A quick look at data and trends over the last year has put the new reality of the restaurant and bar industry into stark relief
Hong Kong, like many cities around the world, has been struggling with the collateral damage from COVID-19—the novel coronavirus that has struck globally, with a domino effect that has resulted in dwindling tourism, tightening social distancing measures, and an entirely different appetite driven by the uncertainty of the future. It’s a tragedy for this tiny metropolis, which was—as data and on-the-ground intel informed us—was poised to rebound from months of anti-government protests and societal unrest at the end of 2019. We take a look at what’s been happening as mass public behaviour takes its toll on an industry dependent on the health—literally and figuratively—of its city.
2019: A Slow Free-Fall
Long before the virus seized the city, Hong Kong was working through a tipping point of its own. From June to December, anti-government protests and tense stand-offs between supporters and detractors became a regular occurrence—as did flashpoints of violence, resulting in districts becoming, effectively, no-go zones at various times of the week. Areas from Sheung Wan to Causeway Bay on the island, and the Yau Tsim Mong districts in Kowloon, were most heavily impacted with frequent clashes. Restaurateurs and business owners in these areas reported significant drop in custom as citizens opted to dine further away from areas of conflict, or stayed home.
Hong Kong’s Census and Statistics Department’s quarterly report on restaurant receipts and purchases is seen as a barometer for the industry’s health, taking into account activity spread across five categories (Chinese restaurants, non-Chinese restaurants, bars, fast food and miscellaneous F&B venues). The latest report on 2019, released February 2020, paints an alarming picture as “the provisional estimate of the volume of total restaurant receipts decreased by 16.0% in the fourth quarter of 2019 compared with a year earlier”. Chinese restaurants suffered the most, decreasing by 19.2% in value compared to 15.2% of non-Chinese restaurants.
While the mood seemed to lift closer to Christmas and New Year, the industry was already down on its luck—an unfortunate position given what was to come in 2020.