37% of Hong Kong restaurants see increased revenue turnover in Q4 2019: Deliveroo
However, only 2 in 10 businesses have reported profit growth.
Amidst social unrest, 37% of Hong Kong restaurants have seen revenue turnover increases in Q4 2019 compared to the previous quarter, according to Deliveroo’s latest Restaurant Confidence Index report.
Surveying over 5,000 restaurant partners, Deliveroo noted 34% of restaurants have also posted a jump in order-out revenue, arguing that delivery has helped in driving the industry’s overall growth.
However, only two in 10 businesses have reported rise in profits in the period covering October to December last year, stressing spike in costs of operations (49%), ingredients (57%) and labour (43%).
The report noted that restaurants satisfied with their overall business performance ranked themselves at an average of 6.6 out 10, a point jump from the previous quarter’s 5.6 rating.
“2019 was a unique year for Hong Kong‘s F&B industry, with restaurants facing a number of challenges in terms of operating costs, customer turnover and overall business environment,” Deliveroo Hong Kong general manager Brian Lo commented on the result.
“Still, it’s a positive sign that restaurants are more satisfied with their business performance as compared to the previous quarter, and we are likewise happy to see that delivery is expanding to different parts of Hong Kong and supporting more restaurants to create turnover,” he added.
Meanwhile, the report also highlighted that customers might have spent less during the festive season last year as 55% of restaurants saw a revenue fall in the period. The decrease in revenue is more apparent in dining (six in 10) than in ordering out (four in 10).
Only 17% of restaurants, Deliveroo revealed, have recorded increases in total turnovers during the holiday season.
Deliveroo also announced in the same report that it aims to expand the number of its restaurant partnerships to more than 9,000 by the end of the year. Moreover, the delivery giant eyed to trial its dark kitchen concept in more sites and to develop more virtual brands.
