According to a new survey, Hong Kong’s restaurants may have undergone a massive change of heart. Following a large increase in order-out revenues, they now seemingly regard food delivery services as a crucial part of their business.
Deliveroo has conducted its first “Restaurant Satisfaction Index”, meant to uncover the challenges Hong Kong restaurants face and local F&B trends. Its key finding was that 70% of respondents believed food delivery services were very important to their continuing business.
Asked for the reasoning behind this, respondents said that changing customer demands were a major force as an on-demand digital landscape had resulted in more people expecting personalised, convenient, and immediate experiences in shopping, entertainment, and dining.
The survey also revealed that delivery revenue was increasing faster than dine-in revenue. In Q3, 32% of restaurants saw an increase in order-out revenue, as opposed to 18% that saw an increase in dine-in revenue. The study also revealed that a positive delivery experience will actually drive consumers to dine in at a restaurant.
“With Hong Kong’s food delivery segment growing rapidly and estimated to generate US$615 million in revenue in 2019, we expect that delivery will continue to be a strong driver for F&B business in Hong Kong,” said Brian Lo, general manager of Deliveroo Hong Kong.
However, the survey results do predict challenges ahead, such as a decrease in turnover and rising costs. The survey also found that in Q3, 55% of restaurants saw a turnover decrease, 44% experienced increasing labour costs, while another 57% saw operational costs go up.
But despite these challenges, half of the restaurants surveyed said that they were confident in Hong Kong’s F&B industry for Q4.
Lo recently spoke with Marketing – about the current state of the food delivery market in Hong Kong , its challenges, and its evolution – alongside representatives from Foodpanda and Uber Eats.