According to Deliveroo’s Q3 2023 Restaurant Confidence Index, Hong Kong restaurants are increasingly depending on food delivery platforms to adapt to tough economic conditions.
The survey, carried out between October 2nd and 13th, indicates that 71% of the restaurants surveyed reported contentment with their overall business performance in Q3. This satisfaction comes despite a general decline in satisfaction levels attributed to a slower-than-anticipated economic recovery.
The study underscores the essential role food delivery platforms play in maintaining restaurant revenue.
Around 50% of survey participants noted that food delivery platforms account for 10% to 30% of their revenue, and nearly 20% stated that takeaway orders constitute over one-third of their earnings. Additionally, two-thirds of those surveyed anticipate food delivery to be as significant as dine-in for Q4, and 17% anticipate its importance to increase in the future.
The survey also identified a favorable shift in the labor shortage scenario, as 50% of restaurants reported no labor shortages in Q3, indicating an improvement from the previous quarter. Moreover, even with the government’s Enhanced Supplementary Labor Scheme in place, over 70% of restaurants continue to prioritize local hiring.
While government initiatives, like extended operating hours, are aimed at bolstering the night economy, more than 90% of the restaurants in the survey have chosen a cautious “wait and see” approach and do not plan to implement these changes. Additionally, there has been a decline in optimism regarding the economic outlook for Q4, with only 28% of respondents expressing optimism, compared to 49% in the previous quarter.
The report highlights that 83% of the restaurants included in the survey view food delivery as equally vital as before, recognizing its significance in boosting profits.