Maximising Revenue Through Shared Spaces in High-Rent Markets
Executive Summary
Singapore’s food and beverage sector is undergoing a significant transformation as operators adopt dual-concept strategies to combat rising rents and manpower constraints. By operating two distinct dining concepts in a single physical space, establishments are maximising revenue per square foot while minimising operational risks. This case study examines the business model, implementation strategies, challenges, solutions, and long-term implications for Singapore’s F&B landscape based on recent market developments. —
## 1. Problem Statement:
The Singapore F&B Challenge
Singapore’s F&B operators face a confluence of economic pressures threatening business viability. The primary challenge is escalating rental costs in a landlord-dominated market where rents increase with every lease renewal and rarely decrease. Beverly Yeoh, co-founder of Bitters & Love, notes the reality facing operators: rents are unlikely to decline, forcing businesses to find creative ways to sustain operations and add value to their offerings for long-term survival. Beyond rent, operators struggle with severe manpower shortages in Singapore’s tight labour market, making staffing both expensive and complicated. High operating expenses for equipment, utilities, and overhead further compress margins. The competitive landscape is oversaturated, with new F&B establishments constantly entering the market while others close due to unsustainable economics. Single-concept operations suffer from fundamental inefficiency. Cafes operating only during daylight hours sit empty at night, while bars remain dormant during the day.
This means businesses pay 24 hours of rent but generate revenue for only 6 to 8 hours daily. As Eugene Heng, co-owner of Kangji Curry Mee, observes: “Rather than keep the kitchen idle half the day, we thought, why not share it?” The mathematical reality is stark. A 1,000-square-foot unit in a prime location like Telok Ayer Street might cost $15,000 to $20,000 per month. A cafe operating 7 hours daily pays approximately $71 per operating hour in rent alone, before factoring in utilities, equipment depreciation, or labour. This economic pressure has forced operators to innovate or exit. —
## 2. Solution: The Dual-Concept Model ###
Core Strategy: The dual-concept model addresses inefficiencies by operating two distinct dining concepts in the same physical space at different times. Rather than one business bearing the full rental burden while idle half the day, two concepts share space, equipment, and overhead while generating revenue throughout operating hours. The key innovation is not simply extending hours, but creating two genuinely distinct experiences with separate identities, menus, ambience, and target customers. This allows each concept to maintain its own brand positioning and customer base while benefiting from shared infrastructure. ### Implementation Models Observed Four distinct implementation approaches have emerged in Singapore, each demonstrating different levels of integration and operational complexity.
Model 1: Complete Split-Shift Operation (350-400 sq ft) Kangji Curry Mee and Enso Izakaya represent the most integrated model, operating as two completely separate businesses sharing a single compact kitchen. At their Havelock 2 location, the curry noodle concept operates from 10am to 3pm, serving elevated northern Malaysian-style curry noodles starting at $9.90. After a brief reset period, the same space transforms into Enso Izakaya from 5:30pm to midnight, serving Japan-imported seafood, aged sashimi, and sake to a completely different clientele.
This model succeeded first at Far East Shopping Centre, where the proven concept spawned the second location. The success metrics are compelling: two brands sharing one 350-400 square foot kitchen space, seating 22-24 diners, with each concept growing without doubling rent or equipment costs. Eugene Heng explains the philosophy: sharing one kitchen allows each concept to grow without the weight of doubling rent or equipment, letting every chef focus on what they do best while keeping operations sustainable.
Model 2: Front-Back Spatial Division (2,000 sq ft) Stay Gold Flamingo in Amoy Street demonstrates spatial division within a single unit. The 2,000 square foot shophouse splits into Flamingo Coffee & Wine occupying the front 25 seats as a daytime cafe that becomes a wine bar at sundown, while Stay Gold operates as a 70-seat cocktail bar at the back. Both concepts run simultaneously during evening hours. This model offers flexibility, with the coffee bar operating 9am to 4:30pm and 6pm to midnight, while the cocktail bar opens at 5pm. Co-founder Jerrold Khoo designed the split recognizing that cafes and bars have natural synergy, both existing as pit stops during lunch, after work, or before going home. Running two concepts in a venue this size makes practical sense by lowering the risk of operating a single oversized space.
Model 3: Same Space, Complete Transformation (1,000 sq ft) Bitters & Love and Free The Robot represent the classic two-in-one combination, operating since 2015 in a 1,000 square foot space at Telok Ayer Street. Free The Robot runs as a cafe during lunch (Wednesdays to Fridays) and brunch (weekends), serving coffee, pasta, and steak. After approximately an hour of reset time, the identical space becomes Bitters & Love, a dimly lit cocktail bar with DJ sets from 6pm to midnight on Wednesdays through Saturdays. The transformation is comprehensive. By day, natural light and the aroma of roasted coffee beans fill the space. As evening approaches, lights dim and a signature bar scent of vanilla, amber, and cinnamon takes over.
The nine-person team works across both concepts, with some customers discovering one concept and returning for the other. The strategic motivation is clear. Co-founder Beverly Yeoh states: “It makes sense to maximise our rental with two concepts in the same space to generate more revenue since rent increases each time we renew our lease.” The model demonstrates that creative operators can find ways to sustain businesses through value-addition when seeking longevity.
Model 4: Large-Scale Dual Operation (4,500 sq ft) Home Singapore at Clarke Quay operates the most ambitious dual-concept implementation, with a 180-seat, 4,500 square foot space functioning as Home Dawn cafe by day and Home Dusk Mandopop livehouse by night since December 2023. This model requires separate branding, social media accounts, Google Business listings, and comprehensive staff rotation systems. Founder Nick Yeo of Corinthians Asia Group explains the risk reduction logic: the dual concept eliminates the need for two locations, two rentals, or two renovation budgets. By maximizing one unit across both day and night, the operation achieves better cost control and overall space efficiency. The scale allows for sophisticated separation, with some customers unaware both concepts occupy the same venue, demonstrating the clarity of distinction. —
## 3. Key Success Factors and Solutions ### Operational Solutions Successful dual-concept operations have developed solutions to inherent challenges through trial and refinement.
Staff Management and Scheduling The primary operational challenge is managing team schedules across two shifts without burnout. Home Singapore solved this through a rotation system where some staff focus on day shifts, others on night shifts, and some overlap during transition hours. This took trial and error but eventually stabilized into smooth operations. The nine-person team at Bitters & Love and Free The Robot similarly works across both concepts, creating operational efficiency through cross-training. Transition Management Different models handle the transition between concepts differently. Kangji Curry Mee and Enso Izakaya require only a brief reset between the 3pm close and 5:30pm opening.
Stay Gold Flamingo operates both concepts simultaneously in different spaces. Bitters & Love and Free The Robot dedicate approximately one hour to complete transformation. Home Singapore uses lighting as the primary transformation tool, shifting from warm white and natural daylight to stage lighting and LED tubes for the livehouse atmosphere. Brand Separation Maintaining distinct brand identities prevents customer confusion and allows each concept to cultivate its own following. Free The Robot and Bitters & Love maintain separate names despite sharing space, allowing each to develop independent brand equity. Home Singapore created entirely separate social media accounts, Google Business pages, and branding from inception. This separation proves effective, with some customers unaware both concepts share the same venue. Design Flexibility Physical spaces must accommodate dual identities.
Stay Gold Flamingo achieves this through spatial division, with Flamingo’s salmon-pink upholstery, terracotta-red ceilings, and rattan furnishings creating a beach-town vibe, while Stay Gold uses rippled mirrored ceilings, moody blue walls, and pink neon lights for rock-bar ambiance. Home Singapore uses deliberately neutral decor with off-white and beige tones plus orange sofas, allowing lighting changes to create dramatic atmosphere shifts. ### Financial Benefits Quantified While operators don’t publicly share detailed financials, the mathematical advantages are significant. Consider a 1,000 square foot unit with $18,000 monthly rent. Single Concept Model: – Monthly rent: $18,000 – Operating hours: 210 hours (7 hours x 30 days) – Rent per operating hour: $85.71 – Revenue potential: Limited to one daypart and customer demographic
Dual Concept Model: – Monthly rent: $18,000 (unchanged) – Operating hours: 360 hours (12 hours x 30 days) – Rent per operating hour: $50 – Revenue potential: Two distinct customer bases and dayparts – Shared equipment costs: Kitchen appliances, furniture, utilities – Reduced per-concept risk: Each concept needs less revenue for viability The dual concept effectively reduces rent burden per operating hour by 40 percent while expanding revenue opportunities. Equipment purchases serving both concepts provide additional return on investment. A professional espresso machine costing $15,000 generates return from morning coffee service and evening bar operations. —
## 4. Challenges and Limitations ### Implementation Barriers Despite advantages, dual-concept operations face significant challenges that limit broader adoption. Capital Requirements Launching dual concepts requires substantially more upfront capital than single operations. Operators need two complete menu development processes, two sets of branding materials, potentially different equipment, and initial inventory for both concepts. This barrier prevents many operators from attempting the model.
Operational Complexity Managing two distinct brands with different service styles, menus, suppliers, and customer expectations creates complexity. Staff require training across both concepts. Quality control becomes more challenging. Menu development and supplier relationships double. This complexity demands sophisticated management capabilities. Transition Logistics The period between concepts presents operational challenges. Kangji and Enso manage a brief reset, but concepts with more dramatic transformations face greater logistical demands. Cleaning, restocking, atmosphere changes, and equipment adjustments must happen efficiently. Staff handoffs require coordination. These transition periods represent non-revenue hours that compress profitability.
Market Positioning Risks Operating two concepts risks brand confusion if not executed carefully. Customers expecting one experience might encounter transition periods or be confused by dual identities. Marketing requires separate strategies. Online presence splits across platforms. Poor execution of either concept damages the overall operation. Limited Scalability The model works for independent operators and small groups but becomes exponentially complex at scale. Each location requires customized dual-concept planning based on location, demographics, and space characteristics. Cookie-cutter expansion becomes difficult. This limits growth potential compared to single-concept chains. —
## 5. Market Outlook: Short to Medium Term (1-3 Years) ### Expected Growth and Adoption The dual-concept model will see increased adoption over the next one to three years as economic pressures intensify and successful case studies prove viability. Several trends will drive expansion. Rental Market Pressure Singapore’s commercial rental market shows no signs of softening, particularly in prime F&B locations like Telok Ayer, Amoy Street, and Clarke Quay. As leases renew at higher rates, more operators will explore dual concepts as survival mechanisms. The mathematical logic becomes increasingly compelling as rents rise.
Knowledge Transfer and Replication Successful operators like Kangji and Enso are already expanding their dual-concept model to second locations. This demonstrates proven replicability. As more operators observe success, adoption will accelerate. Industry knowledge sharing through media coverage, F&B networks, and consultant advice will spread best practices.
Evolution of Variations: New variations will emerge beyond the four models documented. Possible innovations include breakfast-lunch-dinner triple concepts in high-traffic locations, weekend-weekday splits serving different demographics, event space transformations for private functions during off-peak hours, and retail-restaurant hybrids sharing space.
Technology Integration Digital tools will facilitate dual-concept operations. Integrated point-of-sale systems managing both concepts, customer relationship management platforms tracking preferences across concepts, inventory management systems optimising shared resources, and social media automation maintaining separate brand presences will improve operational efficiency.\
### Market Saturation Risks As adoption increases, certain locations may experience dual-concept saturation. Areas like Telok Ayer and Amoy Street already host multiple dual-concept operations. Customer fatigue with the model may emerge if quality suffers. Landlords recognising the model’s success might price accordingly, potentially eliminating some advantages.
— ## 6. Long-Term Outlook (5-10 Years) ### Structural Market Changes The dual-concept model represents more than a temporary trend. It signals structural adaptation to Singapore’s high-cost, space-constrained reality. Over the next five to ten years, this will fundamentally reshape the F&B landscape.
Normalization of Dual Concepts Dual concepts will transition from innovative exceptions to expected standards in certain location types and rent brackets. New commercial developments might design spaces specifically for dual-concept operations. Lease agreements could evolve to explicitly accommodate shared operations. Customers will view venue transformations as normal rather than novel. Professionalization and Standardization As the model matures, professional services will emerge supporting dual-concept operations. Specialized consultants will offer concept pairing strategies. Design firms will develop transformation solutions. Franchise models might emerge around proven dual-concept pairings. Industry standards and best practices will codify through business associations.
Real Estate Market Adaptation The commercial real estate sector will adapt to dual-concept prevalence. Landlords might offer flexible lease structures incentivizing dual operations. Property developers could design spaces with dual-concept infrastructure like separate entrances, adaptable layouts, or enhanced ventilation systems. Rental pricing models might evolve to account for extended operating hours. Competitive Differentiation As dual concepts become common, competitive advantage will shift from the model itself to execution quality. Superior concept pairing, seamless transitions, exceptional experiences in both identities, and genuine brand differentiation will separate winners from failures. The model becomes table stakes rather than differentiator. ### Potential Market Corrections Several scenarios could limit or reverse dual-concept adoption in the long term.
Economic Downturn Impact A severe economic recession could reduce consumer dining frequency, making dual concepts economically unviable if revenue from both dayparts drops significantly. Operators might consolidate to single stronger concepts rather than maintain two struggling operations.
Regulatory Changes Government policies could impact the model. Manpower regulations affecting scheduling and work hours might constrain dual-concept operations. Licensing requirements could become more complex for dual operations. Health and safety regulations might impose additional burdens. Rental Market Shift An unexpected softening of Singapore’s rental market due to oversupply, economic changes, or policy interventions could reduce the financial imperative driving dual-concept adoption. If single concepts become viable again, some operators might prefer operational simplicity.
Technology Disruption Delivery platforms, ghost kitchens, and food technology innovations could disrupt traditional dine-in economics in ways that alter dual-concept calculus. If delivery revenue can replace dine-in customers without physical space requirements, the dual-concept model loses relevance. —
## 7. Impact on Singapore’s F&B Ecosystem ### Industry Structure Changes The dual-concept trend will create lasting changes in Singapore’s F&B industry structure and competitive dynamics. Barrier to Entry Evolution Dual concepts paradoxically raise and lower market entry barriers. Capital requirements and operational complexity increase, deterring unsophisticated operators. However, the model improves unit economics, potentially enabling viable businesses in locations where single concepts would fail. This may favor experienced operators over first-time entrepreneurs.
Independent Operator Advantages The model particularly benefits independent operators and small groups who can implement creative concepts without corporate constraints. Large chains face greater challenges adapting corporate structures to dual-concept complexity. This could help independent operators compete more effectively against chains, potentially preserving Singapore’s dining diversity. Workforce Development Dual-concept operations require more versatile staff trained across different service styles, cuisines, and atmospheres. This creates workforce development challenges but also opportunities. Employees gain broader skills. Career paths become more diverse. However, scheduling complexity and potentially longer overall operating hours may impact work-life balance and industry attractiveness.
Supply Chain Impact Dual concepts affect suppliers differently. Operations sharing kitchens but serving different cuisines require more diverse ingredients, potentially increasing supplier relationships but reducing order sizes per supplier. Shared equipment increases efficiency. Just-in-time delivery becomes more critical for concepts with limited storage. ### Consumer Experience Transformation The prevalence of dual concepts will change how Singaporeans experience dining and nightlife. Discovery and Variety Consumers gain more varied dining options within familiar locations. A favorite lunch spot might become an undiscovered dinner destination. This increases venue utility and discovery opportunities. However, it may also create confusion or disappointment if customers arrive during the wrong concept’s operating hours. Neighborhood Activation Dual concepts activate neighborhoods throughout the day. Areas traditionally dead during certain hours gain vitality. Telok Ayer Street transitions from office worker lunches to evening cocktails. Clarke Quay serves families at brunch and nightlife seekers after dark. This extended activation benefits surrounding businesses and public safety. Cultural Blending Dual concepts often pair different culinary traditions and service styles. Malaysian curry noodles and Japanese izakaya. French toast and Mandopop. This cultural blending reflects Singapore’s multicultural identity while creating unique dining experiences unavailable elsewhere. The model becomes cultural expression of Singapore’s diversity. ### Urban Planning Implications The dual-concept trend has implications beyond individual businesses, affecting urban planning and commercial space utilization.
Space Efficiency Goals Singapore’s government prioritizes efficient land use due to geographic constraints. Dual concepts align with this goal by maximizing commercial space utilization. This could inform future planning policies, zoning regulations, and development requirements. Authorities might incentivize or require efficient space use in certain developments. Mixed-Use Development Integration Dual concepts fit naturally into mixed-use developments combining residential, commercial, and recreational spaces. As Singapore continues developing integrated neighborhoods, dual-concept F&B operations provide all-day activation supporting community building. This could influence master planning for new towns and urban regeneration projects. Transport and Infrastructure Extended operating hours from dual concepts affect transport demand, parking requirements, and infrastructure usage patterns. Areas traditionally experiencing peak demand at specific times see more distributed demand. This could influence decisions about public transport schedules, parking supply, and pedestrian infrastructure. —
## 8. Strategic Recommendations ### For Current F&B Operators Operators considering dual-concept implementation should follow structured evaluation and execution processes. Viability Assessment Evaluate whether your current location, lease terms, and space configuration support dual concepts. Calculate break-even points for both concepts. Assess whether your management team has capacity for increased complexity. Identify potential concept pairings matching your location demographics and traffic patterns.
Pilot Approach Rather than full transformation, test dual-concept operations through limited pilots. Add weekend brunch service if operating evening-only. Extend hours experimentally before full concept launch. This reduces risk while testing market demand and operational feasibility. Partnership Opportunities Consider partnering with another operator or chef to share space rather than developing both concepts independently. This reduces capital requirements and operational burden while bringing complementary expertise. Ensure clear agreements on responsibilities, revenue sharing, and decision-making. ### For New Market Entrants Entrepreneurs entering Singapore’s F&B market should evaluate dual concepts from inception rather than as later additions.
Concept Pairing Strategy Design complementary concepts from the start rather than forcing combinations. Consider cuisine compatibility for shared kitchens. Evaluate whether concepts attract similar or different customers. Ensure both concepts match your team’s capabilities and interests. Location Selection Prioritize locations with strong traffic across multiple dayparts. Avoid areas with only lunch or only evening activity. Consider accessibility via public transport for different customer demographics. Evaluate competitive intensity for both concepts.
Financial Planning Model economics for both concepts independently and combined. Assume each concept takes longer to reach profitability than single operations. Maintain sufficient capital reserves for extended ramp-up periods. Plan for higher initial marketing costs to establish two brands. ### For Landlords and Developers Property owners can facilitate dual-concept operations through supportive lease structures and space design
. Flexible Lease Terms Consider lease structures accommodating dual concepts, such as extended lease terms in exchange for stable tenancy, base rent plus revenue sharing reducing fixed burden, or allowances for concept changes during lease periods. This reduces operator risk while maintaining landlord income. Infrastructure Investment Design commercial spaces supporting dual operations with enhanced ventilation for different cooking styles, adaptable lighting and ambiance controls, separate storage areas for different inventories, and flexible layouts supporting concept transformations. These features increase property value and tenant satisfaction.
Tenant Selection Evaluate prospective tenants based on dual-concept capabilities, not just single-concept track records. Experienced operators with proven dual-concept operations represent lower risk. Consider location fit for both proposed concepts. This improves tenancy stability and reduces vacancies. —
## 9. Conclusion The dual-concept dining model represents a pragmatic innovation addressing fundamental economics of Singapore’s F&B sector. By maximizing space utilization, sharing costs, and generating revenue across extended hours, dual concepts improve unit economics while reducing risk. The model has progressed from experimental novelty to proven strategy, with successful operators expanding to multiple locations. Short-term outlook remains positive. Economic pressures driving adoption will intensify. Knowledge transfer will accelerate implementation. Variations will emerge serving different market segments. Technology will improve operational efficiency.
More operators will attempt dual concepts over the next one to three years. Long-term trajectory is less certain but likely transformative. Dual concepts may become normalized expectations in high-rent districts. The model will reshape industry structure, workforce requirements, and consumer behavior. Real estate markets will adapt. However, success depends on maintaining quality across both concepts. Poor execution will damage the model’s reputation. For Singapore’s F&B ecosystem, dual concepts offer a pathway for sustaining independent operators against rising costs and chain competition. The model aligns with Singapore’s space efficiency priorities while creating more vibrant neighborhoods.
Cultural blending inherent in concept pairing reflects Singapore’s multicultural identity. The dual-concept model will not replace all traditional operations. Single-concept restaurants will continue thriving through exceptional execution, strong brands, or unique positions. However, dual concepts will claim growing market share, particularly in high-rent locations where traditional economics prove challenging. The trend signals broader adaptation to Singapore’s realities: expensive, space-constrained, but dynamic and innovative. F&B operators who embrace this innovation while maintaining quality will find paths to sustainability.
Those who resist may find survival increasingly difficult as competitive pressures mount. The ultimate measure of success will be whether dual concepts enhance Singapore’s dining scene through greater variety, extended neighborhood activation, and preservation of independent operators, or whether they represent desperate measures producing mediocre experiences. Early evidence suggests the former. Operators like Bitters & Love, Stay Gold Flamingo, and Home Singapore demonstrate that dual concepts can deliver excellence across both identities while achieving financial viability. As the model matures, maintaining this standard will determine whether dual concepts become enduring features of Singapore’s F&B landscape or temporary adaptations to current market conditions.