Hong Kong restaurants to remain in ‘survival of the fittest’ mode, analysts say

Two-dish eateries multiply and fast-food outlets like Jollibee thrive even as closures continue amid a segment ‘reset’

Reading Time:3 minutes

Kuen Fat Kitchen in Causeway Bay serves two-dish meal sets for HK$43 (US$5.48), on July 17, 2025. Photo: Dickson Lee

Published: 9:30am, 10 Aug 2025

Tenant churn in retail properties in Hong Kong will continue in coming months, as prominent restaurants close but affordable eateries and fast-food chains thrive amid economic uncertainty and job insecurity among local residents, analysts said.

Hong Kong’s food and beverage (F&B) operators have taken a hit during the ongoing economic slump, which shrank retail sales for 14 straight months before a 2.4 per cent rebound in May and a 0.7 per cent gain in June, according to official data.

The city had 17,154 restaurant licences as of April 30, 255 fewer than a year earlier, according to data published by the Food and Environmental Hygiene Department. A comparison of licence data showed that 2,034 restaurants closed in the past year, while 1,779 new licences were issued.

Hong Kong’s jobless rate remained at 3.5 per cent between April and June, unchanged from the previous quarter, which marked a 30-month high, according to the latest government data.

“The F&B segment is undergoing a reset and a survival-of-the-fittest process,” said Cathie Chung, senior director of research at JLL in Hong Kong. “We expect new openings and closures will continue to hit news headlines in the coming 12 months.”

The trend towards affordable options reflects an overall consumption downgrade and a “conscious consumption” movement in many parts of the world amid economic uncertainty and job insecurity, she added.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x