More Hong Kong restaurants shut down, shift to delivery as coronavirus dining ban poses existential threat
- As many eateries struggle to survive, some are electing to make massive savings on rent by vacating their expensive premises in prime shopping areas
- The trend is a further blow to the city’s prime retail property market, and will accelerate amid a new ban on restaurant dining
Restaurants in some of Hong Kong’s main commercial districts are closing down as their owners opt to open kitchens in more affordable industrial areas offering only delivery services, according to property agents.
The complete moratorium on eating out is the “final straw” for some restaurants already battling to stay afloat, according to one analyst.
As eateries struggle to survive amid the lack of demand caused by Covid-19, many are now electing to make massive savings on rent by vacating their expensive premises in prime shopping zones.
“We see more catering businesses taking up space in industrial neighbourhoods, for example Kwun Tong. They are using the cheaper space as a kitchen to prepare food for delivery only,” said Daniel Wong, chief executive of Midland IC&I.
05:38
What started Hong Kong's third Covid-19 wave?
“Rents can be brought right down, to just a third of what they previously paid for a restaurant in a bustling commercial area like Causeway Bay.”