Hong Kong restaurants hit rocky road in 2024, but analysts optimistic

But analysts said they were optimistic about the market outlook in 2025, expecting lower rents and increased consumption prompted by a multi-entry visa scheme for Shenzhen residents.

Brandy Ho Hon-ming, sales director of property agency Midland, said high expectations had fallen short after the reopening of the border between Hong Kong and mainland China as residents opted to splash out abroad and travellers spent less in the city, catching retailers and eateries off guard.

“The closure trend is especially noticeable in the food and drink industry, though new restaurants continued to open throughout the fourth quarter. Take Causeway Bay as an example, it is not as bustling as it used to be at night,” Ho said.

“If the daytime economy is thriving, the nighttime economy will be too. It’s all about the not-as-favourable overall business environment. The rental costs are relatively low, but there are other rising expenses such as food prices and manpower.”

In December, Dragon Palace Restaurant, a traditional Chinese eatery chain that had operated for 60 years and boasted five locations, marked the end of an era.