How to Start a Cafe Business in Singapore

The food and beverage industry captures a lucrative market. Especially in Singapore, it is a booming industry. Heart of Asia, Singapore caters to locals and visitors with a diverse palette of mouth-watering delicacies. This comprehensive guide is tailored to entrepreneurs looking to take advantage of Singapore’s vibrant food scene by establishing a cafe business.

Table of Contents

Why Open a Cafe?

Without a doubt, cafes that serve delicious food and beverages are among the most successful businesses in Singapore. Food is an integral part of Singapore’s culture. Singaporeans consider eating out a common daily experience. So, there will always be a demand for businesses in the F&B industry.

The Singapore F&B industry has seen substantial growth over the years. What’s more, the country encourages businesses in this sector with various incentives and grants. Such government assistance is often appreciated by entrepreneurs who are just starting their cafe business in Singapore. The Productivity Solution Grant (PSG) and Enterprise Development Grant are just examples of grants you can apply for.

There are many government grants available for SMEs. See the full list of grants here.

If you are looking to ease your bookkeeping load, you may be eligible to get 80% PSG Subsidy for Xero accounting software. Xero accounting software is an online platform that can cut the time you spent on accounting and bookkeeping by half. Accounting is made easy and you can save both time and money. Check your eligible for Xero PSG Grant or start applying here.

What You should Know before Establishing a Food & Beverage Café

Now that you understand why both established and rising entrepreneurs are so eager to be a part of the booming cafe scene in Singapore, you are perhaps keen on investing as well. Before you start your journey as a cafe owner in Singapore, there are some important things you need to know.

Below are a few advice to keep in mind before you establish your new F&B Cafe:

Get a comprehensive market analysis done to find out how much demand there is for the service you are hoping to offer. Investing thousands of dollars based only on your desire to start a food & beverage cafe is not wise. Instead, conduct a survey and detailed market analysis to find out whether your business will have significant demand.
Due diligence is a crucial step. You need to identify your potential competitors to have a good idea of what you will be expected to keep pace with. Know your competition thoroughly and strategize accordingly.
For many businesses, finances and capital are a major hurdle. You can eliminate this stumbling block by preparing adequate finances. The more prepared you are, the higher your chances of success will be. It is ideal to arrange enough capital to help your business sustain a few months. In addition to the cost of start-up and running expenses, consider expenses you will incur on equipment, renovation, fittings, ingredients, and marketing.

If you do not have enough savings, there are many ways on how you can raise capital for your cafe business.

See these guides for more help:

In the food & beverage cafe you are about to open, customers should be considered the most important. Your reputation will be directly proportional to the customer experience. Therefore, you wouldn’t want to have operations-related issues such as being short-staffed when hungry customers line up. You will have to ensure operational efficiency. Analyze every step of the process and plan your workflow accordingly as it is important that you cover all bases.
Especially for the initial months of operation, one of the core activities you should focus on is promotions. You need to promote your brand tirelessly yet creatively until your cafe gets a reputation amid customers. However, marketing actions cannot stop even when the cafe becomes the talk of the town. The ideal way to ensure the best results from your marketing efforts is to outsource the task to professionals. Not only will they get the job done and help take your business off the ground during the introductory period but will also help drive more customers in the long run.

How to Register a Cafe F&B Business?

Now that you have made up your mind, it is time to register your business and start operations. You need to incorporate your cafe company before you can operate in Singapore. You can follow the steps below to register the company:

Choose a unique name and reserve it with the Singapore Accounting and Corporate Regulatory Authority (ACRA)
Draft company’s Articles of Association, notarize and file with ACRA
Get your cafe registered for tax and GST with the Inland Revenue Authority of Singapore (IRAS)
Apply for all the permits and licenses you will require to operate legally in Singapore

Not sure if you should register GST for your cafe business? Get help from these guides:

How to Apply for F&B Permits and Licenses?

To run a business in Singapore, your cafe will need some permits and licenses. You cannot begin operations without these documents. Thankfully, you can submit applications to the National Environment Agency (NEA) and obtain these documents quite easily.

To increase your chances of approval, you have to provide all the valid documents as mentioned by the NEA. Below is a list of documents you must prepare to submit to the NEA:

Copy of your local ID/Residence permit or passport if you are a foreigner
Copy of the document stating approval from the Housing and Development Board (HDB) and the Urban Redevelopment Authority (URA)
Copy of the food and hygiene certificate for the cafe manager and the employees who will be working in the business
A detailed safety management plan tailored for your planned premise

The types of licenses you will need will vary based on the kind of products and services you wish to offer. These are some of the licenses you may need to apply for:

A Food Shop License: Cafe businesses that operate in coffee shops, canteens, eating houses, food courts, etc. will require this license.
A Food Stall License: This license is applicable for your business if you wish to operate the cafe F&B business inside a privately-owned food shop.
A Hawker Stall License: You are required to get this license if your business is a food stall operating under a government-owned food shop.
A Copyright License: You must get this license for your premise if you are going to play music at your cafe.
A Public Entertainment License: If you have plans in entertaining the customers with recorded music, live music performances, music lounge, or cabaret shows, this license is mandatory.
A Liquor License: You will need this license if alcohol will be served at your establishment.

Start your Business Today!

Timcole is your one-stop service provider for your business. From company incorporation to secretarial and accounting matters, Timcole offers reliable and affordable services to support your business.

Need help in starting a cafe business? Contact Timcole for a free consultation.