Hong Kong restaurants turn to food delivery amidst economic challenges
7 in 10 are satisfied with their business performance in Q3.
Hong Kong restaurants are adapting to challenging economic conditions by increasingly relying on food delivery platforms, according to the Q3 2023 Restaurant Confidence Index by Deliveroo.
The survey, conducted from 2 to 13 October reveals that 71% of surveyed restaurants expressed satisfaction with their overall business performance in Q3, despite an overall decrease in satisfaction levels due to a slower-than-expected economic recovery.
The study highlights the crucial role played by food delivery platforms in sustaining restaurant revenue.
Approximately 50% of respondents indicated that food delivery platforms contribute 10% to 30% of their revenue, with nearly 20% reporting that takeaway orders make up over one-third of their earnings. Furthermore, two-thirds of respondents expect food delivery to be equally important as dine-in for Q4, and 17% believe its importance will continue to grow in the future.
The survey also noted a positive trend in the labour shortage situation, with 50% of restaurants reporting no labour shortage in Q3, marking an improvement from the previous quarter. Despite the government's Enhanced Supplementary Labour Scheme, over 70% of restaurants prioritise local hiring.
Despite government initiatives aimed at boosting the night economy, such as extending operation hours, over 90% of the surveyed restaurants do not plan to do so, opting for a cautious "wait and see" approach. Optimism about the economic outlook for Q4 has also decreased, with only 28% of respondents feeling optimistic, compared to 49% in the previous quarter.
The report notes that 83% of surveyed restaurants consider food delivery to be as important as ever, given its role in driving profits.