Mouthing Off | How can Hong Kong restaurants survive as Shenzhen draws diners away?


By now, itโ€™s clear that the Hong Kong restaurant industryโ€™s malaise is profound and structural.

The difference in food prices between mainland China and more expensive Hong Kong makes it impossible for the latter to compete in terms of value for money.

Right now, there is a dearth of useful suggestions from industry experts on how to make Hong Kong more competitive, except for vague recommendations about elevating the cityโ€™s offerings and improving the quality of service.

Let me tell you, the problem isnโ€™t bad service and boring menus.

A discount campaign banner at a restaurant. Hong Kong restaurants would have to knock a lot off their prices to compete with Shenzhenโ€™s in terms of value for money. Photo: Shutterstock
A discount campaign banner at a restaurant. Hong Kong restaurants would have to knock a lot off their prices to compete with Shenzhenโ€™s in terms of value for money. Photo: Shutterstock
There is no simple fix for what ails us. The sector is going to continue facing strong headwinds unless rampant inflation suddenly hits Shenzhen or Hong Kongโ€™s cost of living free falls โ€“ neither of which are good things in the view of most economists.

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