Thursday, June 27, 2013

Too Rich for McDonalds

Getting rid of the McRiff-raff

Russell Street in Hong Kong, the most expensive retail street in the world (see this blog’s June 11 entry) has claimed another high street casualty. This one is none other than the most successful restaurant chain in the world – McDonalds. After locating here since 2006, McDonald’s has decided that a tripling of rents to US$200,000 per month since their previous lease two years ago just doesn’t make sense. Having done the quick math, they’ve no doubt figured that they can’t sell Big Mac meals for US$2.70 at the rate of almost two per minute for every minute of the month, just to cover the rent. If nothing else, it would be a public health hazard for Hong Kong’s citizens.
The 6,000 square foot first floor space is going to a local cosmetics retailer, Sa Sa. While Sa Sa is popular among Hong Kong residents, it becomes one of the 24 out of 28 stores along Russell Street that is catered towards Mainland Chinese visitors. So, if the Mainlanders do indeed “shop till they drop” on Russell Street, it may be because they can’t find a cheap, caloric meal to sustain them.

No comments:

Post a Comment