When it comes to dim sum items, the figure goes up to over 90 per cent.

'The market position of Tao Heung is clear - we provide affordable Chinese food of good quality. To achieve this we have had to centralise and standardise food production.'

Another reason behind this strategy is concern over increasing labour costs. Last year, the ratio of labour costs to revenue was 27.5 per cent and the logistics centres - which employ 887 people - helped save on kitchen staff.

For example, Leung said, the number of staff at a 200,000 sq ft mainland restaurant was about 300 in 2003, before the construction of the Dongguan logistics centre, but had come down to 150 because of the kitchen work done at the centre.

Other automation efforts involved restaurant ticketing machines to replace manual work at tables, and in Hong Kong, the use of Octopus cards to make payments - something that saw Tao Heung staff lose over HK$10 million in tips per year, but nonetheless sped up waiting time per table and increased business, Leung said.

Waiters and waitresses were compensated for lost tip income with bonus payments.

Centralising food production was no easy task, Leung said. First there was a logistics nightmare, as there are over 100 food items on its menu which required meticulous production procedures, like cutting, mixing, marinating, cooking and freezing.

And then there was the calculation of shelf-life for the food ingredients and the mixing and matching of ingredients for different food items.

Most of the machinery was imported from Japan, where many of the production needs of Chinese cuisine were unheard of. This meant further research and development was needed from Tao Heung to modify and improve the technology.

But one of the biggest challenges was the resistance from kitchen staff, Leung noted, as the change in production mode warranted an overhaul of a kitchen regime traditionally dominated by the head chef.

An automated production line, Leung admitted, meant that the cooking skills of the head chef would no longer play as central a role as it did in a traditional business, but instead would require the head chef to demonstrate management skills related to safety, hygiene and logistics.

'Experienced chefs don't apply for Tao Heung,' Leung said. 'They know our management style is different. However, we are a good destination for young, energetic people who want to be cuisine professionals.

'With proper training, you can become a head chef in your 30s with Tao Heung. Such a young age would be unthinkable in old-school Chinese restaurants.'

The shortage of talent in kitchen management in the market has prompted Tao Heung to sponsor the Vocational Training Council to run a full-time college specialising in restaurant management.

The college, which is still pending government approval, will tentatively use the group's former food logistics centre at Fo Tan, which boasts over 20,000 sq ft of floor area.

Enrolment is targeted to commence next year.

The group plans to open five new restaurants on the mainland and up to six in Hong Kong this year. Revenue from Hong Kong operations rose 10.8 per cent year-on-year to HK$2.39 billion last year, whereas revenue from mainland operations jumped 20.6 per cent to HK$543.8 million.

But Leung said the Chinese restaurant industry in Hong Kong was going through a consolidation.

'It is now becoming more and more difficult to maintain a good profit margin because of rising labour costs, food costs, and rent.'