Hong Kong’s restaurants pessimistic amidst dine-in curfews, rising costs
Only 26% of restaurants surveyed said they are confident on the revenue on dine-in business in the approaching Chinese New Year period.
Hong Kong’s restaurants welcomed the new year with a more pessimistic outlook, with seven out of ten (73%) surveyed in Deliveroo’s latest Restaurant Confidence Index saying they are less optimistic about the economy and food industry for this quarter.
On average, restaurants rated their satisfaction with an overall business performance at 5.4, down from 6.0 last quarter. Overall confidence plunged to just 27%, a 40% drop from the previous report's findings (67%), attributed to the adjusted opening hours during the Chinese New Year period and beyond.
Restaurants have been adjusting to the new dine-in restrictions implemented by the Hong Kong government last January 7 that saw F&B premises close for takeout at 6pm.
Revenue remained static in Q4 2021, with 38% of restaurants having recorded a slight profit increase, whilst 3% recorded a significant increase in profit, and 24% said it remained unchanged in Q4.
Only 26% of restaurants surveyed said they are confident on the revenue on dine-in business in the approaching Chinese New Year period.
44% reported rental increases, whilst 55.9% made claims that their rent remained unchanged.
68% of the restaurants meanwhile reported an increase in labour costs, whilst all restaurants surveyed reported an increase in other operating costs, such as ingredients and sanitation.
