Up to 5,000 restaurants will collapse with loss of as many as 30,000 jobs if government does not lift night closure order

Between 3000 and 5000 restaurants will go bust in the next few months with the loss of 15,000 to 30,000 jobs if the Government does not relax its restrictions. This message comes to HONG KONG BUZZ from Tommy Cheung, Legislative Councillor for the catering sector. The biggest problem, killing restaurants, is the 6pm closure order. This wipes out about two thirds of each restaurant’s business, forcing owners to lay off staff or cut their hours.

One chain owner said he is working with other restaurateurs and trade groups to mount a legal challenge to the night-time closure order. “We are just in survival mode, “said another Sai Kung central square owner, a strained expression on his face. He has laid off staff and cut others’ hours. A director of a medium sized group said his board had written to shareholders warning that unless the Government relents their company can not survive much longer.

Two restaurateurs resident in Sai Kung have clubbed together to write a letter to the editor to be circulated to all major media. A draft of this letter has been sent to restaurateur friends and contacts in the district inviting them to co-sign. Here is the draft:

DRAFT LETTER TO THE EDITOR

Dear Sir/Madam

We restaurateurs call on the Government to allow evening dining. Because of the business-hours restriction, the hospitality sector is dying and there will be more defunct companies the longer this crisis goes on. By forbidding dining-in after 6pm the Government kills off about two thirds of our revenue. This is unsustainable. We’re in danger of going bust.

The Hon. Tommy Cheung, Legislative Councillor for catering, estimates 3000 to 5000 restaurants will collapse in the next few months if the Government doesn’t relax its restrictions with the loss of 15,000 to 30,000 jobs. All these losses suffered by staff and shareholders will leave bereft families who cannot pay the rent nor even in some cases buy food. Some people will become absolutely desperate. A few will contemplate suicide.

Directors of many major chains have been forced to write to their staff and shareholders warning their companies may fail if the virus crisis goes on and on.

What will kill us is the curfew imposed by Government preventing evening dining and costing us the bulk of our revenue. We call on the Government to drop this ban so more businesses do not die and more staff families are not reduced to penury and desperation. Social distancing we can do, but let us have normal opening hours.

Sincerely
     (Co-signors’ names withheld pending approval.)

Any restaurateur who would like to have his or her name appended to the above letter, may advise HONG KONG BUZZ by email to mail@hongkongbuzz.hk. We will then out you in contact with the organisers.