F&B INDUSTRY STILL STRUGGLING
Lin Heung Lau is far from alone. Across Hong Kong, eateries are increasingly turning to novel experiences to stand out in a fiercely competitive market.
Earnings have yet to return to pre-pandemic levels and Chinese restaurants, which have traditionally formed the backbone of Hong Kong’s dining scene, have been the hardest hit.
According to official data released in June, earnings for Chinese restaurants in the first quarter suffered the sector’s steepest contraction in revenue, plunging by 27.9 per cent from HK$13.44 billion (US$1.71 billion) in 2018 to HK$9.7 billion this year.
More than a dozen decades-old restaurants have closed in the first four months of this year alone.
Industry players say the shift is being driven in part by changing consumer habits. More Hong Kongers are crossing the border to Shenzhen for cheaper dining options, while younger diners are favouring newer, trendier eateries.
“(There’s) not only internal competition, but also competition from restaurant operators that come from the mainland,” said Simon Wong, president of the Hong Kong Federation of Restaurants and Related Trades.
Hong Kong’s dining scene has seen an influx of mainland Chinese brands, with chains such as Chagee and Tai Er opening multiple outlets.
These newcomers have been attracting customers with competitive prices, eye-catching marketing and fresh concepts, said Wong.
“They have new ideas to promote their restaurants and food. That is quite challenging for the local (Hong Kong) restaurants, because most of the local restaurants are, in a way, old-fashioned,” Wong said.
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