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February 14, 2020

Coronavirus Covid-19: Hong Kong’s LH Group closes hotpot restaurants

Hong Kong-listed LH Group is temporarily closing all its hotpot locations due to rising concerns of transmission risks of the Covid-19 coronavirus through community dining.


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Hong Kong-listed LH Group is temporarily closing all its hotpot locations due to rising concerns of transmission risks of the Covid-19 coronavirus through community dining.

The decision involved suspending operations of all On-Yasai and Mou Mou Club restaurants of the group.

In a statement, LH Group said that the step was taken ‘due to potential risk of infection associated with aerosol transmission from hotpot meals’.

The company did not specify when it plans to reopen the restaurants. However, the resumption of the businesses will be based on prevailing market conditions.

According to the South China Morning Post, a total of 16 outlets were closed affecting around 200 employees.

The move will not lead to any redundancies, as the affected staff will be transferred to other operations, the publication added quoting company chairman Wong Kit Lung Simon.

LH Group has around 40 restaurants in Hong Kong.

Simon and LH Group executive director and vice-chairperson Ko Sau Chee Grace have also agreed to halve their remuneration to address the present business challenges, the company statement added.

Meanwhile, the number of confirmed coronavirus Covid-19 cases in Hong Kong increased to 53.

The outbreak, which originated in neighbouring mainland China, has significantly impacted the restaurant business in Hong Kong.

Several eateries have installed roll-up banners and acrylic panels between and on tables to reduce the threat of person-to-person transmission of the disease.

As of 14 February, the coronavirus outbreak has killed 1,383 people.

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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