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Business Times
2 hours ago
- Business
- Business Times
F&B business closures: don't blame high rents.
[SINGAPORE] Singapore prides itself as a food haven. Residents and visitors love wining and dining at the wide range of food and beverage (F&B) outlets here. However, the local F&B scene is reeling from a spate of closures of F&B outlets. Might Singapore's status as a top food destination be undermined by the high failure rate in the F&B sector? Last year, the number of F&B business closures in Singapore hit a 20-year high at 3,047. And average monthly closures in the first quarter this year are above 300. Meanwhile, listed Japan Foods Holding – a leading Japanese restaurant chain in Singapore – posted a larger loss for the financial year ended Mar 31 compared with a year ago. Greedy landlords are perceived as the villains that are driving much-loved cafes, restaurants and bars to cease operations. Media reports highlight cases of landlords hiking rents for F&B outlets of 50 per cent or more when leases expire. My take is that landlords are not entirely to blame for the high rate of F&B business closures. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Subdued growth in retail rentals One, growth in retail rents has been lacklustre over recent years. Based on data from the Urban Redevelopment Authority's Realis, the private sector rental index for retail space fell 22.1 per cent in the central region and 24 per cent in the fringe area between pre-Covid pandemic in Q4 2019 and Q1 2025. Certainly, some major retail landlords have been upping rents over time and continue doing so. For Q1, CapitaLand Integrated Commercial Trust (CICT) had positive rent reversion – which measures the average incoming rents versus the average outgoing rents – of 11.2 per cent for downtown retail spaces and 9.5 per cent for suburban retail spaces. In perspective, if rent increases by 10 per cent when a lease expires after three years, this represents growth at a compound annual growth rate of 3.2 per cent, which may be broadly in line with the inflation rate. Two, rental is not the only large cost component for an F&B business. Other major recurring costs include manpower and supplies. The initial investment in buying equipment and fitting out premises can also be substantial. For a typical F&B outlet here, the amount of revenue eaten up by rent might be in the low double-digits in percentage terms. Leading Singapore suburban mall owner Frasers Centrepoint Trust (FCT) reported retail portfolio average occupancy cost of 16 per cent for the financial year ended Sep 30, 2024, down slightly from that in pre-Covid pandemic in the financial year ended Sep 30, 2019. Occupancy cost refers to the ratio of gross rental including turnover rent paid by a tenant to the tenant's sales turnover excluding goods and services tax. Long-term greedy landlords Three, leading retail landlords including CICT and FCT are likely to be long-term greedy. A long-term focused landlord will prioritise achieving high occupancy levels and having retail tenants that succeed. As at end-March, committed occupancy at CICT's retail properties here, excluding the areas in IMM Building that are undergoing asset enhancement, was 98.8 per cent. And the tenant retention rate for CICT's retail spaces in Singapore, based on net lettable area of renewed versus expiring leases for Q1, was 79.2 per cent. A mall owner will aim to charge an F&B player high but hopefully sustainable rent. After all, the landlord would seek to avoid having high rental arrears from failing tenants or many tenants abruptly shutting operations. Indeed, a mall with many outlets shut is unappealing to shoppers. On the other hand, a mall with all its shops open for operations can draw higher shopper traffic. And tenants will flock to be in malls with high visitorship. Four, some F&B operators are mini-anchors for malls and thus well-placed to secure choice spots on favourable terms. Mall owners who value having the right tenant mix might pursue certain F&B brands or concepts to help position their property and draw visitors. Equally, an owner of a row of shophouses may be keen to lure the right F&B operator who can bring visitor traffic to the said properties. In short, sought-after F&B operators are in a strong bargaining position to secure choice spots. Five, intense competition among F&B players can result in players fighting hard to snare certain spots by offering high rents. For example, many F&B operators may seek to be in the most prime area of a popular mall or to have presence in an established dining enclave that has buzz. Thus, when choice F&B spaces become available, landlords are in the sweet spot of choosing among strong players who dangle juicy rents. Furthermore, new entrants to the local F&B scene, including Chinese brands, may bid aggressively for target spots in the hope of quickly making an impact with patrons who are spoilt for choice. Six, F&B operators that wish to minimise the risk of relocation from specific locations can consider measures such as signing longer leases than, say, a three-year lease or partnering a real estate player in said F&B outlets. A shophouse owner might be keen to take an equity interest in the restaurant or bar that occupies the property. Property giant Far East Organization invests in a varied portfolio of F&B concepts. The sector will always be tough for operators – in particular young, new entrepreneurs. Success is built on getting many things right such as concept, taste, presentation, ambience, logistics, manpower, supply chain, branding, marketing, pricing, location and so forth. Drawing and retaining customers is challenging as patrons have ample choice and are often mindful of getting value for their spending. Also, F&B businesses need to constantly adapt to changing tastes and business conditions. Still, the high spending power of residents and visitors here will draw new players to enter a ferociously competitive F&B scene. A high rate of F&B business closures may be inevitable – just don't blame rent for the sector's churn. Ultimately, as buzzing F&B outlets are a powerful driver of successful physical retail spaces, many landlords are as vested as F&B players in building a vibrant wining and dining scene in Singapore.
Zawya
4 days ago
- Business
- Zawya
Nigeria: FG's $188mln Sukuk attracts over $1.3bln in record-breaking subscription
The Series VII Sovereign Sukuk through which the Debt Management Office (DMO) offered N300 billion on behalf of the Federal Government of Nigeria (FGN), recorded an unprecedented subscription level of over N2.205 trillion. This represents an excess of 735 per cent of subscriptions. The Debt Management Office (DMO) described this as clear evidence of the huge investor appetite for the ethical instrument introduced by the DMO in 2017 as an innovative strategy to expand the nation's investor base and provide opportunities for all Nigerians to participate in the activities of the capital market. An analysis of the subscriptions showed that the subscribers cut across various segments of the public: retail, non-interest banks and financial institutions, banks, pension fund administrators, asset/fund managers and others. The DMO said like the previous series, funds realized from the Issuance will be used by the FGN to construct new roads and rehabilitate existing ones, as well as build bridges in the six geo-political zones of the country and the Federal Capital Territory (FCT). It added that the raising of funds through Sukuk to finance infrastructure projects aligns with Mr. President's Renewed Hope Agenda of which infrastructure development is a key pillar. The management stressed that the DMO remains committed to providing safe and liquid investment products to the public and supporting the FGN's development plans.
Zawya
6 days ago
- Business
- Zawya
Nigeria: Investing in vegetable value chains in FCT
The Federal Capital Territory (FCT), beyond its political significance, holds immense potential for agricultural development, particularly within its vibrant vegetable and perishable produce sector. This burgeoning industry presents a golden opportunity for significant capital returns, yet its full potential remains largely untapped. A concerted effort by the FCT Administration to strategically develop the vegetable value chain is crucial to unlocking this economic engine and ensuring nutritional security for its growing population and beyond. Currently, a significant challenge hindering the growth of this sector lies in the precarious journey from farm gate to market. The often considerable distances, coupled with time-consuming transportation methods and inadequate infrastructure, result in substantial post-harvest losses. Perishable produce frequently arrives in markets damaged and nearing spoilage, impacting both the income of farmers and the availability of nutritious food for consumers. The very mode of transport and the condition of the roads themselves contribute significantly to this worrying trend. This situation stands in stark contrast to the potential for a consistent, year-round supply of assorted vegetables if efficient systems were in place. The government has a crucial role to play in fostering this growth by implementing advanced preservation technologies and providing financial support to farmers. Encouraging information sharing on modern farming techniques and establishing effective marketing strategies will ensure value for money for both producers and consumers. Investing in simple yet impactful preservation technologies will enable year-round farming, boost farmer incomes, and enhance the nutritional intake of the population. Furthermore, increased vegetable farming activities across the Area Councils can significantly contribute to internal revenue generation through tax payments. By strategically cultivating its vegetable sector, the FCT can reap significant economic and nutritional rewards for the benefit of all. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
New York Times
25-05-2025
- Business
- New York Times
Some Sneaky Fees Can No Longer Hide. But Watch Out for Others.
Everyone who has shopped online for hotel rooms, vacation rentals or plane tickets has had the experience of finding a reasonable upfront price that then skyrockets at checkout because of undisclosed fees. Common culprits include the dreaded resort fee, vacation rental cleaning fees and, on some airlines, the cost of choosing seats. Such annoying costs that creep in at the end of the transaction are widely known as junk fees, which complicate the process of making apples-to-apples price comparisons. A Federal Trade Commission rule went into effect this month preventing hotels, vacation rentals and ticketing services for live entertainment events from obfuscating extra costs. Those types of businesses are now required to show an upfront price that includes all fees, and they are not allowed to tack on any at the end. This win for consumers will radically change the way we make bookings online for travel and entertainment. The F.T.C. estimates that Americans waste 53 million hours a year comparing prices on live-event tickets and short-term lodging. Now, we can do a quick web search to get a price comparison across multiple vendors and pick the option that suits our budget. But — and I'm sorry to be a buzzkill — this is where the good news ends. Hidden fees still lurk in other areas, like airfares, car rental reservations and movie tickets. In other words, the experience of online booking has improved for some categories but not all. 'People really feel nickel-and-dimed to death,' said Chuck Bell, a director at Consumer Reports, who has lobbied against junk fees for years. Here's what to know. Deal Hunting for Hotels and Event Tickets Is Much Easier Because of the new F.T.C. rule, sites that aggregate booking information for hotels, like and Expedia, are now showing total room rates including taxes and all fees. On for example, the site quoted $825 for a two-night stay at a hotel in Midtown Manhattan. After I clicked through, the checkout page showed the breakdown, which included a $60 resort fee and taxes. Similarly, when I'm browsing vacation homes on Airbnb, the total price appears, including the service fee that users pay to the site as well as the cleaning fee charged by a host. Sites selling tickets for live events, including Ticketmaster and StubHub, now show a total cost including their service fees. While the fees themselves have not gone away, the true costs are now transparent. That makes it easier to stick to a budget when shopping around. Brian Kelly, founder of The Points Guy, a blog that follows travel deals, advises that travelers use third-party hotel aggregators like Expedia to compare prices, then book directly with the hotel. If something goes wrong with your hotel reservation, the issue can be resolved more efficiently by the hotel's support staff than by the aggregator, which is essentially a middleman, he added. The F.T.C. said in a statement that it focused on two industries that had a history of deceptive pricing practices. 'Consumers were frustrated with shopping for event tickets or hotel stays, only to be hit with expensive and mysterious fees when they go to pay,' according to the agency's statement. 'Consumers now will have the whole truth.' But Hidden Fees Remain Elsewhere Online bookings get more complicated for other categories, like plane tickets. A search on Alaska Airlines' website showed a flight from New York to San Francisco in June for $320. Only after I clicked through did it become clear that selecting my own seat would cost an extra $200, bringing the total to $520. Airlines were not included in the F.T.C.'s junk fees rule because they are under the jurisdiction of the Department of Transportation, but that agency has been making similar pushes for greater price transparency. Last month, the department announced a rule requiring airlines to display upfront any fees for checked bags and seat selections. The airlines sued the department this month, arguing that the rule would confuse consumers by giving them too much information. As a result, the rule has not yet gone into effect. 'This is an industry that lives on sticker shock,' said William McGee, an aviation expert at the American Economic Liberties Project, a nonprofit that fights corporate monopolies. 'The gotchas just never stop.' He added that consumers would have to continue working diligently to understand the true price of a plane ticket. One useful technique to streamline the research process is to become familiar with the types of fees a business typically adds at checkout. Budget airlines, for example, typically charge for extras. If you're using an airfare comparison tool like Google Flights, you can filter out budget airlines from your search and look for tickets only from brands with simpler pricing structures. Junk fees are still hiding in lots of our online transactions. The total cost of a movie ticket, including the so-called convenience fee for booking online, is often not shown until after you've picked a showtime and seat. Some rental car companies add a charge for operating at an airport, among other fees. Long story short, stay on guard. Long Term, Transparency May Force Prices Down Even though the new rules sound like small wins, consumers may have bigger changes to look forward to, Mr. Bell said. Now that hotels and live event services have to be clearer about their pricing, they may face competitive pressure to lower their fees. 'It'll be nice to see some of the fees reduced or eliminated,' he added.
Zawya
23-05-2025
- Business
- Zawya
Nigeria FCTA: We've allocated $33mln to health sector — Wike
The Federal Capital Territory Administration (FCTA) has allocated N54 billion of the N1.7trn 2025 statutory budget into the health sector to complete rehabilitation of hospitals and procurement of modern equipment. FCT minister, Nyesom Wike said out of the amount N34 billion is for recurrent expenditure, which includes the sum of N1.3billion for drug revolving fund while the sum of N20 billion is for capital expenditure in the health secretariat. During the separate defence of the N1.7bn budget before Senate and House of Representatives committees, Wike said 72.30 per cent of the total proposed budget, amounting to N1,289,690,124,776, was earmarked for capital expenditure while the remaining 27.70 percent, totaling N494,133,583,616 was for recurrent expenditure. He outlined that N80 billion for SUKUK loan projects, N25 billion for the Abuja Light Rail project, N15 billion for Abuja Greater Water Supply, and N250 billion from commercial loans to complete ongoing capital projects in the FCC and satellite towns. The remaining N919,690,124,776 was dedicated to the completion of ongoing capital projects and counterpart-funded initiatives aimed at boosting socio-economic activities across the FCT. According to the breakdown, capital expenditure showed that N801.5 billion was allocated to the FCDA, N137 billion to the STDD, and N351.2 billion to other Secretariats, Departments, and Agencies (SDAs) for their capital expenditures and select new projects. He said the 2025 capital budget prioritizes the completion of critical ongoing infrastructure projects. These include the completion of roads B6 and B12, full scope development of Arterial Road N20, provision of engineering infrastructure to Guzape, Wuye, and Maitama II Districts, extension of Inner Southern Expressway (ISEX), and full scope development of FCT Highway 105 (Kuje Road). Other vital projects are the construction of Northern Parkway from Ring Road II to Ring Road III, full scope development of Arterial Road N20 from Arterial Road N5, rehabilitation of Old Keffi Road, full scope development of Arterial Road N1, and provision of access roads to Bus Terminals. Additionally, the upgrading of Ushafa War College/Army Check Point Road, the construction of Pai-Gomani Road, and dualization of Kuje-Gwagwalada road are also included. On recurrent expenditure, N150,353,906,168 (8.43 percent of the total) was proposed for personnel costs, while overhead cost was allocated N343,779,448 (19.27 percent). Sectoral highlights of the FCT's 2025 statutory budget proposal showed that infrastructural sector (Roads, Districts Development and Public Buildings) was allocated the sum of N383.5 billion, Transportation sector has a provision of the sum of N79.3 billion, education sector has a budgetary proposal of N181 billion while the health sector has a proposed sum of N54 billion in the year 2025. Other sectors, such has environment, was allocated the sum of N22.9 billion, Water sector got the sum of N37.4 billion, agriculture got the sum of N8.3 billion, social development sector got the sum of N23.7 billion, legal services got N7.7 billion, land administration got N1.5 billion while Area Councils Services Secretariat was allocated the sum of N3.1 billion. The FCT Minister also outlined the FCT's 2025 revenue fiscal framework, comprising distributable revenue of N1,392,573,937,087 and non-distributable revenue of N391,249,771,305. Revenue sources include proceeds from the 1 per cent of the 52.68 percent statutory allocation of the Federal Government from the Federation Account, Internally Generated Revenue (IGR), and other sources as detailed in the Revenue Fiscal Framework. Wike pledged his Administration's commitment to completing ongoing projects, many of which were initiated by previous administrations. He expressed the current administration's determination to see the projects to conclusion. The Minister acknowledged and commended the consistent support of the National Assembly to the FCT Administration, specifically praising the swift consideration of the 2025 statutory budget proposal. 'It's not been long that Mr. President sent this to you and expeditiously, you've done the first and second reading and now we are in Committee stage. It has never happened. Since your inception, you have always given us that support. We have never suffered any delay in budget passage. We want to say that we will not take this for granted. We will continue to cooperate with you for the development of the FCT,' he stated, while urging for an accelerated passage of the FCT's 2025 statutory budget proposal' Said Wike. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
