Can Hong Kong’s fine dining restaurants adapt to survive? It’s a Michelin-starred struggle as economy dips and tourists seek value

Thitid ‘Ton’ Tassanakajohn’s Niras is no more, while Agustin Balbi of Michelin-starred Andō and Hiroki Nakanoue at Sushiyoshi are reinventing to attract diners amid the economic woes

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The door to the now-shuttered Oz Terroirs wine bar in Sheung Wan. The F&B industry is battling high costs, low-spending tourists and a tepid economic climate. Many restaurants and bars are closing as a result. Photo: Douglas Parkes

Published: 9:15am, 8 Aug 2024Updated: 7:09pm, 16 Aug 2024

When Niras opened in Tsim Sha Tsui in June last year, it made local headlines. It was the first Hong Kong concept from celebrated chef Thitid “Ton” Tassanakajohn, the talent behind Bangkok’s Le Du, named Asia’s Best Restaurant 2023; and Nusara, which ranked third on the Asia’s 50 Best Restaurants list the same year. Despite the chef’s fame, praise for the food and widespread coverage in local and international media, Niras closed within a year.

Ton puts the failure down to “internal issues” with his local business partner, but he also says that the economy in Hong Kong is “not the best for fine dining establishments”.

“We saw a big drop in revenue from February,” he says. “Many people left Hong Kong and have not returned. Hong Kong just doesn’t have enough customers for all the fine dining restaurants.”

Happier times? Thitid “Ton” Tassanakajohn at Niras, his now-shuttered restaurant in K11 Musea in Tsim Sha Tsui. The superstar Thai chef has turned his attention to a new casual concept in Sha Tin. Photo: Jonathan Wong

Why are Hong Kong restaurants struggling?

Times are tough for Hong Kong’s restaurants. In April, Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, estimated that more than 700 venues had permanently closed in the previous few months. Just last month, American restaurant chain Outback Steakhouse announced it was closing nine restaurants – nearly half its presence in the city – and laying off 300 staff. “This decision is the culmination of a meticulous review process that considered current market conditions,” the company said in a statement.

The reopening of the border with the mainland is one major factor to have adversely affected Hong Kong’s dining scene. Locals tired of the city’s well-known F&B offerings have been keen to visit unfamiliar pastures in Shenzhen and Guangdong where prices are lower. Silas Li, the lauded chef behind Hong Kong Cuisine 1983 in Happy Valley, says he has seen a “gradual decline in our patronage by about 30 per cent” since the borders reopened post-pandemic.

Chef Agustin Balbi of Andō believes diners are “much more sensitive to price than before”. Photo: Handout

Although an open border means mainland tourists are back in Hong Kong, they have a “very low average daily spend”, according to chef Kenichi Fujimoto of Sushi Fujimoto.