How to Spot a Good F&B Unit: A Guide for Business Owners and Tenants

Choosing the right F&B unit is one of the most critical decisions for any food business. Whether you're opening a cafe, restaurant, central kitchen, or takeaway kiosk, the right unit can set you up for long-term success — while the wrong one can cost you time, money, and missed opportunity.

Here’s a professional guide on how to spot a good F&B unit in Singapore’s competitive real estate market.

1. 📍 Location, Location, Location (But Know Your Target Market)

A great location is not always about the busiest street — it’s about being where your target audience already is.

• Near offices or business parks = strong weekday lunch crowd

• HDB clusters or neighbourhoods = consistent family traffic

• Near schools or tuition centres = student or after-school snack crowd

• Near nightlife or event venues = ideal for bars or dessert cafes

💡 Tip: Observe footfall at different times (lunch, dinner, weekends). Don’t rely solely on landlord claims.

2. ⚡ Infrastructure Ready (or Cost-Effective to Set Up)

F&B businesses require heavy-duty equipment, which means the unit must be infrastructure-ready:

• Electrical loading: At least 100 amps, 3-phase for most operations

• Grease trap: Mandatory for most hot food establishments

• Exhaust ducting: Especially important for stir-fry, grills, or smoky dishes

• Gas supply: Some central kitchens or stalls need piped gas

💡 Red flag: If these aren’t already in place, renovation costs can skyrocket. Always do a site inspection before signing.

3. 📑 Approved Use for F&B

Check that the unit is approved by URA for restaurant, canteen, or takeaway use — especially if you plan to have dine-in seating. If not, you’ll need to apply for a Change of Use, which is subject to approval and takes time.

💡 Use URA SPACE: https://www.ura.gov.sg/mapsOr request a property zoning report on INLIS.

4. 💰 Sensible Rental Terms

A good F&B unit is not just about the monthly rent — it’s about whether the numbers make sense for your business model.

• Ask: Can you break even within 6–9 months based on the footfall and potential sales?

• Look for reasonable rent-free or fit-out periods

• Watch out for steep increases in rent in Year 2 or 3

• Negotiate for renewal options and rental cap clauses

💡 Rule of thumb: Monthly rent should ideally be no more than 10–15% of projected gross revenue.

5. 🚶‍♀️ Visibility & Accessibility

Great food can’t sell itself if no one can find you.

• Is there clear frontage or signage facing a walkway or road?

• Is it visible from the main road, MRT, or lift lobby?

• Are there ample parking or nearby drop-off points?

💡 Even the best unit won't perform well if it's hidden at the back of a building with poor signage options.

6. 🏢 Tenant Mix & Surrounding Businesses

Your neighbours can either boost your footfall or compete with you.

• Complementary tenants (e.g. bubble tea next to fried snacks) can drive cross-traffic

• Too many similar F&B stalls can split the crowd

• Avoid being next to a vacant or low-performing unit, which can lower traffic

💡 Visit during peak hours to see real customer flow, not just what’s listed on a floor plan.

7. 🧾 Landlord Support & Flexibility

A responsive and cooperative landlord can make a huge difference:

• Will they provide fit-out support or help with licensing?

• Do they allow marketing activities, pop-ups, or events?

• Are they open to reconfiguring space or working with third-party delivery partners?

💡 Avoid landlords who are unresponsive or overly rigid — you want a partnership, not just a lease.

Conclusion

A good F&B unit isn’t just about affordability — it’s a strategic investment. The right space sets the foundation for profitability, customer experience, and long-term growth.

Before signing that tenancy agreement, take time to evaluate infrastructure, approvals, location quality, and landlord support. And when in doubt, consult with property agents who specialize in F&B — they can save you months of stress and thousands in setup costs.

Need help finding your next F&B unit?We specialize in commercial property selection, licensing guidance, and tenant-landlord negotiations. Reach out for curated listings tailored to your concept and budget.