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Hong Kong heritage businesses pivot as costs rise and tourists cut spending
One restaurateur said its original model lost money while it shifted to a modern bistro format that helped the business reach break-even.
Hong Kong heritage brands and long-running family businesses are leaning on new formats and growth strategies to navigate tougher demand and higher costs, according to an Entrepreneurs' Organisation Hong Kong interview covered by SCMP Economy. The article highlights second- and third-generation leaders at Yung Kee, toy manufacturer Kader Holdings, and construction group Asia Allied Infrastructure.
SCMP Economy reports that Yung Kee’s third-generation owner and chief finance officer, Yvonne Kam, spearheaded the launch of Yung’s Bistro, a more modern take on the restaurant’s recipes. Yung’s Bistro has a flagship in Central and two outlets in K11 Musea in Tsim Sha Tsui and Taikoo Place in Taikoo Shing.
The outlet said the operator faced several difficult years as tourists reduced spending and some residents traveled north of the border to dine and shop in Shenzhen. Kam was quoted saying the business lost money but pivoted quickly to return to a break-even position, SCMP Economy reports.