Beyond rent, why don't some international brands last in Singapore – while others do?

The year is 2016. I’m in line for the viral Eggslut sandwich in Los Angeles, anticipating the burst of ecstasy that influencers had promised from sinking one’s teeth into the fluffiest scrambled eggs and juiciest brioche buns known to man.

The American egg sandwich chain restaurant, which began as a food truck in 2011, had quickly gained a cult following for its decadent offerings.

Each sandwich, plump with premium ingredients like applewood smoked bacon and marketed with a minimalist aesthetic, was also photogenic as hell. Naturally, it dominated social media in an era when aerial food shots reigned supreme.

When I finally bite into my sandwich, its explosive flavours cement my conclusion: The wait was worth it.

But by the time Eggslut announced its launch in Singapore in 2021, its shine had somewhat dimmed. I was surprised the brand had survived the pandemic’s early days – and more crucially, its hype. 

What the former F&B darling eventually wouldn’t survive, though, was a country where appetites are fickle, attention is fleeting, and money is power. 

SPATE OF EXITS BY NOTABLE BRANDS 

When Eggslut closed its last outlet here at Scotts Square in February, following the closure of its other outlet at Suntec City in 2024, online commenters were quick to blame high rental costs in Singapore. 

The age-old tension between landlords and tenants has only been exacerbated post-pandemic. Businesses are now also challenged with the rising costs of goods, utilities, labour or simply finding sufficient manpower.

But Eggslut didn’t appear to be just another victim of the competitive F&B scene. Its exit from Singapore was among a handful of departures from well-known international brands that also made headlines within the first quarter of 2025.

More recently, British health and wellness brand Holland & Barrett announced its exit from Singapore on Mar 10 after 16 years in the country, closing all its 12 outlets. 

Japanese lifestyle store Hands, formerly known as Tokyu Hands, also shut its Jewel Changi Airport outlet on the same day. Three outlets remain in Singapore, down from its original six.

Jewel Changi Airport also bid farewell to Burger & Lobster this month. The sole Singapore outlet of the famous London restaurant specialising in lobster rolls and burgers was one of the longest-running stores at the mall since its opening in 2019.

Also in February, another beloved British retailer Marks & Spencer shut its Parkway Parade store after more than two decades at the mall.

Never mind the varied products and services, locations or customer demographics, the main culprit in each scenario was invariably rent, commenters concluded. The unspoken assumption was that alleviating the burden of rent, often seen as the main operating cost, would help a business stay afloat longer. 

But rent is hardly unique to businesses that have shuttered. Though it might ultimately be the catalyst behind a company’s demise, it rarely seems to be the sole cause. 

After all, certain international brands seem to have found the elusive formula to succeed in Singapore – for now. 

ADAPTING TO LOCAL PREFERENCES

An expert in retailers and urban economics pointed to IKEA, Don Don Donki, Haidilao and Shake Shack as standout success stories in Singapore – largely due to their adaptability.

These brands have “stayed true to their core value proposition” while embracing local preferences, Assistant Professor Li Zhonglin from the National University of Singapore Business School told CNA Lifestyle.

“International chains must maintain their global brand identity with local demands, factoring in cultural preferences, high costs, strong competition and an expanding e-commerce landscape. (But) over-localising can blur a brand’s essence, while remaining too rigid may alienate local customers.”

For example, Sweden’s Ikea retains its “budget-friendly furniture focus” and supplements it with “locally inspired menu items”, Asst Prof Li said. 

China’s Haidilao, “renowned for its exceptional service”, customises its hotpot soup bases to suit Singaporean taste buds.

Similarly, American burger joint Shake Shack has “regionally inspired offerings”, which are vital to its long-term appeal.

Japan’s Don Don Donki, meanwhile, targets a “specific niche with a sizeable following” – those with a keen interest in Japanese snacks and household goods at “wallet-friendly prices”. (It doesn’t hurt either that the essence of Don Don Donki cannot be replicated online.)

And as novelty goes, there will always be a market. While we lament the lack of longevity in our retail and dining scenes, perhaps we too contribute to the churn by constantly seeking the next big brand to understand the Singaporean psyche.

“With digitalisation, analytics and accessibility, businesses can see the cause-and-effect and improve their offering, promoting rapid consumption and shorter product life cycle,” said Dr Lynda Wee, an adjunct associate professor of marketing from Nanyang Technological University.

“This cultivates restless customers who are keen to explore the next interesting thing. Hence, new and exciting offers emerge.”

Yet, adapting to local preferences doesn’t just mean attracting customers with localised product or service offerings, like introducing a laksa-flavoured burger – even though such gimmicks may create immediate desire.

The average Singaporean may be adventurous enough to jump on the bandwagon, but we are just as quick to jump off. 

“If you think about it, most of us will go to a place, eat and try. If we don’t really like it, we’ll eat and move on,” Benjamin Chan, director at Protegie Consultancy, which specialises in the F&B industry, said on CNA938 following Eggslut’s closure.

“(With) the amount of restaurants coming in from around the world, you always have more choices every day.” 

As turnover is “fairly common” in a competitive market like Singapore, the departure of certain brands “rarely leaves long-term vacancies”, echoed Asst Prof Li. 

Instead, it seems to me that successful international brands have not only understood but found a way to fulfil the core, unchanging Singaporean need: Convenience in every aspect.

NOVELTY FADES, PRAGMATISM IS FOREVER

Convenience isn’t just about having a store in an accessible location. The outlets that closed were in supposedly bustling spots, such as Jewel Changi Airport and Orchard Road.

Neither is it really about being affordable enough to attract repeat customers. Many restaurants with food more expensive than Burger & Lobster’s are still up and running, after all. 

As Chan, the director at an F&B consultancy, explained on CNA938: “I don’t think price is a huge problem. It’s to do with value. Do Singaporeans see the value in paying for that item?” 

With a restaurant like Eggslut, for example, the average Singaporean might question why they have to pay almost S$10 for eggs.

In Singapore, convenience is also psychological.

It’s about whether we can imagine a brand seamlessly fitting into our evolving lifestyles – including how we entertain ourselves, eat and travel; whether we now spend more money online than in a mall; what route we take home after work; where we usually hang out on weekends. 

Dr Wee highlighted the impact of overseas travel – the quintessential Singaporean pastime – on the longevity of certain international brands here.

“As Singaporeans love to travel, they engage in travel-related shopping – part memory-making, part emotional shopping. So they don’t have to buy (these brands) in Singapore, but choose to buy when (they’re) overseas,” she said. 

So even if a brand has strong recognition, Singaporeans may not feel the pull to go out of one's way to engage with it locally. 

Other times, certain brands – like Burger & Lobster according to Chan – tend to have a “specialisation in certain areas” and are thus unfamiliar to the Singaporean palate.  

And contrary to what strong social media buzz might have us believe every time a newfangled retail or dining concept launches, novelty is fundamentally inconvenient. Embracing something out of the norm in the long run always demands belief and behavioural change. 

Ultimately, I don’t believe pragmatic Singaporeans, most of us creatures of habit, will repeatedly patronise a brand just for being cool or different. We want something that’s consistently easy to have in our lives.

“Businesses are in the desirability business. Make customers desire the brand so that they are more willing to pay,” added Dr Wee, noting that “soft” factors can be equally significant in a competitive market.

“When this happens, ‘harder’ factors (like operational costs) can be taken care of.”

At least in Singapore, convenience is a wholly emotional desire. The brands which get that don’t just survive – but thrive.