2nd October 2024 – (Hong Kong) As local restaurants shutter their doors, unable to weather the economic storm brought on by the pandemic and changing consumer habits, mainland Chinese eateries and beverage brands are rushing in to fill the void. This seismic shift in the city’s food and beverage landscape is not just altering the flavours on offer, but also redefining the very character of Hong Kong’s dining scene.
The transformation is perhaps most visible on Soy Street in the heart of Mong Kok, a thoroughfare that has earned the moniker “Lemon Tea Street” due to the proliferation of mainland Chinese tea shops. In a mere 100-metre stretch, nine tea shops have sprung up, with seven hailing from mainland China. Five of these specialise in hand-squeezed lemon tea, a trend that has taken the city by storm.
This concentration of mainland brands is not unique to Soy Street. Across Hong Kong, from Sha Tin to Tseung Kwan O, shopping malls are increasingly populated by familiar names from across the border. Tai Er, Tanyu, Teochew Bistro, Baheli Beef Hotpot, Mixue Ice Cream & Tea, and Nongenji Hunan Cuisine are just a few of the brands that have established footholds in these areas, leading some locals to dub them “Little Shenzhen.”
The influx of mainland eateries is not merely a matter of changing tastes, but a reflection of deeper demographic and economic shifts. As Hong Kong’s population evolves, with an increasing number of new residents from various regions of mainland China, the city’s culinary landscape is adapting to cater to these new palates and preferences. This demographic change is giving mainland brands a growing “voice” in Hong Kong’s F&B sector.
The rise of mainland eateries comes at a time when many local establishments are struggling to survive. Since last year, at least ten small shops or chain restaurants have closed their doors, unable to navigate the challenging economic climate. The contrast is stark: while local eateries fold, mainland brands are expanding aggressively, seemingly unfazed by the economic headwinds.
This dichotomy raises important questions about the future of Hong Kong’s culinary identity. As mainland brands gain ground, there are concerns that the city’s unique food culture, particularly its Cantonese cuisine, may be gradually displaced. The fear is not unfounded; the rapid expansion of mainland brands is reshaping entire neighbourhoods, with some areas becoming virtually indistinguishable from their counterparts across the border.
Take, for example, the case of Sha Tin’s New Town Plaza. A resident recently shared on social media that a visit to the mall felt like “a trip to Shenzhen.” The proliferation of mainland brands, selling products with a distinctly “mainland feel,” has created an environment that some Hongkongers find disconcertingly familiar yet foreign.
The economic dynamics driving this shift are complex. Many mainland brands entering the Hong Kong market are well-capitalised, often backed by listed companies with deep pockets. This financial muscle allows them to weather initial losses and pay premium rents that local small businesses simply cannot afford. As one property manager noted, “Some mainland brands can sustain operations for a year or even two to three months without profit, while local small brands often have to close shop within that timeframe.”
The concentration of mainland brands in certain areas is not merely coincidental. It’s a deliberate strategy, capitalising on the changing demographics of Hong Kong. Areas like Sha Tin, with its proximity to universities and status as a transportation hub, have become magnets for mainland students and young professionals. These “new Hongkongers” bring with them a taste for familiar flavours from home, creating a ready market for mainland brands.
However, the rapid expansion of mainland eateries is not without its critics. Some argue that the “herd mentality” of these brands, clustering in the same areas and offering similar products, is leading to vicious competition. There are concerns that this could lead to a race to the bottom in terms of quality and sustainability.
Moreover, the dominance of mainland brands in certain areas is raising questions about the preservation of Hong Kong’s unique culinary heritage. As local eateries struggle to compete, there are fears that traditional Cantonese cuisine and other local specialities may be pushed to the margins. This could have far-reaching implications for Hong Kong’s cultural identity, which has long been intertwined with its food culture.
Yet, it would be overly simplistic to view this trend solely as a threat. The influx of mainland brands is also bringing diversity to Hong Kong’s culinary landscape, introducing flavours and concepts that were previously underrepresented. From Hunan cuisine to speciality teas, these new entrants are expanding the palate of Hong Kong diners.
Furthermore, the competition from mainland brands may serve as a catalyst for innovation among local establishments. Those that can adapt and differentiate themselves may find new opportunities in this changing landscape. Some local restaurateurs are already rising to the challenge, updating traditional recipes or fusing Cantonese cuisine with contemporary trends to appeal to a new generation of diners.
The government, for its part, faces a delicate balancing act. On one hand, there’s a need to support local businesses and preserve Hong Kong’s culinary heritage. On the other, the city’s reputation as an open, international market must be maintained. Policies that overtly favour local businesses over mainland ones could be seen as protectionist and potentially harmful to Hong Kong’s status as a global financial centre.
Looking ahead, the future of Hong Kong’s F&B scene is likely to be one of hybridisation. While mainland brands may continue to gain market share, they will inevitably be influenced by local tastes and preferences. Similarly, local establishments that survive will likely incorporate elements that have made mainland brands successful.
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