Lawmaker urges struggling eateries to ‘exit early’

Hong Kong lawmaker Tommy Cheung Yu-yan has issued a blunt warning to the city's struggling restaurants: "Don't cling on hopelessly - if you need to close, do it early."

The stark advice comes as Hong Kong's dining industry faces its worst crisis in years, with restaurants shuttering one after another.

The catering sector lawmaker and Executive Council member made the comments as new data reveals the food and beverage industry's unemployment rate remains stubbornly high at 6 percent - nearly double the city's overall 3.5 percent rate.

The latest casualties include traditional Chinese restaurants, cha chaan teng diners and dessert shops.

"The economic pie is only so big," Cheung told a newspaper interview published Monday. "When too many try to take a slice, nobody gets enough. This isn't the time for expansion - it's time for realism."

Meanwhile. Cheung dismissed claims that imported labor is stealing local jobs, arguing foreign workers have actually improved conditions by easing chronic staff shortages. 

"Frontline workers aren't exhausted from 'stirring three woks at once' anymore - they can finally smile while serving," said the lawmaker.

The comments come as Hong Kong's dining scene undergoes a dramatic transformation. 

Once-thriving eateries now face a perfect storm of soaring rents, changing consumer habits and fierce competition from neighboring Shenzhen. High-profile closures in recent months include both international brands and local favorites.

Cheung also took aim at labor groups opposing foreign worker policies, accusing them of "pouring fuel on fire" during the industry's crisis. He stressed that hiring foreign staff does not necessarily lower costs, which involves extra expenditure on accommodation subsidies and training levies.

(Marco Lam)