Hong Kong’s dining scene rebirth: The “Phoenix Effect”

I'm a huge Foodie fan, and recently Rubin Verebes , managing editor of online magazine Foodie, wrote an editorial bemoaning the lack of attention paid to established restaurants unless they were closing, when the news is met with dismay.

In contrast, new restaurants are opening at a rapid clip and gaining the spotlight, many featured in Foodie itself.

About the old favorites, he wrote:

Restaurants that have survived pandemics, financial crashes, and protests warrant your patronage. They have become picked [sic] in history and a part of the street, neighbourhood, and city.?Bo Innovation ?has continued a mission set out 20 years ago to innovate on fine dining Chinese cuisine, so too the 18-year-old Sichuanese restaurant?Chilli Fagara .?The Peak Lookout ?has been serving diners since 2001. Top cha chaan teng?Mido Cafe ?saw its establishment in 1950. The local history of Hong Kong’s veteran?Tai Ping Koon ?dates back to 1938. Hong Kong’s first French restaurant?Gaddi’s ?was founded in 1953. The top dai pai dong?Oi Man Sing ?opened three years later in 1956.?Gaylord Indian Restaurant ?has been open since 1972.?

I totally agree with Rubin that the established favorites should be given more love, but there’s an interesting silver lining behind the news: many old favorites are actually not going away, just reborn in new premises, presumably with new landlords and most importantly, lower rents.

This is great news for foodies, since Hong Kong's famously sky-high rents have always meant that restaurants' operating margins are razor-thin, especially towards the mid to low end of the market. It’s hard to give your diners the best ingredients and experience possible when more than one third of your revenue goes to pay landlords.

New premises in a down market mean new leases, in some cases more than 20-30% lower rents. That’s a lot more room for ambitious chefs to play with. Diners benefit. ?

For example, here are some few recent headlines since 1 September:

• Bib Gourmand winner Ship Kee moved to a bigger space in Wanchai
• WATERMARK reopened at Pier 7 in Central
• Renowned Spanish tapas restaurant 22Ships moved to PMQ
• Matt Abergel's Ronin is closing but reopening with a new concept near YardBird
• Little Napoli Pizzeria is moving to Wanchai later this year after four years in Happy Valley
• Soho bar Shady Acres closed on 1 October, but will reopen as a new wine bar concept at the end of October
• Popular Taiwanese eatery What to Eat reopened as Art & Taste with new look, same menu
• LPM Restaurant & Bar reopened with new French-inspired interior and Mediterranean plates

I had to stop at 1 September, there were just too many. Not to mention all the NEW restaurants that are opening as well.

It’s not widely known but restaurants did not close en masse during the tough Covid years. According to CBRE, the number of licensed Hong Kong restaurants grew 3.9 per cent to 17,200 from 2020 through October 2022, slightly faster than the 3.8 per cent growth recorded from 2017 through 2019. The post-Covid surge in overseas and China travel has led to a correction, but signs are positive that closures have bottomed out.

The economic dynamics of lowered rents and renewed leases are creating fertile ground for culinary innovation and enhanced dining experiences, without the cost pressure previously imposed by exorbitant rents. This new evolution of Hong Kong's restaurant industry could potentially lead to a more diverse and experimental culinary scene, where chefs and restaurateurs can afford to prioritize quality and creativity over mere survival.

As diners, it's an exciting time to reengage with old favorites in new venues, and explore the new flavors they bring to the table in their rejuvenated forms. I will enjoy reading about their rebirths in Foodie.

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