If you’ve been paying attention to the news, you’ll know that Singapore’s F&B industry has been undergoing a major shift. Growing costs and climbing retail rents, which have reached a multi-year high, saw many food operators shuttering in 2025.
In turn, F&B businesses have been pushed to develop novel strategies to thrive in the hyper-competitive culinary landscape. Some have adopted new operating models and pivoted from traditional dine-in setups to wider commercial kitchen ecosystems like central kitchens.
Whether you’re an owner looking for an innovative solution or an investor thinking of purchasing a commercial property, here is why you should consider buying a commercial kitchen in Singapore.
Why Commercial Kitchens Could Be the Next Big Asset Class
The post-pandemic landscape saw a surge in demand for commercial kitchen facilities alongside changing dining preferences. Main interest drivers were the rising prevalence of food delivery and increasing local demand for meal-prep and healthy-eating brands.
As consumers in Singapore become more price-sensitive, fewer are dining in. However, the catering industry has picked up; more cafes and restaurants have joined the fray and reported healthy earnings.
According to the Ministry of Trade and Industry (MTI), catering is up 17% year-on-year in Q2 2025, while restaurants are down 6% over the same time period. Likewise, a Cognitive Market Research report echoed similar growth trends. Singapore’s catering industry market sales revenue is valued at USD$2.751 billion in 2025. This figure is projected to grow 6.17% to USD$4.442 billion by 2033.
Whether your business prepares ready-to-eat meals or baked goods, adopting a commercial kitchen ecosystem could be the natural next step for how F&B operations evolve. As a professional-grade space specifically designed for preparing food in high volumes, it blends efficiency and innovation to meet mass consumer demand smoothly.
Consolidating operations to improve efficiency and reduce costs
Food preparation in the Food & Beverage sector remains labour-intensive despite automation and robotics. Locating kitchens in customer-facing areas may not optimise space, and processing food across multiple sites increases labour requirements, making scaling difficult. Centralising staff at one location helps reduce labour needs.
By having a commercial kitchen which does most of the food preparation, you take out the need to have multiple, large, fully-equipped kitchens in locales where retail rents are much higher. That means your outlets in more expensive, high-footfall areas can be smaller and can focus on delivering your food products to customers.
Maintaining food quality
No matter how big a brand gets, maintaining consistency and high food standards is the crux of building customer trust.
With a single commercial kitchen, you can ensure zero substitutions in recipes so that with precise equipment and strict processes, the taste and nutritional value of each item remains consistent.
This way, those who have an F&B business with several outlets can exercise greater control over their food quality and benefit from economies of scale. In turn, costs are reduced in the long term and a premium product can be offered at a lower, more competitive price point.
Meeting rising food delivery demand
Commercial kitchens are highly efficient production models that allow for volume-based, optimised food production. For smaller businesses trying to scale, it would allow you to grow smoothly without the usual headaches of inconsistent food quality and not having enough manpower.
Understandably, a smaller or boutique business may hesitate at the upfront costs of owning a commercial kitchen. However, there is always the option of co-owning a food production unit located within a large multi-level food factory. This shared setup would reduce initial costs while granting full access to all commercial kitchen facilities.
Furthermore, should a new food trend emerge, new products can be quickly developed and rolled out to all locations from the commercial kitchen. Instead of training different chefs in separate kitchens, operations are streamlined.
Why Location Matters for a Commercial Kitchen
If it’s not already clear, commercial kitchens can provide the operational structure needed by F&B businesses to reduce operating costs. In land-scarce Singapore, where rental costs are high, the real estate these kitchens sit on is another factor to consider.
When deciding on a commercial kitchen, its connectivity and proximity to franchises or outlets are crucial in organising logistics. You want one located near expressways and dense consumption zones for efficient delivery and food freshness. Ideally, it should also be in a city fringe location.
Aside from greater accessibility, you cut down travel time and fuel costs and protect already razor-thin margins. Hence, commercial kitchens in areas like Tai Seng command a premium because they sit at the hub of key expressways (PIE, KPE, CTE) and urban clusters.
For business owners, proximity to an MRT station also helps if you’re looking to attract and retain staff. Only a handful of commercial kitchen sites offer this rare mix of operational efficiency and easy workforce access, like Food Point @ Tai Seng. It is just a two-minute walk from Tai Seng MRT station on the Circle Line at 50 Playfair Road.
Freehold Industrial Assets are Scarce and Secure
As it is, most industrial land has 30-year leasehold tenures. Food preparation sites must also be in designated JTC food zones or licensed food factories.
As the government tightly controls supply, freehold industrial assets are already few and freehold commercial kitchens are even fewer. Food Point @ Tai Seng stands out as one of the food factories that has freehold tenure and proximity to an MRT station.
Given that freehold commercial kitchens are an extremely rare subsegment, Food Point @ Tai Seng not only stands out as one of the few suitable investment opportunities but also serves as the benchmark property.
Food Point @ Tai Seng: Freehold Commercial Kitchen in District 13
Food Point @ Tai Seng is developed by Tai Seng Food Point Development Pte. Ltd.
The property is a freehold, 12-storey B1 food factory with just 47 units, a two-minute walk from the MRT station. At the recent 15th PropertyGuru Asia Property Awards (Singapore), Food Point @ Tai Seng won Best Food Hub Development, a testament to the building’s design for efficiency and seamless operations.
The property’s B1 (White) zoning adds another layer of value. Subject to URA planning approval and land betterment charges, owners have the flexibility to create multi-purpose spaces such as tasting studios, product showcases, or retail extensions.
With interest rates trending lower, owning a food factory becomes a more attractive alternative to paying escalating retail rents. Not only can the property serve as a hedge against rental inflation, but it is also a long-term asset play with tangible utility.
Optimised Functionality and Commercial Kitchen Layout
Food Point @ Tai Seng has 1,625 to 2,970sqft units with harmonised layouts that maximise usable area. Its design is based on the new harmonisation regulation implemented by URA effective 1 June 2023.
Food Point @ Tai Seng’s pricing is based on true usable space. After adjusting for void areas, airspace, exhaust ducts and other non-usable areas, its effective PSF is comparable to other developments that may not have such an efficient layout nor strategic location.
In the wide, column-free commercial kitchen layout, the hot kitchen flows seamlessly into the food production and packaging areas.
The space can be modified and fitted for bakeries. Effectively, Food Point @ Tai Seng has a flexible commercial kitchen layout. For instance, ample ceiling heights and high electrical loading easily accommodate large-scale commercial ovens and heavy-duty mixers.
Drive-up access allows trucks to load and unload directly at every unit and significantly cuts turnaround time. Every part of the purpose-built infrastructure optimises both daily operations and long-term cost efficiency.
Buying a Unit at Food Point @ Tai Seng
To survive in the changing, cut-throat F&B industry in Singapore, a strategically-positioned, well-designed commercial kitchen could be the competitive edge you need to bring your business to the next level.
If you are an F&B business that decides to use a commercial kitchen set-up, you can solve your issue of scale and quality.
For real estate investors, it does not hurt to add a scarce asset class to your portfolio or as commercial properties are not subject to Additional Buyer’s Stamp Duty (ABSD) taxes. The location is also highly sought after by Food and Beverage Operators, and the rental rates in the area have been healthy.
Aside from its prized location at the city fringe and easy MRT access, Food Point @ Tai Seng’s freehold tenure is a rarity among industrial assets. Its functional design is optimised for modern food operations and presents itself as one of the best places to buy a commercial kitchen in Singapore.
If you would like more information on Food Point @ Tai Seng or would like to view one of the limited units left, check out their website and get in touch with one of their sales representatives at 8932 7677.
Disclaimer: The information is provided for general information only. PropertyGuru Pte Ltd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.