“We have tried to adapt but our ability and resources are limited,” the owners said in an Instagram post. “We have spent 11 years here and there were a lot of gains and losses.”
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Ancient Moon restaurant in Hong Kong. Photo from Instagram/ancientmoon_hk |
They cited challenging external conditions and a desire to spend more time with their families as the primary reasons for the closure.
Their second venture in the city, “The Second Phase,” will remain open, they added.
The restaurant earned a Bib Gourmand designation in the 2024 Michelin Guide for Hong Kong and Macau, which highlights eateries providing “high-quality food for only HKD400 (US$50) or less.”
It joins a growing number of Hong Kong’s small businesses struggling amid shifting consumer habits, which have particularly impacted the restaurant industry, according to South China Morning Post.
Official data shows Hong Kong’s retail sales dropped for the 14th consecutive month in April, falling 2.3% year-on-year to HKD28.9 billion. For the first four months of 2025, retail sales declined by 5.6%.
This retail downturn is linked to Hongkongers increasingly spending in Shenzhen for more affordable goods and services or indulging in overseas travel, fueled by the strength of the Hong Kong dollar against currencies like the yen. Additionally, tourists visiting Hong Kong are opting for cultural experiences over luxury dining and shopping.
Popular restaurant operator King Parrot Group said earlier this month it has closed nine eateries, reportedly owing staff more than HKD1 million, having scaled down its operations in recent years.
The 33-year-old company, which operated over 20 restaurant brands at its peak, has notified staff of the immediate closure of the nine locations and paid outstanding wages on the spot, said Nerine Yip Lau-ching, general secretary of the Hotels, Food and Beverage Employees Association.
In February, Los Angeles-based sandwich chain Eggslut exited Hong Kong less than two years.
High commercial rents have also forced closures, such as Transformers: The Ark Restaurant, a hamburger and pizza venue that paid up to HK$1 million monthly in rent at Soundwill Plaza on Russell Street in Causeway Bay, one of the world’s priciest retail areas, before closing last year.
