However, the real attraction of Hong Kong’s F&B sector for new investors is now the delivery market, where revenues have increased not only because people opt for delivery instead of eating out, but also because of innovations in the business development process that enable new ventures to test the market via virtual branding, entering the market via delivery services that only rent kitchen premises, thereby bypassing the real estate barrier to business setup in Hong Kong. Virtual brands launched through Deliveroo have seen an 85% revenue increase in Hong Kong, even higher than the global average increase of 70%. Established dine-in restaurants, whether independently owned or franchised, also increasingly generate revenue from delivery. According to a UBS forecast, food delivery revenue could grow 20% a year with a worldwide value of US$365 billion over the next decade. Deliveroo currently provides relatively inexpensive shared kitchen space through its Editions program in Hong Kong, but more providers are expected to enter this market worldwide in the near future. Japanese conglomerate Softbank, for example, has acquired car park management companies with the intention of leveraging the space and software towards providing mobile kitchens to food delivery services. Even without going through a third-party service provider, renting a small kitchen space in Hong Kong is simple, inexpensive and flexible.

The landscape for restaurant businesses is likely to remain profitable in the future, despite recent difficulties, and the emergence of new business models in a less saturated marketplace (due to store closures and local demand for new dining options) could present a timely opportunity for those interested in exploring investments in Hong Kong restaurant businesses.