Hong Kong’s F&B Sector Holds Positive Despite Economic Sway, Deliveroo’s Survey Unveils
Deliveroo has recently shed light on the current sentiment within the Hong Kong food and beverage industry through its Q3 2023 Restaurant Confidence Index. This comprehensive survey conducted in the first half of October pinpoints a cautiously optimistic pulse among local restaurants despite a turbulent economic climate.
Gauging the Business Pulse
Restaurants surveyed in the index maintained a positive stance on their overall business performance, scoring an average of 5.4 out of 10. An impressive 71% of participants indicated a satisfaction level of 5 or higher. However, this represents a dip from the previous quarter’s more buoyant 6.2, signaling the effects of a slower-than-anticipated economic rebound.
The Role of Delivery Platforms in Challenging Times
As we edge into the year’s final quarter, the sentiments about impending economic prospects are mixed. The index highlights a 65% majority bracing for diminished profits in Q3. Conversely, a resilient 26% of restaurateurs are considering expansion, including opening new venues, defying the downtrend.
Delivery services have emerged as a critical lifeline for the industry. According to the findings, food delivery platforms account for a significant share of revenue, ranging from 10-30% for half of the respondents. Notably, almost a fifth of the establishments acknowledged that takeaways constitute more than one-third of their income.
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The Stabilizing Workforce
The survey also touches on the once dire labor shortage. The issue seems to be abating, with 50% of the restaurants experiencing no shortage in Q3—an uptick from 37% in Q2. Over 70% are focusing on local hiring, despite the Enhanced Supplementary Labour Scheme launched by the government. This preference underlines a perceived improvement in the availability of local manpower.
Night Economy Initiatives Meet Caution
Despite initiatives to stimulate Hong Kong’s night economy, a substantial 90% of the restaurateurs are not planning to extend their operational hours, adopting a “wait and see” stance regarding these policies’ effectiveness.
Deliveroo: A Pillar of Support
Amidst these mixed signals, Deliveroo continues to assert its role as a vital partner to the F&B sector. “In light of current economic uncertainties, it’s significant that 83% of the restaurants we surveyed think food delivery is as important as ever, with some relying on food delivery to drive profits,” commented Nick Price, Deliveroo Hong Kong’s Interim General Manager. He further highlighted Deliveroo’s dedication through various supportive campaigns like the recent 8th-anniversary promotion to assist partners in attracting customers and bolstering revenue during challenging times.
About the Restaurant Confidence Index
Inaugurated in the autumn of 2019, the Restaurant Confidence Index is a pioneering survey among Deliveroo’s restaurant partners. It aims to identify trends and operational challenges within Hong Kong’s F&B landscape, allowing Deliveroo to swiftly offer innovative solutions to its partners, including tailored marketing and promotional efforts.
For detailed insights and the full report on the Restaurant Confidence Index, stay tuned to Marketing In Asia, where we continually bring exclusive stories and analyses that matter to the marketing and business community.
