As more Hong Kong restaurants close, landlords must cut rents
commercial rents may be a logical next step. A recent high-profile victim of the spiral was City'super's
Amazing Food Hall in the upscale Times Square shopping centre and office complex where the company opened its first flagship store in December 1996.
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The pricey yet popular venue was the company's final food court before it closed on June 30. City'super cited changing consumer patterns as a reason for the closure.
Struggling retailers have been told to reinvent their offerings so they can better compete, but it is increasingly clear that alone will not be enough.
Former Hong Kong leader Leung Chun-ying is among those
urging landlords to lower rents. He noted that the city's commercial property vacancy rate was at a 40-year high of 11.8 per cent at the end of 2024 and many building owners have loans tied to the valuation of their properties. But Leung said rather than let space sit vacant, landlords must 'face the reality' and procrastination would 'only make businesses dry up'.
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The Hong Kong Retail Management Association said landlords were generally willing to discuss lease renewals, but retailers find most offers insufficient. The Hong Kong Federation of Restaurants and Related Trades said some landlords had reduced rents, but operators still face much higher costs than their mainland counterparts.
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