‘Survival of the fittest’: landlords give discounts to Five Guys, others amid retail slump

And with additional headwinds expected in 2025, they said, brands with international appeal or unique selling points are driving new demand for retail space in the city.

“The survival of the fittest will continue in the retail market,” said Cathie Chung, senior director of retail at JLL. “The fierce regional and local competition and the structural change of consumption patterns will delay the pace of retail sales and rental recovery to pre-Covid levels.”

“We find that landlords in Hong Kong are now starting to understand and to, shall we say, be a little bit more forgiving on rents,” said Iain Ross-Mackenzie, the vice-president for operations at Five Guys International.

The company, which was started by five brothers in the Washington DC area who wanted to avoid going to college, is looking to the New Territories as a potential venue for new openings next year, Ross-Mackenzie said. Hong Kong is the company’s Asia-Pacific base.