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Singapore’s shops and restaurants scoring quick wins with AI

Singapore’s retail and F&B sectors use AI to boost productivity, optimise operations, and enhance customer service with practical, data-driven solutions. Read more at straitstimes.com.

The Straits TimesLee Li Ying查看原文 ↗
Rifeng Gao, The Lo & Behold Group’s chief operating officer, inside Fico restaurant on Sept 2.
Rifeng Gao, The Lo & Behold Group’s chief operating officer, inside Fico restaurant on Sept 2.

Rifeng Gao, The Lo & Behold Group’s chief operating officer, said using AI to analyse data allowed restaurant Fico to maximise table turnover.

ST PHOTO: LIM YAOHUI

Published Sep 26, 2026, 05:00 AM

Updated Sep 26, 2026, 05:00 AM

SINGAPORE – Beachside Italian restaurant Fico is pushing its boundaries.

Operator The Lo & Behold Group had held back on overbooking the restaurant’s capacity at East Coast Park as it was worried about long waiting times. But this changed in May when it tapped artificial intelligence (AI) to maximise table turnover.

Using Anthropic’s Claude Code, a special project team built an AI tool to analyse historical reservation data, dining durations and guest habits to safely predict periods when Fico could accept more bookings than its capacity allows.

The strategy has yielded some initial results, boosting Fico’s weekend revenue by 2 per cent within the very first month of its June roll-out.

Rifeng Gao, The Lo & Behold Group’s chief operating officer, said that maximising table turnover involves analysing data far too granular for a human to track manually. “But with AI, we can be 90 per cent confident that one reservation will not run into the next,” he said.

Previously, operator The Lo & Behold Group had held back on overbooking the restaurant’s capacity at East Coast Park as it was worried about long waiting times. ST PHOTO: LIM YAOHUI

Previously, operator The Lo & Behold Group had held back on overbooking the restaurant’s capacity at East Coast Park as it was worried about long waiting times.

Its special project team comprises five employees, who have since created other tools to plan rosters and analyse the service quality of its customer hotline.

The AI tools provided the restaurant with quick solutions at a fraction of the cost of traditional software development. Gao estimated that a third-party developer would have charged between $30,000 and $75,000 and taken three to six months to develop similar tools to optimise restaurant reservation slots or measure customer satisfaction.

Customer service evaluation for Fico restaurant. ST PHOTO: LIM YAOHUI

Customer service evaluation for Fico restaurant.

The Lo & Behold Group’s approach, like many other AI implementations in the retail and food and beverage sectors, has centred on standard AI quick wins. These projects include automated staff rostering, reservation management, customer helpdesk management, marketing content generation and filling out administrative paperwork.

Roster scheduling for Fico restaurant. ST PHOTO: LIM YAOHUI

Roster scheduling for Fico restaurant.

Its pragmatism stands in stark contrast to the sci-fi stereotypes of automated stir-fry meal preparation machines in China, beauty kiosks manned by AI avatars in South Korea and Japan’s smart mirrors that offer make-up suggestions to shoppers.

Nevertheless, the practical implementation of AI in Singapore’s retail and F&B sectors can make a difference as these two sectors are large and labour-intensive, said Johnson Poh, assistant chief executive of the enterprise transformation and innovation group at the Infocomm Media Development Authority.

He added that AI is most valuable when it solves a clear and immediate business problem, such as allowing an F&B business to reduce time spent reconciling documents or allowing a lean retail team to respond to customers more quickly.

Resto optimiser for Fico restaurant. ST PHOTO: LIM YAOHUI

Resto optimiser for Fico restaurant.

In Singapore, more than 24,500 retail firms hired about 142,000 workers in 2023, according to a 2025 report on the progressive wage model for the retail sector.

Separately, there were over 53,000 licensed food establishments, hiring about 111,600 employees, as at December 2024, according to a 2026 report on the progressive wage model for the food services sector.

Stephen Sing, executive director of the Singapore Retailers Association, said that retail businesses face manpower constraints and supply chain disruptions, which leave them with little energy to explore more sophisticated AI experiments and pilots.

Even so, focusing on productivity can free up human capital, scale operations and help retailers protect their margins, he said. “That is still a massive, tangible win.”

Furniture retailer Castlery has bagged these exact productivity wins. Through AI, Castlery has cut its average response time for online customer inquiries by 34 per cent.

Through AI, Castlery has cut its average response time for online customer inquiries by 34 per cent. PHOTO: CASTLERY

Through AI, Castlery has cut its average response time for online customer inquiries by 34 per cent.

The Singapore-headquartered firm sells to five markets – Singapore, the United States, Australia, the United Kingdom and Canada. It faces a deluge of customer inquiries that used to be handled by a team of about 70 customer-service agents daily from noon to 9pm Singapore time.

Since June 2025, its web-based personal shopping assistant, Casa AI, has taken on the bulk of routine inquiries, such as delivery status and product recommendations based on text or photos, round the clock.

Casa AI is connected to Castlery’s e-commerce platform, and order-management and customer-service systems. Customers type their query in a chat box on the website. In the past, they could only navigate through a list of frequently asked questions divided by topics.

“Furniture shopping tends to generate open-ended questions which do not fit neatly into a fixed decision tree,” said co-founder of Castlery Declan Ee, adding that the AI assistant can interpret such questions even when they are phrased in different ways.

Cases that require human judgment are handed off to a human agent. These include instances when an order needs to be modified, or when the customer is unhappy and has complaints about damaged goods.

“The team is able to focus on conversations where their human touch and judgment add the greatest value,” said Ee.

In the US, home-improvement retail giant The Home Depot has also introduced AI voice agents that can help with phone queries, ranging from simple administrative matters to advice on the best materials to buy for a project. Trained on the firm’s home improvement knowledge database, the voice agent helps to free up in-store associates to handle more complex interactions.

Similarly, AI helped digital flower and gift retailer FarEastFlora.com create its marketing campaign of 20 to 30 flower arrangements and gifts in a few hours, saving what would have taken three to four people several days to produce. Its marketing team also uses AI for design and copywriting.

AI helped digital flower and gift retailer FarEastFlora.com create its marketing campaign of 20 to 30 flower arrangements and gifts in a few hours. ST PHOTO: JASON QUAH

AI helped digital flower and gift retailer FarEastFlora.com create its marketing campaign of 20 to 30 flower arrangements and gifts in a few hours.

ST PHOTO: JASON QUAH

Digital data advantage

At the forefront of the AI race are e-retail giants such as Lazada, Shopee and Amazon, which have gone beyond picking the low-hanging fruit of AI productivity.

They are harnessing their massive repositories of consumer data, transaction histories and logistical networks to provide targeted recommendations, eliminate fraudulent claims and shorten delivery windows.

“These platforms can track what customers search for, what they click on, what they purchase and what they leave in their shopping carts,” said Angie Phang, senior manager at Ngee Ann Polytechnic’s School of Business and Accountancy.

Feeding AI with all this data will produce useful insights such as product recommendations, pricing search results, promotions and logistics planning, she said.

E-commerce platform Lazada’s AI refund agent illustrates this. The Alibaba-owned platform, which serves six South-east Asian markets, can draw on several records to assess a claim.

Lazada’s AI agent now handles over 35 per cent of refund requests with over 99 per cent accuracy. PHOTO: LAZADA

Lazada’s AI agent now handles over 35 per cent of refund requests with over 99 per cent accuracy.

When a shopper complains about being delivered a damaged item, Lazada’s AI tool can examine submitted photos of the damage and automatically process the refund within the same day after looking at the order details, refund policy and the customer’s return history.

Customers used to wait for up to five days to have their refund request manually verified.

“The refund agent handles standard cases automatically, but human judgment is still needed to handle cases where a buyer ordered the wrong item,” said Freya Dong, head of AI-powered seller centre and e-commerce operations at Lazada Group.

The AI agent now handles over 35 per cent of refund requests with over 99 per cent accuracy , Dong said .

Shopee uses shoppers’ purchase history and browsing patterns to serve targeted advertisements. Its AI advertising tool lets a seller set his advertising budget and sales targets. The tool then analyses customer activity to predict the groups of customers most likely to make a purchase. The tool also suggests where advertisements should be placed to maximise returns.

“This has delivered up to 20 per cent higher conversion rates and reduced advertising cost per order by up to 25 per cent for businesses,” said Geraldine Ho, head of marketing at Shopee Singapore.

What hurdles must be overcome?

Overall, the retail sector in Singapore still has much catching up to do to maximise the gains from AI, said experts.

First, bricks-and-mortar businesses need to break down the silos between their inventory, manpower scheduling and customer data systems.

A June 2026 UOB AI and Digitalisation survey of F&B businesses in Singapore revealed that three in five F&B operators have most of their digital solutions operating as standalone systems.

“The difficulty is that many businesses do not yet have sufficiently complete, connected and timely data across sales, inventory, delivery platforms and customer channels,” said Phang from Ngee Ann Polytechnic.

The lack of connected data creates crucial gaps which AI alone cannot bridge. Without inventory records or details of past promotions, companies may still struggle to tell whether falling sales are because of stock shortages or if a particular sales channel is underperforming.

Jeannie Lim, assistant managing director for services and growth enterprises at Enterprise Singapore , said integrating digital systems across business functions will reduce the manual effort to extract and reconcile data spread across siloed systems.

Currently, most SMEs lack the in-house technical expertise and data infrastructure needed to deploy AI effectively, added Lim.

But business need not connect all their systems at once.

“They can start with one clear business problem, connect only the relevant data, measure the results and expand gradually,” said Phang, adding that employees also need to be trained to handle AI systems as well.

Support is also available.

Businesses starting out on their AI adoption journey can refer to sector-specific digital guides on IMDA’s SMEs Go Digital website . Jointly developed by IMDA and Enterprise Singapore, the guides identify ready-made AI tools for tasks such as answering customer inquiries and producing marketing content.

F&B operators can also get advice on choosing AI tools and help connecting their existing systems through a joint programme by EnterpriseSG and bank UOB. Eligible tools and integration services come at preferential rates, with funding covering up to 50 per cent of their costs.

Businesses undertaking larger projects, including integrating multiple internal systems, can seek support through the Enterprise Development Grant, which covers up to 50 per cent of eligible project costs for SMEs.

Going forward, even as AI adoption broadens across retail and F&B, do not expect flashy AI avatars, AI-run unmanned stores or robotic chefs to be commonplace, said experts.

“So, the future store may not necessarily look highly automated. It may simply feel like a better-run store,” said Phang.

Customer service is, after all, the front and centre of a good experience at a clothing store or an upscale eatery, she said, adding that taking manual, repetitive tasks off employees’ hands could leave more room for customer attention.

“AI is not a replacement for human capital. Instead, it automates administrative friction, buying breathing room for staff to refocus on genuine hospitality,” said a Restaurant Association of Singapore spokesperson.

AI/artificial intelligence

Artificial Intelligence

Food and beverage sector

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