“We have tried to adapt but our ability and resources are limited,” the owners shared in a heartfelt Instagram post that captures both their frustration and resilience. After dedicating 11 years to cultivating their space, they are shutting the doors to Ancient Moon, a beloved restaurant in Hong Kong, as they prioritize spending more time with family amidst challenging external conditions. However, there’s a silver lining: their other establishment, “The Second Phase,” will continue to serve the community.
Recognition Amidst Adversity
Known for its culinary prowess, Ancient Moon was recently honored with a Bib Gourmand designation in the 2024 Michelin Guide for Hong Kong and Macau. This accolade celebrates eateries providing “high-quality food for only HKD400 (US$50) or less,” making it a standout choice for those seeking a delicious meal without breaking the bank.
However, Ancient Moon’s closure is part of a broader trend affecting many small businesses throughout Hong Kong’s restaurant scene. Shifting consumer habits have put significant pressure on local eateries, as noted by the South China Morning Post. The statistics are telling: Hong Kong’s retail sales dipped for the 14th month in a row as of April, sliding 2.3% year-on-year to HKD28.9 billion. The situation has deteriorated further, with retail sales down 5.6% in the first four months of 2025.
Consumer Trends Shift
This downturn is partially attributed to locals choosing to shop in Shenzhen for more affordable options or indulging in travel, spurred by the Hong Kong dollar’s strength against currencies like the yen. Additionally, the recent influx of tourists seems to favor cultural experiences rather than shelling out for upscale dining and luxury shopping.
The woes don’t stop at Ancient Moon. King Parrot Group, a popular restaurant operator, recently closed nine of its eateries, reportedly owing staff more than HKD1 million. This decision follows years of scaling back operations, marking a tough chapter for the once-thriving enterprise known for over 20 restaurant brands at its pinnacle. According to Nerine Yip Lau-ching, general secretary of the Hotels, Food and Beverage Employees Association, employees were informed of the closures and paid their outstanding wages immediately.
In a similar vein, Los Angeles-based sandwich chain Eggslut exited Hong Kong’s scene less than two years after its debut. The high cost of commercial rents has exacerbated the trend. Notable victims include Transformers: The Ark Restaurant, a hamburger and pizza venue that previously paid up to HKD1 million monthly in rent in Causeway Bay, one of the world’s most expensive retail hotspots, before shuttering last year.
With these developments, one can’t help but wonder: could the charm of local eateries bounce back amidst adversity? Only time will tell, but the culinary landscape continues to evolve.
Questions & Answers
What were the primary reasons for Ancient Moon’s closure?
The owners cited challenging external conditions and a desire to spend more time with their families.
What recognition did Ancient Moon receive before its closure?
The restaurant earned a Bib Gourmand designation in the 2024 Michelin Guide for Hong Kong and Macau.
How are consumer trends impacting the restaurant industry in Hong Kong?
Many locals are opting to shop in Shenzhen or travel overseas for better value, significantly affecting local restaurants, while tourists are leaning toward cultural experiences rather than luxury dining.
