What are the best expansion strategies for F&B operators?
CBRE said operators should consider two areas.
F&B operators who wish to expand their operators must start looking into harbourfront and promenade areas, according to CBRE.
“Urban planning initiatives on both sides of Victoria Harbour will transform the city’s appearance and create potential locations for F&B operators,” CBRE said.
“Under the harbourfront promenade development plan, the promenade is currently at 25km long and will be extended to 34km by 2028, improving pedestrian walkability and public enjoyment around the area,” the expert added.
Apart from these areas, CBRE said operators eyeing expansion should consider shopping malls given that some landlords of high-street shops are now willing to provide attractive lease terms to entice F&B operators due to vacancy staying at over 10% since Q2 2020.
CBRE also advised F&B operators to consider shops on secondary streets just around the corner from retail hotspots to avoid higher rental costs and less tenure security on tier-1 locations.
Meanwhile, CBRE said new office developments emerging in commercial districts, can provide operators with more options outside traditional F&B districts.
“With high vacancy continuing to ensure Hong Kong remains a tenants’ market in the short term, F&B operators possess strong negotiating power. F&B operators could strategically look at emerging areas around New Central Harbour Front and West Kowloon Promenade, which are being revitalized by urban planning initiatives. Emerging office clusters in Cheung Sha Wan, Wong Chuk Hang, and the Kowloon East hub will provide significant opportunities for F&B,” said Jackie Wong, Associate Director of Advisory & Transaction Services – Retail, CBRE Hong Kong.