SUKIYA Expands Across Hong Kong Island Despite Market Downturn
SingTao · 1 SOURCESabout 1 hour ago2 MIN
Summary
SUKIYA, the Japanese budget beef bowl chain, continues its aggressive Hong Kong expansion, now operating nearly 30 stores across the city after entering the market in late 2019. The company is capitalising on falling rents to establish footholds in core Hong Kong Island districts, recently securing prime locations in Sheung Wan and North Point. This expansion comes as vacancy rates remain elevated in central business districts, creating opportunities for well-capitalised restaurant chains to negotiate favourable lease terms.
Key Points
- SUKIYA took up a 3,612 sq ft shop at Fuk Life Financial Centre on Des Voeux Road Central, Sheung Wan, at HK$300,000 per month (HK$83 per sq ft)
- The Sheung Wan shop previously housed Maxim's MX, which paid HK$400,000 monthly at peak in 2015 before vacating in February after its lease expired
- The new SUKIYA rent represents a 25% discount compared to Maxim's peak rate a decade ago
- In May, SUKIYA signed a 4-year lease for a 2,800 sq ft shop in North Point's Ming Yuen Centre at HK$380,000 per month (HK$136 per sq ft), replacing Lukfook Jewellery which paid HK$360,000
- At the Sheung Wan location, SUKIYA would need to sell 400 bowls daily (12,000 monthly) at HK$25 each to cover rent alone
Why It Matters
The expansion signals a shift in Hong Kong's commercial property landscape, where persistent vacancies are forcing landlords to accept lower rents from new tenants. Core district vacancy rates—ranging from 6.19% in Wan Chai to 9.06% in Mong Kok—underscore the ongoing adjustment in retail leasing. SUKIYA's willingness to commit long-term leases during this adjustment period may indicate broader confidence in Hong Kong's dining-out sector despite economic headwinds.
The expansion signals a shift in Hong Kong's commercial property landscape, where persistent vacancies are forcing landlords to accept lower rents from new tenants. Core district vacancy rates—ranging from 6.19% in Wan Chai to 9.06% in Mong Kok—underscore the ongoing adjustment in retail leasing. SUKIYA's willingness to commit long-term leases during this adjustment period may indicate broader confidence in Hong Kong's dining-out sector despite economic headwinds.