Panda-themed products could boost struggling restaurant sector, says industry veteran as receipts fall 2.1%
Hong Kong Free Press
Panda-themed meals could give Hong Kong’s struggling restaurant industry a leg up, an industry veteran has said, as he lamented the hundreds of restaurant closures over recent months.
Hong Kong Federation of Restaurants and Related Trades President Simon Wong told Metro Radio on Tuesday that the restaurant industry could ride on what has been dubbed a “panda economy” — a strategy floated by government officials after the city saw the birth of giant panda twins last week.
Hong Kong is also expecting a pair of adult pandas from mainland China to be delivered this National Day, on October 1.
Wong’s remarks came after official figures showed that the restaurant sector’s receipts for the second quarter of 2024 had decreased by 2.1 per cent in value compared to the previous year.
Wong on Tuesday said Hong Kong could become China’s “secondary” panda capital next to Chengdu, the “panda capital of the world,” with the catering sector taking advantage of panda-themed meals and milk tea to give the sector a boost.
The arrival of new pandas came shortly after Hong Kong brought home three medals at the 2024 Paris Olympics, giving a small bump in business to restaurants in shopping malls where people flocked to see the city’s athletes compete.
Senior vice-president of NGO People for the Ethical Treatment of Animals said in a statement to HKFP on Wednesday that captive pandas are often treated as commodities and may suffer loneliness and isolation: “Modern panda programs, similar to other animal gifting initiatives globally, have had mixed outcomes. While they have been successful in drawing visitors to zoos and supporting various conservation efforts, they have often been detrimental to the pandas themselves, who endure repeated invasive procedures, forced pregnancies, and the loss of their offspring.”
Struggling industry
Restaurants have still been shutting their doors by the hundreds, Wong said, estimating about 300 closures every month, with only about a hundred opening in their place. “The first quarter was quite bad, and the second even more so,” Wong said.
“Since April, many people have been travelling north to spend their cash, which has caused the overall business of the catering industry to be quiet,” he said, referring to a recent trend of Hongkongers heading to the mainland for lower costs.
On the trend of mainland Chinese food and beverage brands making inroads in Hong Kong as international eateries decline in number, Wong said brands from the mainland were hoping to go international by using Hong Kong as a stepping stone.
While entering the Hong Kong market might not necessarily be profitable, businesses stood a better chance at advertising their establishments, Wong added.
Official trademark data showed that more Chinese brands had entered the local market since 2019, while registration figures for Western ones showed a downward trend, local research NGO Liber Research Community said last week.
Figures released by the Census and Statistics Department showed that the restaurant sector’s receipts for the second quarter of 2024, at HK$26.9 billion, had decreased by 2.1 per cent in value compared to the previous year.
Total receipts for Chinese restaurants decreased by 7.3 per cent in value, while receipts at non-Chinese restaurants decreased by 3.0 per cent in value. Receipts for bars decreased by 6.7 per cent in value. Meanwhile, receipts at fast food shops increased by 7.9 per cent in value.
Hong Kong’s economy was impacted severely during the Covid-19 pandemic with the restaurant industry suffering from stringent social distancing measures. The city has also seen the enactment of two controversial security laws since 2019, and an exodus of residents, talent and international firms.
“Looking ahead, the business performance of restaurants should still face pressure in the near term,” the government statement read.
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