F&B businesses urged to tap new scheme to optimise operations

Key Concepts

FNB Process Optimization Program: A new initiative to help food and beverage businesses improve their operations.
Consultants: Approved professionals who assist businesses in optimizing layouts, processes, and technology.
Technology Adoption: Integrating new technologies, including AI and Manu Engineering, into FNB operations.
Manu Engineering: A methodology focused on optimizing manufacturing and operational processes.
Pecurion Star Award: An awards ceremony recognizing FNB businesses for innovation, quality, creativity, and resilience.
Grants and Subsidies: Financial assistance provided by government agencies (like Enterprise Singapore) to FNB businesses.
Operational Efficiency: Improving the effectiveness and productivity of business operations.
Cost Reduction: Lowering expenses, particularly in energy and manpower.
In-house Capabilities: Developing internal systems and skills, such as stock-keeping systems.
AI (Artificial Intelligence): Technology used to enhance customer experience and internal operations.
Personalized Services: Tailoring services to individual customer preferences.
Regional Expansion: Growing business operations into new geographical markets, particularly in Southeast Asia.
ESG (Environmental, Social, and Governance): Factors considered in business strategy and development.
Training Program: An initiative to upskill FNB professionals.

FNB Process Optimization Program and Industry Challenges

Senior Minister of State for Trade and Industry, Ms. Low Yen Ling, is encouraging food and beverage (FNB) businesses to utilize a newly launched FNB Process Optimization Program. This program aims to help businesses optimize their operations, including outlet layout, processes, and technology adoption, with the support of approved consultants. The program's launch comes at a critical time, with a record number of FNB outlets exiting the industry due to rising costs across the board.

Pecurion Star Award and Industry Recognition

Ms. Low made these remarks at the Pecurion Star Award ceremony, held at Marina Bay Sands, where she addressed over a thousand industry leaders. The awards celebrate FNB businesses for their innovation, quality, creativity, and resilience. This year's awards saw a significant number of nominations, with 286 nominations received from 175 FNB establishments across 21 categories.

Impact of Grants on FNB Businesses

The transcript highlights how grants and subsidies have been instrumental in helping restaurants improve efficiency and pursue regional expansion plans amidst a challenging economic climate. These financial aids have also been effective in mitigating rising energy and manpower costs.

Case Study: Homegrown Restaurant Chain

A homegrown restaurant chain managing 27 outlets in Singapore shared its success in coping with operational challenges by leveraging various grants. This chain has reportedly saved approximately 30% on its electricity bills and acquired new equipment.

Development of In-house Capabilities: Stock Keeping System

The restaurant chain also utilized grants to develop in-house capabilities, specifically a stock-keeping system. Previously, ordering decisions were often based on individual managers' "gut feel," leading to inconsistencies. The new system streamlines this process:

Staff perform daily stock counts.
They key in the remaining quantity of each item.
The back-end system automatically calculates and recommends necessary orders. This has eliminated the variability in ordering based on subjective judgment.

Leveraging AI for Enhanced Customer Experience and Operations

The company is now exploring other grants to implement AI with the goal of improving customer experience. The strategy involves integrating AI into solutions that either help staff run outlets more efficiently or enhance customer touchpoints through more personalized services.

Overseas Expansion Supported by Enterprise Singapore Grants

Grants from Enterprise Singapore have also facilitated the overseas expansion of an FNB group. These grants provided access to top-tier consulting firms, enabling the group to collaborate with these teams and their ESG team to refine their growth and development strategy. The group is now planning to expand further out of Singapore in the coming years, with a focus on Southeast Asia.

Future Training Program for FNB Professionals

Additionally, a grant is being utilized to develop a training program for FNB professionals, which is expected to launch in 2026.

Synthesis and Conclusion

The FNB sector is facing significant headwinds due to rising costs, leading to a record number of business exits. In response, the government, through initiatives like the FNB Process Optimization Program and financial grants from agencies like Enterprise Singapore, is actively supporting businesses. These programs aim to enhance operational efficiency, reduce costs (particularly energy and manpower), foster the development of in-house capabilities, and drive innovation. The successful implementation of these grants is evident in cost savings, improved operational processes through technology adoption (including AI), and the enablement of regional expansion. The future also holds promise with planned training programs to upskill FNB professionals, underscoring a commitment to the long-term resilience and growth of the industry.