Food and Beverage Chains From China Struggle in Hong Kong Market

Some stores have been forced to close within a year, with analysts blaming tight profit margins in the sector, coupled with market oversaturation.

"Radish Southward," a Hunan cuisine food chain from China on the ground floor of Dundas Plaza in Mongkok, closed shop a few months after its opening at the end of 2023. The sign of Radish Southward is seen in the photo with its door closed, in Hong Kong on June 20, 2024. Kiri Choy/The Epoch Times

With the lifting of COVID restrictions, numerous mainland brand-name food and beverage chains entered the Hong Kong market, opening shops in busy districts. However, many of these brands have struggled to sustain their businesses, with several closing within a year of opening, including “LMM Hand Crashed Lemon Tea,” “Radish Southward,” and “GuluGulu.”

Analysts attribute these closures to tight profit margins in the food and beverage industry and market oversaturation, making it difficult for these brands to be absorbed quickly.