Hong Kong restaurant receipts up whopping 44 per cent year on year in third quarter
- Restaurants took in HK$24.5 billion between July and September, compared with just HK$17 billion in the third quarter last year
- The government credits its consumption voucher scheme and a lull in the pandemic for the substantial bump
Restaurants took in HK$24.5 billion between July and September, according to provisional figures released on Thursday by the Census and Statistics Department, a significant improvement on the HK$17 billion in revenue recorded in the third quarter last year, which marked an all-time low since quarterly record-keeping began in late 2004.
The performance in the latest quarter was the best the city’s restaurants have seen since the three-months at the end of 2019, just before the onset of the pandemic.
A government spokesman said that restaurants’ business was improving as the pandemic stabilised, while the consumption voucher scheme and improved labour market conditions offered an additional bump.
“Looking ahead, the favourable factors mentioned above should continue to render support to the business of restaurants in the near term,” he said.
But the spokesman noted that the pace of improvement would be constrained by the ongoing lack of inbound tourism, which has been “virtually frozen” since Hong Kong’s border was largely sealed off in February of 2020.
“To facilitate a full revival of the sector and a broader-based recovery in the overall economy, it is essential for the community to strive towards more widespread vaccination and abide by the anti-epidemic measures,” he added.
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Restaurants have been subject to tough rules throughout the pandemic, with hours and party sizes curtailed, staff required to be vaccinated and diners made to register their personal details or the use of the government’s exposure-notification app upon entering establishments.
Between July and August, thousands of Hong Kong restaurants offered vaccinated diners deep discounts in a bid to both lift the city’s inoculation rate and drum up business.
The discounts coincided with the government’s distribution of HK$5,000 (US$642) in e-vouchers to all eligible Hongkongers – a plan aimed at boosting consumer spending and accelerating the city’s economic recovery.
In the first nine months, restaurant receipts jumped 12.9 per cent over the same period last year.
Chinese restaurants performed the best in the third quarter, with receipts skyrocketing 61.6 per cent year on year. Non-Chinese restaurants and fast-food shops followed, with receipts 51.1 per cent and 18.5 per cent higher, respectively, against the same period last year.
Total receipts of bars in the third quarter shot up by 88.9 per cent, although that was from a low base.
Some restaurant stakeholders expressed mixed feelings over the outlook for the final months of the year.
Mike Wong, who runs his family’s Chinese banquet restaurant Happiness Group, told the Post the turnover of the group’s three restaurants in Science Park and Sha Tin declined by almost 30 per cent shortly after the remainder of the e-vouchers were distributed on October 1.
“The voucher scheme was helpful, but it didn’t last long,” Wong said, adding that people prioritised spending the vouchers on electrical appliances and daily necessities, followed by dining.
“The food and catering sector is still struggling and I urge the government to offer some dining vouchers to encourage spending or ease social-distancing restrictions.”
Hong Kong retail sales rise 7.3 per cent as e-voucher scheme boosts spending
The cost of ingredients had also risen by almost 20 per cent in recent months. To boost business, the group added some Western food to its menu such as rack of lamb and added more choices for its two-person menu.
But Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, said he expected business would continue to improve as the holiday season approached.
“In general, business last year dropped [from 25 per cent to over 40 per cent]. Based on these figures, if we have better business this year, the increase will almost compensate for the loss for last year,” he said.
With most Hongkongers still unable to travel due to border restrictions and long quarantine periods, Wong predicted most residents would choose to spend more locally.
“[Most residents] can’t spend on tourism, so all the money goes back to the domestic market, especially food and retail,” he added.
Additional reporting by Denise Tsang
