Tai Hing to push ahead with expansion plan as interim growth helps offset impact from 12 weeks of street protests in Hong Kong

Tai Hing Group plans to open at least six new casual-dining restaurants this year in Hong Kong, as stronger interim earnings gave it the confidence to brush aside the impact from nearly three months of protest rallies in the city.

Sales rose 6.5 per cent to HK$1.6 billion (US$200 million) in the first half, while adjusted net profit after excluding one-off items climbed 10 per cent to HK$83 million.

“I remain optimistic and prudent about the second half of the year,” said the chain operator’s Chairman Chan Wing-on, during a press conference in Hong Kong. “We will monitor the business environment and the development of the social movement, but we are confident about our business.”

Hong Kong’s restaurants, shopping centres and banks are bearing the brunt of 12 weeks of street protests since early June, which have crimped retail sentiment and deterred visitors especially those from mainland China. Some hotels, including large brand names, have asked their non-essential staff to go on unpaid leave, as their occupancy rates plunged.

The downturn has hurt jobs, with the food and beverages industry reporting a “relatively notable increase” in Hong Kong’s unemployment rate, which rose by 0.1 percentage point to 2.9 per cent from May to July, according to government data.

Tai Hing, founded in 1989, operates more than 130 cafes and restaurants under nine brands all over Hong Kong, including the neighbourhoods of Yuen Long, Sham Shui Po and Causeway Bay where some of the clashes of the protest rallies have occurred. Sales in these locations have dipped by “single-digit” percentages, as fewer tourists and shoppers ventured out, while revenue rose in residential areas, Chan said. The chain’s flagship brand Tai Hing maintained a stable per-capita spending of between HK$60 and HK$70, company officials said.