Mouthing Off | How can Hong Kong restaurants survive as Shenzhen draws diners away?

With meals much cheaper across the border, Hong Kong’s restaurant industry needs to look beyond menus and service if it wants to compete

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People eat during lunchtime at Metropol Restaurant at the United Centre in Admiralty, Hong Kong. The restaurant has announced that it will close its doors on September 27, bringing to an end 35 years of operation. Photo: Jelly Tse

Published: 8:15am, 17 Jul 2025Updated: 9:02am, 18 Jul 2025

By now, it’s clear that the Hong Kong restaurant industry’s malaise is profound and structural.

The difference in food prices between mainland China and more expensive Hong Kong makes it impossible for the latter to compete in terms of value for money.

Right now, there is a dearth of useful suggestions from industry experts on how to make Hong Kong more competitive, except for vague recommendations about elevating the city’s offerings and improving the quality of service.

Let me tell you, the problem isn’t bad service and boring menus.

A discount campaign banner at a restaurant. Hong Kong restaurants would have to knock a lot off their prices to compete with Shenzhen’s in terms of value for money. Photo: Shutterstock

There is no simple fix for what ails us. The sector is going to continue facing strong headwinds unless rampant inflation suddenly hits Shenzhen or Hong Kong’s cost of living free falls – neither of which are good things in the view of most economists.

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