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Coronavirus pandemic
Hong KongHealth & Environment

Hong Kong third wave: embattled restaurant sector faces HK$3 billion in July losses amid fresh Covid-19 restrictions

  • Despite discounts and takeaway options, local eateries experienced steep losses in week since ban on nighttime dining took effect
  • Some are cutting back on food orders and again asking staff to take unpaid leave

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Even offering discounts was unable to stop Hong Kong restaurant revenues from plummeting as new Covid-19 regulations banned dining in after 6pm from last Wednesday. Photo: May Tse
Kathleen Magramo
Hong Kong restaurants could lose as much as HK$3 billion (US$387 million) in revenue for July alone as unprecedented social-distancing arrangements made necessary by a third wave of Covid-19 cases deal a fresh blow to an already struggling sector, insiders have said.

Restaurant operators who spoke to the Post said takeaway and delivery services, along with steep discounts offered since a weeklong ban on nighttime dine-in services began last Wednesday, have failed to inject life into the sector, or offset lost revenue.

The ban and a rule capping customers to four per table were on Sunday extended until July 28, as the city’s number of confirmed coronavirus cases topped the entire tally for 2003’s Sars epidemic.
Hongkongers queue at a restaurant in Kwai Hing, amid a third wave of coronavirus infections that began in July. Photo: Nora Tam
Hongkongers queue at a restaurant in Kwai Hing, amid a third wave of coronavirus infections that began in July. Photo: Nora Tam

To date, more than 100 Hong Kong restaurants have been visited by people later confirmed to be infected with Covid-19, including Tao Heung in Mong Kok’s Grand Plaza and a Fairwood branch at Ping Shek Estate in Kwun Tong district.

Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, predicted the catering sector would lose HK$3 billion in revenue in July as a result of not being able to serve customers in the evening. Total restaurant receipts already plunged 31.2 per cent year on year in the first quarter of 2020, a loss of HK$21.67 billion.

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