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‘Vicious circle' for Hong Kong restaurants: how many more on the chopping block?
‘Vicious circle' for Hong Kong restaurants: how many more on the chopping block?

South China Morning Post

time2 days ago

  • Business
  • South China Morning Post

‘Vicious circle' for Hong Kong restaurants: how many more on the chopping block?

Hong Kong's restaurant industry faces a bleak second half of the year as both low-cost and high-end operators succumb to the economic slowdown, sector leaders have warned, putting part of the blame on the trend of residents heading across the border to spend. Industry representatives gave their grim assessment on Sunday, just days after King Parrot Group announced it would close nine of its eateries, ending a 33-year run. The move has reportedly left over 100 staff out of pocket to the tune of more than HK$1 million (US$127,430), as concerns mounted that other restaurants would also close due to cash-flow pressures and the poor economic outlook. Chiu Kwun-chung, head of the Eating Establishment Employees General Union's labour rights committee, said the sector was facing rising levels of unemployment. 'From the struggles of affordable eateries such as Ocean Empire Food Shop to the collapse of higher-end, multi-cuisine groups such as King Parrot, Hong Kong's dining scene is caught in a vicious circle,' Chiu said. Two long-standing establishments, the 33-year-old congee chain Ocean Empire Food Shop and 44-year-old Daniel's Restaurant cha chaan teng chain, last month joined a growing list of closures.

33-year-old King Parrot Group shuts 9 restaurants in Hong Kong
33-year-old King Parrot Group shuts 9 restaurants in Hong Kong

South China Morning Post

time3 days ago

  • Business
  • South China Morning Post

33-year-old King Parrot Group shuts 9 restaurants in Hong Kong

The 33-year-old King Parrot Group, a well-known name in Hong Kong's restaurant industry, shut nine eateries on Friday, owing more than 100 staff over HK$1 million (US$127,440), according to a union. The group, which ran more than 20 restaurants at its peak, informed staff of its decision to close the nine outlets with immediate effect and paid outstanding wages on the spot, according to Nerine Yip Lau-ching, general secretary of the Hotels, Food and Beverage Employees Association. 'The employer only settled their outstanding wages for May and June without mentioning their other entitlements, such as one month pay in lieu of notice, the severance payment and their holiday pay,' she said. 'Over 100 employees, with a service length ranging from months to 15 years, have been seeking help from us. We estimate that they are owed over HK$1 million in unpaid wages. We call on the affected workers to come to us for assistance.' Hong Kong has been hit with a wave of shop closures due to residents heading north to spend. Last month, 33-year-old congee restaurant chain Ocean Empire Food Shop shut down, owing more than 100 staff wages in excess of HK$15 million. The Labour Department said it was 'very concerned' about the move by King Parrot Group and called for affected employees to seek its assistance, adding they could go to the branch office of the Labour Relations Division for inquiry.

Safeguard workers when businesses shut in Hong Kong
Safeguard workers when businesses shut in Hong Kong

South China Morning Post

time11-05-2025

  • Business
  • South China Morning Post

Safeguard workers when businesses shut in Hong Kong

It is sad but true that the weak economy and a changing business environment are pushing more restaurants and retailers to the brink. The stakes are even higher when businesses that shut their doors leave workers in limbo. The financial and social costs to the wider society can be overwhelming. Advertisement Take, as an example, the abrupt closure of the Ocean Empire Food Shop. It came as a surprise, not least because, at its peak, it operated more than 30 congee restaurants around Hong Kong. What makes the chain's closure even more shocking is the poor handling of the affected workers, who were told to make claims over wages, payment in lieu of notice, accrued annual leave and severance pay directly to the Labour Department. The department said it had received requests for help from more than 100 staff members seeking outstanding wages and related payments worth HK$15 million. The restaurant chain has also reportedly failed to pay workers their wages and make Mandatory Provident Fund contributions on time. Advertisement The restaurant owners said they had spent more than HK$30 million of their personal funds to stay afloat, amid accusations that they had been irresponsible by referring workers to the labour authorities to claim unpaid wages.

‘We tried our best': owners of failed Hong Kong congee chain break silence
‘We tried our best': owners of failed Hong Kong congee chain break silence

South China Morning Post

time10-05-2025

  • Business
  • South China Morning Post

‘We tried our best': owners of failed Hong Kong congee chain break silence

The owners of a Hong Kong congee restaurant chain that closed abruptly, leaving about 100 unpaid workers in limbo, have broken their silence, saying they made the difficult decision after selling their own property and enduring high interest loans in a bid to stay afloat, while pledging to strictly follow legal procedures. Advertisement The city's Labour minister said on Saturday that the government had been in touch with the company, the 33-year-old Ocean Empire Food Shop, as he sought to reassure workers that their wages would be largely recovered and paid within about three months. The owners' comments on Friday night followed mounting accusations that they had been ' irresponsible ' by referring workers to labour authorities to claim unpaid wages from a government fund. Founders Siu Chor-kee and Choi Wong-hoe said they sought to raise funds by selling their personal property, borrowing from others, using personal assets and enduring high interest loans to pay staff wages and cover operating expenses, but faced a sluggish economy and a worsening financial environment. 'Since the outbreak of the Covid-19 pandemic, we have used more than HK$30 million of personal funds to make up for the company's losses,' they said. Advertisement 'We have always tried our best and tried every means to save the company and its business. Unfortunately, due to the extremely severe operating environment, we have no choice but to end the business.'

Congee chain axings hard to swallow for staff
Congee chain axings hard to swallow for staff

RTHK

time09-05-2025

  • Business
  • RTHK

Congee chain axings hard to swallow for staff

Congee chain axings hard to swallow for staff The Eating Establishment Employees General Union organised a consultation meeting on Friday to give the axed Ocean Empire Food Shop workers clarity on their rights and offer assistance. Photo; RTHK Axed employees of Ocean Empire Food Shop are urging its owners to show up and address the issues of unpaid wages, pension and severance payments after the local congee restaurant chain closed all its outlets and ceased operations after 33 years in business earlier this week in one fell swoop. The Eating Establishment Employees General Union organised a consultation meeting on Friday afternoon to clarify any questions that the sacked staff may have about their rights and offer assistance. Among the ex-staff in attendance was Yau, who oversaw the restaurant chain's production line. She said the line had lost half its staff over the past three years. She said the company had been doing badly for quite some time, with suppliers visiting the office weeks before the closure asking for payments. 'Why are the owners doing this to workers who gave everything to Ocean Empire?' she spoke with raw feelings 'Many of us worked here for over 30 years and were not even given a few months of pension," Yau said amid complaints by some staff who said the company had deducted mandatory provident fund (MPF) contributions from salaries but had not paid them to the workers' schemes. "We have spent decades, the best years of our lives, serving the company, but the owners just disappeared irresponsibly.' Another former employee, Li, said her last month's salary and MPF payments are overdue. She said she was disappointed with Hong Kong's employment protections after coming from Guangdong to work here for just one year. The union's chief secretary, Wong Pit-man, said the union will work closely with the Labour Department on follow-up actions. Senior manager Jackie Lee from the Mandatory Provident Fund Schemes Authority also attended the meeting, and pledged to help workers recover the unpaid MPF contributions. He noted that the company has about HK$570,000 in overdue MPF contributions for all its staff between January and March. Also among those attending was Anthony Yau, vice-chairman of the Federation of Trade Unions, who said affected workers can also use the party's employment centre to find new jobs.

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