Political Economy in Restaurants: Evidence from Hong Kong’s 2019 Social Movement

Abstract

The impact of political polarization on economic activities has become increasingly relevant, with consumers choosing to buy or boycott products and services for political reasons. However, there has been limited research on how firms respond to this rising political activism of consumers. This paper examines the participation of Hong Kong restaurants in political activism during the 2019 social movement and explores the motivations behind their actions. Our findings suggest that restaurants strategically took an anti-establishment political stance by actively supporting the social movement to attract consumers in the anti-establishment camp. The study reveals that economic benefits, such as gaining customers from a specific political camp, played a significant role in motivating firms' engagement in political activism. Our case study of Hong Kong provides insights into the relationship between political polarization, consumer behavior, and firm responses that may be applicable to other cities around the world.