Restaurant closures surge as Hong Kong faces spending slump

Hong Kong's catering industry is currently experiencing severe operational pressures due to an economic downturn, with business conditions reportedly deteriorating beyond those experienced during the pandemic, as stated by industry leaders.

Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants & Related Trades, mentioned on a local radio program that the weakening of local consumer spending and the increasing trend of residents spending in mainland China are posing significant challenges. Despite a rise in tourist numbers this year, Wong pointed out that they still fall 20 percent short of pre-pandemic levels, further exacerbated by a notable decrease in average visitor spending.

The industry's crisis has led to numerous closures. Lawmaker and chairman of the Federation of Hong Kong and Kowloon Labour Unions, Lam Chun-sing, noted the recent shutdowns of multiple chain restaurants, which have impacted hundreds of grassroots workers.

Lam voiced concerns over the potential negative effects on the re-employment opportunities for these displaced local workers due to employers applying for the foreign labour import scheme.

Kwok Wai-keung, a legislator from the Hong Kong Federation of Trade Unions, highlighted that the wave of closures poses a direct threat to the livelihoods of low-income employees.

He advocated for the industry to prioritize hiring affected local staff before resorting to importing foreign labor. Kwok also suggested the creation of a "suspension mechanism" that would halt the intake of foreign workers if local unemployment escalates significantly.