Hong Kong restaurant chains Fulum, Tao Heung, Tsui Wah close outlets, cut timings in bid to contain coronavirus

As listed restaurant chains follow government measures to control the Covid-19 outbreak, it will only put further pressure on their bottom lines and dampen retail spending

The combined pressure from last year’s social unrest and China’s slowing economy affected the earnings of some of the listed restaurant chains last year

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Restaurants belonging to Fulum Group, such as the one above, will have to operate at half of its capacity for the next 14 days as the government takes stringent measures to curb the spread of the coronavirus outbreak. Photo: Handout

Published: 7:00am, 30 Mar 2020Updated: 9:42am, 30 Mar 2020

Fulum Group, one of Hong Kong’s largest restaurant chains, has joined other listed catering groups in suspending dinner service and shutting eateries temporarily in response to the government’s latest measures to control the spread of coronavirus.

“The group will make assessment on the coronavirus outbreak in determining the reopening,” chairman and chief executive Yeung Wai said on Sunday. Fulum said it would temporarily shut four of its restaurants and suspend evening operations at another eight for 14 days.

Tao Heung Holdings, which operates 48 restaurants in the city, said it would also suspend dinner service across all its restaurants for two weeks. Tsui Wah Holdings, which operates over 20 restaurants in Hong Kong, said it would bring forward its closing time from 11pm to 8pm from Sunday.

The steps taken by Fulum, Tao Heung and Tsui Wah are expected to put pressure on their flagging bottom lines and further dampen the city’s overall retail consumption appetite, already under strain from the anti-government protests during the second half of 2019.

A branch of Tao Heung restaurant in Mong Kok. Photo: Edmond So

On Saturday, the Hong Kong government implemented measures to halve the capacity of restaurants and shut cinemas and other leisure venues for 14 days, as the number of confirmed Covid-19 cases in the city nears 600. Hongkongers could face arrest if they breach a four-person limit on public gatherings imposed to curb the outbreak, officials warned.