Hong Kong’s Omicron restrictions could be the end of the road for many restaurants, say industry insiders
- Omicron measures further threaten Hong Kong’s battered catering sector, which is yet to recover from the losses of the past two years
- The HK$3.57 billion relief fund to help businesses affected by the social-distancing measures is not enough to ‘make up for losses’ or to ‘avoid lay-offs’, says Simon Wong of the Hong Kong Federation of Restaurants
Hong Kong’s battered catering industry, which braved through the initial storm after the city imposed stringent restrictions to contain the coronavirus pandemic, expects the latest measures to battle the Omicron variant could lead to a spate of closures.
While restaurant operators were trying to offset the loss from curbs imposed on their dine-in business by concentrating on food deliveries, this may not be enough as this has its own challenges, industry insiders said.
The new dining restrictions that came into effect on January 7 were an unwelcome surprise for Lan Kwai Fong Group, which had just experienced revenue growth in the final three months of 2021.
“We all thought that we were through the worst of it and were making up for the losses of the previous two years,” said Jonathan Zeman, CEO of LKF Group, the biggest bar and restaurants landlord in Hong Kong’s Central district. “Now, I really think, for a lot in the sector, this means the end.”
Following a local outbreak of the more transmissive Omicron coronavirus variant, Hong Kong reimposed tough anti-pandemic measures, including banning dine-in services after 6pm in restaurants and shutting bars altogether. The measures will be in place until at least January 20. The struggling catering sector expects losses of up to HK$8 billion (US$1.03 billion) as a result of the abrupt return of tough anti-pandemic restrictions.