French restaurant Picnic left Kennedy Town, while Thai restaurant Cafe Siam in the same location works well. Are Hong Kong high-end restaurants not working well in Kennedy Town?
Before Hong Kong Island MTR route extended to Kennedy Town by late 2015, celebrity chef Philippe Orrico debuted his first French restaurant in Kennedy Town called Picnic on Forbes.
High-end restaurant Picnic did not turn out so well in Kennedy Town and was taken over by Thai Restaurant Cafe Siam with a lease surrender about 6 months ago.
Lacrucci property arm was appointed to assist for the sale of Picnic to Cafe Siam.
Insufficient foodie traffic in Kennedy Town during weekdays
As far as Lacrucci knows, many Hong Kong F&B Groups have expanded from Central to Kennedy Town in the recent years and expected that the new MTR route to Kennedy Town would bring in more customers there.
F&B shop rents in Kennedy Town increased substantially since the extension plan of Hong Kong Island Line was confirmed. Some of the shop rental doubled in recent five years. Incredible!
Business did not go well for all F&B operators in Kennedy Town. The market was shared by more new comers when the number of restaurants has grown faster than number of new customers.
Up -to-date, the number of restaurants holding General Restaurant and Light Refreshment Licence in Kennedy Town has reached 98, which is about 70% of the number of restaurants in Sheung Wan, a more established foodie district in Hong Kong Island.
On weekends, Kennedy Town is no doubt a hip district for foodie customers to dine and chill out. During weekdays, foodie traffic is comparatively limited as compared with Central or Sheung Wan, though it’s only 3 to 4 MTR stations away.
Market winners go to right food price and cuisine
High-end restaurant Picnic left Kennedy Town and was once a surprise to the F&B industry. The Hong Kong F&B community started to doubt if Kennedy Town is a right place to expand or it has sufficient client base to support high-end restaurants.
Lacrucci has witnessed the F&B market changes in Kennedy Town. We trust that market winners always go to those F&B operators who can target the right market and operate in the right price and cuisine.
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