I discuss how to get a "bar" back into business in this highly restrictive environment via one simple step. This may be better for you than staying closed or struggling against uncertain regulatory headwinds.

Some thoughts on Government proposed subsidies for "catering" and what they might mean to you. Can you now start to look 6 months ahead and perhaps are even allowed to "staff up" and create new jobs ... or would you take the short view 3 months down the road and opt for a lump sum? And as for a bar or nightclub premises shut by law there's a "further" $50,000; plus what the FEHD have said about that ... so far.

The proposals the HKSAR Government is making:

https://gia.info.gov.hk/general/202004/08/P2020040800810_339425_1_1586360416762.pdf

I. Proposals on job retention, job creation and job advancement

(1) Implementing the Employment Support Scheme ($80 billion):

• The Government will provide wage subsidy to eligible employers to retain the latter's employees. Employers have to undertake that they cannot implement redundancy.

• All employers who have been making Mandatory Provident Fund(MPF) contributions for employees are eligible, except those on the exclusion list (employees of the HKSARG, statutory bodies and Government subvented organisations)

• The wage subsidy to be provided by the Government is calculated based on 50%of the monthly salary, which is capped at $18,000 (i.e. the median monthly wage in Q2 2019), for a period of six months.

II. Proposals on providing relief to hard-hit sectors

(15) To support catering sector

(a) To provide one-off subsidy ranging from $250,000 to $2.2 million to catering outlets* based on the size of their premises. The subsidy will be disbursed in two tranches, and not less than 80% of the subsidy has to be used to pay employees' salaries. A licencee is required to undertake that there would be no redundancy of staff for 3 months after obtaining the subsidy, and it will not apply for subsidy under the Employment Support Scheme

(b) Each eligible catering outlet directed by the Government to close whole of its licensed premises (including karaoke establishments, bars/pubs and nightclubs) is eligible for a further one-off subsidy of $50,000

(c) To provide one-off subsidy of $50,000 to tenants of cooked food/light refreshment stalls at public markets managed by the Food and Environmental Hygiene Department (FEHD);

expect to benefit 17 000 catering outlets and 920 market stalls, and their employees.

* eligible general restaurants, light refreshment restaurants, marine restaurants and factory canteens

I discuss why a Bar Endorsement on your liquor licence matters from 6pm tonight and add some thoughts about the regulations including "bar" or "over the counter" interactions.

------------------------------------------------

G.N. (E.) 23 of 2020

PREVENTION AND CONTROL OF DISEASE (REQUIREMENTS AND DIRECTIONS) (BUSINESS AND PREMISES) REGULATION

Directions in Relation to Catering Business

I hereby exercise the power conferred on me by section 6 of the Prevention and Control of Disease (Requirements and Directions) (Business and Premises) Regulation to direct that, during a period of 14 days beginning at 6:00 p.m. on 3 April 2020:

1. 1. Any premises (commonly known as bar or pub) that is exclusively or mainly used for the sale or supply of intoxicating liquors as defined in section 53(1) of the Dutiable Commodities Ordinance (Cap. 109) ("intoxicating liquors") for consumption in that premises must be closed.

2. 2. Where a catering business sells or supplies food or drink for consumption on its premises, any part of the premises that is exclusively or mainly used for the sale or supply of intoxicating liquors for consumption in that part must be closed.

(2 April 2020 Secretary for Food and Health)

Here I talk about words you may find in some leases that could help your discussions with landlords in these critical times.

I quickly review the new regulations and suggest why rents could now be halved for the F&B sector given the recent regulatory removal of 50% of the utility of premises to conduct seated food and beverage business

The new regulations extracted from the government statement:

(a) the number of customers at any premises on which food or drink is sold or supplied for consumption on the premises (catering premises) at any one time must not exceed 50% of the normal seating capacity of the premises;

(b) tables available for use or being used by customers within any catering premises must be arranged in a way to ensure there is a distance of at least 1.5 metres or some form of partition which could serve as effective buffer between one table and another table at the premises;

(c) no more than 4 persons may be seated together at one table within any catering premises;

(d) a person must wear a mask at any time within any catering premises, except when the person is consuming food or drink on the premises;

(e) body temperature screening on a person must be conducted before the person is allowed to enter the catering premises; and

(f) hand sanitisers must be provided at any catering premises for any person at the premises.

Here I take a few minutes on best practices, as many have deployed for a considerable time, add a few ideas and stress this information must get to your customers and to the government ... and don't forget staff and customer temperature checks.

In this podcast I talk about cutting payroll by 50% whilst not causing extreme hardship, maintaining operational ability for much reduced business load and building a two team structure that protects your operations against total closure.

In this first AJ Halkes podcast I discuss some ideas about how to deal with landlords in these difficult times. It's only about six minutes long and a new way for me to communicate with you all; I hope you find it useful.