Singapore food suppliers hit by months-long payment delays as F&B crisis deepens

Dessert Guru, a supplier of purees, syrups and bubble tea toppings to restaurants, said that clients who used to clear invoices within 30 days are now taking up to 120.

A vendor sorts fish for sale at a stall in a market in Singapore on October 9, 2021. Photo by AFP

"Everybody is suffering ... no one is spared. Even the giants are taking a longer time to pay us," said Ken Tan, co-owner of the business, as reported by Channel News Asia.

Late payments became more common from late 2023, affecting liquidity as Dessert Guru pays its own suppliers immediately upon delivery or within a month.

"We are paying upfront ... only for them to pay us back in three to four months, so it is a bit painful for us," he added.

Singapore’s food and beverage sector has long been a weak point in the economy. The Monetary Authority of Singapore reported in July that sales have broadly declined for three years, while the Ministry of Trade and Industry said in August it expected only lacklustre growth as more locals spend abroad.

More than 3,000 establishments shut down in 2024, the highest number in almost 20 years. Against such risks, suppliers are pulling back credit and tightening payment terms.

Over 1,700 food and beverage establishments have closed as of this August, according to The Accounting and Corporate Regulatory Authority.

The closures include several well-known brands such as American chain Eggslut, which closed its last outlet in Singapore in early 2025, and Haidilao, which shuttered three restaurants in Bedok, Pasir Ris and Punggol. Burger & Lobster, the London-based chain, has also ceased Singapore operations, according to The Business Times.

Two outlets of Euphoria Restaurant and Alma by Juan Amador shut their doors this August.

"The economy for fine-dining is quite bad as people can travel. We don’t compete with our own country, but Asia and the world," said Euphoria chef-owner Jason Tan, as quoted by The Straits Times.

Huber’s, a local butchery and bistro, has tightened its credit policies, particularly with new clients.

"They need to really show us a very nice, long track record," said executive director Andre Huber.

He once lost about SGD70,000 (US$55,000) when customers disappeared without paying.

"I have met customers who promise me face to face, eye to eye – definitely, I will pay. Next thing you know, disappear, migrate to Australia, things like that," he said. "They will lie, they will have all kinds of excuses."