RAS Website

Choose your exit route

💤

Pause / Hibernate

Stop trading temporarily but keep the entity alive.

Best when: short-term shock, you have some buffer
Watch for: ongoing lease + fixed costs

🤝

Sell the Business

Share sale or asset sale (often needs lease assignment + licence transfer).

Best when: buyer interest exists, assets still hold value
Watch for: landlord approvals and timelines

🔄

Assign / Take Over Lease

Find an incoming tenant; negotiate with landlord.

Best when: unit has value; landlord cooperative
Watch for: reinstatement scope + costs

🧾

Close Permanently

Wind down operations and terminate obligations.

Best when: continuing losses are unavoidable
Watch for: staff notice, supplier payables, data handling

What changes between routes

Timeline urgency
Whether landlord approval is required (often yes)
Staff treatment (redeploy vs termination)
What happens to equipment/inventory
How you communicate to customers

✔ Decision shortcut: if you’re losing cash every week and can’t realistically turn it within 4–8 weeks, plan a controlled wind-down instead of dragging it out.

Financial clarity: obligations, runway, and options

💸

Objective: understand exactly how long you can operate without things breaking — and what you must pay (or renegotiate).

The 1-hour cash map (simple, but powerful)

Cash in bank today
Weekly fixed costs (rent, payroll, loan repayments, utilities)
Immediate payables (suppliers, rent arrears, tax)
Deposits you can recover (rental deposit, supplier deposits)
Personal guarantees (if any)

Immediate documents to pull

Last 3 months P&L (even rough)
Next 4–8 week cash flow forecast
Aged payables list (supplier, amount, due date)
Outstanding loans / hire purchase agreements

Options to consider (in order)

Reduce burn immediately (hours/menu/marketing spend) while planning next steps.
Negotiate with critical creditors (payment plans; staged settlements).
Negotiate lease terms (temporary relief; structured exit; assignment permission).
Choose a controlled wind-down (last trading day, clearance timeline).

📌

Practical tip: grants are reimbursement-based. If you’re in exit mode, don’t assume grant cash arrives in time to save the situation.

People implications: staff, notices, contracts

👥

Objective: be fair, clear, and compliant — and avoid unnecessary conflict.

Your goals

Be humane and respectful
Follow contract and statutory requirements
Keep operations stable during transition

Checklist

Pull your staff list + contracts (notice periods, leave balances, payroll dates)
Decide approach: redeploy, reduce hours, terminate with notice, mutual separation
Plan final payroll + documentation owner
Prepare a simple staff Q&A (what happens, when, who to contact)

Staff communication structure (recommended)

Tell managers first (same day)
Tell staff in-person (or video), then written summary
Share individual next steps (notice, last day, salary/leave, references)

🛡️

Avoid: unclear timelines, rumours, “we’ll see” messaging, or changing the story week to week.

Lease implications: reinstatement, assignment, early termination

What to clarify from the lease

🏢

Objective: prevent the lease from becoming the most expensive surprise.

Notice requirements and any break clause
Reinstatement scope and timeline
Whether assignment is allowed + landlord approval conditions
Treatment of security deposit

Practical next steps

Document unit condition now (photos/video)
Ask landlord/agent for reinstatement scope in writing
If pursuing assignment, prepare an incoming-tenant pack (unit specs, equipment list, utilities, footfall notes)

Lease red flags (watch for these)

Vague reinstatement scope (no written clarity)
Assignment allowed only on landlord’s absolute discretion
Short notice + heavy penalties
Deposit deductions that aren’t clearly defined

Asset decisions: equipment, inventory, IP, customer data

📦

Objective: convert assets into cash (or preserve them), with minimal admin and minimal risk.

Equipment & fit-out

Sell as part of a takeover (often best value)
Sell piecemeal (slower, more work)
Dispose responsibly (confirm landlord rules)

Inventory

Reduce waste: limited menu + controlled run-down
Ask suppliers about returns/credits (case-by-case)

IP & brand

Preserve domain, social handles, key recipes/process docs
Decide whether the brand will be used again

Customer data

Map where data lives (POS, reservations, delivery, email lists)
Restrict access post-closure; keep only what you’re allowed to keep

Reputation management: how to communicate closure professionally

📣

Objective: keep communications calm, factual, and respectful — while protecting your team.

Audiences

Staff
Landlord
Suppliers
Customers
Partners/platforms

Principles

Be factual and calm
Give dates/timelines where possible
Provide a single contact point for outstanding matters

Comms templates (export-ready)

📄

Designed to export cleanly as a PDF worksheet. Keep the tone calm, factual, and respectful.

Closure announcement (customer-facing)

Where used	Template
Instagram / Google / website	After [years/months] of serving the community, we will be closing [restaurant name] on [last day]. Thank you for your support. For any outstanding matters, please contact [email].

Supplier settlement message

Purpose	Template	Fill in
Request statement + agree settlement plan	Hi [Name], we’re planning to cease operations on [date]. Please share the latest statement of account and any outstanding invoices so we can confirm a settlement plan. You can reach me at [contact]. Thank you.	Date + contact + preferred payment timeline

What to prepare if you might restart later

🔁

If a restart is possible, treat this as a pause with a clean archive.

Keep (restart-friendly)

Entity documents and key filings
Licence history and renewal dates
Supplier contacts and pricing benchmarks
SOPs, recipes, training checklists
Brand assets (logo, menu files, photos, tone-of-voice)

Write a short post-mortem (30 minutes)

What worked
What didn’t
What you’d do differently next time

Exit pack checklist (print this)

📄

If you complete just this checklist, you will avoid most nasty surprises.

Last 3 months P&L + next 8 weeks cash forecast
Staff list + notice periods + leave balances
Lease: break clause/notice + reinstatement scope + deposit terms
Supplier payables list + contact owners
Asset list (equipment, inventory, IP, customer data locations)
Draft communications (staff + customers + suppliers)
Timeline: last trading day + handover/clear-out dates

Closing an F&B Business in Singapore

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