts such as Garibaldi, LeVeL33 and Buko Nero, too, are still very much in the game. Some are thriving, others are holding steady by diversifying or trimming costs, but all have developed their own strategies for survival.
Han Li Guang of Labyrinth. PHOTO:LABYRINTH
The challenges they all face are the same. 'The economy is not doing well, it's not just F&B. From tech to retail, everyone has been feeling it due to the tariffs, wars and volatile stock market,' says Han Li Guang, chef-owner of Labyrinth, which celebrated its 11th anniversary this year. On top of that, the industry is also battling high rents, manpower shortages and rapidly shifting consumer tastes.
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Diversify and find alternative revenue streams
For veteran chef-retaurateur Roberto Galetti – who opened Garibaldi Italian Restaurant & Bar in 2003 and held a Michelin star from 2017 to 2022 – survival has meant branching out. '(Right now) as Garibaldi, we are bleeding,' he says. 'But we can survive because our casual dining concept is generating profit to help us through this time. We are lucky; other fine dining restaurants may not have this.' Galetti is referring to Burrata Joy & Gustavo Lapasta, a 30-seat outfit in Katong, with an average check of S$35 to S$40 and lower fixed costs. His strategy is to turn tables quickly, doing about 100 covers on a good weekend, which helps subsidise the flagship restaurant.
Roberto Galetti of Garibaldi. PHOTO: GARIBALDI
Others have also leaned into alternative revenue streams to get through the hard times. For Saint Pierre's Emmanuel Stroobant, it was Covid-19 that presented the greatest challenge. 'We launched elevated home dining experiences and leveraged our private dining offering. We kept the kitchen alive, preserved team morale, and maintained guest relationships – even when the doors were closed,' he says.
Emmanuel Stroobant of Saint Pierre. PHOTO: SAINT PIERRE
While the restaurant has been consistently profitable since opening in 2000, Stroobant acknowledges that things are not exactly a bed of roses right now. 'In our best years, we operated with a healthy double-digit margin, which is increasingly rare today. Those were times when costs were more manageable and customer dining patterns were more predictable.'
Keep an eye on the numbers
Even owners of smaller outfits are affected by changing dining patterns, such as Oscar and Tracy Pasinato of the popular and intimate Italian restaurant Buko Nero. 'We're still profitable but we noticed a dip now compared to last year,' says Tracy, who runs the floor of the restaurant while her husband, Oscar, helms the kitchen. 'Sometimes on a Tuesday or Wednesday it could be buzzing, then Friday and Saturday are not so busy. The challenging part is trying to figure out what's going on.'
Oscar and Tracy Pasinato of Buko Nero. PHOTO: CHUA YANG
She recalls that when Buko Nero first opened in 2000, they were conservative with their investments in the restaurant, and this has worked well for them. Oscar says: 'We've seen people who open restaurants and by the time they open, they already have zero (dollars) in their business bank account. That's a path to failure. You have to manage your budget carefully, especially now that the cost of living has increased tremendously such that a simple renovation can go up to S$100,000.'
A financial buffer of about six months is ideal, Tracy suggests. 'This is to pay basics like rent and employee salary. Things like marketing are added costs, but you need to make sure you can cover your running costs for suppliers and staff.'
Labyrinth's dining room. PHOTO: LABYRINTH
A former banker, Labyrinth's Han also strongly believes in protecting the bottom line. 'It's a numbers game, and anyone who wants to run a restaurant has to understand this. When I first opened Labyrinth, I thought it was about cooking the best food, being creative, expressing myself as an artist. I ran it as a playground… and things were not going well in the first three or four years. But now I have built a strong team to support my vision and operations, and it frees me up to run it as a business.'
This numbers-focused approach is echoed by Dr Martin Bem, owner of rooftop microbrewery-restaurant LeVeL33, which opened in 2000. 'Small things make an impact,' says Dr Bem, who holds a PhD in Economics. He illustrates: 'For example, let's say we have 400 guests. We used to have our hostess meet guests at the lift, which meant a 20-second walk to the table each way. Multiply that by 400 guests, and that's how much slower you are to serve the next guest during peak hours. Moving the greeting point saved 40 seconds per table. My staff walk less, and guests are better served.'
Don't panic, pivot
Longworth and his team sat down to discuss their future early last year, 'and even then it was pretty obvious that things were going to get harder and harder', he explains. 'So the plan was either to close, which wasn't an option, stay the same and hope for the best, or, as we decided, evolve into something people wanted.' That meant bringing prices down and appealing to a wider customer base. He now charges S$48 and S$88 for a set lunch and dinner, respectively, and while 'our prices are very accessible, it also brings us more exposure and covers'.
Leg of lamb at Encore by Rhubarb. PHOTO: ENCORE BY RHUBARB
Odette's Julien Royer's fastest pivot was during Covid-19, 'the most challenging time for us', he says. 'We had to react quickly. In less than 72 hours after the forced closure of the restaurant, we launched Odette at Home, which was – thank God – a success and allowed us to keep everyone on board. There are nearly 50 of us and it was one of our proudest moments to stay alive during that tricky period'.
Julien Royer of Odette. PHOTO: ODETTE
Odette, which turns 10 in November, has been profitable all these years thanks to 'the care and caution of everyone'. Some 70 per cent of the restaurant's clients are local, with the rest made up of visitors from the US, Australia, Japan, Indonesia, Thailand and the Philippines.
Sebastien Lepinoy of Les Amis. PHOTO: LES AMIS
For Sebastien Lepinoy, director of culinary and operations at Les Amis, one of the first things he did when he took over the kitchen in 2013 was to introduce a S$45 set lunch just to bring in more customers. The game plan then was to reinforce the restaurant's French identity and build a strong foundation, after which awards would naturally follow.
'Les Amis is currently profitable and the key to it is simple – I adapt to the environment,' he says. 'A crisis rarely arrives overnight; by the end of 2023 there were already signs that business was slowing. This gave us time to adjust, particularly in terms of manpower and ensuring our menus are well-priced.'
Being adaptable, and always having a 'Plan B' has put Les Amis on the road to profitability this year 'as things are already better now than the last few months and I believe (the momentum) will continue until Chinese New Year'.
Think like a businessman, not just a chef
Peranakan restaurant Candlenut just celebrated its 15th anniversary but it wasn't an easy ride for chef-owner Malcolm Lee, who said that his youth and inexperience nearly caused his business to go belly up within its first two years. It was a painful reality check for the young chef who was focused purely on his cooking craft and vision, rather than the business.
Peranakan cuisine at Candlenut. PHOTO: CANDLENUT
'I very quickly learnt that passion alone isn't enough,' recalls Lee. 'You need to understand numbers, manage costs, lead people and make tough decisions – sometimes at the expense of creativity. That was a hard but necessary lesson.'
Another lesson has been 'not to let pride or ego get in the way of making hard decisions,' Lee adds. 'Whether it's adjusting expectations, reworking a dish or shifting the way we run the business – staying humble and open has helped us move forward, even when it wasn't easy.'
Strong business partners
Candlenut began to blossom when it moved to Como Dempsey in 2016, the same year it earned its Michelin star. It flourished until 2019 when Covid-19 struck, which was its 'toughest period', says Lee. 'It forced us to think out of the box, and reset our direction, but that period helped to prepare us for the post-Covid challenges ahead.'
Malcolm Lee of Candlenut. PHOTO: CANDLENUT
Being part of the Como stable 'provided Candlenut with a strong foundation to grow' but the resilience built up from its early struggles combined to help 'build a successful and sustainable business together'.
Lee describes Candlenut now as being in a 'steady place – but not without challenges (such as) rising costs in ingredients, manpower and utilities'. His outlook is 'cautious but not bleak', he says. 'My sense is that it stays choppy for a while and then improves gradually, step by step.'
Apart from supportive shareholders, Longworth credits his landlord. 'He has helped me weather the tough times and without him, I don't think we would have survived this long. He is one of the reasons I wanted to rebrand, so that we can continue to grow for another 10 years.'
Royer adds that having The Lo & Behold Group as a partner is crucial in managing the two crucial expenses of a restaurant – rental and manpower. 'As a group, it has very strong and clear processes to manage these (elements).'
Even so, 'having an owner with strong financial backing doesn't mean you can do whatever you want,' adds Lepinoy. 'My strategy is simple – business first. To be a chef is also to be a restaurateur. I carry the responsibility for a team of 70 people, and before thinking about awards or my comfort, I must ensure that everyone is taken care of and receives their salary.'
Invest in a good team
Success doesn't lie in the hands of one talented chef, but the one with the strongest team behind him or her, say the chefs interviewed. Lepinoy credits a team that has been with him since 2013, while Royer consistently insists on building a strong family environment that gives team members 'room to grow within the company and space to express themselves'.
'The heaviest expense has always been our people,' notes Lee, who also helms the one-starred Pangium. 'As we operate on a four day work week or alternate four and five-day system, we need a larger team, which means higher manpower costs. But we believe it's worth it, because better work-life harmony means lower staff turnover, higher morale and a stronger sense of team (spirit). Which translates into steady business.'
Build a strong reputation
While numbers are crucial, for some, long-term survival hinges on more than just the bottom line. It's about building a reputation for quality and valuing the people who support the business.
LeVeL33 seafood platter. PHOTO: LEVEL33
Take LeVeL33, where Dr Bem has seen a consistent growth trend in his business over the years, and attributes it to being able to recognise and cater to the right mix of customers. 'You always hear location, location, location, but you also need the right concept. We are popular with the business crowd for lunch and after-office drinks, tourists come mid-shift for drinks, and in the evenings, it's corporate private dining and degustation menus. We created a multi-zone concept so the same customer can come here for different purposes,' he explains.
Meanwhile, Buko Nero mostly relies on a strong base of loyal regulars, and this makes up about 50 per cent of their customer base. 'We used to have a lot of expat regulars, and after Covid a lot of them moved back home. But we're so happy when they come back to visit Singapore because they always come to the restaurant. It's heartwarming to see where they are in their lives, and how big their children have grown,' says Tracy.
Les Amis' dining room. PHOTO: LES AMIS
Recognition is also important for business, says Lepinoy. 'All awards are crucial. For example, the Black Pearl gives us strong recognition in the Chinese market, where it holds significant influence. The Michelin Guide brings in international customers, while the World's 50 Best connects us with a younger audience that is very active on social media and helps to share our story globally. The Wine Spectator attracts wine lovers and experts who come to experience our wine programme, and we are one of the few independent restaurants in Asia, outside of hotels, to hold a five-star rating in the Forbes Travel Guide.'
Buona Terra's director of operations Gabriele Rizzardi remembers how the first year was the toughest when the Italian restaurant opened in 2012. 'We were still finding our identity and business wasn't great. But with time and experience we built a solid operation supported by regular customers. We've learned to adapt, and make decisions based on business needs rather than pride.'
Saint Pierre's two Michelin starred cuisine. PHOTO: SAINT PIERRE
Ultimately, longevity comes down to discipline, says Stroobant. 'We've always treated Saint Pierre as a business, not an indulgence. Every decision is made with the customer – and the bottom line – in mind. We never chased trends or grew for the sake of growing. That discipline, and a clear sense of purpose, is what has allowed us to not only survive – but to remain relevant for 25 years.'
