[Rate reassessment of rental rates] Table-type beverage stores continue to occupy the epidemic in Mong District

Social News

Written by: Zhang Jiamin and Wang Jieen

2020-03-16 14:04

In recent years, the tabletop beverage store in Daxing has not retreated, and there are still many large and small brands in the downtown. "Hong Kong 01" toured Causeway Bay and Mong Kok districts at the beginning of the month and found that the tabletop beverage shop has a high rental capacity in Mong Kok District. There are 5 Taiwanese beverage shops of different brands on Jardine's Bazaar in Causeway Bay.

However, a person in charge of operating a tea shop in Mong Kok said that since November last year, the business volume of the store has fallen. Although the owners have reduced their rent after the outbreak, they can only reach a break-even point. They must be supported by other business income, and they must consider ending the business. In business, "I haven't made any money without returning to capital."

(No. 6 of Rate Revaluation Series in 2020)

In recent years, desktop beverage shops have become popular, and many shops have settled in Mong Kok. (Profile picture / Photo by Gao Zhongming)

The rental value of tabletop beverage shops increased by 4.8% to 44% last year. Among them, Dongxi Tea at Tang Lung Street in Causeway Bay and Tin Yan Tea at Fa Yuen Street in Mong Kok rose by 10% and 40% year-on-year respectively.

Taiwan tea shop rents record decline

However, according to the latest Ratings Valuation of the Rating and Valuation Department, the rise of table-top beverage stores is no longer there, with rental values ​​falling by as much as 4.3% to 15.1%. Among them, Ms. Yuanyuan, who is now Lee Garden Hill Road, has the highest decline, even Huayuan Street Tianren Tea, which soared 40% last year, also recorded a 4.3% decline.

Market conditions and rental values ​​have fallen, and many shops can only be forced to leave the venue or close their businesses, but the tea shop's rental capacity is still strong. The reporter visited Causeway Bay District and Mong Kok District in early March. The tabletop tea shop still occupied the downtown street. There are still tea shops in Dundas Street in Mong Kok, and more than 10 tea shops in Guanghua Street and Huayuan Street.

The market conditions have deteriorated, and many stores can only reduce prices or close their stores, but desktop beverage stores still continue to occupy multiple busy areas. (Photo by Huang Shuhui)

Mong Kok tea shop suffers double blow, lowest monthly income is only 80,000 yuan

At the tea shop "Huangcha" in Guanghua Street, the rental value of the next year is estimated to be 730,000 yuan. The person in charge, Jessica, said that the shop business has deteriorated since the anti-regulation campaign began. "For a long time, police cars have been parked and I have tried tear gas bombs near the department." She recalled that the monthly turnover was only about 80,000 yuan, which was just enough. Pay a monthly rent of 78,000 yuan. Fortunately, netizens have launched a "yellow economic circle", which has boosted business volume. However, the outbreak of the epidemic has worsened business. At present, only balance can be achieved.

The owner has reduced the rent by 50% and provided a 30% discount. The measure will be next month. She estimates that the owner may not reduce the rent again. Although she is considerate of the owner ’s practices, but due to the poor business, she once considered closing the business. No one has ever made any money. "Affected by the epidemic, many restaurants have opened up take-out markets. Jessica admits that due to manpower constraints, and the quality of take-out affects quality, there is no special development of take-out. Talking about the future, she couldn't help choking, frankly affected by the social situation, and had no intention to run another promotion, she just hoped to do her best to support it.

There are five tabletop tea shops in Jardine's Bazaar, and competition is fierce. (Photo by Zhang Jiamin)

Causeway Bay's highly competitive street connects 4 stores

As for Jardine's Bazaar in Causeway Bay, there are still 5 tabletop tea shops on the same street. Except the original Tiger Hall and Happy Weekend, the remaining 3 are new brands. Among them is the newly launched brand "Green Tea Extract" at 30 Jardine's Street. The store was formerly a pharmacy. According to the data of the Rating and Valuation Department, the shop is the same as the rates for the past three years, which is also $ 1.2 million. It has now fallen by 15% and the latest valuation is $ 1.02 million.

There are also four tea shops on another street in Causeway Bay and Lee Garden Hill Road. Several shops are more connected. In addition to the original three tea shops, there are also new shops opened by Taiwanese in Hong Kong to join the team. The shop originally It is a shop selling liquor. However, the Dongxi Tea Denglong Street branch, which has appreciated by nearly 10% last year, is now closed and has been taken over by Japanese restaurant 豊 胜 手 丼.

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Liyuanshan Street has a number of table-top beverage stores. (Photo by Zhang Jiamin)

Chain tea shops hope to increase business with takeaway

One of the "Mi Xia" stores is located at Liyuanshan Street. According to the data of the Bureau of Estimates, the latest rental value is estimated at 1.56 million yuan, which is a 15% drop from last year. Mr. Lin, the person in charge, said that the current rent is maintained at more than 100,000 yuan per month, and the business affected by the epidemic has slightly decreased by 20% to 30%. Fortunately, the owners are willing to reduce the rent by 20% to 30%. The balance of payments can still be maintained. He went on to say that the outbreak affected store expansion plans and frankly would not open any more stores in the short term. He also pointed out that he is currently working with food delivery platforms to launch publicity activities to deal with the epidemic.

Rating and Rating Agency