F&B Services Index: September 2026 – Sales Return to Growth
The latest Food & Beverage Services Index for September 2026, released by the Singapore Department of Statistics, brings the news the sector has been working toward. F&B sales rose 1.0% year-on-year, reversing August's 1.8% decline. This is the sector's first year-on-year growth since April, and it follows three months of steadily narrowing declines. Total sales were estimated at $1.6 billion.
The Numbers: Momentum Holds
On a seasonally adjusted basis, sales grew 0.8% from August. This is the third consecutive monthly gain. Four of the five segments grew over the month.
Segment by Segment
Restaurants made the biggest turnaround. Sales swung to +2.6% year-on-year, from -2.3% in August, and grew 1.1% month-on-month. The month-to-month gains we saw in August have now carried through into year-on-year growth.
Fast Food Outlets remain the most consistent performer, with sales up 7.6% year-on-year and 1.1% month-on-month.
Cafes edged back into positive territory at +0.1% year-on-year, up from -4.8% in August. Cafes also posted the strongest monthly gain of any segment, at 3.6%.
Food Caterers dipped marginally, to -0.2% year-on-year after +2.8% in August. They grew 3.0% month-on-month, however, so demand appears steady.
Food Courts & Other Eating Places remain under the most pressure. Their year-on-year decline narrowed to 4.2% from 5.4%, but they were the only segment to fall month-on-month, by 2.4%.
The Online Sales Story
Online orders made up 21.1% of F&B sales, up slightly from 20.9% in August. Delivery remains a steady one-fifth of the business, so the focus stays on making those orders profitable.
What This Means for Operators
- Build on the momentum, carefully. One month of growth is welcome, but it is not yet a trend.
- Protect margins. Costs remain high, so growth in sales does not automatically mean growth in profit.
- Watch the gap. Food courts and their operators are still under real strain, even as other segments recover.
- Use the support available. Productivity, digitalisation and manpower schemes can help ease cost pressures while demand recovers.
RAS's View
September's return to growth is encouraging, and it reflects the hard work of operators who have held the line through a difficult year. But one good month does not make a recovery, and costs remain high, especially for food courts and smaller operators. RAS continues to work with government partners on measures that improve cost predictability for F&B businesses and on stronger support for local F&B brands.
