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     FrontPage Edition: Sun 20 April 2008

Key survey findings on Food and Beverage Services 2006


Food and Beverage Services 2006
In 2006, the food & beverage (F&B) services industry comprised about 5,000 establishments, up by 10.4 per cent compared to 2005. The industry employed some 75,300 workers, or about 15 workers per establishment.
Total operating receipts in the F&B services industry increased by 7.4 per cent in 2006, from $4,335 million in 2005 to $4,653 million in 2006. The operating receipts per establishment fell by 2.8 per cent from $965,600 in 2005 to $938,600 in 2006.
Total operating expenditure incurred was $4,469 million in 2006, 7.0 per cent higher compared with the previous year. The F&B services industry incurred $1,539 million on the purchases of goods, up by 4.3 per cent compared to 2005. The remuneration expenditure increased by 11.3 per cent to $1,246 million in 2006.
Total operating surplus increased from $296 million in 2005 to $327 million in 2006, representing a growth of 10.7 per cent. Operating surplus per establishment increased marginally by 0.2 per cent to $66,000 in 2006.
Total value added recorded by F&B services industry was $1,605 million in 2006, an increase of 11.5 per cent over 2005. The double digit growth was uniform across the industry except for food caterers which experienced 2 per cent growth. On a per establishment basis, value added increased by 0.9 per cent to $323,700 in 2006.
Restaurants formed the largest group, accounting for 30.3 per cent of the total establishments in food & beverage services in 2006. They employed about 31,400 workers or 41.7 per cent of the total F&B workforce (Chart 1).

On a per establishment basis, fast food outlets employed 36 workers, of which a large proportion were part-time employees. Restaurants and food caterers employed an average of 21 and 23 workers on a per establishment basis.
Restaurants generated total operating receipts and value added of $1,811 million and $688 million in 2006. These represented increases of 9.6% and 13.0% respectively over a year ago. Restaurants accounted for 38.9 per cent of operating receipts and 42.9 per cent of value added for the F&B services industry (Chart 2). Food caterers accounted for 13.0 per cent of operating receipts and 16.3 per cent of value added for the F&B services industry.

Purchases of goods, remuneration and rental of premises were the top three business cost items for overall F&B services in 2006 (Table 1). For restaurants and food caterers, about two-thirds of total operating expenditure was incurred on purchases and remuneration. Rental payment was the second largest cost item for fast food outlets, accounting for 23.6 per cent of total operating expenditure.

Profitability Ratio of overall F&B services was 7.0 per cent in 2006, similar to the 6.8 per cent in 2005. Food caterers recorded the highest profitability ratio of 16.9 per cent among all sectors in 2006 (Chart 3). However, it was lower compared to 2005, mainly due to the higher remuneration expenditure incurred. The profitability ratios of restaurants and fast food outlets were both at 5.4 per cent.

Cost Effectiveness for overall F&B services was 7.3 per cent in 2006. Food caterers were the most cost-effective, registering an earnings-expenditure ratio of 19.6 per cent in 2006 (Chart 4), though lower than 2005. Cost effectiveness ranged from 5.4 per cent to 5.9 per cent for other sectors.

Average Annual Remuneration per Employee increased by 3.7 per cent to $17,000 for F&B services industry in 2006. The average annual remuneration per employee was highest for food caterers at $30,400 in 2006, up by 12.6 per cent over 2005 (Table 2). In contrast, average remuneration was lowest at $11,700 for fast food outlets, which employed a large number of part-timers.

Value Added per Worker was $21,300 for the overall F&B services in 2006. Within the industry, food caterers generated the highest labour productivity of $50,300 (Chart 5) in 2006, an increase of 2.0 per cent compared to 2005. The other three groups recorded lower value added per worker of $14,600 to $21,900.

The F&B industry comprised of 99.2 per cent small and medium firms with less than 100 workers in 2006 (Table 3). These small and medium firms contributed 82.5 per cent and 79.3 per cent of operating receipts and value added of the industry.


Source: Media Release 16 Apr 2008

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