Will Coronavirus outbreak bring more hotpot restaurant closures?Many hotpot restaurants have shut down after HK protests. Is next closing spree soon coming?
As we are all aware, many restaurants in Hong Kong have closed down after months of protests. Apparently, hotpot restaurant closures are prevalent too. Further hit by Coronavirus spread, is next closing spree coming soon?
Meanwhile, people are avoid of going to crowded places. Hence the restaurant sales have substantially declined. Despite of Coronavirus safety measures, foodie traffic has slumped to record low.
As a matter of fact, Hong Kong is one of the highest density of restaurants in the world. F&B industry constitutes a key part of our economy. Unavoidably, Coronavirus outbreak will bring more gloomy days to Hong Kong restaurants.
How many Hotpot Restaurants in HK?
Notably, a number of hotpot restaurants have opened in Hong Kong in recent few years.
According to licensing authority, about 960 eateries are registered under the name of hotpot. However, This figure does not include those Chinese restaurants with seasonal hotpot menus.
In recent years, Chinese tourists have contributed more than half of total visitors to Hong Kong. As we know, Chinese people like hotpots so much. Roughly estimated, there is around 10% of restaurants in HK serving hotpots. Can’t we believe it?
Actually, where are these restaurants located in Hong Kong? How many?
- Mongkok (80)
- Tsim Sha Tsui (74)
- Yuen Long (73)
- Tsuen Wan (63)
- Causeway Bay (52)
- Kwun Tong (40)
- Tuen Mun (34)
- Sham Shui Po (33)
- Tai Po (30)
In fact, these restaurants are also the areas where Chinese tourists like to go.
Chained Hotpot Restaurants in HK
Due to growing popularity, many hotpot restaurants landed on Hong Kong in past few years. And some also incorporate extra services other than food.
For example, Haidilao (海底撈火鍋) provides manicure and children playroom. However, these services are no longer available after Coronavirus outbreak.
(1) Haidilao (海底撈火鍋)
Notably, Haidilao (海底撈火鍋) was the first hotpot restaurant to go listed in HK Stock Exchange. As mentioned above, it’s also famous for its extraordinary service.
Currently, they have 4 outlets in Hong Kong:
- Causeway Bay
- Tsim Sha Tsui
- Yau Ma Tei
- Tsuen Wan
However, its operation in China has temporarily closed amid of Coronavirus concerns. Though outlets in Hong Kong are still operating, recent worries of virus infection have affected its restaurant sales.
(2) Dai Hong Pao (大紅袍火鍋料理)
So far, Dai Hong Pao (大紅袍火鍋料理) has 4 branches in different districts in Hong Kong:
- North Point
- Tsim Sha Tsui
- Prince Edward
- Tsuen Wan
(3) The Drunken Pot (酒鍋)
Comparatively, this restaurant goes for higher end customers. Currently, it has set up two outlets in Hong Kong. One in Causeway Bay, whereas another one is in Tsim Sha Tsui.
Hotpot Restaurant Closures in HK
Obviously, restaurants count on income from food and beverage sales. As we witness, hotpot restaurants have suffered from the protests. In particular for those who are located in active protest districts.
For example, Yang Xian Din Hot Pot (養心殿台式養生鍋) have closed down 5 restaurants in Hong Kong. It happened shortly after the protests.
Likewise, a number of hotpot restaurants have shut down amid of protests. To name a few:
- Cooper Music Hotpot (Jordan)
- Soi Lou Weng Hot Pot (Causeway Bay)
- Gold Medal Seafood Hot Pot (Jordan)
- Dai Long Yi Hot Pot (Causeway Bay)
Apparently, we can see no end of Coronavirus spread at this moment. Most of us are probably staying at home instead of dining out.
Sadly, this change of dining behavior has adversely affected our F&B industry. To be frank, foodie traffic will remain low as long as the virus is still spreading.
Meanwhile, restaurant operators need to plan ahead fast. Hopefully, Landlords will work out feasible solutions with their F&B tenants in this tough time too.
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