Hong Kong F&B companies are more bullish about their business prospects after the first quarter, according to Deliveroo’s Restaurant Confidence Index.

Overall sentiment rose from 6.1 in the last quarter of last year to 6.5 in the first three months of this year.

Following the reopening of the border with Mainland China and the subsequent relaxation of Covid-19 restrictions, 64 per cent of restaurants reported an increase in dine-in income. Meanwhile, revenue from takeaway meals at restaurants climbed or stayed the same at 59 per cent of total sales. 

While the overall economy improved, 45 per cent of restaurants increased profits in Q1, with 23 per cent maintaining stable profits from the prior quarter. And 66 per cent of restaurants are now positive about the overall economic situation in Q2 – significantly higher than the 46 per cent who last year said they were optimistic about Q1.

“With business satisfaction among our restaurant partners improving, we now have clear evidence that Hong Kong F&B industry is recovering rapidly,” said Andrew Hui, GM at Deliveroo Hong Kong. 

“Deliveroo will continue to strive for excellence in bringing more food options to our customers while helping our restaurant partners maximise their profits as the industry continues to grow with great potential.”

In addition, almost half of the questioned restaurants (49 per cent) said the growing number of overseas visitors and tourists from Mainland China increased their total revenue by up to 40 per cent. Some, though, struggled to establish their feet among foreign crowds. More than one-third of restaurants reported being negatively impacted by increased outbound travel in Q1.

Further reading: Deliveroo Singapore helps restaurants cut costs with TreeDots