The popular Chinese hotpot chain, Haidilao, is closing its first-ever Singapore outlet at Clarke Quay on August 31. The closure is happening because its lease is expiring. Haidilao sent a text message to its members on August 13 to let them know the news.
The flagship outlet at CQ @ Clarke Quay first opened back in 2012, which was a huge moment as it marked the brand’s very first step into the Singapore market.
A spokesperson for Haidilao Singapore released a statement on August 13, sharing some fond memories. “This was our very first outlet in Singapore and served as an introduction to Chinese hotpot for many local diners. It also holds countless fond memories for our team and guests alike,” the spokesperson said. They added that the company is still committed to the local market.
“Looking ahead, we will continue to serve the local market through diverse concepts and elevated dining experiences,” the spokesperson explained.
The Clarke Quay outlet’s closure follows three other recent restaurant shutdowns in suburban areas like Bedok, Pasir Ris, and Punggol. A spokesperson had previously told The Business Times that they consider things like labour costs, outlet locations, and rental costs when making business decisions. The brand is also looking at shifting its focus and expanding its menu at some stores.
The team at CQ @ Clarke Quay also chimed in, thanking Haidilao for their “close partnership over the past 13 years.” A spokesperson from the property’s management said that because Haidilao has such a “strong presence across the island,” they mutually agreed it was time to “refresh” the space with a new tenant once the lease was up. They also mentioned that they will continue to be “close partners in China, Malaysia and Singapore.”
The State of Retail in Singapore
A report from Savills Singapore on August 13 helps shed some light on why this might be happening. The report noted that retail space demand has been a bit soft in the central region. They pointed to a few key reasons:
- Softer Demand: The overall market has been a bit weak, and that’s affecting the demand for retail space, with the island-wide vacancy rate going up to 7.1 per cent in the second quarter of 2025.
- Central Region Impact: Places in the central region, like Clarke Quay, have been hit particularly hard by rising rents and business costs. The vacancy rate there went up to 8.2 per cent, compared to 7.6 per cent in the previous quarter.
- Slower Downtown: The downtown core area, where Clarke Quay is located, saw a drop in occupied space, shrinking by 75,000 sq ft.
Central region rents went up by 0.9 per cent in the second quarter of 2025, bouncing back from a drop in the quarter before. Rents in the Orchard and suburban areas also went up slightly.
Savills expects the Singapore economy to have slow growth in the second half of the year, which could affect local sectors like retail and food and beverage. They think that spending power might be dampened by a few factors, including people being more cautious about hiring and the strong Singapore dollar causing people to spend their money abroad.
Because of this, Savills expects more shops to close down, but they believe prime locations will still get new tenants. However, landlords might need to offer shorter leases or better rental deals to keep other spaces filled.
