Singapore manufacturers used to thrive in China. Right this moment, they’re combating to outlive.
For about 20 years, a Singapore model in a Chinese language shopping center exuded “high quality,” “hygiene,” “reliable”—a halo impact so robust that manufacturers like BreadTalk, Jumbo Seafood, Toast Field and Meals Republic may arrange premium actual property in Beijing, Shanghai and Chengdu and watch the nation’s rising center class come to them because it rode the wave of China’s consumption improve.
Nonetheless, the attraction of “Singapore high quality” has since light, and that golden period is over.
Meals Republic closed its final Beijing outlet on Jun 15, 2026. Its mum or dad firm, BreadTalk, had already exited the capital fully on the finish of Mar, down from 460 China retailers at its peak to roughly 200 right this moment.
Jumbo Seafood is planning to shut its retailers throughout China and consolidate its operations in Shanghai. Tune Fa Bak Kut Teh has already made the same transfer, having exited different Chinese language cities; its sole remaining outlet within the nation can be situated in Shanghai.
Evidently, the Singapore F&B retreat from China isn’t just a single model’s failure, however moderately a structural reckoning, and the story of what comes subsequent is just starting.
The golden age for Singapore manufacturers in China
Within the early 2000s, “Singapore high quality” was seen as a real aggressive benefit in China.
As Chinese language incomes rose and the center class expanded, there was an actual urge for food for worldwide eating experiences that felt premium but accessible.
Singapore’s hawker heritage, similar to bak kut teh, chilli crab, kaya toast, provided the Chinese language middle-class acquainted Asian flavours with a world pedigree.
BreadTalk was a pioneer amongst Singapore companies in abroad growth to China. Based in Singapore in 2000 by George Quek, the group grew to almost 1,000 retailers throughout 17 international locations at its peak, with China as its largest market.
Jumbo claimed to serve 1.6 tonnes of crab per day at its three Shanghai retailers in 2017. Tune Fa, Putien, Paradise Group, and Toast Field all expanded into first-tier cities like Beijing, Shanghai, Guangzhou and Shenzhen, and, buoyed by success, pushed additional into second-tier cities like Chengdu, Hangzhou, and Nanjing.
For about 20 years, the aura of “Singapore high quality” labored in China—till round 2023.
What broke the spell
The turning level was not only one occasion however a number of overlapping shifts that essentially modified what Chinese language customers need and who they’re keen to pay for.
Firstly, shopper spending has contracted enormously through the years. China’s property market downturn eroded middle-class wealth, whereas youth unemployment hit file highs in 2023. As such, the aspirational spending that when fuelled premium eating retreated sharply.
These with extra wealth additionally weren’t spending as a lot as they used to. Jumbo Group CEO Ang Kiam Meng informed Lianhe Zaobao that shopper confidence is the primary difficulty and that the CCP’s “eight-point laws” limiting company leisure spending had hit all the mid-to-high-end F&B setting exhausting.
The Jumbo Group financials present that out of the overall income of S$178.8 million in 2023, China’s income was S$26.1 million, nevertheless it dropped by a whopping 27.6% to S$18.9 million in FY2024 and S$18.3 million in FY2025.
Secondly, it’s vital to acknowledge that native Chinese language manufacturers have develop into formidable world-class opponents. Whereas Singapore operators had been managing current retailers, Chinese language opponents had been investing in R&D and digital advertising and marketing, constructing social media presences on Douyin, and getting onto meals supply platforms like Meituan with aggressive reductions, constructing loyal followings on-line and bodily that Singapore manufacturers struggled to match.
Putien’s basic supervisor for China, Ling Ling Kong, noticed that market site visitors is now more and more concentrated amongst main Web-famous manufacturers, making it tougher for conventional high quality eating places to draw new prospects.
BreadTalk’s personal spokesperson acknowledged that the fast rise of Chinese language manufacturers, coupled with the rising significance of meals supply and e-commerce platforms, has reshaped all the aggressive panorama.
Underlying all of this was the fading of the Singapore premium itself. Jianggan Li, CEO of consultancy Momentum Works, defined that “the homeland of abroad manufacturers, together with Singapore’s, has shifted from a aggressive benefit to mere background data.”
Chinese language customers right this moment care about product high quality, whether or not costs are affordable, and whether or not the expertise is price sharing on-line. A model being from Singapore now not strikes the needle the best way it as soon as did.
As such, with the added pressures of excessive rents in core business districts and the price of high-quality elements, shrinking revenue margins have more and more develop into a actuality for all the business, together with Singaporean companies.
China just isn’t the endgame
Since round 2023, most Singapore manufacturers have been quietly consolidating—and by now, Shanghai has develop into the final viable metropolis for nearly all of them, however even there, the aggressive setting is brutal.
BreadTalk took the deepest reduce, contracting from 460 China retailers to roughly 200 whereas Meals Republic retains 4 remaining Shanghai retailers, and pivoted to a brand new avenue of progress in working canteens for faculties and firms. The group’s sights at the moment are firmly set on a S$1 billion income goal by 2029, constructed on its Singapore and Thailand bakeries and its Din Tai Fung franchise rights.
BreadTalk nonetheless operates throughout 14 worldwide markets.
Jumbo is making the same pivot, foreseeing the closure of six eating places in six Chinese language cities to concentrate on Shanghai whereas betting on a special form of progress at residence: a brand new S$10 million Tai Seng headquarters with a devoted catering kitchen and a brand new subsidiary, Jumbo Catering Companies, with Jakarta and Ho Chi Minh Metropolis subsequent on the listing.
Alternatively, Jumbo nonetheless has retailers in South Korea, Thailand, and Cambodia, sustaining its abroad footprint to comprise extra than simply China.
These abroad expansions function on the logic that Asian markets provide rising center courses, cultural familiarity with Singaporean meals, and fewer savage competitors than in China.
Tune Fa, in the meantime, has drawn a quiet line underneath its China ambitions totally, condensing to only a single Shanghai outlet whereas refocusing on Singapore and tourist-facing spots like Jewel Changi Airport.
Of all these retreats, Putien is an outlier, holding on. By capping its China presence at 20 to 30 retailers from the beginning and holding 27 right this moment, it by no means overextended, and that self-discipline now appears prefer it’s paying off because it by no means badly uncovered the corporate within the first place.
What’s placing is that none of those is failing firms.
Jumbo’s first-half 2025 income grew 7.9% to S$105 million, pushed by Singapore operations, whereas BreadTalk hit almost S$600 million in 2023 income. They’re firms recalibrating, moderately than collapsing, shedding China publicity that was diluting returns and doubling down on markets the place they nonetheless have real benefits.
The tougher query is what occurs when these options face the identical pressures.
China is now coming right here
As Singapore’s F&B manufacturers retreat from China, Chinese language F&B manufacturers are additionally flooding into Singapore at an unprecedented tempo.
About 85 Chinese language F&B manufacturers had been working roughly 405 retailers in Singapore as of Aug 2025, greater than double the 32 manufacturers working 184 retailers only a yr earlier, in accordance with information from Inside Retail.
Chagee, Mixue, Tai Er, Nong Geng Ji — manufacturers Singaporeans now see in each main mall — are utilizing Singapore as a launchpad to better growth, leveraging town’s regulatory readability, worldwide repute, and various shopper base to validate their ideas earlier than transferring into broader Southeast Asia.
There’s a temptation to border this as China bought exhausting, so Singapore’s F&Bs are coming residence. However residence isn’t a mushy touchdown both.
Singapore’s F&B sector recorded over 3,000 outlet closures in 2024—the very best in nearly 20 years—and closures continued at roughly 300 each month by means of 2025.
The format that’s struggling in China can be struggling in Singapore.
This exposes a a lot bleaker learn of Singapore companies than a easy East-versus-West enterprise setting distinction, and it raises the query of the place these firms can anticipate progress to return in the event that they’re to proceed of their previous methods within the seemingly international retail panorama again at residence.
The dynamic is a direct inversion of what occurred in China a decade in the past, the place Singapore manufacturers rode the wave of China’s consumption improve.
Now, Chinese language manufacturers are driving Singapore’s place as Southeast Asia’s gateway metropolis and bringing the capital backing, digital advertising and marketing muscle, and operational scale that Singapore manufacturers discovered themselves missing when competing in China.
The lesson within the retreat
Momentum Works’ Li felt that Singapore manufacturers’ retreating from China aren’t essentially poor manufacturers, however moderately manufacturers that had been as soon as profitable however didn’t preserve tempo with the pace of change within the Chinese language market.
China’s market has by no means lacked alternatives, however it’s merely altering too rapidly. Many Singapore manufacturers entered, trying to unravel the wants of customers a decade in the past, and located themselves stranded when these wants shifted.
A restaurateur who has operated a Singaporean restaurant in Beijing for 14 years famous that Singapore firms weren’t aggressive sufficient in capturing market share, had been underinvested of their frontline groups, and had been too sluggish to embrace digital advertising and marketing.
What they misplaced in China was not simply retailers, but additionally the idea that being Singaporean was sufficient.
As Li advices: “Singapore manufacturers that may proceed to outlive in China would both have to supply Singaporean traits and experiences that different Chinese language manufacturers can not change, or totally localise themselves.”
Learn different articles we’ve written on Singaporean companies right here.
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Featured Picture Credit score: Jumbo Seafood, JonasCN through Tripadvisor
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