Hong Kong consumer spending improves, Tai Hing vice chairman says
Hong Kong's consumer market has improved this year with shoppers more willing to spend, though sharp growth is unlikely, Tai Hing's vice chairman said. The restaurant chain posted an 83 per cent rise in half-year profit and plans to resume openings next year.
Hong Kong's consumer market has clearly improved this year and local shoppers are more willing to spend, but overall spending across the market is unlikely to see sharp growth, Chan Shuk-fong, vice chairman and executive director of Tai Hing (6811), said in a Singtao interview.
Hong Kong's catering industry has faced headwinds from northbound consumption, yet the restaurant chain has bucked the trend with an 83 per cent rise in half-year profit to HK$74.88 million. It saw an 8.2 per cent rise in total revenue to HK$1.85 billion, and has declared an interim dividend of 6.2 HK cents per share, an increase of 77 per cent year-on-year.
Tai Hing's food and beverage brands positioned for the mass market benefit from low average check in the current environment. It will resume restaurant openings next year, but will not blindly pursue the number, Chan added.
She said catering is a traditional, people-focused business. Robots can help with operations, but the human touch and emotional value are irreplaceable. As some staff's families were scammed, the team is considering printing the police anti-scam mascot "The Little Grape" on coffee and drink cups. Customers can pick up anti-fraud tips while enjoying coffee, milk tea and other beverages on a daily basis.
Looking ahead, the company will adopt a prudent and pragmatic approach to expanding store network, strengthening overall business resilience and gaining a stronger foothold in the challenging market environment, it said.