The sudden closure of bubble tea chain Gong Cha Singapore highlights the intense fragility of F&B jobs. The popular brand abruptly ceased operations after losing its crucial master franchisee rights, a corporate decision that instantly displaced a number of local staff. The incident highlights the vulnerability of workers to job loss due to market competition and sudden corporate decisions.
The F&B sector is central to our daily dining scene and job market, providing work for about 5.5% of Singapore’s workforce. This dependence means that every closure has a direct impact on the livelihoods of fellow Singaporeans, underscoring the shared concern for workers and consumers.
FDAWU is ready to assist affected union members working in Gong Cha
While there are no indications of how the Gong Cha’s workers would be affected by the company’s closure of operations, FDAWU is ready to provide affected union members, if any, with assistance and resources where needed.
For example, if retrenchment exercises are carried out in non-unionised companies, NTUC’s affiliated unions, like FDAWU, or associations will extend assistance to union members should they be affected by the exercises. The union, like FDAWU, or association would also connect them to the Labour Movement’s network such as NTUC’s e2i (Employment and Employability Institute). Singaporeans/PRs can tap on e2i’s job matching services, career coaching and skills upgrading advisory. For more information, visit www.e2i.com.sg.
Affected workers who are Singaporeans can also receive more employment support through the SkillsFuture Jobseeker Support (JS) scheme by participating in e2i’s job search activities. The JS scheme provides temporary financial support of up to S$6,000 over 6 months for involuntarily unemployed individuals. The scheme serves to increase the chances of finding a job that makes better use of jobseekers’ skills and experiences. Through the JS scheme, eligible individuals will receive corresponding payouts when they meet the minimum points required for each month. For more information, visit https://www.e2i.com.sg/individuals/skillsfuture-jobseeker-support-scheme/.
The Economic Reality: F&B Sales and Closure Rates in Singapore
Gong Cha’s closure is not an isolated event but a clear symptom of a deeper instability hitting the sector. The data paints a stark picture of the challenges businesses and workers face:
- Mass Closures: Over 3,000 F&B businesses shut down in 2024, marking the highest annual total in years.
- Accelerating Exits: This instability is accelerating, with F&B exits averaging about 307 per month in 2025.
- F&B Sales Decline: Furthermore, sales of F&B services in Singapore declined 0.4% in August 2025 year-on-year, reinforcing the financial pressure across the market.
The Consumer’s Role: Stabilizing Jobs with Every Meal
Given the industry’s significant contribution to Singapore’s job market, securing F&B stability is a collective responsibility. Consumers have a direct power to help combat this instability.
Protecting these essential local jobs requires public effort. Consumers can help by actively supporting F&B businesses and leaving positive reviews to reward staff and boost struggling neighborhood eateries. Your consistent patronage and positive feedback are vital in helping these businesses survive and maintain employment levels.
To better understand the scale of the crisis and the factors killing local dining establishments, you can watch this video: What’s Really Killing Singapore’s F&B Businesses? | What The Fact Ep 7.
