HK will ban Alcohol Sales in Restaurants and Bars by legislation, as infected cases of Coronavirus spike and some patients have visited bars.
As Coronavirus cases spike, HK will ban alcohol sales in restaurants and bars. In other words, 8,555 eateries cannot sell alcohol to customers in Hong Kong soon.
In recent three days, there are 100 confirmed cases of virus infection in HK. Surprisingly, it’s more than the total sum in previous few weeks. And some of infected patients have visited fitness centres and bars.
Before the announcement of alcohol ban, some bars in Lan Kwai Fong have already cease operation. Also, more restaurants and bars are expected to shut down after stricter legislations are imposed.
How Bars Restaurants Hit by Ban of Liquor Sales?
According to Liquor Licence Board, there are 8,555 liquor licence holders in Hong Kong currently. 8,155 in commercial premises, whereas 400 in club premises.
Apparently, sales from alcohol constitute the major source of income for bars. We can’t imagine how a bar can survive if there is a ban of liquor sales. However, for restaurants, the impact will vary . For instance, revenue from wines for a high-end restaurant should be much more than a cafe.
Since this weekend, many bars have seen a drastic drop of customers. Among all areas, the drop is very significant in Lan Kwai Fong and Soho Central, especially after several confirmed cases have been visited the area.
Undoubtedly, ban on liquor sales has been a double whammy to Hong Kong bar industry. Some bars have just announced to close temporarily until further notice, such as Stockton.
What Restaurants Bars can do after ban on liquor sales?
In order to keep business afloat, some restaurants have gone more for food delivery and food take-out.
For example, Cali-mex in Lan Kwai Fong has ceased to serve sit-in customers. As on a notice: “Out of an abundance of caution with confirmed cases in the area, we are running this location as delivery only until further notice.”
Recently, food takeout and delivery are generally more than dine-in customers. However, government office workers started to work from home again today, food orders in office districts should drop accordingly.
What can Landlords help when Tenants are fighting for survival ?
Indeed, current situation is too unprecedented for all business owners to plan ahead. Not only in Hong Kong, but also around the globe.
Some F&B operators have already shut down their restaurants and bars. Whereas some have ceased operation until further notice. If situation is getting worse, they will close business for good.
As Lacrucci knows, many F&B shop tenants have asked for rental concessions. In general, the majority have got temporary rental cut ranging from 20% to 30%.
However, restaurants & bars are now facing the hardest time than ever before. Especially after ban of alcohol sales, many bars are reluctant but have to shut down very soon.
In this case, could landlords offer more assistance to their tenants, so that they can resume operation after the tide is over?
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