food & beverage services - Statistics Singapore

Introduction
The Singapore Department of Statistics conducts an annual survey on the services industries
to collect a wide range of data for studies and analyses. The first survey on the services
industries was conducted in 1968 for the reference year 1967 and subsequently at regular
intervals. Since 1984, the inquiry was carried out on an annual basis.
The latest survey was carried out in 2012 for reference year 2011. The reports will focus on
several services industries of importance to the Singapore economy. This report on Food &
Beverage Services is the Department’s second issue in the series for reference year 2011. A
final consolidated report on The Services Sector will provide a performance overview of the
services sector.
28 November 2012
ECONOMIC SURVEYS SERIES
Reference Year 2011

FOOD & BEVERAGE SERVICES
Key Indicators of Food & Beverage Services
% Change 2010 2011
Establishments (No.) � 4.5 % 6,174 6,453
Employment (No.) � 9.9 % 92,425 101,581
Operating Receipts � 12.1 % $6,341 mil $7,109 mil
Operating Expenditure � 12.5 % $6,025 mil $6,780 mil
Operating Surplus � 6.0 % $500 mil $530 mil
Value Added � 11.7 % $2,227 mil $2,488 mil
In 2011, there were about 6,500 establishments in the food & beverage (F&B) services
industry, employing around 101,600 workers. This represented an average of about 16
workers per establishment.
I . ECONOMIC PERFORMANCE
Total operating receipts generated by the F&B services industry was $7,109 million in
2011, a rise of 12.1 per cent over the previous year. On a per establishment basis, operating
receipts also increased 7.3 per cent to $1.1 million in 2011.
Total operating expenditure incurred amounted to $6,780 million in 2011, 12.5 per cent
higher than the total of $6,025 million in 2010. Operating expenditure per establishment also
rose 7.7 per cent to $1.1 million in 2011.
Total operating surplus of the F&B services industry stood at $530 million in 2011, a
growth of 6.0 per cent compared to 2010. On a per establishment basis, operating surplus
went up 1.5 per cent to $82,200 in 2011.
Total value added recorded by the industry increased 11.7 per cent to $2,488 million in
2011. Value added per establishment rose 6.9 per cent to $385,500 in 2011.
2

FOOD & BEVERAGE SERVICES
II . MAIN ACTIVITIES IN FOOD & BEVERAGE SERVICES
Restaurants constituted 35.9 per cent of the total number of establishments in the F&B
services industry in 2011 (Chart 1). They employed the largest number of workers (43,500)
in 2011, or an average of 19 workers per establishment. On a per establishment basis, fast
food outlets had the largest average employment size of 34 workers, of which 25 were parttime
employees.
3,000
Chart 1 - Establishments & Employment, 2011
Operating receipts and value added of restaurants amounted to $2,655 million and $1,008
million respectively in 2011 (Chart 2). They contributed 37.4 per cent of total operating
receipts and 40.5 per cent of total value added of the F&B services industry. Fast food outlets
and food caterers registered growth in turnover of 10.6 per cent and 12.1 per cent respectively
over the previous year. The value added of the two groups also increased by 11.1 per cent and
9.7 per cent respectively in 2011.
3,000
Establishments Employment
2,000
2,317
400
328
1,000
3,408
0
Restaurants
Fast Food Outlets
Food Caterers
Others
43,483
13,684
38,221
6,193
Number Number
0 10,000 20,000 30,000 40,000
Chart 2 - Operating Receipts & Value Added, 2011
Operating Receipts
2,000
1,000
$ Million
2,655
895
791
2,767
0
Restaurants
Fast Food Outlets
Food Caterers
Others
Value Added
1,008
273
329
877
0 200 400 600 800 1,000
$ Million
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FOOD & BEVERAGE SERVICES
Purchases of food & beverages and remuneration remained as the top two business cost items
for all F&B services groups in 2011 (Table 1). Together, these two expenses accounted for
between 51 per cent and 65 per cent of total operating expenses within the respective F&B
services groups. Rental expenditure was the third largest expense item for most F&B services
groups.
F&B Services
Restaurants
Fast Food Outlets
Food Caterers
Others
Table 1 : Main Business Costs, 2011
Cost Type and % Share
1 st 2 nd 3 rd 4 th 5 th
Rem Pur Rental Utilities Dep
32.4 31.9 13.9 3.7 2.9
Pur Rem Rental Royalties Utilities
27.1 24.5 20.2 7.3 4.3
Pur Rem Royalties Subcon Rental
34.8 26.6 10.1 5.2 4.9
Pur Rem Rental Utilities Dep
34.6 24.8 20.0 4.1 3.0
Notation
Dep: Depreciation Royalties: Royalties / franchise & management fees
Pur: Purchases of food & beverages for sale Subcon: Subcontract charges / work given out
Rem: Remuneration Utilities: Utilities charges
Rental: Renting of offices, shops & other premises
III . KEY PERFORMANCE RATIOS
Profitability Ratio 1 for overall F&B services stood at 7.5 per cent in 2011, lower than the
7.9 per cent registered in 2010. The drop in profitability ratio was seen in all F&B services
groups. Within the industry, food caterers recorded the highest profitability ratio of 19.2 per
cent in 2011, as compared to restaurants (5.0 per cent) and fast food outlets (6.4 per cent)
(Chart 3).
1 Defined as the ratio of operating surplus to operating receipts
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FOOD & BEVERAGE SERVICES
Chart 3 – Profitability Ratio, 2010 & 2011
Profitability Ratio (%)
25
20
15
10
Earnings-Expenditure Ratio 2 for overall F&B services was 7.8 per cent in 2011. Among all
F&B services groups, food caterers recorded the highest earnings-expenditure ratio of 23.1
per cent in 2011 (Chart 4). The ratios ranged between 5.1 per cent and 7.1 per cent for the
other F&B services groups. All groups registered lower earnings-expenditure ratio compared
to 2010.
Chart 4 - Earnings-Expenditure Ratio, 2010 & 2011
Average Annual Remuneration per Employee recorded by the F&B services industry was
$19,000 in 2011. The average annual remuneration per employee was the highest for food
caterers at $29,900 in 2011 (Table 2). Fast food outlets, which hired a large number of parttime
employees, had an average annual remuneration of $15,600 in 2011. This represented
the largest growth of 7.6 per cent within the industry.
2 Defined as the ratio of operating surplus to operating expenditure
5
0
Restaurants Fast Food
Outlets
Earnings-Expenditure Ratio (%)
25
20
15
10
5
0
Restaurants Fast Food
Outlets
Year 2010
Year 2011
Food Caterers Others
Year 2010
Year 2011
Food Caterers Others
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FOOD & BEVERAGE SERVICES
Table 2 : Average Annual Remuneration per Employee, 2010 & 2011
F&B Services
2010 2011 Change
($’000) ($’000) (%)
Restaurants 19.7 19.6 -0.5
Fast Food Outlets 14.5 15.6 7.6
Food Caterers 29.4 29.9 1.7
Others 17.3 18.0 4.0
Value Added per Worker was $24,500 for the F&B services industry in 2011, 1.7 per cent
higher compared to 2010. Within the industry, food caterers continued to generate the highest
value added per worker of $53,200 in 2011 (Chart 5). The other three F&B groups recorded
value added per worker of between $20,000 and $23,200.
IV . PERFORMANCE BY FIRM SIZE
Chart 5 - Value Added per Worker, 2010 & 2011
In 2011, about 99 per cent of F&B establishments were firms which employed less than 100
workers (Table 3). These firms accounted for 77.2 per cent and 74.7 per cent of the industry’s
total operating receipts and value added respectively.
Table 3 : Establishments, Operating Receipts &Value Added by Employment Size, 2011
Employment
Size
Value Added per Worker ($'000)
70
60
50
40
30
20
10
0
Restaurants Fast Food
Outlets
Establishments
(Number)
Operating
Receipts
($ Million)
Year 2010
Year 2011
Food Caterers Others
Value
Added
($ Million)
Less than 10 2,805 1,029 272
10 – 99 3,566 4,459 1,587
100 & above 82 1,622 629
The publication on “Food & Beverage Services” containing more detailed statistical tables will be released in 4 th Quarter
2012.
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FOOD & BEVERAGE SERVICES
Summary Tables
Key Indicators of Food & Beverage Services, 2009-2011
Establishments
Employment
Operating Receipts
F&B Services
(Number)
(Number)
($ Million)
2009 2010 2011 2009 2010 2011 2009 2010 2011
Total F&B Services 5,969 6,174 6,453 89,572 92,425 101,581 5,641 6,341 7,109
Restaurants 2,091 2,272 2,317 36,910 37,603 43,483 2,082 2,383 2,655
Fast Food Outlets 335 374 400 12,930 13,139 13,684 723 810 895
Food Caterers 289 299 328 5,186 5,728 6,193 629 706 791
Others 3,254 3,229 3,408 34,546 35,955 38,221 2,207 2,443 2,767
Operating Expenditure
Operating Surplus
Value Added
F&B Services
($ Million)
($ Million)
($ Million)
2009 2010 2011 2009 2010 2011 2009 2010 2011
Total F&B Services 5,372 6,025 6,780 446 500 530 1,985 2,227 2,488
Restaurants 2,029 2,325 2,599 123 137 132 786 885 1,008
Fast Food Outlets 692 781 868 56 54 58 223 246 273
Food Caterers 536 586 655 108 136 152 275 300 329
Others 2,115 2,333 2,659 159 172 189 702 796 877
Key Indicators of Food & Beverage Services by Employment Size of Firm, 2011
Employment Size
Establishments
(Number)
Employment
(Number)
Operating Receipts
($ Million)
All Categories 6,453 101,581 7,109
Less than 10 persons 2,805 13,442 1,029
10 to 99 persons 3,566 71,697 4,459
100 persons & above 82 16,441 1,622
Employment Size
Operating Expenditure
($ Million )
Operating Surplus
($ Million )
Value Added
($ Million)
All Categories 6,780 530 2,488
Less than 10 persons 943 93 272
10 to 99 persons 4,306 265 1,587
100 persons & above 1,531 172 629
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FOOD & BEVERAGE SERVICES
Key Indicators of Food & Beverage Services by Size of Operating Receipts of Firm, 2011
Size of Operating Receipts
Establishments
(Number)
Employment
(Number)
Operating Receipts
($ Million)
All Categories 6,453 101,581 7,109
Less than $200,000 1,602 9,667 203
$200,000 to $999,999 3,316 33,911 1,870
$1,000,000 to $1,999,999 830 16,734 1,139
$2,000,000 to $4,999,999 547 21,402 1,667
$5,000,000 & above 157 19,867 2,229
Size of Operating Receipts
Operating Expenditure
($ Million )
Operating Surplus
($ Million)
Value Added
($ Million)
All Categories 6,780 530 2,488
Less than $200,000 247 -41 41
$200,000 to $999,999 1,882 14 594
$1,000,000 to $1,999,999 1,104 68 379
$2,000,000 to $4,999,999 1,515 199 628
$5,000,000 & above 2,032 291 846
Note:
1. Data for 2011 are preliminary.
2. Industries are classified according to the Singapore Standard Industrial Classification (SSIC) 2010.
3. Figures may not add up to the totals due to rounding.
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FOOD & BEVERAGE SERVICES
Explanatory Note
Objective
The data presented in this report are compiled from the results of the Annual Survey of Services
2011. The objective of the survey is to gather information on the services sector for studying the
structure and performance of the various activities in the sector. The data are also used for the
compilation of national accounts, input-output tables and other related studies. In addition, the
results are used by policy makers, economic planners, academicians, the business community
and other interested users in their work.
Scope & Coverage
Food & beverage services comprise establishments engaged in the sale of prepared food and
drinks for immediate consumption. The various types of food and beverage services are:
Restaurants
Fast food restaurants
Food caterers
Others
Cafes, coffee houses and snack bars
Food courts, coffee shops and eating houses (with mainly food & beverage income)
Pubs (including bars)
Other restaurants, cafes and bars
Canteens
Hawkers and stall-holders which are not registered with the Accounting & Corporate Regulatory
Authority (ACRA) are excluded. Also excluded from the group are eating and drinking places
which operate in connection with the provision of lodging.
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FOOD & BEVERAGE SERVICES
Definition of Terms
Establishment Defined as a business or organisation unit engaged in one activity and operating in a
single location.
Employment Refers to paid employees, working directors, working proprietors/partners and unpaid
family workers. It includes those temporarily away on medical or casual leave.
Employees Employment excluding working proprietors and partners.
Operating Receipts Includes those arising from services rendered, commission charges, sale of goods and
rental of premises, machinery and equipment.
Operating Expenditure Refers to all current expenses connected to the business operations such as purchases
of goods and services, remuneration, utilities and professional services. It includes
depreciation and adjustment for changes in inventory.
Operating Surplus Refers to the amount of operating receipts less operating expenditure plus depreciation of
fixed assets.
Value Added
(At Basic Price)
Comprises operating surplus, remuneration and taxes (less subsidies) on production.
Remuneration Comprises wages and salaries, employers’ contribution to Central Provident
Fund/pension funds and other benefits of all employees as well as fees paid to nonworking
directors.
Depreciation The value, at current replacement cost, of reproducible fixed assets such as buildings,
plants and machinery used during a period of time as a result of normal wear and tear,
foreseen obsolescence and the normal rate of accidental damage.
Profitability Ratio Defined as the ratio of operating surplus to operating receipts. It shows the proportion
of operating receipts that is converted to profits.
Earnings-Expenditure
Ratio
Defined as the ratio of operating surplus to operating expenditure.
10