, Hong Kong

Hong Kong restaurants are less optimistic as labour shortage bites

More than eight in 10 said they are finding it difficult to hire staff.

Hong Kong restaurant’s overall business performance satisfaction score decreased to 6.2 in Q2, down 6.5 from the last quarter as restaurants across the city faced a labour shortage, a report by Deliveroo revealed.

According to Deliveroo’s Q2 2023 Restaurant Confidence Index, 69% of restaurants were hiring, suggesting that the F&B industry is experiencing a pervasive short-staffing issue. As many as 86% of restaurants surveyed had said that they faced difficulties when it came to staff recruitment.

To entice more workers, 56% of restaurants have started to offer a wage increase in Q2 with most (76%) increasing wages between 2% to 5%. Meanwhile, 12% of restaurant owners have been offering an increase of 5% to 10% in wages whilst 5% were willing to go up to offer as much as a 10% wage increase.

Leaning on food delivery platforms

Almost half (41%) of restaurants surveyed believe that support offered by delivery platforms could help alleviate labour shortage.

88% said they believed food delivery will remain equally important or become even more important to the F&B industry in the future and will certainly remain a major driver of revenue for the time being. Most of the restaurants surveyed are already relying on food delivery platforms for a significant portion of their business, with almost half (48%) revealing that these platforms contributed anywhere from 10% to 30% of their total revenue, and nearly 20% even expressed that the platforms contributed to almost a third of their revenue.

Summer holiday boost

As Hong Kong welcomes the influx of tourists after the Covid-19 pandemic, restaurants remain optimistic that the first unrestricted summer holiday will see better performance compared to last year.

Over two-thirds (69%) of restaurants are expecting an increase in revenues, or at least for revenue to remain unchanged this summer. Amongst those that are expecting revenue growth, almost half (44%) of them think that there will be an increase of 10%-20% in total revenue.

“Following the lifting of all Covid-19 restrictions in March, Deliveroo's Q2 Restaurant Confidence Index reveals that the Hong Kong F&B industry's confidence may not be as high as anticipated, as restaurants continue to struggle with labour issues. It is encouraging to see our restaurant partners welcome the first unrestricted summer holidays in over three years with remain optimistic amidst a challenging business environment,” Yoko Fung, Head of Account Management at Deliveroo Hong Kong said.

Launched in Autumn 2019, The Restaurant Confidence Index is a first-of-its-kind survey of restaurant partners that will uncover F&B trends in Hong Kong, revealing the challenges faced by operators. The Index also enables Deliveroo to help restaurants respond fast through innovative business solutions such as bespoke marketing and promotional campaigns.

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