Bali Thai, Soup Restaurant and Tung Lok: Restaurant Stocks Soar on Reopening News

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Singapore is moving into a new phase of the pandemic.Groups of 10 vaccinated people will now be allowed to dine in at food and beverage outlets, up from five previously.

Social distancing measures and group size limitations have depressed sales for many restaurant and café operators for more than two years. Katrina reported a marginal net profit of S$158,000 for fiscal 2021 , but if not for government grants of S$3.8 million, the restaurant operator would have reported a net loss.

As malls get more crowded and more people venture out to dine, it’s almost certain that RE&S, ABR and Jumbo will benefit, thus boosting both their top and bottom lines.Singapore may ease these rules further should the number of cases continue to fall in the coming weeks.Doing so may trigger a resurgence in the number of cases, potentially overwhelming the healthcare sector and putting a strain on hospitals’ ICU capacity.

 

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