Hong Kong has long enjoyed a well-deserved reputation as a food lover’s paradise, with a rich variety of Chinese and international cuisines to suit different tastes. Like many industries, restaurants are also facing challenges brought by changing spending habits and competition. Innovation and adaptation are therefore essential.

According to research by the Legislative Council Secretariat, earnings for local Chinese restaurants in the first quarter suffered the sector’s steepest revenue contraction, dropping by 27.9 per cent from HK$13.44 billion (US$1.7 billion) in 2018 to HK$9.7 billion in 2026. The decline came against a 10.9 per cent rise in receipts for non-Chinese restaurants over the same period.

The number of Chinese restaurants also fell by 9 per cent between 2018 and 2025, with Guangdong cuisine ones hardest hit, dropping by 16 per cent. Herbal tea shops and local-style cafes also shrank by 28 per cent and 7 per cent respectively. However, Beijing, Shanghai and provincial-style eateries rose by 7 per cent. Overall, the number of restaurants fell by 1 per cent during the period, while the number of non-Chinese outlets rose by 2 per cent, with Japanese restaurants jumping 10 per cent to 1,500.

It does not necessarily mean Cantonese cuisine is losing flavour among the local community, but it underlines the need for traditional Chinese restaurants to keep up as preferences and offerings have diversified in recent years. Industry representatives say traditional Cantonese restaurants face demographic pressures as younger diners shift to trendy cafes, leaving banquet-style ones reliant on an ageing customer base. This is not helped by the post-pandemic trend of locals heading north for better value-for-money dining and entertainment experiences on the mainland.

It does not take a world-class chef to realise that even the finest traditional recipes have room for a modern twist. A restaurant cannot simply rest on its heritage and reputation to lure returning customers. The growing competition among local restaurants and those across the border makes adaptation a must rather than an option. The sector must preserve what makes Cantonese cuisine distinctive while refreshing how it is presented, priced and promoted.

Traditional Cantonese restaurants should therefore innovate without abandoning their identity. It is a pity that some have sought to cut costs by just reheating prepared dishes for serving at the dining table. A better strategy would be to refresh their menus regularly with a mix of classic dishes, lighter and healthier options and seasonal dishes prepared by their own kitchens. Stronger digital outreach and better service are also essential ingredients for survival.