Prive Group Closure: Singapore’s F&B Industry in 2025

The closure of Prive Group’s entire restaurant chain marks another major shake-up in Singapore’s food and beverage (F&B) sector, a poignant example of mounting pressures in a rapidly evolving landscape.

Industry Landscape & Underlying Pressures

Rampant Closures Across the Sector

Singapore’s F&B industry is grappling with an unprecedented wave of terminations. Closures in 2024 totaled more than 3,000, an almost 20-year high. The pace has quickened in 2025, with monthly closures climbing to over 300. These extend beyond standalone cafes or casual eateries, impacting high-end restaurants and international concepts alike.

Escalating Operational Costs

Restaurant operators face rising overheads, rents, imported ingredients, manpower, and utilities, which make it difficult to sustain profitability. At the same time, consumer behavior has shifted: diners are increasingly dining abroad or reducing frequency as post-COVID excitement fades.

The Prive Group Exit: A Case Study

What Happened

Established in 2007 with a flagship at Keppel Bay, Prive expanded into multiple casual and smart-casual dining concepts across Singapore. However, as of August 31, 2025, all its outlets shuttered, and an independent financial advisor has been appointed to manage closures and supplier communications.

Surviving Two Outlets

Two venues at the Asian Civilisations Museum, Empress and Prive, were taken over by Commonwealth Concepts. Empress continues under new management, and the former Prive space reopened as Baker & Cook on September 4. This move helped preserve some jobs and honor existing event bookings.

Losses and Exits

Earlier in 2025, Prive had already withdrawn from Jewel Changi Airport and 313 Somerset. The Somerset outlet was repossessed, while its Paragon space was taken over by an international coffee chain. These precede the chain's full shutdown.

Wider Casualties in Singapore’s F&B Scene

• Michelin-starred venues such as Euphoria and Alma by Juan Amador closed mid-2025, signaling distress even among elite operators.

• International chains like Eggslut, Burger & Lobster, Fluff Stack, Kanada-Ya, and Haidilao have exited or significantly scaled back.

• Heritage and local favourites, including Ka-Soh, Flourish Bakehouse, and Fluff Bakery, are winding down amid rising costs and shifting habits.

Three Tenant Profiles: Scenarios in a Tough Market

1. Casual Cafe Operator
   A newly opened F&B concept in a suburban mall may struggle with high rent and underwhelming footfall, especially if consumer spending shifts toward essentials.

2. Upscale Fine-Dining Chef
   Even award-winning establishments face the dilemma of rising ingredient and manpower costs, paired with shifting dining habits, threatening their long-term sustainability.

3. International Chain
   A franchise operator might exit Singapore due to unfavorable lease conditions and increasingly tight margins, preferring to consolidate in markets with stronger demand.

Summary

The current wave of F&B closures reflects deep structural pressures rather than isolated failures. Even well-funded or high-profile brands are vulnerable. Adaptation, through cost control, customer experience, and efficient operations, is critical for survival.

Algene Toh

Senior Real Estate Salesperson

Asset Investment Brokers Pte Ltd

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