Limited-Service Restaurants in Hong Kong, China

PROSPECTS

Sustainability and ethical conduct are a growing focus

Environmental concerns, as well as transparency and ethical conduct, continue to be an area of focus for limited-service restaurants in Hong Kong. Fairwood has, for example, been distributing its “Care for Seniors” cards, which are discount coupons for the elderly.

In-store technologies continue to be rolled out

In an increasingly fast-paced world, consumers are constantly looking for technologies and solutions that will make their lives easier. The deployment of in-store technologies in Hong Kong’s limited-service restaurants has been one such development.

Loyalty programmes remain key to retain customers

As with many types of retail outlet in Hong Kong, loyalty programmes remain a very popular means to drive repeat purchases in a crowded and competitive environment. For limited-service restaurants, these repeat customers are even more important, as restaurants are often seen as interchangeable.

COMPETITIVE LANDSCAPE

Chinese chains continue with expansion plans continue despite challenging environment

Despite a major drop in tourist arrivals in the second half of 2019, limited-service restaurants in Hong Kong demonstrated strong resilience, with the total number of outlets continuing to rise. Popular chains, such as Café de Coral and Mixian Sense, both part of Café de Coral Holdings Ltd, continued to open new outlets, thanks to the company’s focus on the customer journey, and heightened emphasis on customer service quality, cleanliness and ambience.

Multi-brand strategy remains key to success

In a highly competitive environment, relying on different brands with unique positionings has been an important factor in success. Tai Hing, one of the major Asian limited-service chains, currently operates nine brands and aims to continue to open others over the forecast period.

Major burger and chicken chains battle for customer loyalty

Burger and chicken chained restaurants are dominated by two major players in Hong Kong, McDonald's and KFC, respectively. As both chains are battling for a similar target audience, innovation and creative marketing were key in 2019 to capture attention and drive traffic.

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