Data Finds Hong Kong Restaurants Shutting Faster Than Opening

Restaurants in Hong Kong are closing at a faster pace than new ones are opening, marking the city’s first net decline in food and beverage establishments in six years, according to new research.

The reversal, based on figures from the Food and Environmental Hygiene Department, shows that 2,034 restaurants shut down in the 12 months through April, while only 1,779 new licenses were issued — a gap of 255. It’s the first time since 2018 that closures have outpaced openings, signaling a shift in the city’s once-thriving dining scene.

The overall number of licensed restaurants fell to 17,154 as of April, down from 17,409 a year earlier.

The net contraction comes as more Hongkongers travel across the border to Shenzhen, where food and beverage options are often cheaper and perceived as better value. The trend is reshaping local consumption patterns and hitting popular dining districts particularly hard. Most recently, Hong Kong’s 33-year-old congee chain has shut down all of its outlets.

The Yau Tsim area in Kowloon and the Central and Western district on Hong Kong Island saw the steepest declines, each losing a net 40 restaurants over the past year, according to South China Morning Post research.

“We attribute this decline partly to the increasing tendency of Hong Kong residents to travel northbound, particularly to Shenzhen,” said Cathie Chung, senior director of research at real estate firm JLL. “The geographical proximity and more diverse, cost-effective retail offerings in the regional market are drawing local consumers away from Hong Kong’s food and beverage scene.”

Chung also noted a shift in demand toward lighter, casual formats, with snack shops and fast-food outlets seeing stronger receipts.

The trend has become so pronounced that even Hong Kong’s leader acknowledged its inevitability. After his 2024 policy address, Chief Executive John Lee said it would be unrealistic to try to stop residents from traveling to the mainland for dining and shopping. Instead, he called on businesses to adapt to what he described as a “structural change.”

Despite the drop, there are silver lingings. The total number of restaurants in Hong Kong remains higher than pre-pandemic levels. In April 2019, there were 15,519 licensed restaurants, nearly 10% fewer than today.