‘Vicious circle' for Hong Kong restaurants: how many more on the chopping block?
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
26 minutes ago
- South China Morning Post
Is Japan's Osaka Expo failing? Visitor numbers disappoint at halfway mark
Halfway through its six-month run on an artificial island built atop a former landfill off the coast of Japan 's second city, the Osaka World Expo is falling short of organisers' expectations. More than 10 million people have visited the expo since its April opening – a symbolic milestone, but short of the pace required to reach the break-even threshold. Organisers estimate that 22 million visitors will be needed by the time the event closes in October for the expo to cover its costs. While the latest figures were touted as a sign of 'stable operations' by the top official overseeing the event, it's a far cry from the 28 million visitors that were projected in the lead-up to the opening. 'Every day recently we have welcomed more than 100,000 people to the expo,' Hiroyuki Ishige, secretary general of the Japan Association for the 2025 World Exposition, told reporters on Monday. Mascots and expo staff pose for a photo in front of the Japan Pavilion at the World Expo in Osaka on July 3. Photo: Kyodo Despite acknowledging the shortfall, Ishige was still upbeat, highlighting the 'attractive contents' of the expo's pavilions, which represent 158 countries and regions, as well as exhibitions from seven international organisations.
South China Morning Post
an hour ago
- South China Morning Post
Tech war: China approves Synopsys' acquisition of Ansys after US lifts EDA ban
China's antitrust regulator on Monday approved American chip design software giant Synopsys ' US$35 billion acquisition of Ansys, weeks after the administration of US President Donald Trump lifted export controls on electronic design automation (EDA) products to the mainland. The State Administration for Market Regulation (SAMR) said in a statement that it gave the green light to Synopsys' deal for Ansys, a computer-aided engineering software vendor, under the condition that the two firms honour their contractual obligations to Chinese clients. Synopsys and Ansys were also required not to terminate existing agreements or reject any Chinese customer's request to renew their contracts. The conditions set by SAMR reflect the importance of EDA technology to China's semiconductor industry, while sending a sign of easing bilateral tensions after Washington lifted export curbs on the software. The US Commerce Department's Bureau of Industry and Security lifted export controls on electronic design automation software sales to China earlier this month. Photo: Shutterstock
South China Morning Post
2 hours ago
- South China Morning Post
Global sovereign wealth funds increasing allocations to Chinese assets: Invesco
Global sovereign wealth funds are increasing their allocations to Chinese assets, betting on the country's prowess in digital technologies, renewable energy and advanced manufacturing to drive returns and hedge geopolitical risks, according to an Invesco study. Nearly 60 per cent of sovereign wealth funds said they planned to increase their investments in China over the next five years, higher than in 2024, the study revealed on Monday. The Invesco Global Sovereign Asset Management study was conducted between January and March, just before the US rolled out tariffs on its trading partners , including China. The study also coincided with global excitement over China's home-grown, cost-effective chatbot from DeepSeek Interest in Chinese assets was particularly pronounced among sovereign funds in Asia-Pacific and Africa, with 88 per cent and 80 per cent, respectively, expressing intentions to increase their investments. Around 73 per cent of North American funds, which are focused on long-term structural opportunities, showed a willingness to increase their exposure to China. The global funds cited several factors when justifying their increased China investments. Some 71 per cent identified strong returns made in China, 63 per cent said they wanted to diversify and 45 per cent cited increased market access for foreign investors. The most attractive sectors for investment in China were digital technology and software, advanced manufacturing and automation, and clean energy and green technology, the report said.
