How to Start a Cafe in Singapore: A Practical Overview

Working out how to start a cafe in Singapore? Order matters: test your concept cheaply, register a business, confirm the premises can be used for food, get the SFA Food Shop Licence approved in principle before renovating, train your food handlers, then pass inspection. The numbers are harder than the paperwork, so talk to people who have done it.

Start with the numbers, not the menu

Rent, renovation and manpower decide whether a cafe survives. There is no official average cost, and anyone who quotes a single figure is guessing, but real examples help.

In September 2026, Sebastian Ang, founder of the herbal milk tea and gelato brand Amacha, shared his costs for an outlet at Parkway Parade. As reported by AsiaOne, he spent about S$209,000 before selling a single cup:

• Rent and deposits: about S$60,000, on monthly rent of about S$15,000.
• Renovation: about S$85,000, including about S$50,000 for electrical, plumbing, aircon and ceiling work.
• Equipment: about S$49,000, from tea and gelato machines to fridges and a point-of-sale system.
• Other pre-opening costs: about S$15,000 for first stock, packaging, staff salaries, insurance and utility deposits.

He put monthly running costs at S$40,000 to S$50,000, with manpower and rent the biggest items. As he said, "The S$209,000 gets you to opening day, but you still need cash to run the business from day one." That is a mall outlet for a tea and dessert concept, so a shophouse cafe or a small kiosk will look different. The lesson is to budget for months of running costs, not just the fit-out.

Test your idea before you sign a lease

A lease is the commitment that is hardest to undo, so prove demand first.

SFA lists home-based food businesses among those that currently do not need a licence, as long as they meet the scheme's requirements. You must still follow food safety laws, you cannot sell to licensed food outlets such as cafes and restaurants, and you cannot sell ready-to-eat raw seafood. Selling bakes or cold brew from home shows you what people will actually pay for and how much work each item takes. Selling at markets or events is a different matter, so check the licensing rules for those separately.

Register your business

ACRA's process has five steps: understand the requirements, choose a business structure, reserve a name on Bizfile, register, then handle post-registration duties. According to SingaporeLegalAdvice, registering a company costs S$315 in ACRA fees: S$15 for the name application and S$300 for registration.

Structure matters for food businesses. GoBusiness notes that only company entities can employ foreign workers, so if you plan to, the Food Shop Licence must be held in the company's name.

Check the premises can be used for food

Before you sign anything, confirm the unit is approved for food use. Your SFA application needs URA change of use approval or HDB approval for the premises.

URA's guidance on restaurants gives a feel for how this works. In shopping centres and commercial buildings, planning permission is not required for a restaurant. For shophouses, URA assesses applications case by case, and it lists 19 roads where new restaurants are unlikely to be approved, including Balestier Road, East Coast Road and Serangoon Garden Way. If you plan to serve alcohol, note that URA looks at whether a restaurant has effectively become a bar, for example if it lacks proper meals or a kitchen.

Apply for the SFA Food Shop Licence

The Food Shop Licence costs $195 and is valid for one year. You apply on GoBusiness with Singpass or Corppass. Key points:

• Layout plan: drawn to a metric scale with the ratio shown, marking kitchen equipment such as exhausts, sinks and wash basins, and the boundary of the seating area.
• In-Principle Approval first: you cannot start renovation until you receive it. SFA aims to issue it within seven working days of a complete application.
• Documents: URA or HDB approval, your tenancy agreement with a Certificate of Stamp Duty from IRAS, a pest control contract and a cleaning schedule, plus a food safety management or HACCP plan depending on the premises. Outstanding documents must be in within two months of the in-principle approval, or the application is closed.
• Inspection and payment: after renovating, you request a pre-licensing inspection, which may be done over video or by photos. Pay within 28 days of the payment notice, and only then start operating.

Train your food handlers

Everyone handling food needs a valid WSQ Food Safety Course Level 1 certification. The first refresher is due within five years, then every ten years. As the licensee, you must register your food handlers with SFA before or when applying for the licence.

Serving alcohol

Under the Liquor Control (Supply and Consumption) Act 2015, any supply of liquor needs a licence from the Singapore Police Force. That covers drinks with more than 0.5% alcohol. The licence comes in several classes, so check which one fits your hours and concept before you build a menu around wine or beer.

Talk to people who have done it

Licences are well documented. What is not written down is how long renovation really took, which suppliers were reliable, how the first quiet Tuesday felt, and what they would do differently. One coffee with someone who has opened a cafe here can save you a costly mistake.

That is what Ideas mode on Now I'm Open is for. You post a short card such as "Open to a coffee chat about starting a café, Tiong Bahru, Sat am", and people who have been there, or are planning the same thing, can say they are open too. Visibility is mutual and opt-in, location only shows at area level, and a chat opens only when both of you say yes.

Good questions to bring:

• What did you underestimate, in money or in time?
• How did you choose your location, and would you choose it again?
• How many months of running costs would you keep in reserve?
• What would you test before signing a lease?

For more ways to meet founders, see our guide to networking events in Singapore.