Around 2 in 5 Hong Kong restaurants confident about F&B industry’s future
The performance satisfaction score of 6.4 is the highest posted in two and a half years.
Restaurants in Hong Kong were slightly more confident in their outlook for the food and beverage (F&B) industry, increasing to 39% in the second quarter of 2022 from 34% in the previous quarter, according to the Deliveroo Q2 2022 Restaurant Confidence Index.
In a statement, Deliveroo said Hong Kong restaurant posted the highest business performance satisfaction score in over two and a half years if 6.4 from 5.3 in the previous quarter. Around 36% were also more hopeful about the economic environment, up from 32%.
Many restaurants cited the consumption voucher distribution in April as a key factor in boosting business, with 65% of those surveyed believing that their revenue slight or significantly rose during the quarter because of it.
With the increase in spending due to the vouchers, 48% of F&B owners, are considering promotional or marketing plans in line with the second phase of the Consumption Voucher scheme in the third quarter. Around 23% of restaurants already have promotional plans.
“Although the previous few months have undoubtedly been difficult due to the fifth wave of the epidemic, Hong Kong is still on the road to recovery, and we are hopeful that social distance-inducing policies will be further relaxed in the coming months,” said Deliveroo Hong Kong General Manager Andrew Hui.
“We are committed to helping restaurant partners make the most out of new opportunities in the market while preparing for any potential challenges under the evolving COVID situation,” he added.
The report also found that dine-in business performance improved in the second quarter, with 55% claiming their revenue from dine-in business significantly or slightly rose compared to the previous quarter, whilst 19% said it remained unchanged.
Around half or 48% said they increased their staff during the quarter, and 55% have planned to raise wages in the third quarter to retain employees. It also found that 42% of restaurants were planning to hire more staff, and 26% planned to open new branches in the third quarter.
Meanwhile, many restaurants cited operating costs, including food ingredients and rents which are both at 39% as the highest pressure they experience over the spring and early summer months. This is followed by labour costs with 23% reporting a pinch in staff salaries.
Around 74% were very or slightly worrying about a rebound in COVID cases with the revival of longer dining hours and easing of social distancing measures, according to Deliveroo.