5th November 2024 – (Hong Kong) The latest figures from the Census and Statistics Department (C&SD) reveal a challenging landscape for Hong Kong’s food and beverage industry, with total restaurant receipts estimated at $26.7 billion for the third quarter of 2024, reflecting a 1.3% decrease compared to the same period last year. Chinese restaurants were particularly hard hit, with revenues down 7.7%, while non-Chinese establishments saw a more modest decline of 0.6%. In contrast, fast-food outlets experienced an 8.5% increase in receipts, indicating a shift in consumer preferences.
Yeung Wai-sing, president of the Association for Hong Kong Catering Services Management, attributed the downturn in Chinese restaurants to the lunar calendar’s “blind year,” which traditionally discourages weddings and banquet events. He noted that the number of wedding banquets had decreased by 20% to 30%, stating, “This year has truly been sluggish.” Similarly, Wu Chu, managing director of Hsin Kuang Restaurant Group, highlighted that discounts for elderly passengers have encouraged many to travel to mainland China for dim sum, further impacting local restaurant revenues.
The government’s spokesperson acknowledged the overall decline but pointed to signs of recovery, especially in September, when total receipts rose by 2.8% year-on-year. They noted that changing consumption patterns, influenced by recent economic measures in mainland China and the easing of interest rates in the US, could provide some relief to the sector.
Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, remarked that the data was anticipated given the current economic climate. He pointed out that residents are increasingly opting for fast food and cha chaan tengs to save on expenses, while mid-range dining establishments are struggling. Wong suggested that the festive atmosphere created during events like Halloween could be leveraged to boost evening dining out, proposing that the government organise more activities to reinvigorate the nightlife economy.