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.
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.
