Deliveroo calls for further aid to Hong Kong's restaurant sector

Some of their proposed initiatives include extending subsidy schemes and waiving rents for four months.

Deliveroo’s Hong Kong business is urging the city’s government to further aid the restaurant sector amidst challenges posed by the third wave of COVID-19 in the region

Brian Lo, general manager of Deliveroo Hong Kong and Board Director of the HK Federation of Restaurants and Related Trades, wrote to chief executive Carrie Lam on the matter, asking for “urgent action.”

Based on their consultation with a “large” proportion of its 8,000 restaurant partners in Hong Kong, Deliveroo’s key policy proposals include the extension of subsidy schemes, waiting rental fees for four months, encouraging landlord to use turnover leases, launching a government-led campaign making clear that restaurant food is safe, and providing a subsidy for restaurants to conduct deep-cleaning.

A recent survey of Deliveroo’s small and independent restaurant partners revealed that more than 50% are facing the prospect of “immediate” business suspension.

“Restaurants have seen significant revenue losses during the lockdown even if they are able to remain open for delivery business. The growing contribution of delivery sales to their total revenue is not sufficient to cover cumulative fixed costs such as rent obligations,” Lo said in a statement.

“The precipitous drop in dine-in sales means restaurants are finding it close to impossible to operate and cover their day to day costs. Since last week, we saw close to 1,000 restaurants on our platform alone temporarily shut their doors. Many of these are small and medium sized businesses with no foreseeable date to reopen," he added.