Study calls for support for long-standing restaurants amid catering slowdown

Hong Kong’s catering sector has yet to recover to pre-pandemic levels, with Chinese restaurants suffering the steepest decline, according to a Legislative Council research report.

The report found that total restaurant receipts in the first quarter of this year were still 7.2 percent lower than in the same period in 2018. Chinese restaurants were hit particularly hard, with receipts falling 27.9 percent over the same period.

The number of Chinese restaurants stood at 4,470 last year, down 9 percent from 2018. Cantonese restaurants recorded the sharpest drop, falling 16 percent, while the number of cha chaan tengs declined by 7 percent.

Bars, lounges and herbal tea shops also recorded decreases of more than 20 percent.

However, restaurants serving Beijing, Shanghai and other provincial cuisines rose by 7 percent. Japanese restaurants, takeaway outlets, coffee shops and tea drink stores also expanded significantly.

Tea drink shops saw the strongest growth, rising 76 percent from 330 outlets in 2018 to 580 last year.

The report said the changes reflected a shift in dining habits toward more casual formats, but also raised public concerns over the loss of traditional dining choices and the weakening competitiveness of some local cuisines.

The report suggested that Hong Kong could draw reference from Shanghai, Singapore and South Korea, where systems are in place to recognize long-standing restaurants and provide targeted support.

Such measures include certification and subsidies for shop upgrades and renovation, which could help culturally distinctive old restaurants continue operating and preserve traditional dishes, the report said.

Simon Wong Ka-wo, president of the Federation of Restaurants and Related Trades, said Cantonese restaurants mainly serve middle-aged and elderly customers, making it difficult for them to attract younger diners.

He added that many mainland catering groups have expanded into Hong Kong, drawing mainland visitors to their restaurants.

Catering sector lawmaker Jonathan Leung Chun said the figures reflected changing eating habits among Hongkongers, including the growing popularity of takeaway orders after the pandemic.

He said Cantonese restaurants are part of Hong Kong’s local culture and suggested that the government strengthen support to help restaurants innovate.

Cheung also said existing government schemes supporting technology upgrades cover too wide a range of industries, and suggested setting up dedicated funding to support the catering sector.
 

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