Hong Kong restaurant operators think small as they downsize operations to beat Covid-19 slump
- Singapore-based Flash Coffee has opened nine stores in the past five months in Hong Kong
- Market observers say F&B investors now prefer to open smaller outlets in different locations instead of focusing on one big restaurant
Food and beverage (F&B) operators in Hong Kong are switching to smaller outlets amid a difficult operating environment, with some of the more resilient ones focusing on takeaway orders.
By concentrating efforts on delivery, some tech-savvy operators are also looking to minimise the impact of the social distancing rules on their business.
Singapore-based Flash Coffee has opened nine stores, including five grab-and-go outlets, some as small as 215 square feet, in Hong Kong, in the past five months.
“A substantial part of our sales come from technology,” said Jonathan Tsao, managing director for Hong Kong at Flash Coffee. Since its launch in 2020, the chain has now grown to 250 outlets in seven markets across Asia Pacific – Singapore, Indonesia, Thailand, Taiwan, Hong Kong, South Korea and Japan.
Hong Kong restaurants have been struggling to stay afloat since the government imposed its strictest social distancing measures in early January to curb rising coronavirus infections fuelled by the highly contagious Omicron variant. Dine-in services are restricted from 6pm, seating is limited to two to a table and entry is only allowed for residents who have received at least one dose of a Covid-19 vaccine.