2024-04-25 28Hse Editor
Tightening of gathering restrictions, a major blow to all-day banning
In response to the severe new crown pneumonia epidemic in Hong Kong, the government tomorrow (Wednesday) will further tighten the gathering limit to two people and ban all-day dining in restaurants, which will further hit the restaurant business. Yesterday, in an interview with a reporter, a shop owner said that as early as the third wave of the epidemic broke out in early July, the rent for tenants had been reduced by 10% to half immediately. He bluntly said, "Don’t help the tenants today. Die!" Another restaurant owner described the situation as a "disaster" in an interview with a reporter. In addition to expecting shop owners to reduce rents, they also expect the government to provide immediate financial support to prevent large-scale collapse of the catering and retail industry. ■reporter Liang Yueqin
The government has further tightened its anti-epidemic measures, and the catering and retail industry has even worsened the situation. Chief Executive Lam Cheng Yuet-ngor earlier this month called on the entire Hong Kong industry to reduce rents mainly for tenants hit by the epidemic. Li Genxing, founder and chief executive officer of Shenghui Store Fund Management Co., Ltd. admitted yesterday in an interview with a reporter that the situation is very serious this time. The company will meet today to study. He said that the company currently holds 14 shops. All tenants have requested rent reductions at the beginning of the third wave of fatigue in early July. The company also immediately reduced the rents of 13 shops in early July, 8 of which are restaurants. Five of them are retailers or other industries. The only tenant that has not received a rent reduction is a laundry shop, whose business has grown only because of the epidemic.
Li Genxing: rent reduction for 13 shops in 14 shops
Li Genxing said that in addition to the overall rent reduction for restaurant tenants, if they provide gift discounts, such as buy one get one free for takeaway, the extra gift will be subsidized by Shenghui, hoping to help them do more business and find new Of repeat customers, increase income in the long run. He believes that under the new epidemic prevention measures, the company mustAdditional subsidy discounts. For example, the tenant is Xiaochuanzhuang at G/F, No. 282, Queen's Road West, Xiying Real Estate. Currently, take-out Sichuan-flavored noodles after 6 pm will buy one get one free, and the discount should be extended to the whole day from tomorrow.
Even the subsidy part is reduced by half the rent
In the face of the raging third wave of the epidemic, in early July, Shenghui had reduced rents for its 13 shop tenants. He cited, for example, the Akune Ramen shop at 27A Ningbo Street, Jordan. The monthly rent was 93,000 yuan. In July, the rent was immediately reduced by 30% and a 10,000 HKD takeaway cash coupon was given; shop 116 (B1), Juelu Street, Xinpogang, Zeppelin The original monthly rent for hot dog shops was 19,200 yuan. The company decided to give out 1,000 hot dogs in the next few months. Buy one and get two free. The average price of each hot dog is 40 yuan. The company will pay the tenants at face value. The bubble tea shop at No. 88 (F), Ma Tau Wai Road, To Kwa Wan, originally rented 28,000 HKD a month. The latest rent has been reduced by 30%. It also subsidizes the buy-one-get-one discount on Deliveroo's takeaway platform. It hopes to attract more people to order takeout, which is equivalent to a reduction. The lease is 50%.
In addition to restaurants, retailers and even tenants of Chinese medicine clinics have reduced rent. Li Genxing pointed out that the tenants of shops 168 to 174 Tung Lo Wan Road (C) in Tin Hau were 7-11. The original monthly rent was 60,000 yuan. Since the opposite Queen's College has already had summer vacation, it was decided to reduce the rent by half to 30,000 yuan; The tenant's TCM clinic at Shop No. 1 (6) Fang Street originally had a monthly rent of 35,000 yuan. In July, the rent was reduced by 10%, and a 5,000 HKD TCM cash voucher was given out to help him attract new customers to help with TCM treatment. He said frankly: "Our rental income has fallen so badly! But there is no way. Today, we don't help the tenants, but everyone will live together and die!"
Working at home cooking at home, takeaway demand reduced
Li Genxing believes that the government will ban dine-in meals throughout the day from tomorrow and encourage employers to arrange for employees to work from home as much as possible. This has a great impact on the business of all restaurants. Because there is no dine-in, many people will take meals back to the office or work at home instead. Cooking at home, ordering take-out, and the flow of people on the street will also be greatly reduced, which has the greatest impact on shops above 500 feet. The current rental value depends entirely on the epidemic. If the epidemic is not under control, it is expected that the rental value in the core area will fall by as much as 40 to 50% before the end of the year, and the minsheng shops will also fall by 20 to 30%.
This round of new measures will also cause the prices of shops to fall. He believes that individual impatient property owners are expected to drop by more than 30% in the core area and 10 to 20% in the livelihood area. If it is a small shop, he pointed out that the tenants of the shops sell siu-mei, lo-mei, hot dogs, fried chicken, vegetable and meat stalls, etc., but business has increased. But if it is non-essential snacks, such as egg waffles, fish balls, bubble tea, ice cream shops, etc., the business will drop by at least half as the flow of people decreases.
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