HK Food Factory Licence number hits record high, exceed 10,000. Its increment is more than the growing number of restaurants. Why?
HK food factory licence number soared to 10,235 by late October 2021. It increased around 10% in the past 15 months. Notably, the increasing trend looks to continue in the near future.
According to government statistics, the number of HK restaurants has also reached record high to 16,862 at the same time. But the increment of food factory licence is far more than that of restaurant licence.
What are the reasons behind this trend in Hong Kong?
What Lead to the Increase of Food Factory?
More food delivery orders
Since the Covid-19 outbreak, many corporates have allowed their staff to work from home. Also, students need to stay at home. Consequently, it has induced a growing demand of food delivery orders from residential districts.
In view of increasing demand, some food operators have therefore expanded their outlets to non-commercial areas. By either setting up shops for takeaway, or food factories for delivery orders.
Demand on some food products
After Covid-19 outbreak, travelling overseas is less frequent. On the contrary, spending on some food products is more, such as cakes.
Owing to this, some F&B operators have set up central kitchens for those products with promising sales. For example, Black Sheep Restaurants has built a food factory for a cake brand, whereas Cupping Room has done the same for a cheesecake concept.
Rising sales of cooked food in supermarkets
Apparently, in-store food counters in supermarkets are nothing new in HK. But this trend is growing after Covid-19 outbreak.
As an example, “Great” in Pacific Place has enlarged its food counter area into a food hall. Likewise, “Wellcome” has just opened a mega market in Western District with in-store food street.
New entrees of cloud kitchens
In view of market uncertainty, new entrees in market would prefer to takeover existing food factory with licence for food production. As compared with a restaurant, operating a food factory would be less costly and risky.
Apparently, dining habits are totally turned upside down after the Covid-19 outbreak. F&B operators have to adjust their business models. Would the focus be more on delivery orders or seat-in sales? It’s not easy to have a straight answer.