Opening Address by Mr Loh Khum Yean, Chief Executive, SPRING Singapore at the World Gourmet Summit Forum 2004 on Thurs, 22 April 2004 at the Singapore Expo, Conference Hall B&C at 9.00am

Mr Peter Knipp
Managing Director
Peter Knipp Holdings Pte Ltd

Distinguished Guests

Ladies and Gentlemen

Good Morning

Propelling The Future Of Hospitality And Tourism - Business, Culture And Trends

1. I am pleased to join you here today at the World Gourmet Summit Forum 2004, which is a major annual culinary event on Singapore's calendar. This year's theme -- 'Propelling the Future of Hospitality and Tourism - Business, Culture and Trends' - aptly expresses Singapore's aspirations to be the gastronomic hub for the region, driven by a vibrant and dynamic food and beverage (F&B) sector.
   
   
   Importance Of The F&B Industry
   
   
   
2. In Singapore, food is not only big business, but something close to the hearts and minds of every Singaporean, young and old.
   
   
   
3. In 2002, F&B operating receipts amounted to some $3.9 billion, contributing close to 1% of Singapore's GDP. There are some 4,400 establishments, directly employing over 60,000 people. In addition, there are some 7,000 food licences given to stall operators who also play an important part in making Singapore a gastronomic capital of Asia.
   
   
   
4. Talk to any Singaporean who has spent more than a week overseas, and he will tell you "I missed my chicken rice and laksa." Or "I can't wait to visit my favourite hawker stall for rojak and curry fish head." Food is an integral part of Singapore's culture and a favourite topic in the news media. For example, the Life! Section of The Sunday Times publishes weekly interviews with local personalities on their favourite dishes. During the week, food columnists write about various types of cuisine and recommend new wines to complement the food. Channel News Asia has television programmes like Gourmet Moments, Hi Life and Japan Hour, highlighting fine foods in Singapore and around the world.
   
   
   Business - Staying Relevant And Strengthening Business Capability
   
   
   
5. But despite serving primarily the domestic market, Singapore's F&B industry is not immune to international and regional crises. For instance, the SARS outbreak last year adversely affected travel, consumption and consumer confidence. It taught our domestic enterprises a valuable lesson - that every portion of the Singapore economy is intertwined with the world. Not only do businesses in Singapore need to prepare for uncertain times, they need to stay relevant and continuously strengthen their business capabilities in order to survive and thrive.
   
   
   
6. Fortunately, there are many fine examples of F&B enterprises that have managed to draw from within themselves, new energies and ideas, new inspirations and new ways of doing things to stay ahead of competition. Saint Pierre's, an award-winning restaurant, is one such enterprise. It draws customers with its sense-provoking dishes that capture the highlights of each season. Another example is Jack's Place. For many Singaporeans, Jack's Place is Singapore's most successful home-grown chain of steak houses and restaurants. The management recently embarked on a branding exercise to revamp its image. All outlets are now undergoing a facelift. The branding exercise will be completed in two years. With this, Jack's Place aims to expand its customer base and capture a younger segment of the market.
   
   
   
7. While these examples illustrate the need for constant change in order to remain relevant, it is equally important for businesses to review their processes to improve operational efficiency. An interesting example, of how a simple idea has resulted in reduced business costs and efficiency is IndoChine's piped-in beer concept. Beer is stored in a cold room where it is connected to the bar counters by thermostat-controlled built-in pipes. This eliminated the need for staff to jug heavy beer barrels from the storeroom, a tiring and time-consuming task. Beer is now not only served more quickly. Consumers get to enjoy chilled beer on demand almost immediately.
   
   
   
8. Whether it is changes in concepts, branding exercises or in the case of IndoChine, a more efficient process, the message is simple - today's competitive and fast-changing environment demands that enterprises stay relevant or risk becoming obsolete.
   
   
   Culture - Nurturing A Service Culture And Developing Manpower
   
   
   
9. In addition, the F&B industry, like many other service industries, faces a constant struggle with manpower issues. Not only is it important to nurture a good service culture, it is equally important to have the right people with the relevant skills and mindset. In a service industry, the workforce plays a critical role in determining its success or failure. A wide range of talents is needed; people who can manage the business, people with culinary skills and creative flair, such as chefs; and people who are customer and service-oriented. We need to encourage young people with the talent and interest in these areas to develop their skills.
   
   
   
10. Proper skills certification will enhance professionalism and employability. It will also help create a more attractive career path for workers in the industry. Three bodies - the Institute of Technical Education (ITE), the Singapore Hotel and Tourism Education Centre (SHATEC) and the Restaurant Association of Singapore Training Centre (RASTC) currently undertake some skill certification activities. Some educational institutions in Singapore are also working on possible collaborations with renowned foreign culinary institutions in this area. We hope that these new initiatives will help to enhance the skills of our chefs and in time to come, enable them to benchmark themselves with international professionals.
    
    
    
11. At the enterprise level, there are businesses which have initiated their own manpower development programmes. Rang Mahal, a fine dining Indian restaurant, is one such company. Its management believes that providing excellent customer service is as important as offering excellent food and wine. To ensure that Rang Mahal staff render the best service, all of them attend weekly in-house customer service training and annual external training. Waiters, for instance, are taught how to prepare a bottle of wine. Chefs attend customer service training as they work in open kitchens that allow them to interact directly with guests. The winning formula of great food and excellent service has paid off for the Rang Mahal. The restaurant has a loyal customer base. It has many patrons who have frequented the restaurant ever since it first opened for business in 1971.
    
    
    Trends - Adoption Of Technology And Cluster Approach
    
    
    
12. Another positive development in the Singapore F&B industry is the increased use of technology to improve operational efficiency. F&B operators are rapidly integrating new technologies into their businesses and reaping the benefits of higher productivity. One example is Mushroom Pot, a restaurant known for its delectable mushroom-based dishes. The restaurant has implemented a wireless ordering system that enables its service staff to take orders via Personal Digital Assistants (PDAs). Information captured in the PDAs are then transmitted instantly to the kitchen as orders to be fulfilled. Since the implementation of the system, the restaurant has seen significant benefits. The satisfaction level of customers has risen as they get served faster. There are fewer mistakes with orders. Service staff have more time to interact and serve customers. As a result, sales has also increased by 20-25% and costs reduced by 10%.
    
    
    
13. There are also F&B operators who have taken this development to yet another level. By adopting a cluster approach, several F&B operators band together to set up their outlets at a common location. Colours by the Bay is one such concept where seven F&B operators with different dining concepts operate in a common location, sharing resources such as advertising and promotions and leveraging on a common technology infrastructure - Wireless Point-Of-Sale to minimise cost and improve productivity and efficiency. This initiative has also proved to be a success - increasing workers' efficiencies and boosting sales. Going forward, we may see more and more of such clusters being set up to offer diners a wider choice of cuisine, more efficient service and a greater margin for the operators.
    
    
    SPRING'S Role
    
    
    
14. SPRING Singapore has been working closely with enterprises in the F&B industry. Our vision is for Singapore to have a vibrant, competitive F&B sector with excellent service standards, a reputable industry image and innovative concepts.
    
    
    
15. Through SPRING's membership in the Asian Productivity Organsiation (APO), I am pleased that we have managed to invite Mr Horst Dieter Ebert from Der Feinschmecker and Mr Claude Pfeiffer from Villeroy & Boch to join us as Distinguished Speakers at today's Forum. I am sure that we will all benefit from their sharing and insights on the importance and impact of service excellence and consumer influence in the hospitality and F&B industries.
    
    
    
16. I congratulate the organisers for once again putting Singapore on the map as a culinary destination through the World Gourmet Summit. Today's forum is a gathering of the best in the industry. It provides an excellent platform for sharing and networking.
    
    
    
17. On this note, I wish the forum every success. Thank you.