HONG KONG: Drawn by the sheer variety of cheap food and entertainment across the border, Hong Kong residents troop into Shenzhen when weekends and holidays roll around.
Since cross-border travel restrictions were lifted last year, the city has emptied out even more as soon as the work week ends.
The lack of footfall has greatly affected Hong Kong’s food and beverage (F&B) sector.
Businesses say they are struggling to stay afloat, with industry players estimating that about 200 restaurants are closing down each month.
“The growing trend of northbound consumption has greatly impacted our dine-in business, resulting in a decline in nighttime business of approximately 30 per cent,” said Mr Simon Wong, president of the Hong Kong Federation of Restaurants & Related Trades Limited.
“On an annual basis, about 2,000 restaurants have shut down. This is a substantial figure that cannot be overlooked.”
However, Chinese F&B firms are bucking the trend, with more setting up shop in the city – the first stop in their long-term strategy for global expansion.
THE “CHU HAI” MOVEMENT
Buoyed by its popularity with Hong Kongers in China, restaurant chain Nong Geng Ji opened four branches in the city in less than a year.
It is part of a “chu hai” movement, where Chinese companies move to break into a more lucrative market abroad.