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Alice Wu

The news of Ocean Empire, a 33-year-old congee restaurant chain, suddenly shutting down is not surprising. The catering industry has struggled mightily since Hong Kong reopened its borders after the worst of the Covid-19 pandemic, and many local restaurants have bitten the dust.
The disrupter of the century so far, the pandemic has permanently changed so much in our lives – and not just in terms of people falling ill. We can see the effects of Covid-19 in every closed shop and struggling business. We can also see the impact of the measures taken to fight the pandemic in the lingering effects of prolonged isolation and limited socialisation on schoolchildren.
Pandemic measures have changed our behaviour so much that Hongkongers are now eating out less. When the weekend arrives, people venture out to Shenzhen or other nearby mainland cities in search of better bargains and service.
“Revenge spending” – the surge of spending that arose after months of boredom and sheltering in tiny living spaces – has turned into a habit for some. And as nostalgic as some of us are for the “old” Hong Kong, far too many people continue to seek new experiences in new places.
Even after the intrigue and excitement of the new wears off, the easy access to the mainland and the many choices and better prices businesses there offer consumers make it difficult to win back customers and diners at home. That is why the news of so many local restaurants shutting shop is alarming but no longer surprising.


Has enough been done to reverse this trend? Our government has definitely tried with some expensive campaigns, starting with “Night Vibes Hong Kong”, in an effort to resuscitate the nightlife for which the city was once known. The pandemic choked off our nightlife and, after three years, we got accustomed to staying home.
Then Night Vibes turned into Day and Night Vibes across 18 districts. The government can’t be faulted for trying, but it appears that these campaigns were too little, too late.
In 2023, Chief Executive John Lee Ka-chiu chastised local businesses for exaggerating the impact of the weekend exodus and viewing it as “exporting consumption” when those leaving the city to shop on the mainland only accounted for about 3 per cent of Hong Kong’s population. He called on Hong Kong business owners to ask themselves why they were failing to convince the Hongkongers who remained in the city to spend here. Well, the answer to that is probably the struggling economy and waning consumer sentiment.
In almost the same breath, Lee lectured Hongkongers on the need for change as “change is the only constant”. This sounded rich when he said it then, and it still sounds rich today. People were screaming for change when everyone in the city had to stay put, but the government was painfully slow to act.


After delivering his 2024 policy address, however, Lee was no longer playing down the number of those going across the border. He said it was unrealistic to try to prevent Hongkongers from crossing the border on weekends to shop on the mainland, and urged retailers to adapt to the “structural change”.
Recovering from the pandemic has been a challenge for the catering industry. Staffing shortages have hit almost every industry in the city, but they have crippled operations in the catering industry, leading to further deterioration in service quality. Imported workers have helped ease these issues; mainland visitors to the city during the recent Labour Day “golden week” holiday noted improvements in the service they received.
The government has repeated calls for businesses to innovate in an era of change. Ocean Empire tried to promote a HK$10 (US$1.3) all-you-can-eat offering and sell instant soup packets, but that was not enough to turn the tide. Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, has pointed out that restaurants serving traditional Chinese cuisine have taken the worst hit from the pandemic and shifts in consumer behaviour.


These shifts mean those in the catering business must offer more than food or convenience to attract customers who are seeking a more memorable dining experience. You may have noticed the crowds inside convenience stores; many tourists and locals are opting for microwaveable quick meals.
With even McDonald’s reporting a second straight quarter of falling sales and its worst drop in US sales since 2020, it appears likely that consumer sentiment will continue to deteriorate. This means even greater challenges for the catering industry on top of rising costs of labour and rent.
Unfortunately, it is unlikely that the government can offer much help as it is struggling itself in these uncertain times. It seems more committed to looking outward than taking care of local businesses.


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The restaurant chain’s sudden collapse is emblematic of Hong Kong businesses’ struggle to find their feet after the pandemic


The restaurant chain’s sudden collapse is emblematic of Hong Kong businesses’ struggle to find their feet after the pandemic.


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Expresses the views, ideas and conclusions of the author. (Eg. Enough of Crazy Rich Asians, think of crazy poor Hongkongers.)


What a 33-year-old congee chain’s closure says about Hong Kong

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The restaurant chain’s sudden collapse is emblematic of Hong Kong businesses’ struggle to find their feet after the pandemic

The restaurant chain’s sudden collapse is emblematic of Hong Kong businesses’ struggle to find their feet after the pandemic