Huang Jielong: The Hong Kong catering market is in a phase of elimination and must urgently transform

Several restaurants in Hong Kong have recently announced closures, attracting attention. Huang Jielong, Chairman and CEO of LH GROUP (01978.HK), stated in an exclusive interview with a newspaper that the Hong Kong dining market is in a "highly competitive elimination period," and believes that it is not suitable for expansion at this time, but transformation is urgently needed to avoid being eliminated.

Regarding the impact of Hong Kong residents' consumption in mainland China on the local dining industry, Huang Jielong mentioned that most Hong Kong residents still work locally, and the demand for daily meals remains. He also pointed out that the market is currently in a "highly competitive elimination period," where oversupply makes expansion unsuitable, and the entire market needs to undergo a certain degree of elimination to return to balance.

He further stated that consumption in mainland China has stabilized, and Hong Kong residents have formed a fixed frequency of visits to the mainland, believing that this stable frequency is beneficial for business planning as it provides certainty. He also believes that after experiencing cheaper dining options in the mainland, Hong Kong residents will develop a comparative mentality upon returning home, expecting local restaurants to offer better service and lower prices. The dining industry must transform; if it fails to do so in a timely manner, it will face elimination from the market