[SINGAPORE] Home cafes are the newest kids on the block in the food and beverage (F&B) scene, drawing crowds with their unique drinks, secret menus and aesthetic vibes.
Several establishments have gone viral on social media, allowing them to ride the wave of success, opening brick-and-mortar outlets and collaborating with retail brands.
Meanwhile, private dining establishments – where chefs serve guests at home – have also remained popular as the exclusivity and elusiveness of such experiences continue to appeal to Singaporeans. This is despite the overall gloomy outlook for the F&B industry, which saw a record number of closures in 2024, the highest in almost 20 years.
Surge in popularity
He says: “People had time to practise what they like making or explore (dishes) they didn’t have the time to do so. Then they start to think maybe they can turn it into a business.”
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For Shane Gan and Evelyna Wibawa, who currently run South & East restaurant, their journey began when Gan left his full-time job at Michelin-starred Peranakan restaurant Candlenut in 2020, but Covid-19 disrupted his plans. Initially, he planned to join F&B incubator Magic Square but its launch was pushed back due to the pandemic.
Gan says: “We wanted to earn more pocket money, so we decided to start our home-based business.”
Wibawa adds: “It started from cooking for his family. During the lockdown, everyone was just staying together at home. His mother (said) why don’t you just cook for us and we will pay? When his parents started to bring the food out to their friends, slowly (customers) started to come.”
In 2022, the couple decided to pivot away from a takeaway business to private dining as dining out restrictions were lifted. From September 2022 to June 2024, they ran the business from Gan’s aunt’s apartment several nights a week.
In October 2024, the couple opened their restaurant at the Shaw Foundation Alumni House serving South-east Asian cuisine, and will operate until May 31 before closing temporarily for renovation.
The Covid-19 pandemic was also an impetus for Benjamin Lai to start Japanese private dining and home delivery business Ooomahmee.
In 2020, Lai, a former UI/UX designer, was asked to go on no-pay leave one day per week by his company amid market uncertainties.
He says: “Effectively, that was a 20 per cent pay cut. But it was the best thing that happened to me because it allowed me to pursue things I liked – photography and cooking.”
“I was very blessed because (at that time) everyone was sending food to everybody and I caught that wave.”
Five years on, home-based food businesses are still going strong.
Dr Samer Elhajjar, a senior lecturer at the National University of Singapore’s (NUS) Business School, says: “Post-pandemic, we’ve seen customers actively seeking more authentic, handmade, small-batch or artisanal food experiences, especially as a break from mass-produced restaurant fare.”
While the Singapore Food Authority (SFA) does not track the number of home-based food businesses, The Business Times has observed at least 10 home-based cafes opening in the past 12 months.
Such businesses are currently not required to be licensed as the food safety risk is limited by the scale of their operation, SFA says.
The low barriers to entry have made it easier for aspiring entrepreneurs to start their own food business from home, and many have built a following organically through social media.
Opportunities calling
One big reason for the appeal of home-based businesses is the novelty factor, which makes customers feel like they are part of an insider club and supporting someone’s passion project, says NUS’ Dr Elhajjar.
However, Singapore’s social media landscape can be saturated and standing out requires businesses to post consistently, and have a strong visual identity and clear storytelling, he says.
Sheralyn Tay, who runs home-based pizzeria PXZA with her husband David Shen, notes how home-based businesses cannot rely solely on word of mouth to reach customers.
Shen adds: “On the flip side, there are a lot of small businesses which have huge social media followings but they find that it doesn’t translate to profit. It’s about finding the right audience.”
Some strategies to increase visibility online could include filming behind-the-scenes content to show how food is prepared, sharing the personal journey of the founder to foster an emotional connection and encouraging customers to share photos and experiences, Dr Elhajjar says.
Retailers and landlords have started paying attention to this growing segment of the F&B industry.
In April, Poof Cafe participated in a pop-up at Nespresso Boutique Ion Orchard, brewing coffee for customers using Nespresso’s new white chocolate strawberry capsules.
The home-based cafe also recently collaborated with home-grown fashion labels The Tinsel Rack and Wacky Wears to mark the launch of a new collection.
Property developer Far East Organization started a rent-free initiative in 2024 for home-based chefs to operate a 24-seater restaurant within Clarke Quay Central for four or eight weeks.
To date, six chefs, including Ooomahmee’s Lai, have taken part in the Chef X initiative.
Far East Organization says: “We saw this as an opportunity to support the local culinary talent and, at the same time, bring something fresh and engaging to our mall, Clarke Quay Central.”
Brick and mortar
Some home-based businesses have pivoted to operating from cloud kitchens, popping up at weekend markets or even opening physical shops, Dr Elhajjar says.
While Kin Joe Coffee’s Heng regularly participates in pop-ups, he acknowledges that the amount of money home-based businesses make fluctuates from event to event, depending on the crowd size and frequency of such events.
He says: “Having a physical place where you know there’s a decent amount of footfall works for stability.”
Ooomahmee’s Lai says: “At the back of my mind there’s always that question of whether to try brick-and-mortar. A lot of my customers have also asked when I’m going to open a restaurant. I always tell them it’s not sustainable. I think this time round, this initiative by Far East really gave me a very good sense of the financials.”
He credits the Chef X programme for broadening his horizons.
Lai says: “Hypothetically, every month I make S$5,000. And then a place costs S$10,000, I’ll reject it straightaway because I know I have to make S$15,000 to break even. But if after one month, I realise my revenue stream is S$30,000 to S$40,000, then S$10,000 doesn’t seem like a very daunting idea.”
Having a physical location, however, would require home-based businesses to make adjustments to their business model.
Lai says: “Food costs could be as high as 50 per cent for a home-based business but once they move into brick-and-mortar operations, they would have to pay for rental and it may not be sustainable for food costs to remain as high.”
Running a restaurant involves a lot of hidden costs that home-based businesses may not have to invest as much in, such as cleaning supplies and decor, South & East co-founder Gan says.
Having to hire part-timers and pay for pest control services are also additional costs home-based businesses have to consider, says Ground Floor Coffee’s Adhwa Hasif.
He says: “Now we have to think ahead about all that before we can think about our salary.”
While rents vary widely islandwide, it may cost up to tens of thousands of dollars monthly to occupy a prime location, says Dr Elhajjar.
He adds: “The tight labour market, especially for service workers, makes operations costly and unpredictable.”
Constraints and challenges
Home-based food businesses that are keen to expand operations beyond what their homes can support should consider doing so in licensed food premises, the SFA says in response to queries from BT.
“Licensed food businesses serve a much larger customer base and are therefore required to comply with requirements such as mandatory training for all food handlers, and ensure that their premises are appropriately set up and equipped to ensure the sale of safe food.”
While home-based food businesses are able to participate in events, they will have to prepare food onsite.
SFA says: “Any operator who sells food at temporary fairs, including home-based food businesses, must apply for an SFA licence.
“The sale of food prepared from home is strictly prohibited at temporary fairs.”
Having managed Ground Floor Coffee as a home-based business before opening a physical store, Hasif acknowledges that there are limitations to how home-based businesses can collaborate with F&B brands.
He says: “If we were to take (food) from sources that are unlicensed or not from a central kitchen, if anything bad happens, we will have to answer for it. If the (food) supply comes from another central kitchen, we can rectify the problem and track back the issue. If it comes from a home-based (business), it’s very difficult to track back what happens along the way or which part of the process goes wrong.”
And yet, for successful home-based businesses, taking part in events is often the first step to grow their presence and customer base, before deciding whether to take the plunge and open a brick-and-mortar store.
When Hasif opened the Ground Floor Coffee store at East Village in September 2024, he decided to do so because he felt he had “reached the ceiling” of what could be done as a home-based business.
For instance, the opportunity arose to collaborate with a milk company but Hasif was unable to take it up because as a home-based business, there was “a lot of risk involved if they proceeded with us”.
Visibility is also a challenge for such businesses, especially if they are not located near public transport nodes or in central parts of Singapore.
Kin Joe Coffee’s Heng says: “For home-based businesses, people have to actively search up your place and walk to (it) to pick up what they ordered from you. It’s not like (being) in a shopping location that naturally attracts people there.”
“You only have a short time frame to make your sale and on weekdays if nobody’s at home, you’re basically waiting for business at home, which is not ideal.”
He adds: “That’s why I’ve gone out to serve coffee because there’s really a limit to how much I can serve from home.”
Sonia Lim, who runs Coffee Near Me out of her family’s landed home in Upper Thomson, says in the first seven months since she started her cafe in February 2024, there were days when she did not get any customers.
Home-based businesses are also not allowed to put up advertisements, signages or posters, according to the URA and HDB.
These policies are in place to protect public health, ensure neighbours are not disturbed by noise, smells and people queueing for takeaway orders, says EHL Hospitality Business School assistant professor Guy Llewellyn.
It was only after Coffee Near Me gained traction online that customers came in droves, and Lim now sees familiar faces every weekend.
Here to stay?
Although there were 3,047 F&B closures in 2024, the sector saw a net gain with 3,973 new businesses opening that year.
The 976 businesses opened in the first three months of 2025 have exceeded the 710 which shut in the same period.
“This indicates that the F&B sector continues to expand despite high turnover rates and a challenging operating environment,” says Cushman & Wakefield head of research Wong Xian Yang.
NUS’ Dr Elhajjar sees home-based businesses developing into a sustainable micro-sector rather than being a passing fad.
These businesses promote community connection and add depth to Singapore’s F&B scene beyond the usual chains or fine-dining spots, he adds.
The current regulatory framework for home-based business is pragmatic, supporting innovation while keeping barriers to entry low, Dr Elhajjar says.
He says: “Perhaps a voluntary certification scheme could be introduced where home-based businesses that want to scale up and access bigger opportunities like catering can meet a clear set of safety and quality standards.
“This balances public health needs with entrepreneurship goals and avoids stifling small players with one-size-fits-all rules.”
Alan Cheong, executive director of Savills Singapore’s research and consultancy, believes home-based businesses should be left unfettered for their creativity to bloom.
While their start-up costs are low, they may need help in the form of machinery grants should they expand to the point where they require a stall or central kitchen space, he says.
Whether they choose to stay small and nimble or expand, home-based cafes and restaurants have piqued consumer interest and with the right conditions, it seems that the niche sector could be a lasting fixture in the F&B landscape.
