Introduction
Singapore’s Cafe culture is thriving — from minimalist espresso bars to vibrant brunch spots, the demand for quality coffee and unique experiences continues to rise. With the country’s F&B industry valued at over SGD 14.7 billion in 2024, and Cafe outlets growing by nearly 6% annually, it’s no surprise that aspiring entrepreneurs are drawn to this booming sector.
In a city where lifestyle trends and food innovation go hand in hand, Cafes are more than just coffee stops; they’re creative hubs, remote workspaces, and social destinations. Whether you’re passionate about artisanal coffee, sustainable dining, or themed interiors, Singapore offers a fertile market for bold and fresh Cafe concepts.
But with high rental costs, stiff competition, and strict regulations, starting a Cafe requires more than just a good idea — it demands planning, licensing, financial clarity, and brand positioning. This guide will walk you through why starting a Cafe in Singapore is a smart business move, and how to launch one step-by-step — from legal setup to grand opening.
Why Start a Cafe Business in Singapore?
1. Thriving Cafe Culture
Singaporeans love their coffee — from kopitiam-style brews to flat whites and cold brews. With the rise of urban professionals, digital nomads, and Gen Z consumers, Cafes have become essential lifestyle spaces. Many Singaporeans frequent Cafes not just for caffeine, but for ambience, aesthetics, and the experience.
Over 80% of consumers aged 18–35 visit a Cafe at least once a week, according to a 2024 consumer trends report.
2. High Disposable Income & Affluent Market
Singapore has one of the highest GDPs per capita in Asia, and its population spends generously on food and beverage experiences. With a strong middle-class and expat community, there’s a consistent demand for premium coffee, brunch menus, vegan options, and Instagram-worthy spaces.
3. Strategic Location & Tourism Boost
Singapore’s position as a global travel and business hub attracts millions of tourists and international visitors each year. Popular areas like Tiong Bahru, Haji Lane, and Orchard Road see high foot traffic, making them hotspots for Cafe businesses.
In 2023, tourism rebounded with over 13.6 million visitors, many of whom explored local dining and Cafe experiences.
4. Supportive Government Schemes for F&B Startups
The Singapore government actively supports SMEs and F&B entrepreneurs through grants like:
These can help offset costs for renovation, POS systems, hiring, and business development.
5. Opportunities for Niche Concepts
There’s a growing appetite for Cafes that go beyond the basics — think pet Cafes, book Cafes, eco-conscious Cafes, halal-certified artisanal bakeries, and wellness-driven menus. The market is open to creative, experience-based Cafe models that resonate with modern consumers.
Step-by-Step Guide in starting a Cafe in Singapore
Step 1: Craft a Clear Cafe Concept & Brand Identity
Before diving into operations or paperwork, define what makes your Cafe unique. A clear concept helps attract your target audience and influences everything — from your menu to interior design and marketing.
Key elements to define:
- Theme or style: Minimalist Japanese Cafe? Rustic brunch spot? Vintage dessert bar?
- Signature offerings: Hand-brewed coffee? Plant-based pastries? Locally inspired fusion food?
- Target audience: Young professionals, expats, students, pet lovers?
- Brand personality: Casual and cozy? Premium and exclusive? Eco-conscious and ethical?
Tip: Use mood boards, sample menus, and color palettes to help visualize your brand.
Step 2: Conduct Market Research & Feasibility Study
Understand the Cafe landscape before investing. Market research validates your idea, helps you set pricing, and avoids common mistakes.
What to research:
- Successful competitors in similar locations or niches
- Rental trends in high-footfall areas (e.g., Tiong Bahru, Katong, Orchard)
- Customer preferences — coffee types, food portions, ambience
- Peak hours & traffic flow in potential locations
- Supplier options for coffee beans, baked goods, furniture, etc.
📊 Bonus: Conduct short surveys or social polls to gauge interest in your Cafe idea.
Step 3: Register Your Business & Secure Legal Approvals
Legal compliance is essential in Singapore’s highly regulated F&B industry.
Steps to register and license your Cafe:
- Register your business entity with ACRA via BizFile+
- Most choose Private Limited (Pte Ltd) for liability protection
- Apply for licenses:
- Food Shop License from the Singapore Food Agency (SFA)
- Basic Food Hygiene Certification (required for at least one staff)
- Signboard License (for your Cafe’s exterior branding)
- Music License (if playing music publicly)
- Liquor License, if serving alcohol
- Register for CPF if hiring employees
- Check URA and HDB rules on zoning and permitted uses of the premises
Cost estimate: Business registration = ~$300 / Food Shop License = ~$195/year
Step 4: Choose the Right Location & Set Up Your Space
Location plays a crucial role in your Cafe’s visibility and accessibility.
Factors to consider:
- Demographics of the area — students, expats, professionals
- Foot traffic and accessibility (near MRT, malls, universities)
- Size of the space — seating, kitchen, storage, washroom
- Lease terms — length, deposit, renovation clauses
- Utilities and ventilation setup (especially for cooking Cafes)
Once leased, start renovations and interior design:
- Layout: Optimize for efficiency and aesthetics
- Furniture: Mix of tables, couches, bar seating
- Decor: Align with brand theme and social media appeal
💡 Use OrderZ’s POS system to test placement of your billing counter for maximum efficiency during rush hours.
Step 5: Plan Your Menu, Pricing & Suppliers
Create a curated menu that supports your brand and appeals to your ideal customers.
Menu considerations:
- Signature dishes and seasonal specialties
- Balanced options (light bites, main meals, sweet/savory)
- Customizable drinks (e.g., plant-based milk, sugar-free syrups)
- Food costing: Keep food cost around 25–35% of selling price
- Sourcing: Choose reliable local or overseas suppliers for ingredients, packaging, and coffee beans
With OrderZ, you can:
- Digitally design your Cafe menu
- Set category-based pricing (e.g., drinks, brunch, desserts)
- Enable online ordering or dine-in QR code menus
Step 6: Hire & Train a Passionate Team
The right team makes or breaks a Cafe experience. Singapore customers expect friendly, fast, and informed service.
Hiring needs:
- Baristas with latte art skills or brewing knowledge
- Cooks or chefs (if food is freshly made)
- Front-of-house servers or cashiers
- Part-time/weekend help
Training essentials:
- Hygiene and safety protocols (as per SFA)
- Customer service and order management
- Coffee preparation consistency and speed
Bonus: Invest in customer service training — it boosts repeat visits and reviews.
Step 7: Launch with a Bang — Market Smartly
Plan a soft launch followed by an official grand opening. This helps fine-tune operations and build buzz.
Marketing checklist:
- Set up Google Business Profile with location and hours
- Promote on Instagram, TikTok, Facebook with photos, reels, and giveaways
- Partner with local influencers or food bloggers
- Offer launch discounts or free samples
- Encourage user-generated content via hashtags and photo spots
With OrderZ’s free eCommerce website:
- You get an SEO-ready Cafe website
- Accept online orders for pickup or delivery
- Send automated updates about promotions
- Integrate with Grab/Deliveroo or manage in-house delivery
Conclusion
Opening a Cafe in Singapore is more than just selling great coffee — it’s about building a brand, creating a welcoming experience, and running a smooth, profitable operation. From choosing the perfect location to crafting a signature menu and setting up efficient systems, every step matters.
While the F&B scene is competitive, Singapore offers a dynamic market filled with opportunity — especially for Cafe concepts that are creative, niche-focused, and community-driven.
And the best part? You don’t have to do it all alone.
Whether you need a free Cafe website, a modern POS system, or QR-code ordering and online payments — OrderZ is your go-to digital partner. Designed for Cafe owners, baristas, and food entrepreneurs, OrderZ helps you:
- Launch an eCommerce-ready Cafe website in minutes
- Accept online and offline orders seamlessly
- Manage your menu, staff, and customers — all in one dashboard
- Grow your brand without high tech or agency costs
Start your Cafe journey smartly — with OrderZ powering your back-end, so you can focus on your passion out front.
FAQs: Starting a Cafe in Singapore
1. How much capital do I need to start a Cafe in Singapore?
Starting a Cafe in Singapore typically requires an initial investment of around SGD 80,000 to SGD 200,000, depending on the size, location, and scale of your concept. This amount usually covers rental deposits, renovation costs, kitchen equipment, staff salaries, initial inventory, and licensing fees. You can reduce your startup expenses by using cost-effective digital tools like OrderZ, which offers a free website and integrated POS system built for Cafe businesses.
2. What are the essential licenses required to run a Cafe legally in Singapore?
To run a Cafe in Singapore, you’ll need to apply for a Food Shop License from the Singapore Food Agency (SFA) as a primary requirement. Additionally, at least one staff member must hold a Basic Food Hygiene Certificate. If you plan to display signage, you’ll also need a Signboard License, and if your Cafe will serve alcohol, a Liquor License is required. If you’re hiring staff, don’t forget to register with CPF as an employer.
3. Is it possible to start a Cafe business in Singapore without a physical shop?
Yes, it’s possible to launch a Cafe business without a physical storefront. Many entrepreneurs start with a home-based Cafe, a cloud kitchen, or a takeaway-only kiosk, especially to test their concept before committing to a full-scale Cafe. With platforms like OrderZ, you can easily set up a professional online ordering system, take pre-orders, or deliver directly to customers while building your brand digitally.
4. How many staff members do I need to operate a small Cafe?
Most small Cafes in Singapore start with a lean team of 2 to 4 employees. Typically, you’ll need a barista, a cook or kitchen assistant (if you’re serving hot food), and someone to manage the counter and customer service. In some cases, the owner may also take on multiple roles to save on costs. With efficient tools like OrderZ POS, which streamlines billing, inventory, and sales tracking, it’s easier to manage operations even with a small team.
5. What’s the best way to attract customers to a newly opened Cafe?
To attract customers to your new Cafe, focus on creating buzz both online and offline. You can start by promoting your opening on social media platforms like Instagram and TikTok with behind-the-scenes content, aesthetic food photos, and short videos. Collaborating with local food influencers or bloggers also helps generate attention. Offering grand opening discounts, loyalty programs, and listing your Cafe on food delivery apps can drive early footfall. Having a sleek, mobile-friendly website powered by OrderZ also boosts your visibility and helps you capture online orders right from day one.
