SINGAPORE — The Budget announcement on the gradual reduction of foreign worker quotas may leave frowns on the faces of many owners of food-and-beverage (F&B) outlets, but this was not the case for Mr Derrick Chew, co-owner of modern Peranakan restaurant Godmama.

Mr Chew, 33, was rather sanguine after hearing the news on Monday (Feb 18). He had foreseen the tightening in foreign labour restrictions, he added, though he admitted that others in the industry will be feeling the brunt of the new laws.

In his Budget speech on Monday, Finance Minister Heng Swee Keat said that the Dependency Ratio Ceiling (DRC) for the services sector will be cut from 40 per cent to 38 per cent on Jan 1, 2020 and further reduced to 35 per cent on Jan 1, 2021.

The authorities will also reduce the share of S Pass holders that firms in the services sector can hire — from the present 15 per cent to 13 per cent on Jan 1, 2020 and then to 10 per cent the year after.

Mr Chew, who has four years of experience in the industry, told TODAY that recruiting manpower is one of the biggest challenges faced by F&B businesses here. Hiring Singaporean workers is particularly trying due to the less glamorous aspects of the business.

However, his previous experience running Kampong Glam’s Hyde & Co cafe taught him that active investment in a Singaporean core team is the best way to attract and retain them.

“Instead of complaining and going on and on about (the manpower issue), we asked ourselves, ‘How can we be different?’” he said.

When putting together the Godmama team, Mr Chew and his business partner Christina Keilthy, 60, looked at two key areas: Remuneration and the “dreams and visions” of his staff members.

The restaurant provides private dining experiences out of Mrs Keilthy’s home and will move to the revamped Funan mall when it reopens later this year.

At present, only one out of his predominantly Singaporean crew of seven comes under the Employment Pass, and they are looking to hire at least four more workers.

While he declined to reveal details, Mr Chew said that the employees are paid above the market rate. He also allows them the freedom to explore new concepts that they are keen on, because he believes that will give them a stake in the business and drive them to see their ideas to fruition.

While technology may be a solution to labour shortages, Mr Chew stressed that it is “very important” that it does not replace human connections.

“At the end of the day, the reason why people dine out is for the experience and the human touch. If not, they will just (order from) Deliveroo.”

Instead, he sees technology and kitchen appliances as a means to free up his workers from time-consuming tasks. These include managing customer loyalty systems, generating reports and checking inventory.

The restaurant’s baristas and bartenders double up as waiters and they are taught the skills of the others’ job functions. This cross-training improves efficiency and allows them to grow, Mr Chew said.

For instance, frontline staff members can even choose to be an apprentice in the kitchen during lull periods if they are keen, he added.

F&B owners need to keep employees engaged and make them feel like they are more than just workers, and that can be the “differentiating factor” for these owners to consider and think about, Mr Chew said.