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Hong Kong economy
Hong KongHong Kong Economy

Summer slump bites hard for Hong Kong’s restaurants, as residents head across the border and mainland Chinese tourists cut back

  • Slow period exacerbated by residents crossing the border for a bargain and mainland Chinese tourists spending less, industry representatives say
  • Some operators report up to 50 per cent drop in business for the period over last year, with high-end restaurants particularly hard hit

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A restaurant in Central. Some eateries say business is down this summer, especially on the weekends. Photo: Elson Li
Laura Westbrook

Hong Kong’s food and catering sector is suffering a summer slump in business as locals head across the border and mainland Chinese tourists watch their spending, industry representatives have said.

“Business has been brutally quiet,” said Australian chef Shane Osborn, who runs three restaurants in the city, including the one-Michelin-starred Arcane.

Osborn said revenue was down about 40 per cent from normal summer trading.

“We’ve had days where we have done zero covers on a Saturday night, which is just unheard of. It’s never happened before in our nine years,” Osborn explained, referring to guests dining at Arcane.

Shane Osborn of Arcane says revenue is down about 40 per cent from normal summer trading. Photo: Edward Wong
Shane Osborn of Arcane says revenue is down about 40 per cent from normal summer trading. Photo: Edward Wong

More bad news emerged over the weekend when popular buffet restaurant La Scala, at the Royal Plaza Hotel in Mong Kok, announced it would close on August 28, shocking many diners. The company said it made the decision because of a change in corporate strategies and commercial considerations.

Industry figures told the Post that high-end restaurants in particular were suffering, with mainland tourists and the city’s bankers also spending less.

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