Kanada-Ya Ramen Chain Closes All Singapore Locations
Popular Fukuoka-Style Ramen Brand Succumbs to Rising Costs
Singaporean diners will no longer be able to enjoy Kanada-Ya’s signature black garlic ramen as the Japanese chain has ceased operations across its three local outlets, a casualty of the island nation’s challenging food and beverage landscape.
Financial Difficulties Force Liquidation
Aspen Group, the parent company of Kanada-Ya SG and its subsidiary Kanada-Ya Restaurants, announced on June 11th that it is initiating creditors’ voluntary liquidation. The decision stems from the subsidiaries’ inability to meet financial obligations due to persistent losses.
“The challenging conditions of Singapore’s food and beverage sector, including elevated operating costs and soft consumer spending patterns, have negatively impacted the subsidiaries’ business in this segment, resulting in continued operational losses.”
—Aspen Group, Bourse Filing
The situation was further complicated by the passing of the founder and executive director of the Kanada-Ya brand’s franchiser, leading to a significant reduction in marketing and operational assistance for the Singaporean branches.
Impact on Singapore’s F&B Sector
Kanada-Ya operated restaurants at Paya Lebar Quarter (PLQ), Marina Square, and Jem. Staff at the Jem mall confirmed the outlet there closed on June 6th, while the PLQ location is now boarded up. An employee at a neighboring eatery in Marina Square reported that the Kanada-Ya outlet there had been inactive since June 8th.
The closures align with broader struggles within Singapore’s food and beverage industry. According to a recent report by the Singapore Department of Statistics, the F&B services index saw a contraction of 2.1% in the first quarter of 2024, indicating a slowdown in consumer spending. Singapore Department of Statistics
Aspen Group Shifts Focus
Aspen Group anticipates that the liquidation will positively affect its net assets and earnings for the financial year ending June 30, 2025. The company intends to concentrate its resources on its core property development business.
This situation mirrors the difficulties faced by other Japanese restaurant operators in Singapore. Japan Foods recently reported a net loss of $6.2 million for the six months ending March 31, a substantial increase from the $576,000 loss recorded in the same period last year. Several of its brands, including Konjiki Hototogisu, have also closed locations.
The challenging economic climate and evolving consumer preferences continue to reshape Singapore’s dining scene, forcing businesses to adapt or face closure.
