Mr Cheong Hai Poh, President of Food & Beverage Managers’ Association

 

Distinguished Guests

 

Ladies and Gentlemen

 

 

Good evening! Thank you for inviting me to be part of the Singapore National Restaurant Skills Competition 2012 finale.

 

 

Clearly, the F&B industry has many talented people with extra-ordinary skills.  I am sure this competition will further uncover even more creative and skilful individuals and help elevate the industry’s overall capacity to innovate and excel.

 

The F&B industry is vibrant, competitive and ever-changing. With more than 6,000 F&B establishments, our F&B sector offers a wide variety of dining experiences, from hawker fare, ethnic cuisine to Michelin-stars restaurants. Still, the sector is constantly innovating with new concepts, presentations, fusion of culinary styles, trying to meet and exceed changing diners’ expectations.

 

Economically speaking, the F&B industry is an important sector in terms of employment. It hires 150,000 people and contributes S$2.2 billion (or 10 per cent) of the overall tourism receipts for 2011.

 

In the coming years, we will expect the F&B sector continue to grow. Based on MND’s projections, some 450,000 sqm of commercial Gross Floor Area will come on stream in three growth centres – Jurong Lake District, Paya Lebar Central and Kallang Riverside in the next 5 years. If we also factor in possible increases in tourist arrivals for our IRs and other attractions, we can expect both qualitative (e.g. spending per diner) and quantitative (e.g. number of diners) increases for the F&B industry.

 

However, F&B sector will need to cope with these welcomed increases with a restrained supply of (new) manpower. Is there a way out?

 

A visitor to Universal Studios told me that the restaurants there typically employ 1/3 the number of waiting staff as the same restaurants in Universal Studios in Sentosa. If we can raise our productivity fashioned after the American F&B outlets observed, by 10%, 15,000 of the 150,000 can be freed up to be redelopyed elsewhere. If we can raise it by 30%, it would mean 45,000 “new” workers available for reployment.

 

 

For business owners, productivity improvement means a fundamental mindset shift from long-held practices and potentially changing current business models. It is also important to share back gains from productivity improvements with their employees. Alignment of interests between employees and business owners is most logical and effective in motivating employees to excel. 

 

For managers and supervisors, it means process re-engineering and equipping staff with the right skills and product knowledge. It also calls for managers to effectively build teams of multi-skilled workers.

 

As for the workers, it means accepting new ways of working and being proactive in undergoing continuous learning.

 

As you can see, raising productivity is not a one-sided affair. It requires all hands on deck. This is why the National Productivity and Continuing Education Council (NPCEC) has committed almost $400m towards helping service sector companies tackle the problems of productivity holistically.

 

 

Obviously, the skill level of our workforce is a key determinant for our industry’s productivity. This is why we will need to continue to invest in the skills of our F&B workers, even as the Workforce Skills Qualification (WSQ) framework launched in 2006 has benefited more than 120,000 individuals and 3,000 companies. These are commendable numbers but we will need to sustain the training momentum.

 

In addition to training, good HR practices is also important for the retention of staff to ensure business continuity, especially for this sector.

 

Good HR practices contributes directly to bottom lines. Consider the example of The Jumbo Group, which places strong emphasis on training and staff development across all levels. With support from WDA and the Institute of Technical Education (ITE), the company has implemented structured in-house training programmes for its staff. It also sends its leaders and managers for advanced management training. As a result, Jumbo was able to lower its manpower attrition rate, maintain quality food and service across its various outlets, and open new restaurants and concepts to further grow its business.

 

 

The second productivity enabler is technology. Companies should make use of technology to reap cost savings, reduce manual labour required and achieve greater efficiency in processes. For instance, using a procurement portal can help restaurants integrate better with their suppliers. Online procurement activities powered by IT can also improve supply chain efficiency and reduce human error.

 

Consider the example of Gayatri, an Indian restaurant. It recently integrated technology into its operations by implementing an e-menu ordering system. With the new system, customers’ can now place order real time to the kitchen. Subsequent payments are also settled through a wireless point-of-sales device at the table. The new system reduces the need for serving staff to walk back and forth. As a result, Gayatri saw a 20% increase in productivity and 15% in revenue. A number of front-line staff are now freed and could be re-deployed to their new outlets.

 

 

In summary, the adoption of technology in F&B business processes, coupled with workforce training and development will be instrumental in cultivating a productive and multi-skilled workforce. The participants of this competition exemplify a new breed of multi-skilled specialists F&B workers who will propel the F&B industry to greater heights.

 

To all participants and winners of the competition, my heartiest congratulations!