Survey: One-fourth of restaurants in HK expect revenue increase with latest travel arrangements

Over one-fourth (41%) of restaurants in Hong Kong have expected an increase in their revenue in Q4 with the latest “0+3” travel arrangement imposed by the Hong Kong government, while 26% expected their revenue to remain unchanged, according to the latest survey of Deliveroo. 

The survey, conducted from 30 September to 13 October, revealed a slight decline in business performance satisfaction, down from 6.4 in the second quarter to 5.4 in third quarter, out of 10 in total. Surveyed restaurants' predictions for the foreseeable future of the food and beverage industry were consistent, of which 37% said they were optimistic about the environment in Q4, up from 36% in the previous quarter.

Meanwhile, only 26% of restaurants saw an increase in revenue from dine-in business regardless of relaxed social distancing measures. Furthermore, 56% recorded a decrease in profit, with 30% saying it remained unchanged.

Despite Hong Kong's dine-in business growth remained stagnant in response to the epidemic rebound in Q3, restaurants have continued to hold a similar outlook for the food and beverage industry, with a slight increase of 39% to 41% when it comes to respondents who showed confidence. They expected their revenue in Q4 to increase with the “0+3” travel arrangement.

The study has also examined restaurant owners' attitudes towards laying off employees. 85% of respondents said they did not have plans to lay off in Q4. 48% even said they increased wages in Q3, with 46% offering a wage increase of 2% to 5%, while 39% claimed that the wage increase was between 5% and 10%. 15% of respondents even planned to open new branches in Q4.

In terms of cost pressure, labour costs (41%) were considered the biggest cost pressure by restaurants in Q3, followed by rent (37%) and food ingredients (22%). 44% of respondents said they hired more staff in Q3 as the food and beverage industry resumed its normal path under the relaxation of social distancing measures.

“As the city moves further down the road to recovery, we remain confident in the local F&B industry and are committed to meeting the growing appetite of hungry Hong Kongers by being available anytime and anywhere that our consumers want to order.” said Andrew Hui, general manager of Deliveroo Hong Kong.

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