1-Michelin-Starred Alma by Juan Amador Closing; Why A Star Isn’t Enough For Restaurants To Thrive In S’pore’s F&B Scene

“We cannot control the economy or market dynamics”

The restaurant's executive chef Yew Eng Tong, who took over the reins in 2023, paid tribute to the team at Alma by Juan Amador in an Instagram Story on his personal page, writing: "We've pushed ourselves hard and are proud of what we have achieved.

"We cannot control the economy or market dynamics and it's true that every restaurant has their own life span but what we created in the restaurant during these few years, I am glad for it."

Alma by Juan Amador's closure comes after it was noted that the number of restaurants winning one Michelin star at this year's Michelin Guide Singapore was lower than last year's.

This year saw 32 restaurants retaining or winning one Michelin star, down from last year's 42. Several one-star establishments such as Art di Daniele Sperindio, Chef Kang’s, Oshino and Sushi Kimura had closed within the past year, and there were hardly any replacements in this year’s Singapore edition of the Michelin guide.

Winning a Michelin star may not be enough to save a restaurant from poor biz

Clearly, earning a coveted Michelin star can place an eatery firmly on the culinary map, but it is not always enough for them to thrive and survive in Singapore’s tough food and beverage scene. This has been corroborated by some top restaurants. With rising operational costs and intense competition in the dining scene, chefs are under increasing pressure to not just impress critics - but also to stay financially afloat.

“We still face the challenges that any other F&B outlet in Singapore does”

“But we still face the challenges that any other F&B outlet in Singapore does. We have to do a lot to bring people back,” he told CNA. 

 “We have to do a lot to face those expectations that people expect in the restaurant, and we also have our rising costs like manpower as well as ingredients and rental.”

Mr Tam noted that as the novelty of being a new restaurant fades, his three-year-old establishment - located in the Boat Quay area - must continuously reinvent itself to stay relevant. 

“That’s difficult to do because in Singapore, there’s so many choices,” he added.

In Singapore’s ever-evolving F&B landscape, some restaurant owners say that having a star alone is not enough to ensure long-term success.

Constant need to upgrade

From refreshing the menu to incorporating interactive table-side service, every effort at these restaurants is aimed at keeping diners engaged and coming back for more.

At Korean fine-dining restaurant NAE:UM, chef founder Louis Han said he believes this means continually redefining the dining experience beyond the food itself.

“I really try to talk to every customer who comes to my restaurant, so I try to show my appreciation,” he said, adding that the eatery also tries to refresh its menu to offer something interesting. 

“NAE:UM has been around for four years, so there's a reason why we're doing major renovation. We really try to refresh our restaurant to look different,” he noted. 

“So, my regular customers also feel that something is different. These are all the things that we try to keep up ourselves, to stay in the market.”

Mr Han noted that there are many perennial challenges that restaurateurs like himself struggle with, including high rental, rising ingredient costs and manpower constraints. 

Star-rated eateries not immune to rising costs, intense competition

Market watchers noted that while accolades like Michelin stars attract crowds, they offer little protection against soaring operating costs and fierce competition.

Just last year, more than 3,000 food establishments closed down - the highest number in nearly two decades.

Analysts highlighted the strength of the Singapore dollar, which is prompting more Singaporeans to spend overseas. Meanwhile, it is dampening tourism demand as the city-state becomes more expensive.

Economist Song Seng Wun said the level of competition and the overall outlook are closely tied to the performance of Singapore’s economy. 

Key factors include whether the country can sustain job creation, attract ongoing investment, and remain a desirable place for people to live and work. 

The economic adviser at CGS International Securities Singapore added that success in Singapore’s F&B scene hinges on understanding diners’ preferences and adapting swiftly.

Source: CNA/ca(lt)

The original version of this story first appeared in CNA and CNA Lifestyle