SINGAPORE: It is the time of the year when year-end office parties and corporate functions are in full swing, but players in the food and beverage (F&B) industry are reporting mixed demand from corporate customers this festive season as companies keep an eye on their budgets.
F&B players also had to cope with manpower shortage and rising costs.
Uncertainty in the world of business and economics has spilled over to hospitality service providers.
"Be it the festive month or the regular months, the bookings are actually quite about the same," said Patsy Lim, sales and marketing manager at Morton's The Steakhouse restaurant.
"But of course during the festive month, we have more of the corporate businesses that are celebrating over dinner in the private room, as well as cocktail events."
There were also dining outlets which reported a surge in bookings.
"We've definitely seen an increase of bookings - I would say about 20% upwards compared to last year," said Leslie Pereira, general manager at Hotel Fort Canning.
Companies could have become more conservative due to woeful headline growth numbers. Singapore's economy is expected to grow only 1.5 per cent this year.
Still, hospitality players say companies do want to celebrate, but more are demanding greater value for money.
Mr Pereira said: "It is very important during this time to be able to tailor make packages towards their budgets, be flexible with prices, be flexible with tailor making menus. Gone are the days where you just have a set menu and say, take it or leave it. The competition out there is so much."
For Fine Palate Catering, it has been a good year, especially with product launch events.
"Banks haven't quite come back yet and their expenditure is really on hold. They're only doing events where its absolutely necessary and there's definitely no mega budgets," said Heather Barrie, founder and director of Fine Palate Catering & Cafe.
"So that is definitely felt, but it has been that way for a while with banks anyway, so it hasn't really made that much difference - other areas of business have picked up to cover for it."
The caterer also has a cafe, but it is in no hurry to expand that part of its business.
This year, the Singapore government imposed restrictions on the hiring of foreign workers in a bid to improve labour productivity.
The move has impacted small and medium enterprises the most, particularly those in domestically-oriented sectors like services and retail.
- CNA/xq
Corporate spending on festive dining mixed: industry players
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Corporate spending on festive dining mixed: industry players
