80% of respondents are not confident about the future of the F&B industry in Q1.
Hong Kong restaurant operators say they are less satisfied with overall business performance, as the sector continues to face ongoing challenges due to COVID-19.
According to Deliveroo’s H2 2020 Restaurant Confidence Index, restaurants rank their satisfaction in overall business performance at 5.8 out of 10 for H2 2020, nearly a one-point decrease from the average rating of 6.6 in Q4 of 2019.
52% or over half of restaurants surveyed saw a decrease or significant decrease in bi-annual turnover, whilst 31% saw a slight increase compared to H1 2020.
Almost 3 in 4 or 73% experienced a decrease in dine-in revenue comparing H2 to H1 2020, whilst 54% saw an increase in order-out revenue.
71% of respondents say profits fell in H2, with another 19% saying profits remained unchanged compared to the previous half.
Comparing the Christmas and New Year period in 2020 to the same period in 2019, restaurants saw a heavy dine-in revenue drop, with 48% experienced a decrease or a significant decrease, with another 25% saying it remained unchanged.
In contrast, over 1 in 3 restaurants (37%) saw a year-on-year (YoY) increase in order-out dining for the holiday period in 2020.
Additional findings include 18.3% of surveyed restaurants seeing any decrease in rent during H2 2020 and nearly 1 in 10 (8.4%) even saw a rental increase. 30% of respondents were forced to lay off staff or institute unpaid leave in H2 2020, and another 29% say they plan to do the same in Q1 2021.
66% of restaurants also expect less YoY dine-in revenue during this year’s Lunar holiday, with 37% expecting more order-out Chinese New Year revenue.
Overall, 86% or restaurants are not optimistic for the economy in Q1 2021, and 80% aren’t confident about the F&B industry.
Post-order tipping function launched in S’pore
Over in Singapore, Deliveroo announced a new post-order tipping function for customers to thank riders for their service.
From 27 January, customers can add a post-order rider tip by nominating an amount upon completion of their delivery, the entirety of which will go directly to the rider. From 1 to 14 February, Deliveroo said it will match customer tips up to the value of SG$3 max per tip, capped at SG$10,000.
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