As the Mid-Autumn Festival draws near, local eateries are observing a notable decline in reservations this year, with many expecting only a slight boost in weekend activity.
The Festival, falling on October 6, is set to bring a "four-day holiday" for some of the citizens, yet the industry remains pessimistic about bookings for traditional "family reunion meals."
So Man-shing, deputy general manager of London Chinese Restaurant, noted that this year's reservations are significantly lower than those in previous years.
He estimates that business for the Mid-Autumn Festival will only climb by 20 to 30 percent -- a stark contrast to past years when revenues doubled.
Aside from the shift in customer behavior, So highlighted that declining family sizes also contributed to the decline in business during the holiday.
"While there used to be ten or more family members at a table, the decreased family size has changed dining norms for some families," So explained.
He also attributed the financial strain for some customers to delay their festive bookings, with some companies opting not to hold Mid-Autumn Festival dinners and instead offering employees a day off.
Another restaurant manager, Lam, shared that about 30 percent of the tables have been booked for Mid-Autumn Festival dinners, with most reservations coming in just two weeks before the holiday.
Acknowledging the limited space of the restaurant, Lam anticipated that the restaurant would mainly serve customers from the neighbourhood.
With the upcoming four-day holiday, he expected that many locals would travel to the mainland, estimating a 20 percent decrease in local patrons. While he remained optimistic in attracting tourists, he projected a 5 percent drop in overall business compared to last year.
Located next to business hotels, Lam has been promoting the restaurant on social media platforms like Xiaohongshu, which has successfully drawn in tourists.
However, due to fierce competition, he noted that the restaurant has not raised prices in recent years.
"The food expenses are similar to last year's, but we would rather make less profit than raise prices. Given the current market conditions, profits could potentially fall to 10 to 20 percent," Lam added.
Echoing the concerns, the vice-chairman of the Association of Restaurant Managers Jonathan Leung Chun reported a decline in bookings across the sector compared to previous years, reflecting a change in consumer behavior.
Leung said many diners are now making last-minute decisions rather than booking in advance, complicating predictions for foot traffic during the Festival.
While some restaurants may still achieve good business during the holiday, Leung addressed the need for the industry to adapt to the new market environment.
Additionally, Leung pointed out the challenges for restaurants to raise prices amid stiff competition, suggesting that restaurants with unsatisfactory business should consider saving ingredients for later use, as many can still be utilized in diverse dishes.
