Transforming frontline industries

Frontline industries form the backbone of Southeast Asia’s economy - yet they are under increasing strain.

Across Southeast Asia, 137 million people, representing 46% of the region’s workforce, are employed in frontline sectors including F&B, retail, tourism & hospitality, healthcare, transport & logistics, and manufacturing. While these industries rebounded strongly after the pandemic, organisations now face mounting execution and operational challenges.

Transforming Frontline Industries: Make F&B, Retail and Hospitality Greater is a decision-support report jointly released by Momentum Works and Lark, designed to help leaders understand where frontline organisations are breaking down - and how they can be rebuilt for scale, resilience, and sustainable growth.

Built on ecosystem research, operator interviews, and real-world case studies, the report examines how structural complexity, workforce churn, and rising competitive pressure are reshaping frontline operations across the region.

What’s covered in this report:

• The scale and economic importance of Southeast Asia’s frontline workforce
• Two critical internal challenges:
  • High frontline staff turnover, with rates reaching up to 48% annually, costing businesses US$22.6 billion in replacement and retraining
  • Organisational complexity between HQ, store managers, and frontline teams
• External pressures including intensifying competition, evolving customer expectations, margin compression, and fragile supply chains
• A six-part operational playbook to future-proof frontline industries
• Case studies from ZUS Coffee and Pop Mart, managing thousands of frontline employees at scale

This report is designed for decision-makers including:

• Executives and leadership teams in F&B, retail, and hospitality
• Operations, people, and transformation leaders
• Founders and operators managing large frontline workforces
• Investors and partners focused on consumer and service industries

How leaders use this report:

• To reduce frontline turnover and improve workforce stability
• To align headquarters, managers, and frontline staff more effectively
• To improve operational efficiency without sacrificing service quality
• To design scalable systems for people-heavy businesses

[Click here to access the Chinese version ｜ 点击这里获取中文版]