Over thirty out of approximately one hundred twenty workers affected by the unexpected shutdown of nine eateries run by a major Hong Kong food service company have reached out to labor officials for assistance. A spokesperson mentioned that the outstanding debts have risen to HK$5 million (US$637,155).
After the 33-year-old King Parrot Group shut down its nine dining establishments on Friday, the employees reached out for assistance on Monday. At one point, the corporation managed over 20 different brands along with more than 30 uniquely themed restaurants.
The manager of China House restaurant in Mei Foo mentioned that her establishment was one of those shut down, and thus she joined other impacted employees at the Labour Department.
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The managers from various restaurants received an invitation to attend an afternoon meeting during our operational hours, where we were informed that all establishments would be closed immediately," according to the manager.
Life is difficult for us working-class individuals in this economy with constantly closing restaurants, but what can we do?
If you don’t earn money, you won’t eat; we still need to cover the rent and all expenses.
Chan expressed uncertainty about her future plans and questioned whether she would remain in the food service industry.
Even though the employer has resolved the backpay issues for May and June, various other benefits like a month’s salary as termination notice, severance compensation, and unpaid leave pay have yet to be addressed, according to a legislator who spoke up on Sunday.
On Monday, the Labour Department stated that approximately 50 workers from the King Parrot Group have sought help, mainly regarding their severance pay.
A representative from the department stated that the precise sums due can only be ascertained once employment records and associated data have been verified.
The Mandatory Provident Fund Schemes Authority (MPFA) stated that the company, which handled its MPF schemes through multiple entities, failed to make required contributions for 35 staff members during specific months from December 2024 until April of this year, totaling approximately HK$11,000.
"The deadline for the May 2025 MPF contributions is set for June 10th. The MPFA is carefully tracking the MPF contribution status of the King Parrot Group and will proceed with appropriate actions as needed," stated a spokesperson.
The shutting down of these nine eateries represents the most recent series of closures over the past few months, largely due to an increase in residents relocating to northern areas for their activities.
Last month, the 33-year-old congee restaurant franchise Ocean Empire Food Shop closed its doors, leaving over 100 employees owed more than HK$15 million in salaries.
The general secretary of the Hotels, Food and Beverage Employees Association, Nerine Yip Lau-ching, mentioned that the closing down of the nine eateries impacted over 120 staff members and left around HK$5 million in unclaimed benefits outstanding.
"The figure could increase as events progress, since unions plan to keep submitting claims to the Labour Department in two additional districts this afternoon," she stated.
She encouraged bosses to file for bankruptcy, ensuring that employees wouldn’t need to go through expensive court procedures to seek payment.
Chun-sing Lam, who serves as both a legislator and the chairperson of the Federation of Hong Kong and Kowloon Labour Unions, mentioned that around 30 employees from China House have contacted him. They assert they are owed over HK$2 million in dues.
Lam also mentioned that apart from the employees in Mei Foo and Nam Cheong seeking assistance, the closure of restaurants within the organization impacted staff located in Tuen Mun, Tai Koo, and Kwun Tong as well.
He mentioned that there were indications of an impending shutdown earlier when people observed that the employer had failed to make mandatory contributions to the provident fund several months prior to closing operations.
"At the beginning of the month, we heard accounts that the employer instructed employees not to 'put in excessive overtime,' not to track their overtime hours, and to simply 'ignore it and not stress over it,'" he mentioned.
He recommended that workers maintain individual logs of their overtime work and vacation days, since certain impacted staff members might not be able to retrieve the information stored by the company post-closure and thus would struggle to determine the amounts they were owed.
Lam expressed the hope that employees would stay informed about their entitlements and advantages, maintain records of their vacation days, and regularly review their Mandatory Provident Fund accounts.
The president of the Hong Kong Federation of Restaurants and Related Trades, Simon Wong Ka-wo, stated that mid-range to high-end dining establishments, like those run by the King Parrot Group, would probably feel the impact most due to reduced consumer purchasing power.
"A number of upscale eateries experienced a decline in patronage ranging from 60 to 80 percent. Mid-to-high-range restaurants have been among the most severely affected establishments," he stated during a radio interview.
Although other eateries providing laid-back dining experienced a downturn, the extent was less severe.
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