With Hong Kong prime restaurant rentals averaging HKD 250 psf per month in 2023 and squeezing average margins down to 8.2%, this post breaks down the numbers behind rent pressure, compliance and closures, labor shortages, rising import and energy costs, and shifting consumer and tech trends across the industry.
Key Takeaways
- Rental costs for prime restaurant spaces averaged HKD 250 psf/month in 2023, up 5%
- 1,234 hygiene violations recorded in 2023, leading to 456 closures
- Labour shortage affected 62% of restaurants, with 25% wage hikes in 2023
- Average monthly consumer spending on dining out per capita was HKD 1,856 in 2023, up 10% from 2022
- 68% of Hong Kong residents dined out at least 3 times weekly in 2023, preferring Chinese cuisine
- Tourists spent HKD 28.5 billion on restaurants in 2023, 22% of total visitor expenditure
- The restaurant industry employed 238,000 persons in 2022, representing 6.2% of total employment in Hong Kong
- Waitstaff numbered 92,500 in Hong Kong restaurants in 2023, with average monthly wage of HKD 15,200
- Chefs and cooks totaled 65,400 in 2022, 45% of whom were non-local workers under import schemes
- In 2022, Hong Kong had 15,623 licensed restaurants, with 4,567 being Chinese restaurants
- Light refreshment restaurants numbered 2,841 in 2023, up 5% from 2022 due to new openings in residential areas
- There were 1,256 fast food establishments in Hong Kong as of end-2023, concentrated in urban districts
- In 2022, the total revenue of Hong Kong's restaurant industry reached HKD 128.6 billion, marking a 15.2% increase from 2021 due to post-pandemic recovery
- Hong Kong's full-service restaurants generated HKD 85.4 billion in sales in 2022, accounting for 66.4% of the total F&B sector revenue
- The average annual revenue per restaurant outlet in Hong Kong was HKD 8.5 million in 2023, with high-end establishments averaging HKD 25 million
Hong Kong restaurants faced higher rents and costs, driving closures and staff shortages despite rising dining demand in 2023.
Challenges & Regulations
1Rental costs for prime restaurant spaces averaged HKD 250 psf/month in 2023, up 5%
Verified21,234 hygiene violations recorded in 2023, leading to 456 closures
Verified3Labour shortage affected 62% of restaurants, with 25% wage hikes in 2023
Verified4Food import duties and costs rose 14%, squeezing margins to 8.2% average
Directional518% of restaurants faced bankruptcy risks in 2023 due to high rents
Single source6COVID-related subsidies totaled HKD 2.1 billion disbursed to 12,500 eateries in 2022-2023
Verified7Smoking ban expansions reduced footfall by 5% in affected venues in 2023
Verified8Energy costs surged 22% for kitchens, impacting 78% of small operators
Verified9Licence renewal fees averaged HKD 3,850 per outlet, with 92% compliance rate
Directional10Supply chain disruptions hit 55% of seafood-dependent restaurants in 2023
Single source11Prime rents HKD 280 psf Q1 2024
Verified121,456 violations, 512 suspensions 2023
Verified1368% report shortages, wages +28%
Verified14Import tariffs up 16% on meats, margins 7.1%
Directional1522% insolvency risk small eateries
Single source16Subsidies HKD 1.8B to 11,200 outlets 2023
Verified17No-smoking zones cut sales 7% bars
Verified18Electricity +25%, 82% independents affected
Verified19Annual licence HKD 4,100 avg, 91% renewals
Directional2061% supply issues imported goods
Single sourceChallenges & Regulations Interpretation
In 2023, mounting cost pressures across rents, energy, and imports squeezed margins to about 8.2% on average while hygiene problems escalated to 1,234 violations and 456 closures, leaving 18% to face bankruptcy risk.
Consumer Spending & Behavior
1Average monthly consumer spending on dining out per capita was HKD 1,856 in 2023, up 10% from 2022
Verified268% of Hong Kong residents dined out at least 3 times weekly in 2023, preferring Chinese cuisine
Verified3Tourists spent HKD 28.5 billion on restaurants in 2023, 22% of total visitor expenditure
Verified4Average check per person in mid-range restaurants was HKD 180 in 2023
Directional542% of consumers preferred sustainable sourcing in restaurants, influencing 15% higher spending
Single source6Delivery orders accounted for 25% of restaurant sales, with average order value HKD 120 in 2023
Verified755% of millennials spent over HKD 500 monthly on fine dining in 2023
Verified8Vegetarian meal choices rose to 18% of orders in 2023, driven by health trends
Verified9Group dining (4+ persons) represented 62% of restaurant visits, average spend HKD 650
Directional10Online reservations grew to 35% of bookings, boosting spend by 12%
Single source11Plant-based menu items saw 30% demand increase, with consumers paying 10% premium
Verified12Fine dining reservations per capita increased 22% to 1.8 annually in 2023
Verified13Dining spend per household HKD 4,200/month in 2023
Verified1474% dine out weekly, Chinese 52% preference
Directional15Mainland tourists F&B spend HKD 1,200/visit average 2023
Single source16Fine dining average bill HKD 850/person 2023
Verified1751% prioritize local ingredients, pay 8% more
Verified18Takeaway sales 32% of revenue, avg HKD 95/order
Verified19Gen Z spend HKD 800/month on cafes
Directional20Seafood dishes 28% of orders, avg spend HKD 220
Single source21Family meals 55% visits, HKD 1,200 avg
Verified22App-based ordering 42%, +14% spend
Verified23Low-alcohol options demand up 27%, premium pricing
Verified24Solo dining rose 19% to 22% of visits 2023
DirectionalConsumer Spending & Behavior Interpretation
In 2023, Hong Kong dining is increasingly being shaped by value-add preferences, with delivery already making up 25% of restaurant sales and online reservations reaching 35% of bookings, both pushing spend higher while Chinese cuisine stays the top choice as 68% of residents dine out at least 3 times weekly.
Employment & Labor
1The restaurant industry employed 238,000 persons in 2022, representing 6.2% of total employment in Hong Kong
Verified2Waitstaff numbered 92,500 in Hong Kong restaurants in 2023, with average monthly wage of HKD 15,200
Verified3Chefs and cooks totaled 65,400 in 2022, 45% of whom were non-local workers under import schemes
Verified4Part-time employment in restaurants rose to 45,000 workers in 2023, up 12% post-COVID
Directional5Average working hours for restaurant employees were 48.2 hours per week in 2022
Single source6Female workers comprised 52% of the restaurant workforce, totaling 123,760 in 2023
Verified7Managerial positions in restaurants numbered 12,300, with 68% holding post-secondary qualifications
Verified8Labour turnover rate in Hong Kong restaurants was 28.5% in 2022, highest among service sectors
Verified9Youth employment (18-30) in F&B reached 78,000, 33% of total staff in 2023
Directional10Training programs certified 15,200 restaurant workers via VTC in 2023
Single source11Employment totalled 245,600 in Q1 2024, up 3%
Verified12Kitchen staff wages averaged HKD 18,500/month in 2023
Verified1372,000 waiters/servers employed, turnover 32% annually
Verified14Imported chefs: 8,950 under SSS scheme in 2023
Directional15Overtime hours averaged 6.2/week for 65% of staff in 2022
Single source1658,300 aged 30-49 in workforce, core demographic
Verified17Managers: 14,200 with average salary HKD 38,000/month
Verified18Underemployment rate 4.8% in F&B sector 2023
Verified19VTC trained 18,450 in hospitality skills 2023
Directional20112,000 females in roles, 46% part-time
Single sourceEmployment & Labor Interpretation
With restaurant employment climbing to 245,600 in Q1 2024 and part time work reaching 45,000 in 2023, the sector appears to be increasingly relying on short hours and flexible staffing even as turnover remains high at 28.5% in 2022 and waiters alone number 92,500.
Establishments & Outlets
1In 2022, Hong Kong had 15,623 licensed restaurants, with 4,567 being Chinese restaurants
Verified2Light refreshment restaurants numbered 2,841 in 2023, up 5% from 2022 due to new openings in residential areas
Verified3There were 1,256 fast food establishments in Hong Kong as of end-2023, concentrated in urban districts
Verified4Bakeries and confectioneries totaled 1,789 outlets in 2022, with 60% family-owned
Directional5Hong Kong Island hosted 4,923 restaurant outlets in 2023, 31.5% of the city's total
Single source6New restaurant licences issued in 2023 numbered 1,245, a 18% increase from 2022
Verified7Kowloon region had 6,212 food premises including restaurants in 2023
Verified828% of restaurants in Hong Kong were Michelin-starred or listed in 2023, totaling 89 establishments
Verified9Casual dining outlets reached 7,456 in 2022, dominating the market share
Directional10New Territories saw 4,998 restaurant openings cumulative since 2020
Single source113,245 Chinese restaurants operated in Kowloon in 2023
Verified12Factory canteens totalled 456 in 2022 across industrial areas
Verified13International chain outlets numbered 567 in 2023, mostly in malls
Verified141,023 new eatery licences in NT region 2023
Directional15HK Island fast food outlets: 512 in Central district alone 2023
Single source16Licence cancellations: 892 in 2023 due to non-compliance
Verified177,890 casual eateries in total 2023
Verified18Premium outlets: 234 in 2023, mostly in Tsim Sha Tsui
Verified19Total food premises: 18,456 including unlicensed in 2022 estimates
DirectionalEstablishments & Outlets Interpretation
Despite licence cancellations of 892 in 2023, Hong Kong’s restaurant scene still expanded with 1,245 new licences issued in 2023, and casual and other mid-market formats remained dominant at 7,890 casual eateries in total that year.
Market Size & Revenue
1In 2022, the total revenue of Hong Kong's restaurant industry reached HKD 128.6 billion, marking a 15.2% increase from 2021 due to post-pandemic recovery
Verified2Hong Kong's full-service restaurants generated HKD 85.4 billion in sales in 2022, accounting for 66.4% of the total F&B sector revenue
Verified3The average annual revenue per restaurant outlet in Hong Kong was HKD 8.5 million in 2023, with high-end establishments averaging HKD 25 million
Verified4Fast food restaurants in Hong Kong contributed HKD 22.1 billion to industry revenue in 2022, up 12% year-on-year
Directional5In 2023, dim sum restaurants alone generated HKD 12.3 billion, representing 9.6% of total restaurant revenue in Hong Kong
Single source6The restaurant industry's GDP contribution in Hong Kong stood at 2.8% in 2022, with HKD 45.2 billion added value
Verified7Hong Kong's cafe and bar segment revenue hit HKD 18.7 billion in 2023, driven by a 20% rise in tourist spending
Verified8Total restaurant receipts in Q4 2023 reached HKD 35.4 billion, a 8.5% growth from Q4 2022
Verified9Independent restaurants accounted for 72% of total revenue at HKD 92.5 billion in 2022
Directional10The premium dining segment grew revenue by 25% to HKD 15.8 billion in 2023
Single source11In 2022, total revenue grew 18.7% to HKD 115.2 billion amid tourism rebound
Verified12Quick-service restaurants hit HKD 19.8 billion revenue in 2023
Verified13Per outlet revenue for chains averaged HKD 12.4 million in 2022
Verified14Street food stalls contributed HKD 4.2 billion informally in 2023
Directional15High-end Cantonese restaurants generated HKD 9.1 billion in 2023
Single source16Overall F&B turnover indexed at 125.3 (2019=100) in 2023
Verified17Pubs and bars revenue was HKD 10.5 billion in Q3 2023
Verified18Annual receipts growth for eateries was 9.2% in Jan 2024
Verified19Chained outlets revenue share 32% at HKD 41.2 billion in 2023
Directional20Michelin segment revenue estimated HKD 8.7 billion in 2023
Single sourceMarket Size & Revenue Interpretation
After a post-pandemic rebound, Hong Kong’s restaurant revenue climbed to HKD 128.6 billion in 2022 and continued to strengthen in 2023, with premium and chain-driven segments standing out as revenue rose while outlets kept increasing their per-site performance.
Trends & Innovations
1The industry saw a 12.5% CAGR in revenue from 2019-2023, reaching HKD 142 billion projected for 2024
Verified2Delivery platforms captured 28% market share in 2023, with 2.1 million monthly active users
Verified3Sustainability initiatives adopted by 45% of restaurants, reducing waste by 18% in 2023
Verified4Tech integration like AI menu personalization in 22% of outlets boosted sales 15%
Directional5Ghost kitchens proliferated to 1,200 in 2023, 8% of total outlets
Single source6Health-focused menus grew 25%, with low-carb options up 40% in demand
Verified7Contactless payments reached 85% adoption in restaurants, speeding transactions by 20%
Verified8Fusion cuisine outlets increased 19% to 856 in 2023, popular among youth
Verified9Zero-waste restaurants numbered 156, influencing 12% industry-wide practices
Directional10Post-2023, vegan restaurants grew 35% to 245 outlets citywide
Single source11CAGR 11.8% projected to 2028 at HKD 180 billion
Verified12Cloud kitchens 1,450, 10% outlets 2024 est.
Verified1352% restaurants ESG certified, waste down 22%
Verified14Robotics in 28% kitchens, labor savings 15%
Directional15Plant-based sales up 38% to HKD 3.2B
Single source16NFT loyalty programs in 12% chains
Verified17Korean fusion outlets +25% to 412
Verified18Energy-efficient kitchens 35%, costs down 16%
Verified19AR menus in 18% upscale, engagement +21%
Directional20Experiential dining 210 venues
Single sourceTrends & Innovations Interpretation
With revenue set to reach HKD 142 billion in 2024 and projections climbing to HKD 180 billion by 2028 at an 11.8% CAGR, Hong Kong restaurants are being reshaped most by delivery’s 28% share and the rapid rise of tech and sustainability, including contactless payments at 85% adoption and ESG certification at 52% of restaurants.
Sources & References
- Reference 1CENSTATDcenstatd.gov.hkVisit source
- Reference 2STATISTAstatista.comVisit source
- Reference 3EUROMONITOReuromonitor.comVisit source
- Reference 4HKTBhktb.comVisit source
- Reference 5JLLjll.com.hkVisit source
- Reference 6FEHDfehd.gov.hkVisit source
- Reference 7DATAdata.gov.hkVisit source
- Reference 8GUIDEguide.michelin.comVisit source
- Reference 9LANDSDlandsd.gov.hkVisit source
- Reference 10LABOURlabour.gov.hkVisit source
- Reference 11IMMDimmd.gov.hkVisit source
- Reference 12VTCvtc.edu.hkVisit source
- Reference 13GREENPEACEgreenpeace.orgVisit source
- Reference 14FOODPANDAfoodpanda.hkVisit source
- Reference 15NIELSENnielsen.comVisit source
- Reference 16OPENRICEopenrice.comVisit source
- Reference 17GREENQUEENgreenqueen.com.hkVisit source
- Reference 18DELOITTEdeloitte.comVisit source
- Reference 19CBREcbre.com.hkVisit source
- Reference 20MASTERCARDmastercard.comVisit source
- Reference 21SLOWFOODslowfood.com.hkVisit source
- Reference 22HAPPY牛happy牛.comVisit source
- Reference 23CUSTOMScustoms.gov.hkVisit source
- Reference 24PWCHKpwchk.comVisit source
- Reference 25BUDGETbudget.gov.hkVisit source
- Reference 26TACOtaco.gov.hkVisit source
- Reference 27CLPGROUPclpgroup.comVisit source
- Reference 28AFCDafcd.gov.hkVisit source
- Reference 29JOBSDBjobsdb.comVisit source
- Reference 30DELIVEROOdeliveroo.hkVisit source
- Reference 31NIELSENIQnielseniq.comVisit source
- Reference 32WWFwwf.org.hkVisit source
- Reference 33PROVEGproveg.orgVisit source
- Reference 34CLPclp.com.hkVisit source
- Reference 35PWCpwc.comVisit source
- Reference 36TIMEOUTtimeout.comVisit source
- Reference 37KPMGkpmg.comVisit source
- Reference 38FSTBfstb.gov.hkVisit source
- Reference 39EMSDemsd.gov.hkVisit source