The seven major catering business associations sent a letter to Li Jiachao to announce the closure and the wave of layoffs, hoping to ensure employment again

Seven catering business associations sent a letter to Chief Executive Li Jiachao stating that the business of the catering industry has been seriously affected due to the failure to relax the epidemic prevention measures. It is hoped that the government will push forward the employment guarantee plan so that the catering industry can survive the difficult period.

The Chamber of Commerce pointed out that the Mid-Autumn Festival to the end of the year has always been the peak season for the catering industry, but due to the global financial turmoil and the continued downturn of the local economy, the epidemic prevention measures have not been relaxed. Do not dare to go out to cancel family gatherings, etc., which seriously affects the business of the catering industry.

Mid-Autumn Festival restaurant night market business fell 30% year-on-year

The Chamber of Commerce pointed out that during the Mid-Autumn Festival, the business of many restaurants in the evening market was worse than expected, about 30% to 40% less than last year's Mid-Autumn Festival. Among them, the business of Chinese restaurants was about 50% to 60% lower, and some restaurants even had more waiters than customers.

This year's Mid-Autumn Festival business is not as ideal, and it is expected that the business situation in the second half of the year will tend to be pessimistic.

Citing government statistics, the chamber of commerce indicated that the revenue of restaurants in Hong Kong was about 22.026 billion yuan in the second quarter, down 8.6% from the same period last year.

In the first half of the year, restaurant revenue was 37.192 billion yuan, down 13.6% year-on-year.

Even if dine-in dining was relaxed in April, the epidemic situation still fluctuated, and now it is at its peak. It has not been able to resume business operations, and its consumption power is weak. The road to normalcy is long.

This year, the proportion of consumer vouchers issued to the catering industry is not as ideal as it was when it was first launched. It is believed that citizens are mostly used to buy daily household necessities.

It is expected that the wave of closings and layoffs will appear one after another

The latest data shows that the labor force in the catering industry has fallen below the 200,000 mark, a drop of more than 20% from the peak of 250,000 catering industry employees in 2018.

Even when the government launched the last phase of the employment protection plan, the unemployment rate in the restaurant industry was still 7% from May to July.

After the end of the employment guarantee plan in July and the end of the rent-free period in August, the landlord pursued the rent again. Without the support of the government, many catering companies could no longer afford it. One after another, time-honored brands and chain stores in the catering industry closed down. The current business environment of the catering industry Getting more serious.

In the absence of improvement in operating conditions, the catering industry will see a wave of closures and layoffs one after another.

The Catering Chamber of Commerce believes that the industry still needs support at present, so it suggests and urges the government to launch the employment guarantee plan again as soon as possible, so that the catering industry can endure the current difficult period, and at the same time, 190,000 catering industry employees and their families can maintain their livelihoods. The final chapter of the battle against the epidemic.

The Chamber of Commerce urges Your Excellency the Chief Executive to be sympathetic to the tragic situation of the catering industry, accept your opinions, and resolutely implement the new phase of the employment protection plan. The catering business must fight side by side with the government to overcome this epidemic together and aim for the result of economic recovery.

The seven catering business associations include: Modern Management (Catering) Professional Association, Hong Kong Catering Management Association, Hong Kong Federation of Catering Industry Association, Rice Seed Catering Professional Association, Hong Kong Japanese Food and Cuisine Industry Association, Hong Kong Catering Industry Federation, and Quality Tourism Service Association.

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