Three industry-level benchmarks will help companies in the food and beverage industry (F&B) measure their productivity levels. They were revealed in a new Food Services Productivity Report, published by the Singapore Productivity Centre (SGPC) in collaboration with EnterpriseSG.
Measuring Productivity At F&B Outlets In Singapore
The Food Services Productivity Report is the first of its kind, and it selected three benchmarks that can be used across Singapore’s F&B sector to measure productivity:
- Sales per man-hour
- Sales per square foot, and
- Manpower ratio
The first and primary metric for the report is sales per man-hour, which refers to how much an F&B outlet generates per man-hour worked. According to the report, a typical F&B outlet generates between $60 and $65 per man-hour worked.
A metric like sales per man-hour can be improved by cross-training workers and being more efficient with manpower deployment. Strategically using technology, such as self-ordering systems, can also reduce outlet staffing needs by as many as one to two employees.
However, not all F&B outlets can achieve higher sales per man-hour due to space constraints, which limit manpower scalability. That is why another productivity metric is required to accurately measure the productivity of smaller formats such as food kiosks and quick service outlets.
This metric is sales per square foot, which better reflects the productivity levels of outlets where speed and volume are prioritised through more streamlined operations and takeaway-focused menus.
Source: Food Services Productivity Report
Based on the report’s findings, there was a positive correlation between sales per man-hour and sales per square foot. This means that businesses that are manpower efficient are also likely to be space efficient. Businesses that have space-efficient layouts with efficient staffing models, and are empowered by technology, can achieve a compounding effect on their overall performance and productivity.
That is not to say that outlets that use less manpower in a smaller space automatically mean a more productive outlet. The third metric, manpower ratio, measures manpower per 1,000 square feet.
Quick-service restaurants, for example, enjoyed higher median sales per man-hour and higher sales per square foot, but had a higher manpower ratio than most other F&B formats.
Closing The Gap Between Top Performers And Underperformers
The report also revealed the wide gap in sales per man-hour between the bottom 10% and the top 10%. Overall, the top 10% were generating almost 3 times the amount of sales per man-hour as the bottom 10%.
Source: Food Services Productivity Report
This shows significant room for improvement regardless of outlet format, especially in terms of staffing, layout, and technology use. The report, therefore, surveyed the top performers according to these productivity metrics to obtain their best practices, which included embracing digitalisation and automation
The use of technology, from self-ordering systems to digital payments to kitchen automation to inventory tracking, was a common theme among the top performers. These tools reduced the manpower requirement and enhanced operations and service standards.
New Resources To Optimise Processes And Centralise Food Preparation
Based on the findings for the report, three new programmes were developed to help F&B companies boost productivity, especially those who need to bridge the performance gap.
The F&B Process Optimisation Programme (POP) helps companies enhance manpower efficiency, which will lead to increased revenue and improved customer satisfaction. F&B companies under this programme can receive guidance on optimising their outlet space, and implementing new technology.
The FoodX programme supports F&B companies in centralising food preparation through outsourcing. This will achieve long-term cost savings and streamline operations via an expanded network of over 60 food manufacturers and Original Equipment Manufacturing (OEM) partners. SGPC will match participating F&B businesses with suitable food manufacturers based on their specific needs. It will also provide up to 50% grant support to eligible companies to help reduce their initial outsourcing costs.
Finally, the Career Conversion Programme (CCP) for Food Professionals and Associates helps with upskilling existing staff and attracting new talent to a sector known for high turnover. Companies are encouraged to review, optimise and value-add to their PMET and non-PMET jobs to sustain business growth and retain their current employees.
UOB Partners EnterpriseSG To Enhance The Digital Capabilities Of Singapore’s Food Services Industry
At the Food Services Forum 2025 in October, EnterpriseSG announced a partnership with UOB to accelerate the adoption of digital and Artificial Intelligence-enabled (AI) solutions across F&B companies.
Both parties signed a Memorandum of Understanding (MOU) focused on three key areas:
- Advisory services for F&B companies on selecting digital and AI-enabled solutions to enhance operational efficiency,
- A curated suite of digital solutions offered at preferential rates to drive digital adoption, and
- Joint seminars and workshops by EnterpriseSG and UOB to equip F&B companies with the knowledge and confidence to adopt digital and AI-enabled solutions.
The partnership leverages UOB’s extensive small and medium-sized enterprises (SME) and partner network. The services and solutions under this partnership will be available to F&B SMEs from 2026, with more details to be shared later.
Subscribe To The DollarsAndSense Business Pass
Enjoy what you are reading and want more? Join The DollarsAndSense Business Pass and unlock access to valuable tools, exclusive networking opportunities, and tap into the wisdom of industry experts to fuel your business expansion!
