Had it not been for the coronavirus disease pandemic and social distancing rules, local fine dining restaurant operator S&S Hospitality would have never thought of offering cocktails in bottles for customers to consume at home, rather than at its bars, says managing director Sandip Gupta.
"We would have not thought of things like this in a normal scenario, because normally you would want your people to come to the bar and drink those cocktails," says the veteran food and beverage entrepreneur who had witnessed the SARS epidemic in Hong Kong 18 years ago.
Meanwhile, some restaurants under S&S Hospitality have also started to offer do-it-yourself kits, which allow customers to replicate dishes at home by following the instructions.
Hong Kong's catering industry is struggling from the pandemic devastation. Restaurant earnings slumped by a record 29.4 percent in 2020 from a year before, according to the Census and Statistics Department. Bars in Hong Kong have been closed for 123 days since November 26 at the government's request in the wake of the fourth wave of infections.
But on the bright side, the coronavirus disease has prompted the company to evolve and adapt, Gupta says.
"Coronavirus has helped us explore and experiment things so things that we would have not done previously has already been a part of the system. When things come back to normalcy, they will - of course not in the same magnitude - still be part of our system," he says.
Gupta set up S&S Hospitality in October 2020, which operates 10 boutique brands including restaurants such as Spiga and Fiamma with celebrity chefs like Enrico Bartolini, and bars such as Boticario and Dragonfly.
Before that, Gupta co-founded local restaurant group Life Concepts (8056) - previously known as Dining Concepts - in December 2002, three months before the SARS epidemic spread death and economic destruction.
Though S&S Hospitality has put more emphasis on takeaways and deliveries, they do not contribute a large proportion of revenue, Gupta says. "Something is better than nothing."
"Of course, a fine dining experience cannot be reflected in a takeaway because they are different experiences. It's all about the place, the service, and the experience," Gupta says.
"If it is a grill restaurant and someone orders a steak with a particular temperature, it is difficult to have that travel, reach the place and be the same as what you would do in a restaurant," Gupta says. "The moment it travels, it loses its authenticity."
On top of health and hygiene, consumers also need an "extra dose of love and affection," in turbulent times, Gupta says.
"It could be a small gesture of remembering a regular guest's name. It could be a small gesture of bringing a dish that the chef has just created for them to sample. It could be a quick dessert at the end of the meal.''
To stay afloat, it is also important to build a positive mindset, and control costs without compromising the efficiency and standards, Gupta says.
"There is not much you could do in these times because the catering business has taken a huge hit," he says.
To manage costs amid the pandemic, S&S Hospitality has been consolidating purchases, renegotiating with suppliers, and keeping operating equipment to a minimum, Gupta says.
But S&S Hospitality has not closed any restaurants or sacked employees, he says. "At the end of the day, it's the people that will help you get out of this situation."
Gupta says S&S Hospitality's suppliers are willing to offer favorable prices and more flexible credit terms, which help the company's cash flows, as his partnership with the suppliers has endured more than two decades.
Gupta says the major cost components of running a fine dining restaurant include wages, rentals, food and beverage costs, and utility bills.
S&S Hospitality had mixed success in rent negotiations with landlords, Gupta says.
"There have been landlords who we had long-term relations with and understand what we are going through, and they have been very accommodating. But again, there have been landlords who are not as reasonable," Gupta says.
Gupta believes the worst has passed for the catering industry and expects Hong Kong will regain normalcy quickly given the vaccine rollout. "There is definitely light at the end of the tunnel."
