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News Release

Hong Kong

JLL launches a new service dedicated to F&B operators

F&B is booming amid the changing retail landscape in Hong Kong

HONG KONG, 1 December 2015 – JLL is pleased to announce the launch of its new, all-inclusive F&B service to cater to the ever-increasing and more sophisticated needs of the F&B operators who are interested in opening a restaurant in Hong Kong.  

JLL’s Head of Retail, Terence Chan, said, “We have formed a dedicated F&B team that is made up of experienced professionals to pioneer this specialist service to local operators, international restaurant groups and new-to-market entrepreneurs alike.  Apart from the traditional F&B agency services including site introduction, lease negotiation, location analysis, tenant representation and market entry strategy and analysis, we also provide project coordination services.  We will assist the clients in liaising with the interior designers, licensing consultants, contractors and maintenance vendors for set-up of their restaurants.”

In recent months, quite a lot of luxury brands were seen quitting spaces in the top-tier retail spots in Central, Causeway Bay and Tsimshatsui, or requesting landlords to reduce rents, due to the slowdown in tourist arrivals and the drop in luxury sales.  However, F&B operators have not been affected and have become more aggressive in setting up or expanding their outlets in Hong Kong.

According to the provisional figures released by the Census and Statistics Department in November, the value of total receipts of the restaurants sector in the first three quarters of 2015 was approximately HK$77.6 billion, up 4% y-o-y.  In fact, the value of restaurant receipts has been on an uptrend since 2009.  This shows that demand for F&B remains strong and explains why F&B operators are keen to set up their presence in the city.

Terence Chan remarked, “There have been an increasing number of F&B operators moving into the core retail locations.  In Central, for example, recently we successfully housed a more than 6,000-sq ft restaurant for Shanghai-based Michelin-starred Mercato Italian restarant in California Tower, and facilitated the lease of a 7,440-sq ft space with a unique rooftop for Beef Bar’s Hong Kong flagship in Club Lusitano.  In fact, the number of leasing deals that JLL concluded for F&B operators accounted for only 29% of the total number of retail leasing deals we handled in 2013 and the percentage increased to above 50% in 2015.”

A new trend of incorporating F&B elements into retail business was seen among the luxury fashion brands, including Frank Muller and Vivienne Westwood, as well as lifestyle concepts, with the latest opening of Mercedes Me, a collaboration between Mercedes Benz and Maximal Concepts.  “In view of the slowdown in the retail sector, traditional retailers are seeking new and innovative ways to attract more customers and F&B has been proved to be an effective element for enhancing customer flow,” said Chan.

“People in Hong Kong love dining out.  The diverse mix of customers, convenient local and international transportation for food logistics and close links to China make Hong Kong an ideal place for F&B operators to start or expand their businesses here.  We expect the F&B sector to continue to grow and we look forward to delivering the best solutions to our F&B clients,” concluded Chan.