In the late 20th century, the Hong Kong government decided to restrict the operation and license of dai pai dong in order to remove them from public streets.

[9] As a valuable touchstone of Hong Kong heritage and culture, the word dai pai dong was recognized by the Oxford English Dictionary in March 2016.

[10] A dai pai dong is characterized by its green-painted steel kitchen, untidy atmosphere, the lack of air conditioning, as well as a variety of low priced great-wok hei dishes.

The stalls could be found not only in Central, but also in Wan Chai and the peripheries of Happy Valley Racecourse around Wong Nai Chung Road.

After World War II came to an end in 1945, the colonial Hong Kong government issued ad hoc licenses to families of deceased and injured civil servants, allowing them to operate food stalls in public and thereby earn a living.

However, dai pai dong soon became the cause of traffic congestion and hygiene problems, and some licensees even began to let out their stalls on the black market.

Since 1975, many dai pai dong have been moved into temporary markets, like the ones on Haiphong Road, Tsim Sha Tsui, or into cooked food centres, usually located in municipal services complexes managed by the Urban Council, for easier control.

It was reported that revenues of dai pai dong increased considerably in 2003 when Hong Kong was plagued by SARS; as people regarded air-conditioned places as hotbeds of the virus and patronised open-air and sun-lit stalls instead.