Hong Kong’s F&B industry is still suffering from the effects of COVID. We spoke to five F&B veterans to hear their views about what the government can do to increase employment
The bleak years of the early 2020s decimated the F&B industry in Hong Kong, thanks to health measures enforced at restaurants and bars to restrict the spread of COVID.
Rules for social distancing were placed tight on the F&B industry in a chokehold that forced hospitality workers out of jobs or to leave the city and hundreds of venues to shutter when 6PM curfews and table-seating limits stunted service.
Stroll down any street today and the city’s buzzing dining scene appears in a sustained hangover from the pandemic mayhem, with many former restaurants, cafés, and bars draped with “for rent” signs.
As the pandemic gripped Hong Kong, unemployment in the F&B industry rose to a record 15.2% in Q3 2020, a 350% increase on 2018’s figure. The year 2022’s unemployment figure for the industry stood at a grisly 7.9%, matching the overall unemployment rate during SARS-plagued 2003.
Hospitality leaders in Hong Kong paint a negative picture of the long-lasting impacts on the industry. Industry veterans are brashly optimistic in 2024, when the Hong Kong government’s hand might come into play to promote new visa rules and employment strategies.
Simon Wong, president of the Hong Kong Federation of Restaurants & Related Trades (HKFORT), represents a legion of members operating in the industry and has reported great difficulties in his members retaining qualified workers.
“Several factors, such as the physically demanding nature of F&B jobs, non-standard working hours, and the competitive job market in Hong Kong, affect this issue. This shortage impacts not only the day-to-day operations, but also the long-term growth and sustainability of our members’ businesses,” he states in an email interview.
Simon and HKFORT are eagerly working with shareholders and members “to improve working conditions, offer competitive benefits, and promote career advancement opportunities within the industry”.
Restaurant operators of restaurant groups have equally faced the brunt of a worker shortage, whilst experiencing competition locally.
Susanne Ching, managing director of LKF Concepts’ Western portfolio, is aware of her group’s pain point, with the “competition among restaurant groups in Hong Kong for top talent. The turnover rate in the hospitality industry can be quite challenging.”
When Chief Executive John Lee came to power in July 2022, his message to Hong Kong was to launch a revival of the city from the inside out, following the dark days of COVID. In October 2023, CE Lee delivered his 2023 Policy Address, confirming efforts “to trawl for and retain talents” from abroad.
The Hong Kong government immediately relaxed the visa policy for granting employment to Vietnamese workers and granting visas to Laotian and Nepalese talent to train, work, and study at Hong Kong’s eight public universities under the Quality Migrant Admission Scheme (QMAS).
Under the scheme, skilled and educated applicants are granted entry to Hong Kong with a successful application of a points test and by providing a skilled work and education history. Previously, Laos, Nepal, and Vietnam were grouped with Afghanistan, Cuba, and North Korea for ineligibility to the employment scheme.
“The QMAS provides an opportunity for talents to enter and work in Hong Kong with a simplified and expedited visa application process. It can attract new talent from countries across Asia and Southeast Asia,” says Susanne.
“[At LKF Concepts group], we continuously strive to create exciting opportunities for those abroad to gain tutelage under leading industry professionals and work at award-winning outlets under a long-standing global company.”
Attraction is key to working in the F&B industry, where long hours are a requirement and intense work environments a common fixture.
Dave Baswal, CEO of Ovolo Hotels, lays blame on the negative impact the pandemic has had on Hong Kong in terms of employment satisfaction and perceptions. “The pandemic made many people perceive the industry in a negative light. Less people were willing to commit to hotels and restaurants as the sole career path,” he says.
In 2022, the F&B industry stood at a 6.7% share of the employment market in Hong Kong, with 240,600 professionals working at restaurants and bars, a record loss of 35,000 workers since 2017.
With the industry experiencing record downfall in employment, a number of hospitality operators and restaurant managers are turning to new recruitment and retention strategies to render the hospitality industry a viable career path for workers.
“Labour shortages are a global concern, and our group is also facing worker-related challenges, particularly in roles that demand long hours, weekend availability, and exceptional guest services,” says Roberto Garrone, chief operating officer of Pirata Group.
“It’s no longer enough to offer ‘competitive compensation’. We offer succession planning, with semi-annual appraisal to guide our Pirates on their career pathways, development courses on management and leadership, recognition programmes like Pirate of the Month, and group health checks, such as quarterly well-being surveys and town-hall meetings, to foster employee satisfaction and loyalty.”
There is cause to be optimistic with the current landscape of the F&B industry. Hong Kong’s annual restaurant receipts, which demonstrate the total cap of purchases made at F&B venues, were an estimated HKD109.5 billion in 2023, just shy of the HKD119.6 billion accumulated in 2018 and HKD112.4 billion in 2019.
“Government and industry stakeholders must work together to create a welcoming environment that offers comprehensive support for foreign workers, including language training, cultural-integration programmes, and housing assistance,” says Simon.
“Streamlined visa processes should be maintained and the introduction of a special work permit for the hospitality sector to facilitate easier entry for qualified workers” is a view equally supported by Johnny Glover, founder of Steak King.
The key is authenticity, Johnny states. “When opening restaurants and cooking authentic international food, it is vital to employ native cooks to come to Hong Kong. The government should work with the industry to grant visas to speciality chefs and restaurant managers.”
Some F&B industry veterans expect the government to assist in inviting large groups of foreign workers to fix labour shortages in the sector, as was previously done in June 2023 in the construction and transport sector with the construction of Kai Tak Sports Park and SKYCITY.
Roberto suggests that the Hong Kong government should draw inspiration from Dubai, Abu Dhabi, Qatar, and Saudi Arabia to introduce non-skilled visa policies in order to facilitate recruitment in the F&B industry, whilst Dave sees the return of regional and global events in Hong Kong as key to increasing visitation and, in turn, impacting growth of the hospitality industry.
“We ought to recognise the value and contributions of foreign workers through incentives such as awards, scholarships, and grants that can further enhance Hong Kong’s reputation as a destination that values and supports talent from diverse backgrounds,” says Susanne.
“These incentives serve as tangible acknowledgements of their skills, dedication, and impact on the local hospitality industry, fostering a sense of belonging and appreciation in Hong Kong.”
