Hong Kong restaurants bounce back in final quarter of 2019
Hong Kong restaurants appear to have shrugged off the worst of the impact from the city’s social unrest in the final quarter of last year,
According to food-delivery service Deliveroo’s second Restaurant Confidence Index, a quarterly survey of restaurant partners that details F&B trends in Hong Kong, eateries in the territory are seeing increased revenue turnover and profits, even as they continue to face a challenging business environment.
During the final financial quarter of last year, 37 per cent of restaurants saw an increase in revenue turnover quarter on quarter, when more than 71 per cent of restaurants faced decreasing or unchanged turnover rates.
However, only 20 per cent of restaurant partners surveyed in the latest index saw an increase in profits due to the fact that many restaurant partners surveyed saw an increase in operations, ingredient and labour costs. One in three reported rising order-out revenue.
On average, restaurants rank their satisfaction in overall business performance at 6.6 out of 10 for the fourth quarter of last year, a one-point jump from the average rating of 5.6 the previous three months.
Many restaurants experienced year-on-year revenue decreases during the Christmas and New Year period, with 55 per cent experiencing a holiday-period revenue fall from the previous year. The decrease in revenue was much more significant for dining in as compared to ordering out, with 61 per cent of restaurants witnessing a decrease in dining in revenue as compared to 41 per cent who said the same of delivery.
Consumers appear to have spent less during the festive season this year as just 17 per cent of restaurants increased their total turnover, however 16 per cent of restaurants did note an increase in delivery revenue during the period.
“Last year was unique for Hong Kong‘s F&B industry, with restaurants facing a number of challenges in terms of operating costs, customer turnover and overall business environment,” said Deliveroo Hong Kong GM Brian Lo. “Still, it’s a positive sign that restaurants are more satisfied with their business performance as compared to the previous quarter.”