By, Hanna Lee, Novema, March 2026
Eating out is a significant part of life among Singaporeans. This not only serves as a treat, but a necessity to help Singaporean’s manage their busy lifestyles. The Informal Eating Outlet (IEO) market can serve both these needs, and Singapore’s compact geography and interconnected malls, shopping areas, and public transport have created one of the most prolific and diversified IEO offering in the world, at prices attractive to consumers.
A 2024 industry estimate puts Singapore’s overall food service market, which includes mid to high end restaurants, cafes, bars, canteens and delivery at around S$28 billion.
Informal Eating Outlets (IEOs) that we define as a per head price of less than S$20, including quick service restaurants, food courts, hawker centres, and budget restaurants, accounts for about half the total food service market. The IEO market recovered quite strongly from the impact of COVID 19 and the associated restrictions on dining, work from home, and a decline in tourism / travel trade. The IEO market has grown from S$11.5 billion in 2022, to S$12.5 billion in 2023 and S$14 billion in 2024 (source: Straits Times, Statista).
On-premises eating at IEOs is estimated to account for 55% of the total market and take-away and delivery at about 20-25% each, but with delivery representing the fastest growing channel, partly due to big delivery brands being so active in the market, e.g. Grab, Food Panda, and Deliveroo.
Hawker centres and coffeeshops (incl. Kopitiam style) have the largest share of the IOE market at 40-45%, followed by quick service restaurants / fast food at 20-25%, food courts at 15-20%, and budget restaurants at 15-20%.
Key developments in the IEO market
The main changes over the last few years include developments to delivery service, evolving cuisine and value preferences and changes to when and how people eat out.
- App based delivery: this has become a core sales channel for hawkers and small outlets. Hawker-focused delivery schemes and mix and match ordering from multiple stalls in one basket have made it easier to order hawker food to the home. For IEO, delivery has been the fastest growing channel with its share of value rising each year, while on premise and walk-up takeaway has grown more slowly.
- E-payments: many hawkers and low-priced outlets have adopted e-payments, QR-ordering and social media marketing, presumably following habits from COVID-19. This has slightly shifted business from pure office-crowd and walk-by traffic toward a mix of neighbourhood, online discovery and pre-ordering.
- Diversified cuisines: there has been a growing visibility of Korean, Japanese, Thai and regional Southeast Asian concepts often in food courts and fast-casual chains. There is also demand for comfort and familiarity – therefore local staples such as chicken rice, Bak Chor Mee and nasi lemak still dominate a lot of hawker centres.
- Inflation: food cost and rent inflation have pushed up hawker and IEO prices which have made customers more price sensitive and deal-seeking within the budget band. Many operators have responded by simplifying menus, shrinking portion sizes and creating budget sub-brands.
- Operational changes: The ageing hawker workforce, difficulty attracting younger operators and thin margins once delivery commissions, labour and rent are accounted for. Stalls have responded by sharing kitchens and creating group-operated stalls.(Sources: Straits Times, Statista, Asia Media Centre)
The outlook for the IEO market in Singapore
The overall food service market is expected to grow at a CAGR of 13–16% through to 2030, with the informal eating outlet (IEO) segment projected to outpace full-service restaurants due to consumer price sensitivity and the convenience IEOs offer.
Delivery is expected to be the fastest-growing channel, with a projected CAGR of around 20%. As a result, outlets are likely to place greater emphasis on delivery-focused brands and “cloud kitchens” to reduce overheads.
However, intense competition (driven by delivery platforms and increasingly diverse cuisines), and rising operational costs is expected to force many IEOs out of business, with over 2,400 closures reported in 2025 alone. This environment puts pressure on operators to differentiate themselves through innovation in menus, branding, and formats. The latter may include concepts such as live cooking, themed spaces, and social yet high-turnover dining environments.
At the same time, operators are reducing costs by simplifying menus, automating kitchens, and minimising dine-in footprints. Chain operators represent the fastest-growing segment, as they are better positioned to scale, with stronger cost control and more established branding.
Technology will be a key differentiator, particularly through delivery platforms, automation (e.g. self-service kiosks and mobile ordering), and the use of AI. AI can support demand forecasting to reduce waste and optimise inventory by analysing historical sales data, time-of-day and day-of-week patterns, local events, delivery trends, and even weather conditions.
Given the ongoing staffing challenges in Singapore, AI can also be used to optimise labour for example, through staff scheduling, aligning preparation times with demand, and reducing employee burnout.
Data-driven menu optimisation can increase profit per order by analysing sales volumes, margins, preparation complexity, pricing strategies, and cross-selling potential.
Personalisation has also been shown to boost conversion rates, for example by recommending dishes based on past orders, highlighting relevant combinations, and adjusting menus by daypart.
Additional applications of AI include menu innovation, operational simplification, cost management, and multi-outlet scaling.
With greater financial resources, larger brands are better positioned to leverage AI effectively, placing further pressure on independent operators to innovate and carve out niche positions within the market.
