Hong Kong’s Hongxing Cuisine Shuts Mong Kok Location

The Hongxing Chinese Cuisine restaurant in Mong Kok’s MOKO New Century Plaza abruptly closed, highlighting the challenges facing Hong Kong’s catering sector. Rising rents and changing consumer habits were cited as key factors.

Restaurant Cites Financial Pressures

According to a company notice, Hongxing Chinese Cuisine (also known as Hongxing Seafood Restaurant) stated that “Hong Kong’s catering industry has faced structural challenges in recent years, and the local consumer market is weak.” The notice further explained that the company’s efforts to boost revenue and cut costs were insufficient to overcome the “severe operating environment and continued high rents.” The restaurant also mentioned unsuccessful attempts to negotiate rent reductions with the landlord.

Employees Seek Assistance

Lao Lian, assisted by branch employees, went to the Mong Kok Labor Department to register. He Renqing, chairman of the Sino-Western Catering Industry Federation, reported that employees received notice of the closure the previous night. The union is assisting approximately 50 to 60 affected workers, with owed wages and severance payments estimated to total at least 2 million yuan.

As restaurant closures rise, the Hong Kong government is working to provide resources to help affected employees find new roles. According to the Labour Department, they offer a range of employment services, including job matching and skills upgrading programs (Labour Department, 2024).

Workers Express Shock and Disappointment

Ms. Liu, a long-time employee, recounted her experience: “I worked in the first Hongxing room, from the first to fourteen, and every fourteen is gone now, so it seems to be very bumpy. I transferred to this store and never left it for ten years. My whole youth has been given to Hongxing.” Another employee, Mr. Huang, expressed shock at the sudden closure, acknowledging the difficult environment for restaurants but emphasizing the company’s responsibility to provide advance notice. He noted that many staff members, some with over a decade of service, were dedicated to the restaurant.

Union Assistance for Affected Staff

The Federation of Labor and the Hong Kong Catering Industry Federation stated that they had not received prior notice of the closure. They are providing assistance to employees with wage arrears, expected to involve approximately 50 individuals. Around 20 employees from the Mong Kok branch are owed wages for the past one and a half months, in addition to outstanding annual leave and severance payments. The union also confirmed that the branch did not employ foreign workers.

Earlier Liquidation Rumors Denied

In May, rumors circulated on Facebook about the “Hongxing Food Group” entering voluntary liquidation, suggesting imminent closures of Hongxing Chinese Cuisine restaurants. However, the “Hongxing Group,” which operates Hongxing Seafood Restaurant, refuted these claims, assuring that the company would continue operations as usual and would “remain cautiously optimistic about all its catering business brands.” The Group also stated its intent to take legal action against those spreading unfavorable news.