Singaporeans Should Boycott Restaurants – We Are Feeding Greedy REITs, Not Just Ourselves.

The Hidden Cost of Dining Out in Singapore: A Consumer Rebellion Against the Rentier Economy

A rentier economy is an economy where a big part of the country's income is derived not from hard work or producing things, but from collecting rent or ownership fees — like owning land, property, natural resources, or financial assets.

In Singapore, a casual meal for two in a mall restaurant can easily exceed S$50 even without alcohol — a trend rooted in a broader economic imbalance: the dominance of rent-extracting landlords and REITs.

I. F&B Under Pressure: REITs and Rising Rents

Key retail landlords like CapitaLand Integrated Commercial Trust (CICT), Mapletree, and Frasers Centrepoint Trust — many tied to government-linked entities — drive rental growth to satisfy investors. A senior CapitaLand executive even openly implied that there is still headroom in Singapore for higher rent growth despite recent rent spikes in last couple of years.

In practice, this means higher rents, higher menu prices, lower food quality, as well as wages that can’t keep pace.

II. Financial Burdens on Restaurants & Closures

Verified cost data shows: rentals account for 26–31% of monthly costs for typical SME F&B outlets in Singapore . Occupancy costs above 20% are considered unsustainable — CICT’s is 17.1%, FCT’s is 16% . In 2024–early 2025, over 3,000 F&B businesses closed, signaling a stressed ecosystem . Even hawker stall rents for lower-cost operators can easily exceed S$2,900/month, thus placing heavy strain on them.

III. Global Rentier-Economy Examples

Singapore is not alone. Globally, rentier-dominated economies are undermining citizens' standards of living.

Europe’s housing crisis: Institutional investors now manage trillions in residential property. Rent often consumes up to 50% of incomes in cities like Berlin, Dublin, Stockholm. Some rents have increased over 10% year-on-year, fueling homelessness and much political discontent .

U.S. and UK single-family housing: Private equity and pension funds invest heavily in existing homes (rather than building new ones), making homeownership unattainable for two-thirds of Americans and 90% of Britons .

In Hong Kong, high rental rates for housing and commercial properties worked hand in hand to reduce the standard of living and social mobility of Hong Kongers. Many eat, shopped or even stay in Shenzhen to reduce costs. Restaurants are closing and many relocating to Shenzhen to preserve their businesses. The situation mirrors that of Singapore now. Currently Hong Kong is devoid of consumer and tourist dynamics, making it a dead town on a Sunday. And this could be what would happen in Singapore in the near future.

Broader research reveals that rentier capitalism suppresses wages, stifles innovation, erodes democratic institutions, and deepens inequality across many countries .

These cases illustrate a recurring pattern: asset owners earning obscene, unwarranted returns on essential services — housing, energy, health — turning everyday needs into profit centers, while citizens lose economic mobility.

IV. Why a Boycott Is the Most Effective Message

Conventional activism — petitions, letters — has limited power when landlords and REITs hold structural dominance. Only consumer withdrawal can realign incentives:

When Singaporeans stop supporting overpriced, rent-inflated restaurants, high-rent bids lose viability.

Landlords and REITs get forced to lower rates, enabling lease models that reward actual food quality and service.

Independent operators and honest hawker entrepreneurs return to the scene.

Prices stabilize, and quality food become accessible again.

Some businesses will close — those propped up by rent, not quality, are part of the problem.

What You Can Do

• Avoid overpriced restaurants in malls or chain outlets

• Prioritize home-based chefs, hawkers, local independent eateries

• Cook at home more; dine out less

• When traveling, enjoy better-value meals overseas

• Spend money where it rewards craftsmanship — not rental premiums

Singaporean F&B rents currently consume up to a third of business costs, and many restaurants are over-leveraged in a bid to secure 'prime' locations. More than 3,000 F&B outlets have already shuttered over the past year due to such financial strain.

Globally, rentier economies — from Europe to Kazakhstan to North America — are witnessing the collapse of affordability as institutional and private investors vacuum up record rents from essential services.

Salaries lag behind costs; services deteriorate; competition falls. Only consumer boycott offers meaningful feedback to the market.

By withdrawing dining dollars from exploitative venues, consumers can help reset market pricing to reward real quality, innovation, and accessibility.

Our wages aren’t rising as fast. Our meals aren’t getting better. We are feeding the rentiers, not just ourselves.

Boycott overpriced restaurants. Reclaim dignity. Demand a fairer food ecosystem.

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