Over 1,000 food and beverage businesses to benefit from centralised preparation and AI-driven process optimisation.

Singapore’s food and beverage (F&B) sector is getting a major productivity boost. Enterprise Singapore (EnterpriseSG) has rolled out two new initiatives—designed to cut costs, streamline operations, and accelerate digital adoption—targeting over 1,000 businesses in the next two years.

Empowering the F&B Sector

EnterpriseSG announced on October 13 the launch of two key programmes—the F&B Process Optimisation Programme (POP) and the FoodX Programme—to help local F&B companies become more efficient and competitive. The announcement follows the release of EnterpriseSG’s new Food Services Productivity Report, which identified centralised food preparation and systematic process optimisation as critical for long-term sustainability.

Streamlining Operations and Cutting Costs

The POP initiative will help businesses review and improve outlet operations by focusing on manpower efficiency, revenue growth, and customer experience. With guidance from four approved consultancy firms, companies will receive expert advice on space planning, technology adoption, and menu engineering to boost output per man-hour—a new industry benchmark for measuring productivity.

Scaling with Centralised Food Preparation

The FoodX Programme aims to help businesses centralise food production and tap into shared manufacturing resources. Participating F&B companies will be matched with over 60 contract and equipment manufacturers through the Singapore Productivity Centre. Eligible businesses can receive up to 50% grant support to offset initial outsourcing costs. The pilot run in 2024 successfully supported 200 F&B outlets, setting a strong precedent for the nationwide rollout.

Supporting SMEs Through Collaboration

“Most F&B companies in Singapore are SMEs facing pressure from rising costs and labour shortages,” said Jeannie Lim, Assistant Managing Director for Services and Growth Enterprises at EnterpriseSG. “By leveraging shared facilities and partnerships, we aim to unlock economies of scale and achieve sustainable cost savings.”

Encouraging Digital Transformation and AI Adoption

To further drive transformation, EnterpriseSG signed a memorandum of understanding with UOB to accelerate digital and AI adoption across the F&B sector. The partnership will offer advisory services, curated digital solutions at preferential rates, and joint workshops beginning in 2026. Senior Minister of State for Trade and Industry Low Yen Ling emphasised that digitalisation is no longer optional. “Digital tools and AI are essential for productivity and sustainable growth,” she said.

Measuring Success Through Data

EnterpriseSG’s productivity report will serve as a performance tool for the F&B sector, allowing businesses to track key metrics such as sales per man-hour and benchmark against top performers. “Understanding what high-performing businesses do differently will help others identify gaps and improve competitiveness,” said Low.

As Singapore’s F&B sector faces rising operational costs and international competition, EnterpriseSG’s twin initiatives signal a crucial lifeline. By combining process efficiency, centralised production, and AI-driven innovation, Singapore is setting a new standard for how small and medium F&B enterprises can scale sustainably in a global market.

Sources: The Business Times (2025) , CNA (2025)

Keywords: EnterpriseSG Programmes, Singapore F&B Industry, FoodX Programme, Process Optimisation, UOB Partnership