Despite concerns regarding Hong Kong residents frequently traveling to Shenzhen for leisure, the city's food and beverage (F&B) sector has seen a significant uptick in physical expansion. According to data from property consultancy CBRE, F&B operators signed leases for 155,000 square feet of new floor space in the second quarter of 2024. This figure represents a record high for the sector and is more than double the 75,000 square feet recorded in the first quarter.

In total, the industry secured 230,000 square feet of new space during the first half of the year. While these figures suggest a robust appetite for expansion among restaurateurs, the broader retail landscape remains complex. Analysts have noted that the recovery in the city's retail sector is selective and narrow-based. This environment is forcing brands to adapt their strategies as they navigate the dual pressures of rising local competition and the shifting spending habits of residents who are increasingly drawn to the lower costs and variety offered in neighboring Shenzhen.