This article only represents the author's own views.
Hong Kong is famous for its rich dining culture, which has brought dishes like dim sum and chow mein to the rest of the world. But that same vibrant dining scene has less to smile about at home these days, hammered by a sluggish economy, depressed tourism and growing local consumer fondness for daytrips across the border to try newer options in nearby Shenzhen. Against such difficult odds, the city’s leading fast-food chain, Café de Coral Holdings Ltd. (0341.HK), said earlier this month it expects to report a hearty profit for its latest fiscal year through March, defying the odds partly by following its Hong Kong diners to the far larger Mainland China market. After several earlier false starts in different parts of China, the company is finding recent success closer to home in the South China’s Greater Bay Area, also known as the Pearl River Delta.
According to its announcement, Café de Coral expects to post a profit of about HK$330 million ($42 million) for its fiscal year that ended in March, triple the HK$110 million the previous year, which also included HK$40.9 million in government subsidies during the pandemic. The company’s stock surged 10% in the two days after the announcement.