Changing courses

Just as fusion dishes are built on marrying flavours from some very different cuisines, mergers require the integration of companies whose cultures may be poles apart.

But achieving a successful balance is no easy matter. At Cafe Deco Group, one of Hong Kong's more established restaurant operators, managers have had to negotiate a rocky path since its merger with the listed Chevalier Pacific Holdings three years ago.

The marriage with Chevalier Pacific, which operates the Pacific Coffee chain along with outlets from its acquisition of the Igor's food and beverage business, produced a network of 35 outlets spread across Hong Kong, Macau, the mainland and Australia. Cafe Deco's operations have since seen something of a shake-up.

It has made several closures over the past year: Italian eatery Peccato and Southern American venue Bourbon, both on Elgin Street, have pulled down their shutters, as has Sakesan, a robatayaki grill and bar in SoHo, along with Eivissa lounge on Wyndham Street. La Bodega, a Spanish-themed venue, also shut a few months ago after eight years in Lan Kwai Fong.

But Cafe Deco has opened new outlets, too. Branches of Berliner, the group's German chain, emerged in Discovery Bay and Wan Chai late last year. Burger Box outlets sprang up at the Star Ferry pier in Central and in the World Trade Centre, in a space previously occupied by one of its Wildfire restaurants. The group is considering adding Burger Box branches, and a new concept venue may be rolled out this summer.

Some industry observers suggest the company is making a strategic shift from a portfolio of largely quirkier, boutique restaurants to one made up mainly of chain operations. Chains are generally more economical and easier to manage because operations are standardised, unlike boutique venues that require specialist staff. It also mirrors a trend in retail, where spaces in prime commercial districts are dominated by the rich chains.