Casual dining bears the brunt as Singaporeans shift spending to Johor Bahru

Upscale restaurants and late-night bars stay shielded, but midtier eateries face pressure.

Singapore's eating-out market will divide sharply once cross-border rail begins, with midmarket venues most exposed whilst households redirect money over a new causeway route, research shows.

The Singapore-Johor Bahru Rapid Transit System (RTS) Link is expected to turn Johor Bahru from an occasional weekend destination into a routine extension of Singaporeans' everyday spending, according to a survey from Blackbox. Some 76% of consumers plan to use the link within its first year, and 58% expect to cross the border more often.

For the dining sector, the report described a two-speed reality. Casual eateries, cafés and takeaway spots in Singapore are the most vulnerable, with 43% of consumers expecting to cut their domestic dining spend and 54% planning to eat out in Johor Bahru at least quarterly. Fine dining and nightlife are far more insulated, with only 14% and 8% respectively expecting to shift spending across the border.

Blackbox said the exposure sat squarely in everyday repeat spending. Nearly 90% of households plan to spend money in Johor Bahru monthly, with 74% redirecting at least S$100 and 43% pointing to casual dining as one of the categories where they would spend across the border.