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     FrontPage Edition: Thu 5 April 2007

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Key Survey Findings on Food and Beverage Services 2005




In 2005, the food & beverage (F&B) services industry comprised about 4,500 establishments. The industry employed some 68,300 workers, or about 15 workers per establishment.
Total operating receipts collected by the F&B services industry was $4,173 million in 2005, an increase of 5.9 per cent over 2004. On a per establishment basis, operating receipts increased from $875,400 to $932,300 over the same period.
Total operating expenditure incurred by F&B services industry went up by 5.9 per cent to $4,051 million in 2005. Likewise, operating expenditure per establishment increased from $849,700 in 2004 to $905,100 in 2005.
Total operating surplus stood at $258 million in 2005, an increase of 3.2 per cent compared to the previous year. Operating surplus per establishment rose by 3.8 per cent to $57,700 in 2005.
Total value added generated by F&B services industry was $1,362 million in 2005, an increase of 8.0 per cent over 2004. On a per establishment basis, value added increased from $280,300 in 2004 to $304,300 in 2005.
Restaurants constituted the largest group, accounting for 28.1 per cent of the total establishments in F&B services in 2005. They employed about 26,600 workers or 38.9 per cent of the total workforce in the industry (Chart 1).

On a per establishment basis, however, fast food outlets were the largest employers, engaging an average of 37 workers, of which a large proportion were part-time workers. Restaurants and food caterers engaged an average of 21 and 26 employees per establishment respectively.
Restaurants constituted the most important group in terms of total operating receipts and total value added, contributing 37.3 per cent and 41.9 per cent respectively. Although small in number, food caterers¡¯ contributions to total operating receipts (13.3 per cent) and total value added (17.3 per cent) of the F&B services industry were also fairly significant (Chart 2).

Purchases of food and beverages for sale, remuneration and rental of premises were the top three business cost items for overall F&B services in 2005 (Table 1). For restaurants and food caterers, about twothirds of total operating expenditure was incurred on food and beverages for sale and remuneration.
Rental expense was the second largest cost item for fast food outlets, accounting for 24.9 per cent of total operating expenditure. In contrast, rental accounted for only 4.5 per cent of total operating expenditure for food caterers.

Profitability Ratio of overall F&B services declined marginally to 6.2 per cent in 2005 from 6.4 per cent in 2004. Among F&B services, food caterers achieved the highest profitability ratio of 17.5 per cent in 2005 (Chart 3), compared to the 4.0 per cent and 5.2 per cent profitability ratio for restaurants and fast food outlets respectively.

Earning-expenditure Ratio for overall F&B services dropped marginally from 6.5 per cent in 2004 to 6.4 per cent in 2005. Food caterers were the most cost-effective, registering an earnings-expenditure ratio of 20.3 per cent in 2005 (Chart 4).

Average Annual Remuneration per Employee for overall F&B services was $16,300 in 2005, an increase of 4.5 per cent over 2004. Employees in food catering services received the highest remuneration at $28,600 in 2005 (Table 2). Average remuneration was much lower at $10,300 for fast food outlets, which employed a large number of part-timers.

Value Added per Worker was $19,900 for the overall F&B services in 2005, increasing by 3.1 per cent over 2004. Within the industry, food catering services recorded the highest labour productivity of $47,700, compared to value added per worker at $12,900 to $21,400 in the other three groups (Chart 5).

Small and medium firms (ie less than 100 workers) comprised the majority (99.1 per cent) in the F&B services industry (Table 3). They contributed 79.2 per cent of operating receipts of the industry. However, large firms (100 workers & above) registered a profitability ratio at 12.8 per cent, much higher than the smaller firms¡¯ profitability ratio.


Source: Media Release 5 Apr 2007

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