Flor Patisserie to close Siglap outlet after 15 years amid rising rent pressures

Japanese-style cake shop Flor Patisserie will shut its Siglap Drive outlet on 11 July, bringing an end to a 15-year journey that its founder described as “a story of connection, creativity, and community”.

The closure was announced in a Facebook post on 17 June, where founder Heidi Tan shared reflections on the patisserie’s legacy and the challenges of small business survival in Singapore’s competitive F&B market.

Closure due to sharp rent increase

The immediate cause of the closure was a steep rent hike. The patisserie’s lease renewal terms raised the monthly rent from S$5,400 to S$8,500, an increase of 57 per cent.

In a post published earlier on 9 June, the patisserie criticised what it described as an unsustainable rental ecosystem, warning that such increases drive independent businesses out of neighbourhoods.

“To them, your craft, your perseverance in offering something fresh… is nothing more than a datapoint on their rental yield curve,” the post stated.

Flor Patisserie argued that landlords’ pursuit of short-term profits disregards the social cost of displacing small, homegrown businesses.

Founder’s farewell message

In her farewell note, Tan described the decision as bittersweet but necessary.

“If every year were a chapter, this story would end with 15 chapters. It is time to say goodbye—for good,” she wrote.

Tan added that closing required as much courage as building the business itself. “As I close this chapter, I do so with a heart full of gratitude… The love and support you’ve shown has meant more than words can express.”

Clash of views over rental model

The patisserie’s public remarks came after Ervin Yeo, Chief Strategy Officer of CapitaLand Group, defended current rental market dynamics in a LinkedIn post.

Yeo argued that rent controls could undermine service reliability in the F&B sector, citing the hawker centre model where low rents sometimes lead to irregular operations.

He also suggested that vacancy taxes would be ineffective since landlords already face mortgage obligations. As an alternative, he proposed offering temporary Development Charge (DC) relief to balance the needs of landlords and tenants.

Yeo further cautioned against protectionist measures, noting that Chinese F&B brands often excel in operational efficiency and could be unfairly penalised by overly restrictive rules.

Advocacy group calls for reform

The debate has gained traction among small and medium enterprises (SMEs). On 12 June, advocacy group Singapore Tenants United For Fairness (SGTUFF) urged policymakers to consider structural reforms to help tenants cope with rising commercial rents.

SGTUFF proposed short-term measures such as rental caps tied to inflation, along with long-term changes to urban planning priorities and commercial land use.

The group said such reforms were needed to safeguard Singapore’s entrepreneurial diversity and prevent communities from losing established businesses to cyclical rent increases.

Broader wave of closures

Flor Patisserie’s announcement is part of a wider trend of closures in Singapore’s F&B industry.

On 17 June, Burp Kitchen & Bar announced it would close its Bishan Park outlet on 27 July after 11 years of operations, citing a challenging environment despite community support.

This closure follows the shutdown of its Bedok Reservoir outlet in July 2024 after nine years. “When they’re gone, much of the soul of the neighbourhoods in which they resided will be gone as well,” the restaurant said in its farewell note.

Other F&B names have also scaled back. Four Leaves, a homegrown bakery chain, closed its Paya Lebar Square outlet on 20 May. Tiong Bahru Bakery will close its Funan outlet on 22 June and temporarily shut its Eng Hoon Street flagship for renovations in August.

Structural pressures in F&B

Despite Urban Redevelopment Authority data showing a 0.5 per cent dip in retail rents in the first quarter of 2025, closure rates remain elevated.

According to a Reuters report in April, Singapore saw an average of 307 retail outlet closures per month from January to April 2025, up from 254 in 2024.

The F&B sector was particularly hard-hit. More than 3,000 F&B establishments closed in 2024—the highest figure since 2005.

Industry observers attribute the rise not only to rental pressures but also to rising labour and ingredient costs, alongside changing consumer behaviour.

End of an era

For loyal customers of Flor Patisserie, the closure marks the end of a neighbourhood institution known for its delicate cakes and personal service.

The patisserie’s final message to patrons stressed gratitude: “Flor Patisserie was never just about cakes. It was about connection, creativity, and community.”