SINGAPORE — Dim sum restaurant Yum Cha, a 25-year-old brand long reliant on walk-in diners, officially launched its catering arm only last month — and the move is already paying off.
With two outlets, the restaurant said it has seen a clear decline in dine-in demand this year compared with last, as customers turn more price-sensitive.
But since launching its catering website, there is already a "significant" increase in revenue, with catering already making up 5 per cent of the brand's total sales.
“Those that love good quality dim sum for a change instead of the usual catering fare will try us out,” a Yum Cha spokesperson said.
Buoyed by the response, Yum Cha plans to expand its catering operations, though it has no immediate plans to open more outlets. “We’ll continue to innovate our menu and service offerings,” the brand said.
Yum Cha is among a growing number of F&B operators pivoting towards catering this year, amid a turbulent period for restaurants.
According to the Ministry of Trade and Industry (MTI), restaurant sales fell 6 per cent year-on-year in the second quarter of 2025.
The red ink comes as several well-known eateries have shut down — including the Prive restaurant chain, heritage zi char stalwart Ka-Soh, and Haidilao’s Bedok Mall and Clarke Quay outlets.
In total, over 3,000 F&B establishments closed in 2024, the highest number in nearly two decades.
But even as restaurants struggle, catering has emerged as a rare bright spot, owing to the growth of Singapore's events industry as well as the growing trend of employees working from offices instead of home.
Food caterers saw sales jump 17.8 per cent year-on-year in the second quarter, according to MTI's figures.
Café chain Hello Arigato also hopped on the catering bandwagon earlier this year.
Co-founder Colin Chen said the brand has started accepting bulk orders for private and corporate events to capture rising demand.
Like Yum Cha, this decision was made amid a “softening in walk-ins”, said Mr Chen, which he attributes to more travel plans keeping his usual customers out of town.
While dine-in and delivery still make up the bulk of revenue, catering now accounts for 3 to 5 per cent of the group’s business — a share Mr Chen expects could grow to 15 per cent.
“We’re definitely putting more resources there,” he said.
At nasi lemak restaurant The Coconut Club, catering sales have also shown “steady growth” this year, prompting product and packaging tweaks to better suit off-site dining — from individual bentos to porcelain ware for premium events.
It has also seen a rise in requests for live stations, where chefs prepare dishes such as chendol, laksa and rojak on the spot.
The Coconut Club, which went into the catering business in 2023, noted that it had undergone a recent operational restructuring and declined to provide details on the revenue from its catering operations.
Hello Arigato has rolled out mobile matcha and coffee carts for event pop-ups, while Yum Cha now offers live dim sum and roast meat stations at functions.
A worker carries a bowl of fruit cocktail at Rasel Catering's central kitchen, Oct 8, 2025 (Photo: CNA/Wallace Woon)
Established caterers are likewise enjoying brisk business.
Rasel Catering reported a 10 per cent increase in demand this year, mainly from weddings and home celebrations. Managing director Alan Tan noted that while more couples are hosting smaller weddings, overall volume remains healthy.
Lavish Dine Catering said sales have surged 20 to 30 per cent, driven by both new and returning clients. Chilli Api Catering recorded a 10 to 15 per cent rise in large-scale bookings, especially for corporate and social events.
Shiok Kitchen Catering said it benefitted from a series of major MICE (meetings, incentives, conferences, and exhibitions) events this year, including serving as the official caterer for the World Aquatics Championships in July and August.
Managing Director of Rasel Catering Mr Alan Tan, Oct 8, 2025 (Photo: CNA/Wallace Woon)
Industry players point to several factors behind the surge: The push by companies to bring employees back to the office; a rebound in events and social gatherings; and consumers preferring the comfort of home or workplace functions over eating out.
Chilli Api said that many companies have been bringing their workers back to office and resuming more client-facing activities. As such, corporate buffets and cocktail receptions have become their “primary revenue driver”.
One frequent consumer of catering services told CNA that such services in the comfort of someone’s home is preferable to eating out.
While 28-year-old Theng Juay either hosted or went to about 10 catering events last year, he has already attended 10 this year and expects to go to at least 15 by the end of the year.
These have been a mix of house warmings, birthdays and public holiday festivities.
“At home, you can control the environment as compared to outside,” said Mr Theng, who works in the healthcare industry. “Especially when your guests have certain needs, you know for sure you can cater to those needs.”
He said he used to cook for the gatherings, but as life commitments stacked up, doing so became “more of a hassle”.
He added that it is easier to host people until late at home as opposed to at a dine-in establishment. When eating out, inconveniences like having to look for transport home would add to the final bill for the night.
While catering firms are making hay while the sun shines, they are also aware that the good times may not last.
Rasel’s Mr Tan warned that rising food and manpower costs remain a key challenge. “While we welcome the current upswing, we remain skeptical about its longevity given the uncertainties in the shifting economy,” he said.
Chilli Api echoed similar concerns, noting that a weaker economy could prompt firms to cut corporate event budgets.
Mr Thomas Chia, secretariat of the Association of Catering Professionals Singapore (ACAPS), said caterers have some advantages over restaurants — notably, less reliance on walk-in traffic and more predictable institutional contracts serving schools, hospitals and workplaces.
But he added that the sector's growth is uneven.
“Larger players and those with diversified service lines – such as institutional catering, events, and business-to-business contracts – tend to benefit more, while smaller caterers may not see the same level of uplift,” said Mr Chia.
Latest figures from the Department of Statistics show that catering sales growth slowed to 4.8 per cent year-on-year in August 2025, down from double-digit gains earlier this year.
“This signals a softening market,” said Mr Chia, adding that ACAPS is working on initiatives to help smaller caterers build resilience.
“While caterers are performing better than last year, the industry is not insulated from wider economic pressures.”
03:00 Min
The new list of Michelin-star restaurants in Singapore will be out on Jul 24. But while winning the accolade puts the eateries on the culinary map, it is not always enough for them to thrive and survive. Rising costs and a competitive dining scene mean that chefs have to work harder than ever to stay above profit margins. Kate Low reports.
Continue reading...
With two outlets, the restaurant said it has seen a clear decline in dine-in demand this year compared with last, as customers turn more price-sensitive.
But since launching its catering website, there is already a "significant" increase in revenue, with catering already making up 5 per cent of the brand's total sales.
“Those that love good quality dim sum for a change instead of the usual catering fare will try us out,” a Yum Cha spokesperson said.
Buoyed by the response, Yum Cha plans to expand its catering operations, though it has no immediate plans to open more outlets. “We’ll continue to innovate our menu and service offerings,” the brand said.
Yum Cha is among a growing number of F&B operators pivoting towards catering this year, amid a turbulent period for restaurants.
According to the Ministry of Trade and Industry (MTI), restaurant sales fell 6 per cent year-on-year in the second quarter of 2025.
The red ink comes as several well-known eateries have shut down — including the Prive restaurant chain, heritage zi char stalwart Ka-Soh, and Haidilao’s Bedok Mall and Clarke Quay outlets.
In total, over 3,000 F&B establishments closed in 2024, the highest number in nearly two decades.
But even as restaurants struggle, catering has emerged as a rare bright spot, owing to the growth of Singapore's events industry as well as the growing trend of employees working from offices instead of home.
Food caterers saw sales jump 17.8 per cent year-on-year in the second quarter, according to MTI's figures.
Related:
CAFES AND RESTAURANTS JOIN THE CATERING TREND
Café chain Hello Arigato also hopped on the catering bandwagon earlier this year.
Co-founder Colin Chen said the brand has started accepting bulk orders for private and corporate events to capture rising demand.
Like Yum Cha, this decision was made amid a “softening in walk-ins”, said Mr Chen, which he attributes to more travel plans keeping his usual customers out of town.
While dine-in and delivery still make up the bulk of revenue, catering now accounts for 3 to 5 per cent of the group’s business — a share Mr Chen expects could grow to 15 per cent.
“We’re definitely putting more resources there,” he said.
At nasi lemak restaurant The Coconut Club, catering sales have also shown “steady growth” this year, prompting product and packaging tweaks to better suit off-site dining — from individual bentos to porcelain ware for premium events.
It has also seen a rise in requests for live stations, where chefs prepare dishes such as chendol, laksa and rojak on the spot.
The Coconut Club, which went into the catering business in 2023, noted that it had undergone a recent operational restructuring and declined to provide details on the revenue from its catering operations.
Hello Arigato has rolled out mobile matcha and coffee carts for event pop-ups, while Yum Cha now offers live dim sum and roast meat stations at functions.
A worker carries a bowl of fruit cocktail at Rasel Catering's central kitchen, Oct 8, 2025 (Photo: CNA/Wallace Woon)
CATERING FOR THE BACK-TO-OFFICE CROWD
Established caterers are likewise enjoying brisk business.
Rasel Catering reported a 10 per cent increase in demand this year, mainly from weddings and home celebrations. Managing director Alan Tan noted that while more couples are hosting smaller weddings, overall volume remains healthy.
Lavish Dine Catering said sales have surged 20 to 30 per cent, driven by both new and returning clients. Chilli Api Catering recorded a 10 to 15 per cent rise in large-scale bookings, especially for corporate and social events.
Shiok Kitchen Catering said it benefitted from a series of major MICE (meetings, incentives, conferences, and exhibitions) events this year, including serving as the official caterer for the World Aquatics Championships in July and August.
Managing Director of Rasel Catering Mr Alan Tan, Oct 8, 2025 (Photo: CNA/Wallace Woon)
Industry players point to several factors behind the surge: The push by companies to bring employees back to the office; a rebound in events and social gatherings; and consumers preferring the comfort of home or workplace functions over eating out.
Chilli Api said that many companies have been bringing their workers back to office and resuming more client-facing activities. As such, corporate buffets and cocktail receptions have become their “primary revenue driver”.
One frequent consumer of catering services told CNA that such services in the comfort of someone’s home is preferable to eating out.
While 28-year-old Theng Juay either hosted or went to about 10 catering events last year, he has already attended 10 this year and expects to go to at least 15 by the end of the year.
These have been a mix of house warmings, birthdays and public holiday festivities.
“At home, you can control the environment as compared to outside,” said Mr Theng, who works in the healthcare industry. “Especially when your guests have certain needs, you know for sure you can cater to those needs.”
He said he used to cook for the gatherings, but as life commitments stacked up, doing so became “more of a hassle”.
He added that it is easier to host people until late at home as opposed to at a dine-in establishment. When eating out, inconveniences like having to look for transport home would add to the final bill for the night.
Related:
INDUSTRY WATCHES FOR SIGNS OF SLOWDOWN
While catering firms are making hay while the sun shines, they are also aware that the good times may not last.
Rasel’s Mr Tan warned that rising food and manpower costs remain a key challenge. “While we welcome the current upswing, we remain skeptical about its longevity given the uncertainties in the shifting economy,” he said.
Chilli Api echoed similar concerns, noting that a weaker economy could prompt firms to cut corporate event budgets.
Mr Thomas Chia, secretariat of the Association of Catering Professionals Singapore (ACAPS), said caterers have some advantages over restaurants — notably, less reliance on walk-in traffic and more predictable institutional contracts serving schools, hospitals and workplaces.
But he added that the sector's growth is uneven.
“Larger players and those with diversified service lines – such as institutional catering, events, and business-to-business contracts – tend to benefit more, while smaller caterers may not see the same level of uplift,” said Mr Chia.
Latest figures from the Department of Statistics show that catering sales growth slowed to 4.8 per cent year-on-year in August 2025, down from double-digit gains earlier this year.
“This signals a softening market,” said Mr Chia, adding that ACAPS is working on initiatives to help smaller caterers build resilience.
“While caterers are performing better than last year, the industry is not insulated from wider economic pressures.”
03:00 Min
The new list of Michelin-star restaurants in Singapore will be out on Jul 24. But while winning the accolade puts the eateries on the culinary map, it is not always enough for them to thrive and survive. Rising costs and a competitive dining scene mean that chefs have to work harder than ever to stay above profit margins. Kate Low reports.
Continue reading...