COVID-19: F&B Companies Welcome Phase 3 Announcement, Say Customers Are Hungry to Dine in Larger Groups



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SINGAPORE: Local F&B outlets have welcomed Singapore’s decision to allow larger social gatherings in Phase 3 of its reopening, following a “blackout” period in which most businesses closed due to the pandemic COVID-19.

The Health Ministry announced on Monday (December 14) that social gatherings of up to eight people will be allowed when Phase 3 begins on December 28.

This is higher than the five people currently allowed, the ministry said in a press release that followed Prime Minister Lee Hsien Loong’s speech to the nation, in which he described Singapore’s move to Phase 3 as a “calibrated move and careful”.

Speaking to CNA, Mr. Sum Chee Min, President of Sum Kee Food, described the announcement as a “plus” for his company’s two zi char outlets.

For example, more diners means more food will be ordered.

READ: Singapore to begin Phase 3 of COVID-19 reopening on December 28

READ: COVID-19: Social gatherings of up to 8 people allowed starting December 28, additional reopening of activities in Phase 3

“If there are only five people, all they can do is ask for small portions… but now they can have a larger portion and more variety in community form,” he said.

“The increase from five to eight people is definitely a plus … for people like us,” he added. “There will definitely be an improvement in earnings, but it will not be a recovery to what it was before the COVID (pandemic).”

Sum noted that since the announcement, he has received calls from clients asking if they can start booking Phase 3 reservations.

“My clients call, they are very happy… They also want to know: ‘Will everyone run in and we don’t have a seat?'”

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The same is true at the Yan restaurant, a spokesperson told CNA. It has already received 10 new reservations for tables of eight, from the start of Phase 3 through the Chinese New Year period.

“Many dishes in Yan are good to share, making it easier for those groups to try a greater variety of dishes,” said General Manager Shek Chi Kuen. “We can expect our revenue to increase with more diners at the table joining us to celebrate the holiday season at the end of the year as well as the upcoming Chinese New Year period.”

A Catalan restaurant told CNA that it was already in high demand before the announcement, but reservations for larger groups have started to arrive.

“As soon as the Prime Minister announced the start of Phase 3, we got some phone calls to make reservations for eight people,” said Ms Nuria Gilbert, Restaurant Manager at Restaurant Gaig. “Some other guests are changing their existing reservations to increase the number of people.”

Dr. Martin Bem, founding managing director of the group that runs LeVeL33 and Erwin’s Gastrobar, said the change will allow many more options for customers.

“That is indeed a major change for us. Let’s take a couple of outings, for example, a couple might go out alone with another couple … Now there are many more options,” said Dr. Bem.

“It is not surprising that we received the first reservation requests for eight people right after the ad aired.”

In response to inquiries from the CNA, the Singapore Restaurant Association described the announcement as “good news” for the F&B industry.

“Beginning December 28, we welcome the Government’s decision to allow a larger group of eight for social gatherings. We have been waiting for the authorities to allow us to seat more people at each table in our restaurants and the return of larger families for seats, “said a spokesman.

“This new move will certainly help improve and sustain F&B businesses, thereby preserving F&B jobs, as we move into 2021.”

The association said it expected Phase 3 to start in time for Christmas.

“The social distancing and safe living measures that we have adopted for some time are part of the preparations we have to move to the third phase,” the spokesperson said.

“While we expected this phase to open in time for Christmas, we understand that authorities may want a longer wait time to ensure everyone is prepared to receive more guests at the tables.”

“LESS FRICTION WITH CUSTOMERS”

Jeremy Reynolds, group general manager for craft beer importer and distributor Eastern Craft, said the announcement is unlikely to lead to a large increase in sales for the four Eastern Craft bars and restaurants.

He noted that the restriction of at least one meter of space between tables will be the main limiting factor for sales. This restriction has not changed.

READ: Against trend, some F&B companies open new outlets despite COVID-19 recession

“Everyone understands why we have this spacing problem. And I think everyone understands that the spacing problem will continue for quite some time. So the distance between the tables is something that does not change and is unlikely to change for some time, ”he said.

“And that is the main thing (what limits) the amount of business we can do each night.”

With Eastern Craft’s bars and restaurants doing relatively well at the moment, Mr. Reynolds noted that the main benefit of the move to increase the size of the meeting would be “less friction with customers.”

“For some reason, six seems to be a bit of a magical number, there are often groups of six… we have people who come with six and we have to reject them. And people get angry, unfortunately, even to this day, you would expect people to know the rules, but they still get angry, “he added.

READ: For food and beverage outlets, COVID-19 is a wake-up call. Here are seven changes you can make

For F&B companies that rely heavily on the footsteps of office workers, such as RED Noodle and Bottle Bar, the move is unlikely to have much of an impact.

“Our bar and restaurant is located in the office area, in fact, to be honest, even if it says it allows eight, it doesn’t necessarily mean better sales or income for us,” said owner Tan Zhi Wen, who noted that the business it has declined about 60 percent as of 2019.

“If people don’t come back to the office, we don’t expect sales. What we’re seeing is that it could still be the same. “

The F&B companies that CNA spoke with also noted that there was not much need for significant changes, such as reconfiguring designs in preparation for Phase 3.

Reynolds said that in Eastern Craft bars and restaurants, outlets have already been established to maximize space within current restrictions.

“I don’t think any of our media is making changes, frankly. In some of our points of sale, we have designated tables for as many people as they can accommodate ”, he explained.

“We could have a couple of tables that can seat six people (which) were previously limited to five, or maybe we were only using them for four … So in theory that will now give us one more person occasionally (in the Phase 3 ) “.

The same is likely to be true for Sum Kee’s outlets, Sum added.

“It’s still the same number of tables, we’re not going to put back the old tables that we took out… it’s just (adding) chairs,” he said. “It is not much preparation because we have already lived it … It will not be a problem.”

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