Appetite for Expansion: Mainland Chinese F&B Chains in Singapore   

Since 2012, Chinese food and beverage (F&B) companies have entered Southeast Asia and secured a significant share in local food markets, especially in Singapore. It started with Haidilao, a famous hotpot restaurant chain, followed by other Chinese cuisine restaurants.

The growth of Chinese F&B companies peaked in 2023 when about 10 brands, as shown in the table below, entered the Singaporean market in that year alone. This trend raises questions about the reasons for the companies’ expansion, the response of local government, and the significance of their presence in Singapore.

Table 1: Chinese F&B brands entering Singapore

Since Xi Jinping assumed the presidency of the People’s Republic of China (PRC) in 2012, mainland Chinese F&B companies started to “go global” (zou chuqu 走出去). They were encouraged to expand overseas by China’s central and provincial governments as domestic markets became saturated, leaving international ventures as the only viable option for survival. Besides, China also wanted Chinese cuisines to be introduced to the world as a form of China’s soft power. 

Observers wondered whether these F&B companies would go to places with sizable populations of xin yimin (new Chinese migrants) or to Chinese tourist destinations, given that they mainly serve ethnic Chinese food. The prospects of Chinese food securing footholds in Southeast Asian markets, and the possible social impact of China’s F&B industry in the region, have also sparked inquiry.

Available sources show that most of these F&B companies established their chain stores in Southeast Asian countries with significant ethnic Chinese populations, namely Singapore, Malaysia, Vietnam, Thailand, and Indonesia. An estimated 70 to 75 per cent of Chinese abroad reside in Southeast Asia, while only 25 to 30 per cent reside outside Southeast Asia. Nevertheless, Chinese food companies are also present in Japan and Western countries such as Australia, New Zealand, and the US, where ethnic Chinese comprise a smaller share of the population.

In Singapore,  the flourishing of Chinese food is linked to the ethnic Chinese population, with food chains primarily catering to this demographic. Although intending to “go global”, they are, in fact, still in the “dragon world” where there are large Chinese populations. While non-Chinese clientele is present, they do not make up the primary customer base.

The influx of these Chinese-branded foods and drinks is also linked to xin yimin (new Chinese migrants) and Chinese tourists. Not surprisingly, these Chinese F&B restaurants are concentrated in Southeast Asian countries with many Chinese residents and presumably high demand for these Chinese foods, especially in Singapore. Of the 4.5 million ethnic Chinese who account for 75 per cent of the population, 500,000 to 600,000 are Chinese migrants and 15,000 are students. In 2023, Singapore received 1.4 million Chinese tourists.

Besides commercial considerations, Chinese F&B companies also set up shop in Singapore for non-economic reasons.  The owners’ families may want to migrate from China to the island state for their children’s education or for the peaceful and secure environment and different cultural milieu that Singapore offers. For example, the founders of Haidilao, Zhang Yong and Shu Ping, Singapore’s sixth-richest persons according to Forbes, moved their family to Singapore. They live in a palatial “Good Class Bungalow” and purchased the mansion next door for their 20-year-old son.

Although intending to ‘go global’, they are, in fact, still in the ‘dragon world’ where there are large ethnic Chinese populations.

In the last 12 years, at least 23 Chinese F&B companies have established branches in Singapore. The flourishing of these Chinese companies, coupled with Taiwanese (such as Din Tai Fung) and local Chinese food companies, has created the impression that the Singaporean market has been flooded with Chinese food.  

While the presence of new Chinese outlets has enriched Singapore’s F&B landscape, other Asian food chains, such as Indonesian and Indian restaurants, have also entered the market in recent years. This has made Singapore a real “food heaven” of Southeast Asia.

So far, there has been no public outcry about the influx of Chinese F&B outlets in Singapore. This author has not seen any statements from Singaporean authorities either, as Singapore pursues a free market economy and intends to make the island state the “food centre” of the region.

However, some landlords have begun to take action to manage the situation. The Paragon Mall management, for instance, has refused to take in more Chinese restaurants to maintain diversity and balance in the mall. As Chinese catering brands continue to mushroom in Singapore, competition will rise, inevitably causing some companies to close down and a market consolidation process to unfold before the number of players stabilises.

Singapore’s Government, eager to preserve its multi-ethnic and cosmopolitan society, would intervene only to contain any threats to social and economic stability. With a sustained appetite for the cuisines and conducive market conditions, Chinese F&B chains look set to continue growing in Singapore.

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