Spinelli Coffee, a popular American cafe chain that has been operating in Singapore since 1996, has announced that it will be shutting down all its outlets in the country by the end of November 2023. The decision comes as a result of the prolonged impact of the COVID-19 pandemic on the food and beverage industry, as well as the rising costs of rent and manpower.
A sad farewell to loyal customers and staff
Spinelli Coffee has been serving quality coffee and food to its customers for over 25 years, with 18 outlets across Singapore under three different concepts: Spinelli Coffee, Spinelli Daily Grind, and Brewing Kakis. The cafe chain has also been offering online coffee orders and subscriptions to cater to the growing demand for home delivery.
However, the company has been struggling to cope with the challenges posed by the pandemic, which has severely affected the footfall and sales of its outlets. According to a statement released by Spinelli Coffee, the company has tried to adapt to the changing market conditions and customer preferences, but the efforts were not enough to sustain the business.
The company expressed its gratitude to its loyal customers and staff, who have supported the brand throughout the years. It also apologized for any inconvenience caused by the closure of its outlets and assured that it would honor all its obligations and commitments to its stakeholders.
A sign of the times for the F&B industry
The closure of Spinelli Coffee is not an isolated case, but rather a reflection of the difficulties faced by the food and beverage industry in Singapore amid the pandemic. According to the Department of Statistics, the F&B services index fell by 4.5% year-on-year in August 2023, following a 2.9% decline in July 2023.
The F&B industry has been hit hard by the various restrictions and measures imposed by the government to curb the spread of the virus, such as reduced dining capacity, shorter operating hours, and mandatory vaccination requirements. These have resulted in lower customer demand, higher operating costs, and lower profitability for many F&B businesses.
Some of the other F&B establishments that have closed down or announced their closure in 2023 include:
- Antoinette, a French patisserie and restaurant that closed its last outlet at Penhas Road in June 2023, after 10 years of operation.
- The Soup Spoon, a local soup chain that closed 10 of its 26 outlets in July 2023, citing the impact of the pandemic and the lack of government support.
- The Coffee Academics, a Hong Kong-based specialty coffee chain closed its last outlet at Scotts Square in September 2023, after six years of operation.
- BreadTalk, a homegrown bakery chain announced its plan to close 10 of its 40 outlets in Singapore by the end of 2023, as part of its restructuring and transformation strategy.
A hope for the future of coffee culture
Despite the bleak outlook for the F&B industry, some coffee lovers and experts remain optimistic about the future of coffee culture in Singapore. They believe that there is still a strong demand and appreciation for quality coffee, especially among the younger generation.
Some of the factors that could help the coffee industry survive and thrive in the post-pandemic era include:
- Innovation and differentiation, such as offering new and unique coffee products, services, and experiences that cater to the diverse and evolving tastes and preferences of customers.
- Digitalization and delivery, such as leveraging technology and platforms to reach out to more customers, enhance customer loyalty, and optimize operational efficiency and cost-effectiveness.
- Sustainability and social responsibility, such as adopting environmentally friendly and ethical practices that reduce the carbon footprint and support the welfare of coffee farmers and communities.
