Catering industry leader states 300 eateries close every month

Hong Kong Federation of Restaurants and Related Trades president Simon Wong Ka-wo stated that due to the effects of citizens heading to the mainland to spend money, about 300 eateries were closing down in Hong Kong every month but less than 200 were opening each month.

This came after the Outback Steakhouse restaurant chain announced the closure of nine out of its 19 outlets in the city, with the final day of operation set for next Sunday (Aug 4) in a strategic move to realign its business.

The steakhouse added that the remaining ten branches will continue operating as usual and remain committed to serving the Hong Kong market.

Approximately 300 employees are expected to be affected by the closures, and the company has pledged to provide them with full respect and care.

Wong stated that due to the effects of citizens heading to spend on the mainland, 300 eateries have to close down each month, with only less than 200 opening up to take their places.

He added that recently there have been some changes in the phenomenon and pointed out that while it is not obvious when the big enterprises just close down three to four out of their many stores, in reality even they are running into operation difficulty. 

Wong also stated that he had done some research on some chain stores that are closed down and found that their mid-price is in an awkward place. 

He raised an example saying that the store provided ribeye steak for a price ranging between HK$500 and HK$600, but by heading to the mainland, citizens can enjoy a ribeye steak for around one-third of the price.