Two weeks after Hong Kong began allowing dogs into permitted restaurants, more than 940 eateries have reported a range of reactions, with some outlets recording revenue growth while several are withdrawing from the program.

The pet-friendly dining scheme, outlined in the 2025 Policy Address and officially rolled out on July 9, targets Hong Kong’s 240,000 pet-owning households — which keep over 400,000 cats and dogs — to unlock new business opportunities for the catering sector.

“For the permitted venues, the effect can be quite visible. Some operators are already talking about a 20-25 percent increase in business, and a 10-20 percent uplift looks realistic for cafes and casual restaurants that actively court the pet crowd,” said Zhang Yifei, a senior lecturer at HKU Business School.

Jonathan Leung, a Legislative Council member for the Catering Functional Constituency, said that while some restaurants have seen their turnover double, owners’ adaptability to the scheme has varied widely.

“Some cafes have operated smoothly, whereas certain fast-food outlets and cha chaan tengs (Hong Kong-style diners) have encountered operational difficulties, with complaints from customers uneasy about sharing dining space with dogs. Traditional banquet restaurants, once considered unlikely to join the scheme, have performed strongly because their larger premises can accommodate private rooms and group bookings for dog owners,” Jonathan Leung said.

ALSO READ: HK welcomes paw pals in up to 1,000 restaurants

The program has also drawn mixed responses from dog owners. Aria Leung, a diner bringing her dog, Haku, to a pet-friendly restaurant, said: “Pet-friendly restaurants will gradually become part of everyday life, and I expect to spend more at such venues in the long term.”

By contrast, Nathan Choi, a dog owner, said he had chosen not to take his dog, Horlick, to restaurants to avoid conflicts with people who dislike dogs. “I was initially thrilled to have more dining options, but disputes and misunderstandings over dogs in eateries have arisen,” he said.

Such concerns reflect the challenge restaurants face in accommodating dog owners while maintaining a comfortable environment for other diners.

This plays out in lively and sometimes awkward scenes: in some eateries, dogs have barked and snarled at each other, while patrons uneasy around animals have moved to other tables.

READ MORE: Pets in HK: Spoilt or well cared for?

Albert Yuen Yuk-kin, director of the Food and Environmental Hygiene Department (FEHD), said that roughly 20 complaints regarding minor breaches were received in the first four days after the policy was implemented. As of July 16, two licensed restaurants received warning letters for repeated breaches involving cooking or heating food on dining tables.

Faced with operational challenges, several restaurants have decided to withdraw from the scheme. Taste of Asia Group Ltd, a local catering group operating several popular diner chains including Café 100%, announced on July 11 that it would apply to revoke dog-access permits for certain Café 100% branches, saying that allowing dogs inside may affect other customers’ dining experience due to limited space and seating layouts.

Despite the withdrawals, industry interest in the scheme remains strong, according to Jonathan Leung. “Around 20 restaurants have withdrawn from the scheme, yet many others are still queuing up to join,” he said, describing the changes as an inevitable market adjustment.

FEHD figures show that 2,205 restaurant applied for the first phase of dog-access permissions. Among 1,616 valid applications, a ballot picked 1,000 operators to fill the full quota. Waitlisted operators will fill vacancies left by restaurants that fail to complete the formalities or withdraw from the scheme, meaning the pool of permitted eateries remains fluid.

READ MORE: Up to 1,000 HK restaurants to welcome pet dogs from July

As permitted restaurants account for only about 5-6 percent of Hong Kong’s licensed restaurants, the scheme’s impact on the whole catering sector remains modest for now, Zhang said. “My back-of-envelope estimate is net new receipts in the order of HK$500 million ($63.78 million) to HK$1 billion a year, well under one percent of a sector that turned over HK$28.4 billion in the first quarter of 2026, or roughly HK$110 billion annually,” he explained.

Nevertheless, Zhang stressed that the scheme provides small and mid-sized operators a differentiation tool, with a permit fee costing just HK$140. To drive sustained growth under the scheme, he suggested building an ecosystem spanning transport links, pet-friendly shopping malls, parks, and hotels.

Some operators are experimenting with combinations of leisure venues and dog-friendly dining to extend consumption chains, with Ocean Park as one example. Three of its restaurants welcome dogs, and its Members’ Doggy Day has been extended from two days a week to five.

“Positive feedback has been received regarding the new dining arrangements,” said Ivan Wong, chief executive of Ocean Park Corporation. He added that the main attraction is that pet owners can tour the park and dine with their pets, rather than leaving them at home.

“I expect dog-friendly dining to move from novelty to a standard amenity segment within three to five years, with the quota expanded substantially,” Zhang forecasted.

Jonathan Leung also shared an optimistic outlook. “Many restaurants targeting dog owners will carry out tailored layouts and renovations, and the scheme is set to flourish further,” he said.

Contact the writer at charlottezhou@chinadailyhk.com