HongKongEcho 87 - F&B: Ripe with experience

Winter/ 2017

87

Foreword

F

ood is considered by many to be a priority in life. Certainly, in my own opinion, it is something that adds considerable flavour – both literally and metaphorically – to our daily lives.

FOREWORD

This edition of HongKongEcho focuses on ‘experience’ – that of the consumer’s as well as that of the business operators. While I can’t speak from the point of view of a business operator within the city’s culinary scene, I am undoubtedly a frequent consumer of the city’s many gastronomic delights.

Hong Kong may be a small city, particularly compared with China’s other major foodie cities – Beijing and Shanghai, but its diminutive size is in no way a detriment to the sheer range of cuisines available to locals and tourists alike. Gastronomes can easily enjoy a casual breakfast at one of the city’s dai pai dongs, lunch at a Michelinstarred establishment, before dining at a specialised private kitchen by night. What truly impresses, however, is even given the vast difference in settings and price tags, the quality of the cuisine remains steadfastly high.

I’m particularly excited about this issue because we get to hear from people on the other side of the pass, namely the chefs, business owners and operators who have made Hong Kong’s culinary scene what it is.

Sandeep Sekhri from Dining Concepts and Geoffrey Wu from The Forks & Spoons, for example, tell us about restaurant concepts and experiences – what are people looking for nowadays? What works and what’s missing from the dining scene? This is a subject particularly relevant to foodies in Hong Kong, as we are well aware that there is a fine line between a strong concept and a cheesy gimmick, and it takes a savvy business mind to discern between the two.

Being a oenophile, I’m especially interested in hearing what La Cabane’s Cristobal Huneeus has to say about offering a different wine experience through a niche offering of natural wines. Meanwhile, beer-lovers will want to read about Joe Finkenbinder’s thoughts on craft beer in Hong Kong and China. The man behind Bionic Brew has some interesting thoughts on the rising popularity of craft beer in the country as well as some of the operational and logistical challenges.

I thank the French Chamber of Commerce for honouring me with the opportunity to write the foreword for this magazine’s edition, and to this issue’s readers, I wish you all the best in your gastronomic journey.

David Hong Director MDJ Asia Pacific Ltd

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Editor'sLetter

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EDITOR’S LETTER

ith another successful edition of the Luxury Symposium behind us in November, we’re diving straight into the festive season. Yes, we’ve chosen the Food & Beverage (F&B) industry for this edition – perhaps no surprise for this time of year! – but we’re staying away from the typical discourse. We always hear about rent, recruitment and training in F&B; these are undoubtedly major issues, but what’s it actually like on the ground? What does it mean to be an F&B operator? And what sort of experience do they need to offer consumers?

F&B is unlike any other sector. It’s true that it seems like a glamorous industry from the outside. Most people have thought about opening a café or restaurant. It’s clearly not that simple. Ingredients that need preparation at the crack of dawn, nightclubs that are open till sunrise, supply chains that span the globe; there’s never time to switch off.

As we also see from our chats in this edition, the industry is becoming more and more professionalised to the point where every actor, large or small, has to think about how they’ll use digital tools to their advantage.

Professionalising is one thing, but what shouldn’t be forgotten is quality and experience.

Here, Hong Kong isn’t lacking. The incredible variety that the city offers makes for a kaleidoscope of different experiences to be tried. Whether it’s Chinese, Vietnamese, Japanese, Italian, French, South American – the list goes on and will surely continue to grow as cuisines and concepts become more niche and creative. The sheer array of choice can be dizzying when you arrive from overseas, but this is one of the strengths of our city.

Of course, there’s also great volatility in this business. Constant openings and closures across the city show how competitive the market is and we very often say in Hong Kong that if it hasn’t worked in the first six months, it never will. Knowing when to admit you might have got it wrong seems to be a valuable asset in this industry. But a common theme we see across our interviews is that despite everything, you can still succeed in F&B in Hong Kong. This is still the place to be.

We’re fortunate at the Chamber to have a robust and active F&B Committee made up of a variety of different actors who share a great exchange of information together. With their valuable input, we’re putting on a panel discussion with some of the industry’s heavyweights on the topic of rethinking the F&B sector in Hong Kong on 17 January.

We hope to see you there.

As the festive season is upon us, we invite you to raise a glass and celebrate. See you next year!

Delphine Colson Executive Director French Chamber

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Interviewees

Alain Decesse

Jacques Boissier

Emmanuel Farcis

Joe Finkenbinder

Gaëlle Gognau

Cristobal Huneeus

Josephine Lalanne-Tauzia

Philippe Lalanne-Tauzia

Thibaut Mathieu

Grégoire Michaud

Sandeep Sekhri

Pierre Stanghellini

Geoffrey Wu

Former paratrooper and software business owner, Joe Finkenbinder, found out the hard way in starting Shenzhen’s first craft brewery. We join him for a pint of his Bionic Brew on page 28.

seen Hong Kong’s dining scene explode

Paying attention to the basic elements

Good quality bread that’s made in Hong Kong is a rarity. Chef & baker Grégoire Michaud along with Gaëlle Gognau, Co-Founders of Bread Elements, set out to change this. They tell us how they very quickly found themselves in over their heads on page 20.

Hong Kong’s F&B industry is more professional than ever. The heads of the French Chamber’s F&B Committee, Emmanuel Farcis of Link, Thibaut Mathieu of Corney & Barrow and Pierre Stanghellini of Viazul – sat down for a chat about how digital is changing the industry for the better on page 32.

There are few bigger names in Hong Kong’s restaurant industry than Sandeep Sekhri, Founder of Dining Concepts.

The stalwart of the city’s dining scene speaks to us about the keys for creating concepts that last on page 24.

It seems like every week there’s a new hip coffee shop popping up around the corner. We found out how more established players have to react on page 35 when we met with CEO of Classified Group, Alain Decesse.

Doing business in China is one thing.

Brewing beer is another altogether.

Jacques Boissier, Regional Director – North Asia of Classic Fine Foods, has

We hear plenty about organic food, but not so much about organic wine.

Cristobal Huneeus, Co-Founder of natural wine cellar and bistro La Cabane Group, explains how they’ve carved out their niche despite some hiccups on page 16.

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in the 24 years since he first arrived in the city. He tells us why the best chefs are continuing to flock to Asia’s cuisine capital on page 36.

of good dining sounds simple. But for Geoffrey Wu, Founder of PR agency specialised in F&B, Forks & Spoons, it’s something operators in Hong Kong rarely get right. On page 44 we caught up with the Hong Kong local for his take on what could be done better.

Have you ever wondered how your food goes from farm (or sea) to plate? Philippe Lalanne-Tauzia and Josephine Lalanne-Tauzia of Culina (HK) Ltd tell us how to ride the waves of the food importation business on page 46.

LaChronique

THE F&B REVOLUTION: WELCOME TO THE NEW ‘FUN & BEYOND’ INDUSTRY! More creativity, better experience. That’s what David Baverez, author of Paris-Pékin Express, hopes to see from the F&B sector in Hong Kong. From multi-sensory dining to emotional vibes, he tells us how to overcome the industry’s challenges.

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he F&B industry in Hong Kong has probably never been as challenged as it is today, as illustrated by the acceleration of recent closures. We can outline three main negative forces which have been jeopardising the industry:

new F&B venture. At the same time, the required economies of scale now imply a minimum entry ticket of no less than a few USD million, closing the door to young ambitious, but cashpoor, food-gig-chefs.

An increasing consumer demand for higher-quality food: thirty years of relative food deflation has led food multinationals to focus on lowering their costs base through the increasing use of dubious artificial ingredients. As a result, two thirds of worldwide households have now lost trust in multinational food brands and are increasingly wary of what they eat. At the same time, ‘sur-real’ estate prices constrain household budgets and make consumers unwilling to pay more for food. This creates an impossible equation for the F&B industry to resolve regarding sourcing, for example when it comes to the meat industry.

Should we all then forget about the F&B industry?

An increasing competition for recruiting and retaining high-quality service staff: even the most successful F&B operations in Hong Kong have to face chronic staff turn-over, driven by Hong Kong employees’ unique constant desire for sharp salary increases.

A profitability-threatening digital revolution: exuberant funding has led to the blossoming of an irrational food homedelivery industry offering higher convenience generally at an economic loss.

As if it was not enough, crazy rent reviews after a three-year period from the cartel of a few greedy landlords impose, as a pre-requisite, a minimum 100% annual cash return per marginal F&B outlet in order to attract rational investors into a

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Fortunately, Hong Kong’s vibrant entrepreneurial spirit has never been afraid of facing large challenges and numerous examples of recent successes illustrate that the city remains an unmatched playground for innovative players having found a way to emerge from an over-crowded industry. At the root of their success always lies the concept of ‘experience’, which reminds us that the F&B industry is a unique blend of product and service.

But let us be careful: this very same concept of experience can also lead to extremes, as illustrated by the example of someone like Paul Pairet in Shanghai and his ‘Ultra-Violet’ restaurant.

Relying on multi-sensory technology, its holistic scenery aims at surprising all our senses simultaneously not only through food, but also… videos, music and perfumes!

LaChronique

In my mind, tomorrow’s F&B winners will be precisely those who propose the most innovative solutions to redefining the overwhelming concept of experience. They are likely to be the ones resorting to ‘design thinking’, going back to the roots of the needs and the (often unidentified) desires of their clientele, combining both utility and aestheticism.

For Hong Kong, nothing less than the core image of the city will be at stake.

Historically, leading world centres have always tended to see their DNA identified with their F&B offering, like the ‘cafés’ of Berlin and Vienna in the early 1920s, or of Paris in the 195060s. Even French President Emmanuel Macron recently referred to “l’Europe des cafés” to define his understanding of Europe’s DNA in his visionary speech at The Sorbonne. This is further evidenced

by Starbuck’s astonishing success in mainland China which relied precisely on identifying that the mainland’s one-child millennials were desperately looking for a new home outside their parents’ place first and foremost… more than high-quality coffee!

So where does that leave the Hong Kong F&B scene? At the time of today’s unprecedented technological and environmental revolution which is about to transform our daily lives, it’s hard to argue against the need for rejuvenating the Lan Kwai Fong concept that has become associated with Hong Kong all over the world. What was seen as innovative at the time of the mainland’s

opening, clearly now needs some refreshing.

Hong Kong has to now compete with the most internationalised capital cities all over the world. The success of its F&B industry will not solely rely on its ‘utility’ – high quality food and wine – but also on its ‘aestheticism’.

This is more than simply a service which addresses the fast-changing desires of a very demanding clientele, moving from ‘fast good’ requirements at a busy lunch time, to an unlimited desire for journeys

“For Hong Kong, nothing less than the core image of the city will be at stake” and new discoveries in the more relaxed quality-time of the evening.

It will also need to reflect the values of today’s millennials: a multi-polar world through fusion food, authenticity of products through organic and environmental-friendly ingredients,

as well as new forms of sharing.

Without forgetting the need for emotional ‘vibes’, something a few Hong Kong roof tops with worldbeating sceneries have been very good at spotting.

No chef will ever disclose his/ her whole recipe, always keeping a few ingredients secret. Similarly, the most essential ingredient to succeed in Hong Kong will remain the ‘Fun & Beyond’ element that should stay at the roots of the F&B industry: in other words, the human touch! This will allow us to reintroduce ‘Fun’ at a time when we are promised a future served only by AIrobots; and adopt the ‘Beyond’ attitude, systemically looking to exceed clients’ expectations, always eager to surprise the client with a few small personalised details to make them feel at home.

So, in the end, we can say that the winners in F&B will be the ones most able to savour the ever changing perfumes of the Fragrant Harbour.

David Baverez is the author of Paris-Pékin Express (Editions Francois Bourin 2017).

The views expressed are purely personal.

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F&B

RIPE WITH EXPERIENCE

FOOD & BEVERAGE | Overview

AN EXPERIENCE LIKE NO OTHER Whether you’re stumbling out of a cab in Lan Kwai Fong or sampling street food in Sham Shui Po, the city has it all when it comes to Food & Beverage (F&B). But it’s never been an easy business. We pull back the layers of what makes this industry a hard nut to crack.

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ood food, good service, good atmosphere. How hard could it be to run a restaurant? Well, in Hong Kong the answer is far from straightforward. The city’s 20,000+ restaurants – with an estimated total area that could fill 110 football stadiums according to CBRE – is testament to a foodie culture that knows no bounds.

But behind the celebratory clinking of glasses on a Friday night, the lofty but delicate aroma of lobster bisque in a Michelin-star bistro or the strange honesty of beef brisket and noodles, there is plenty of anguish, struggle and – most importantly – accomplishment.

What many forget in the experience of running an F&B operation is that it is, indeed, a real business. “You can’t just wake up in the middle of the night and decide to become a wine importer,” says Thibaut Mathieu from Corney & Barrow in our chat with the three heads of the French Chamber’s F&B Committee on page 32. As the trio explains, the industry is rapidly catching up with the digital age and everyone from your one-off French bistro to your fast-food mega-chain has to professionalise if they want to survive.

Survival might sound like a strong way to put it. But for many that’s the core of the F&B business experience. In many ways it’s a question of knowing when to cut your losses fast. Sandeep Sekhri of Dining Concepts explains on page 24 that those first six months are key – if it doesn’t work then, it won’t work at all. Of course, having a larger group with a portfolio of restaurants makes this process easier.

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What many forget in the experience of running an F&B operation is that it is, indeed, a real business.

But small can be beautiful, and successful too, says Cristobal Huneeus from La Cabane on page 16 who explains that their efforts to expand didn’t bear the fruit they expected. The ebband-flow of expansion has likewise been felt by Alain Decesse from Classified on page 35 who believes “what you start with will never be how you end”.

Quality over quantity Let’s not forget that it’s not just the variety that defines Hong Kong’s whirlwind F&B experience. Quality has steadily grown too. The influx of haute cuisine and the accompanying cohort of Michelin-star chefs that now call the city home means quality of available produce is a must, assures Jacques Boissier from Classic Fine Foods on page 36. However the journey this produce takes – if it’s coming from Europe – might surprise you. The founders of food wholesaler Culina (HK) Ltd wind the journey back from plate to farm (or ocean) on page 46.

Not everything that’s high quality is being imported though.

Grégoire Michaud and Gaëlle Gognau of Bread Elements decided to take matters into their own hands by launching a pioneering B2B artisanal bakery. They explain the headaches of making bread in Hong Kong on page 20.

An exciting part of the drive for quality is the niche experiences it breeds. Just across the border in Shenzhen there’s a craft beer revolution brewing up that could blow Hong Kong’s alreadydeveloped scene out of the water. Getting there won’t necessarily be easy though – is anything in F&B? – if Joe Finkenbinder’s experience is anything to go by. His craft brewery, the first in the city to have a fully-fledged brand, was forcibly closed twice in as many years. Hear how midnight brewing saved his operation on page 28.

Grass roots When we talk about Hong Kong’s culinary scene we should also remember what is at the heart of local dining. The city’s dai pai dong’s – or open air food stalls – are a dying breed who know what it’s like to be in F&B better than anyone. We featured some of the few remaining stalls in our photo essay on page 38 who have all been there for at least 50 years each – and are family owned. You’d be hard pressed to find anyone else in the city with this heritage as an operator.

These basics essentials of Hong Kong’s food heritage are oftforgotten says Geoffrey Wu of F&B PR specialists Forks & Spoons who explains on page 44 he’d like to hear more about the latest mind-blowing restaurants in Sha Tin or Yuen Long and not just the usual suspects in the SoHo-Central enclave.

Food for thought Part of collecting these thoughts on the industry is to see what could be done better – is Hong Kong missing something? We all know about the rental headaches and the consumer base that flutters from concept to concept. But what else? The desire for more flexible al fresco dining reared its head several times in our interviews – a topic that the Chamber itself has built its lobbying actions on in recent years.

Another point is challenging the consumer base with new tastes outside their comfort zone. Hong Kong is already welldeveloped, sure, but it could be even better. Think about how many great African or Middle Eastern restaurants you’ve visited in the past month.

Ultimately though, we’re interested to see what the future brings for this vibrant industry that continues – much like the city itself – to re-invent itself like no other.

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FOOD & BEVERAGE | Wine, naturally

WINE, NATURALLY Wine is a sacred institution for the French. So too is the bistro. Cristobal Huneeus, Co-Founder of natural wine cellar and bistro La Cabane Group, is doing both a little differently. We sat down for a chat about riding the organic wave and knowing when to admit defeat.

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THE MILLENNIAL’S CHOICE | Wine, naturally

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t’s 2pm and the lunchtime rush is filtering into a slow crawl back to work.

La Cabane, however, is moving at its own rhythm. A striking mural is plastered on an outside wall like a bohemian callto-arms. There’s a mix of high and low tables. An American couple leaves, a trio of French diners take their place. A light mix of dub and reggae music saunters in the background. There’s an earthy swell of textures, from bricks to wood, to rope.

It’s a typical French bistro and yet it isn’t.

Cristobal arrives in a rush and talks with one of the bar staff – he orders the item of the day, then does a double-take. “Make it a croque monsieur,” he says. He joined Founder, Karim Hadjadj, who started a small wine shop in 2010, importing small batches of carefully curated natural wines, to launch La Cabane Group in 2012, an importer, distributor, retail and bistro operator. At the time, this was unheard of in Hong Kong and the bistro is where we sit today, croque monsieur in all its glory.

But the food has never been the star of the show. The backbone of the business is natural wine – basically, wine without any chemicals used in the making process and with limited or no sulphur – sourced from around the globe.

“Food works around the wine,” explains Cristobal. Five years down the track and the bistro is still here, which is not the case for many other operators.

“With the bistro I think we’ve been reasonably lucky in the sense that the journey has been quite smooth – not every day, but certainly if you look in the long run across five-plus years.”

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The original wine cellar took a while to break even. A niche product and a lessthan-visible location made for plenty of initial headaches. And while the duo somewhat accidently stumbled upon the ‘organic’ food boom – “we didn’t really anticipate the craziness around that,” he says – it’s still been a struggle to convince consumers of the benefits of drinking organic. “Consumers don’t necessarily have the logic that if they want to eat organic, they should also drink organic.”

The opening of the bistro provided them an avenue to start a B2B offering of natural wines to other bars and restaurants across the city. Likewise, it hasn’t been simple. You need the right kind of bar that’s ready “to take the risk with a funkier style of wine,” says Cristobal. In Hong Kong, this is still hard to find.

Small is beautiful too With the bubbling enthusiasm and spending that characterised the F&B sector in 2015 – “the list of 40-50 openings each month was just crazy,” he says – the duo decided to open two new concepts. Unfortunately the tides were shifting rapidly. A “normalisation,” as Cristobal calls it, saw consumers spending much less than before. The downturn had arrived. Within 18 months, the new restaurants were closed.

“People in Hong Kong say that you have to be a big group to succeed. We’ve found it’s not necessarily true, because we tried to open other places and failed!” he says, “The concepts might not have been right at that time and perhaps it was too much for us to take on. Maybe we just weren’t good at getting the right people around us.”

Cristobal is able to look back on the experience and draw some key lessons.

“Only the stubborn eventually fail, because if you think you’re the best at everything you’ll be in for a surprise at some point. For me, it’s very acceptable to realise you missed the mark and that you need to change strategy in order to make sure the rest of the business doesn’t fail. When it comes to what we do, being a niche offering, maybe small is beautiful after all.”

The crazy period of 2015 may be over, but there’s still plenty about the scene that puzzles Cristobal. Customer loyalty continues to fuel a novelty environment where people simply go once or twice to a restaurant and move on to something

else. “Without generalising, people want novelty and they don’t take the hard work behind a concept seriously. Of course, there are people who do. But sometimes the education isn’t there.”

There are plenty who’ve been coming back to his bistro, he reminds us, including a strong portion of local customers who he believes help to make the operation sustainable. The key has been offering an experience that sticks to its guns and doesn’t waver with the ever-changing winds of hot concepts and blink-and-you’ll-miss-it trends.

“We carry on doing what we do. That’s probably what our clientele appreciate; we haven’t had a change of heart,” he says. Of course, prices have shifted to match the market, he adds.

“People maybe go out less, but they still drink.”

Interestingly, despite the slowdown, bottle shops seem to be popping up rapidly. “It shows that people maybe go out less, but they still drink,” says Cristobal. For La Cabane it means greater competition, but not necessarily tougher times. “There’s a wine cellar that opened the other week just down the road – good on them. We shouldn’t be afraid of competition; this is what Hong Kong is all about.”

What’s natural wine anyway?

Organic grapes (with no chemicals used in the growing process) 1.

Natural yeast (or yeast produced by the grape or nothing else / no dry yeast) 2.

Limited sulphite aka

sulfite (only when winemaker deems it essential) 3.

“Natural wine is nothing more than wine done before the industrialisation of wine with low intervention at its heart.

We grew the French offering throughout the years, but we also wanted to show there’s wine – and good wine – around the world. We now have about 120 winemakers we work with directly from countries including Australia, New Zealand, Georgia, Slovenia, Italy and, of course, France.”

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FOOD & BEVERAGE | Is Bread the New Black

IS BREAD THE NEW BLACK? “Making bread isn’t rocket science,” says chef Grégoire Michaud. We sat down for coffee and croissants with him and business partner Gaëlle Gognau, co-founders of Bread Elements, who told us why diving into the wholesale world of baking is not as easy as it looks.

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he smell of freshly baked bread hits you like a charm. Rows of pains au chocolat, croissants, sourdough loaves, baguettes – among a plethora of others – sit ready to be distributed across the city.

There could be worse places to spend an afternoon. Swiss-born pastry chef, Grégoire Michaud, is guiding us through the different floors of his bakery in Chai Wan, conversing freely in Cantonese with the staff. “When I arrived [in Hong Kong] 20 years ago, I had no choice but to learn how to communicate with the kitchen staff in Cantonese,” he recalls in a broad smile.

Grégoire Michaud, Chef and Co-Founder of Bread Elements

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With 25 years’ experience as a pastry chef in five-star establishments, such as the Four Seasons in Hong Kong, Grégoire joined forces with his former

colleague, Mark Yeung, along with bread enthusiasts Gaëlle Gognau and Frederic Koerckel, to create Bread Elements in 2013. Operating purely wholesale – for now – the group saw a gap in the B2B market for high quality artisanal made-inHong-Kong breads and pastries.

After all, a fine dining experience shouldn’t be tainted by poor bread,

“We totally underestimated and overlooked the logistics aspect when we started the business.” and yet it’s something the founders – like others in Hong Kong – often encountered. “I knew from being a chef in the industry that there were very few options on the B2B side and we wanted to be the first to really challenge that and offer something with quality and character, which is also made in Hong Kong,” says Grégoire.

Co-founder Gaëlle was equally frustrated that bread lagged behind the explosion of other improved offerings in the F&B sector. “In the past decade we’ve seen so much more qualitative products available here, from cheese and wine to cold

cuts, but there was still no good bread. Of course, there are people who are importing industrial products or mass producing, but creating high quality artisanal bread in Hong Kong is quite unique,” she says.

Humble beginnings Despite the expertise of the two main chefs – who have some 50 years of experience baking in Hong Kong between them – tapping into the lucrative but demanding B2B sector came with plenty of challenges.

Like most startups, the first months of operation stretched resources to breaking point. Ovens became too small. Storage space ran out. Flour supply fluctuated. Co-founder Mark even spent a 48-hour period in the bakery, having to sleep there just to keep up with the extreme demand, while another partner continued their day job and processed the invoicing at night. It’s not quite the romantic idea you might have of throwing in an office job for a life of smelling freshly baked bread each morning.

Simply getting the products to clients across Hong Kong has posed its own problems. “We totally underestimated and overlooked the logistics aspect when we started the business, which is essentially our storefront,” says Grégoire.

It sounds straightforward. A truck arrives at 4am, collects the bread and starts distributing to hotels and restaurants.

But if the delivery gets caught in one of the city’s main arterial highways at the wrong time – like the notorious tunnel to Aberdeen – clients will be without bread for the lunchtime rush. Likewise, Hong Kong’s climate can wreak havoc with delicate frozen croissants – for

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FOOD & BEVERAGE | Is Bread the New Black

example – that can easily defrost while being moved from the cold truck to the kitchen.

The experience has been humbling, explains Grégoire.

“I’ve come from a more corporate environment where you’re a cog within a larger organisation, you simply say what you need and you get it. All of a sudden you have to go back to square one.”

A question of scale Now, as the business grows, micromanagement of daily tasks turns to issues of scalability and putting the right systems in place across all aspects of the business from human resources to sales and production. “We also have to keep in mind that scaling up shouldn’t mean forgetting the core of what we do, which is making artisanal bread,” says Gaëlle.

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Words like ‘artisan’ and ‘authentic’ are readily thrown around in the F&B industry. But the duo insist that scaling up can be done while staying true to the original product. “It comes down to decisions we make in production. For example, an industrial baker will use a tunnel oven which is 30 metres long and bakes non-stop throughout the day. But

the bread is not baked on stone and the intensity of heat is different. Ultimately you don’t have the same product. Our idea is to duplicate our current setup, simply multiplying the ovens. It means a greater cost for us, but we believe the product will speak for itself,” says Grégoire.

That’s not to mention the raw ingredients, namely water, high quality imported flour, sourdough and a pinch of salt. The flour favoured by industrial producers contains unnaturally high levels of gluten, a point which translates to a less digestible, and less healthy final product.

The dedication to tradition goes further than this, explains Grégoire, who you get the sense could talk about flour at a molecular level all afternoon. “It’s also about showing that it’s possible to be a company of a certain size – particularly a wholesale one – that is sustainable and which produces quality without going completely industrial and chemical.”

“People are saying we’re crazy to open a shop because of the F&B market mood at the moment.”

This will be tested when the team opens their first retail offering, a café in Wan Chai in late December 2017. “People are saying we’re crazy to open a shop because of the F&B market mood at the moment.

But we firmly believe that consumers in Hong Kong appreciate a product with soul, character and quality,” says Gaëlle.

Grégoire himself will be baking on site behind glass panels, which again takes up valuable space. But it’s worth it, he explains. “It’s part of the transparency and experience we want to offer people who come to buy our breads. It’s our way of shaking hands with the public.”

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FOOD & BEVERAGE | Behind the Concepts

BEHIND THE CONCEPTS Most people have dreamed of running their own restaurant.

Few will ever succeed. Sandeep Sekhri, Founder and Managing Director of one of the city’s most iconic restaurant groups Dining Concepts, tells us why it’s not all glamour behind the curtains.

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ongKongEcho: We hear so much about the typical challenges in the F&B sector – as someone who has built a large group, what’s it like being in this business?

Sandeep Sekhri: The reality is that this business requires a certain skillset and dedication that you don’t find in every profession.

For instance, it’s not in every profession that you’re managing so many different profiles of staff. One day you’re dealing with dishwashers, the next you might be negotiating with a celebrity chef. This means that people management must form the basis of running a successful operation in F&B.

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Then, of course, the dedication is obvious. With nightlife establishments open all night and restaurants opening early for breakfast, you’re never afforded a moment’s respite. If you combine that with the energy and effort required to maintain the business, it can all feel like quite a thankless profession at times.

HKE: With these challenges in mind, how have you been able to build and expand your portfolio?

SS: It hasn’t been easy. But that growth can always be traced back to the strength of the team we have in place. A number of the people around me have been at my side for more than 20 years. That brings about a certain cohesion and

understanding which is essential for building the business.

The other aspect is consistency.

Restaurants that do well – and last – are ones that stay consistent in their offering.

It’s a common theme for any of the numerous concepts in our portfolio that have lasted over a decade of operation.

It’s easy to talk about these things, but to have that longevity and capacity to grow you absolutely need the right professionals on board. Everyone thinks they can own a restaurant and put together a team which has very little background in the industry.

The reality is that these projects are generally bound to fail because you need

true F&B professionals who understand all the intricacies of running a restaurant.

HKE: I imagine there have been occasions where a concept just hasn’t worked. How long into that journey before you know it won’t work? And what’s the process then?

always hoping to create something special with the resources you have available but ultimately it’s still a big gamble.

Ultimately it’s all about positioning yourself correctly in the market. You may have plenty of investment and great ideas but none of that matters if you’re in the wrong location.

SS: If a concept isn’t working in the first six months then it simply won’t work.

Furthermore, when you consider the incredible real estate costs, your best option is to cut your losses and either shut down or create an entirely new concept.

I’ve started over 65 restaurants and I’m glad to say that most of the time our concepts have been successful.

There’s only been a handful of times – roughly 10% – where we’ve had to be honest with ourselves and realise it’s not working. Of course, we have a large portfolio these days so our scale allows us to compensate for operations that are underperforming.

What’s interesting is that you always know why something hasn’t worked, but actually sometimes you don’t know why a certain concept is successful. You’re

it’s a question of location. Sometimes you’ll find a great location and you need to come up with the right concept to match, other times it’s the opposite.

You need to understand that there are concepts that are very specific to shopping malls or to a certain type of clientele. If you’re setting up a restaurant in a shopping mall in Kowloon you can’t expect a higher average spends so your offer should match that.

HKE: What’s the actual process of coming up with a concept?

SS: Of course when we introduce a new concept we want to offer something that we feel is missing in the city. From there

For example, in our portfolio we have concepts that are in locations that we know are frequented by a higher proportion of locals. Consequently we ensure there are plenty of dishes that can be shared or that our drinks menu is appropriately diverse so that it doesn’t rely on consumers spending on high-end wines.

HKE: It seems like a difficult path to take, why do you keep doing it?

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FOOD & BEVERAGE | Behind the Concepts

“We should be leveraging the amazing skyline that the city has by offering great dining experiences amongst our iconic buildings”

SS: It’s certainly difficult but this business is in my blood so I find it hard to imagine doing anything else. I constantly need something new to stimulate me and in this industry there’s no shortage of activities to keep you busy, whether it’s new concepts to formulate or leases to be negotiated.

HKE: Hong Kong continues to offer a vibrant F&B experience, but is there something missing in the scene?

What could be done better?

SS: I feel Hong Kong is really missing an

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incredible opportunity when it comes to outdoor dining. We should be leveraging the amazing skyline that the city has by offering great dining experiences amongst our iconic buildings. When you consider how far ahead other Asian cities are on this front it should encourage us to do better.

This plays into a broader theme of overregulation in regards to licencing in the F&B industry. I’d like it to be much easier to set up the kind of clubs and bars where thousands of people can enjoy

themselves like you can see so often overseas.

Finally, interior design needs to be at the forefront of operators minds because it forms part of your experience when you go to a bar or restaurant. Of course this all comes back to the tricky subject of real estate. People in Hong Kong are very reluctant to invest in design because they don’t know whether the landlord with double the rent in three years’ time.

If we want to see the best new concepts in Hong Kong then this needs to change.

THE MILLENNIAL’S CHOICE | Brewing across the border

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BREWING ACROSS THE BORDER Craft beer made in Shenzhen? Yes, it’s happening, and it’s catching on fast.

We visited Joe Finkenbinder, founder of Shenzhen’s first craft beer brand Bionic Brew to find out how he’s come through two forced closures to find his niche in the world’s biggest beer market.

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FOOD & BEVERAGE | Brewing Across the Border

W

hen the first incarnation of Bionic Brew’s bar & microbrewery was ordered to close by the local Shenzhen authorities, its founder Joe Finkenbinder blacked out the windows and carried on brewing in secret from the late evenings until sunrise. By day he would distribute his creation to bars around the city.

The move to a second location lasted only a couple of months before being shut down in similar fashion. Joe still isn’t sure why, but he has his guesses. Setting up your bar behind an unmarked door down an alleyway in a non-typical F&B location might be functional and hip in Brooklyn or Hong Kong. But in China, this creates problems.

“A lot of places get away with a mediocre product because of location. We were just about the beer.”

“The location was not entirely on purpose.

Part of it was because we wanted to test the market. Could the product stand on its own?” he says, “A lot of places get away with a mediocre product because of location. We were just about the beer. The reality is that we wouldn’t have been shut down if we were in a more mainstream shopping mall location. Here it’s a bit more old-school China, you can’t just set up wherever you like.”

We join Joe for a pint – obviously – at his third taproom in as many years in the gritty Baishizhou village in Shenzhen. A handful of outdoor tables are slowly filling up with the Friday after-work crowd when we arrive. There’s a tranquillity to it, at least for now, that you don’t expect from a city like Shenzhen. This restaurant-lined strip, he explains, was shown to him by the police as an apparently acceptable location to set up.

The towering American has made an interesting path for himself. A former paratrooper and software business owner, he spent a stint at what is now one of Beijing’s biggest craft breweries before landing in Shenzhen in April 2014. By 30 | HongKongEcho

July that year, he’d set up Shenzhen’s first fully-fledged craft brewery with only US$15,000 in funding. Soon afterwards he started the city’s (only) craft beer festival.

With the initial problems behind him, Joe’s biggest concern now is simply keeping up with demand – not in the bar itself but with the businesses he supplies across the city.

Cash-flow issues persist and being a small operator means he’s not afforded the advantages of 30-60 day payment terms with suppliers that larger operators would

have. Logistics remain a costly headache, so too finding bars or restaurants with an appropriate cold-chain setup that can ensure quality. Brewing is a tough game.

From mainstream to microbrews While China’s beer market is the world’s largest, it’s currently dominated by mainstream lagers brewed for the masses.

Consumption is also declining. Craft beer, however, is contentedly bucking this trend. According to figures from analysts GlobalData, consumption of craft beer in China is up by two-thirds over the past five years. The Economist estimates that by 2016 there were 150 craft breweries

stout, I can just buy the right ingredient.

Here it’s much more complicated. First I’d have to work out how to actually make peanut butter!” he laughs.

Despite the challenges, Joe doesn’t see Hong Kong as an alternative. The company is actually registered in Hong Kong – a decision that should aid investment – but the city’s craft beer market is already saturated, he believes.

“Besides, we have 100+ million people right next to us in China, most of whom aren’t potential customers, but a good 10 million or so are.”

And while consumers in Hong Kong are often accustomed to craft beer – and actively seek it out – there’s still a distrust of products coming from China. “People think because it’s made with Chinese water that it can’t be good. Of course, we have a full filtering process; there’s nothing wrong with the water if you know how to use it. It’s just an old mental barrier and it’s not going to be bridged by me.”

You sense it won’t faze him. “It’s not good beer for China. It’s just good beer,” he says. We’ll drink to that. in the country, up threefold from the previous year.

The figures don’t surprise Joe, whose clientele these days is largely Chinese.

“People here are more aware of craft beer than ever. They can afford it and they want it, even if they don’t particularly know why. When they try, they realise how different it is and the variety of flavours you can have. Generally they’re converted fairly quickly,” he says.

The kind of experience consumers are looking to associate with craft beer can differ. “I don’t think it needs to be served

in a wine glass and talked about for 20 minutes. There are lots of people here who want it dressed up and they’ll probably go to a different bar, one that sells ‘face’ – those places aren’t really selling the product, beer just happens to be there.”

The Hong Kong connection The proximity to Hong Kong made Shenzhen a logical choice, allowing him to source certain high quality ingredients that brewers in places like Beijing have less access too. Still, the experience of creating a speciality product in China is never straightforward. “If I was back in the US and wanted to make a peanut butter

What’s craft beer anyway?

Depends who you ask. According to the American Brewers Association: they’re small, independent, traditional brewers. This means an annual production of 6 million barrels or less with no more than 25% of the brewery owned by an alcohol industry member that is not itself a craft brewer. Finally, they must have a majority of volume in beers whose flavour derives from traditional or innovative brewing ingredients and their fermentation.

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FOOD & BEVERAGE | Dine In, Plug In

DINE IN, PLUG IN Taking care of the client is at the heart of F&B and doing so in the connected age requires a shift in mind-sets.

The heads of the French Chamber’s F&B Committee tell us why professionalising and going digital are musts for F&B operators in Hong Kong.

H

ongKongEcho: The F&B industry seems like a somewhat misunderstood beast. What’s it actually like working in the industry?

Thibaut Mathieu: I’d say it’s an industry where the human factor is very important.

Relationships are very important whether you’re selling B2B or B2C. In the wine business for example, you’re always meeting clients – whether its hotels and restaurants or private clients – for dinner, wine and tastings. That’s a nice part of the job but you also have to find a balance with your personal life. People seem to think it’s easy to operate in this sector but you

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have to remember it’s a proper business; logistics is very important, training your team appropriately and developing career paths. Drinking wine is nice but it’s still a real business. You can’t just wake up in the middle of the night and decide to become a wine importer. You need funding, strategy, awareness of the market and a proposition which is interesting.

Pierre Stanghellini: Originally coming from a non-F&B background (in marketing / sales), I’ve seen how dynamic and innovative Hong Kong is as a place to work in this industry. It’s small, yes, but also very dynamic; you don’t see a lot of

markets that have the same level of speed, innovation and investment.

Emmanuel Farcis: What we observe in the F&B committee is that primarily it’s a volatile industry. In some months certain people are doing well while at that same time others are not doing well at all. This fluctuates. Of course we also see the same recurring issues like rent, staffing and training.

HKE: Where are F&B operators heading in how they run their business? Will digital change the game for them?

PS: Digital means all aspects of the business from CRM and finance to point of sale. This means today the market is clearly switching from more traditional marketing to real digital restaurants.

There’s two parts to this development. First you had organic growth of the industry: Hong Kong has never been short of people spending money so no one really had to worry about clients or growth. Until three years ago. Since then people have really had to professionalise themselves in terms of marketing and customer interaction. It’s getting tougher; you have to professionalise at every stage. For example, bartenders are becoming mixologists, going beyond

that traditional role. That’s the beauty of the situation: it allows people to get more professional.

“It’s not because you have modern technology that you need to forget the old way of doing things”

HKE: Do smaller operators need to be embracing that digital element as well?

PS: The question isn’t should we do it or not, it’s that if we run a business we should take care of our clients. For that, you don’t need a large portfolio of restaurants. Today if you don’t know who your clients are you can’t make them come back and ultimately you can’t take care of them. So even for small groups, they need to focus on collecting data from their clients. It’s really a question of taking care of the client.

TM: I think it’s interesting to note that it’s not because you have modern technology

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FOOD & BEVERAGE | Dine In, Plug In

that you need to forget the old way of doing things. It’s very easy to be flooding clients with information about products they’re not interested in. But if they don’t want to read it they won’t even open their emails. If you’re able to capture that, you can send them relevant information and increase your hit rate. Then whenever they’re ready to explore something you can make the approach. This is where I see the IT / digital element as a good support to the business.

EF: There’s also a FinTech aspect in terms of integration of mobile payment. Especially for small operators; they’ll have to change the way they operate. Only credit card or cash won’t suffice anymore.

HKE: Is it also a question of changing mind-sets as to how people operate?

PS: Absolutely, it’s the mind-set. How should they run their business? Everyone gives and collects business cards, but what do they do after that? Do they send a targeted follow-up email? For us, we spend most of our time not talking about tech, but about process and mind-set. That’s the priority.

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TM: Certainly, the IT / digital element is important but the basic common rule of taking care of your client remains the same, irrelevant of the technology.

“That’s the beauty of the situation: it allows people to get more professional” HKE: Operators are clearly upping their game on the business side of things, but what’s driving the current trends for customer experience?

EF: In Hong Kong’s F&B scene there’s always this ‘trend’ element. Look at past 1015 years, trends come and go: from burgers and steakhouses with a very ‘masculine’ concept to Korean cuisine and so on. A certain fringe of the F&B market relies on this sort of trend because customers like that. In the end the success will still come from the ability to deliver a good product, a good experience and good value.

PS: I’m seeing more and more trends focused on niche cuisine concepts. Before, you might have had South American food. Now it’s more specific, like Peruvian cuisine or street food from Sao Paolo.

People look for a story more and more. In coming months I’m sure you’ll see cuisine that you’ve never heard of before and it’s the small operators bringing those cuisines to Hong Kong. The market is getting more mature. On that point, change and innovation doesn’t come from the big players. Today it comes from smaller scale restaurants because they have to take a risk and innovate to succeed. That’s where the change is coming from. Still, I feel this all shows that Hong Kong is a phenomenal F&B ecosystem and an example of the diversity we have today in the world.

Our F&B committee heads Emmanuel Farcis, General Manager – Asset Planning, LINK REIT Thibaut Mathieu, General Manager Asia, Corney & Barrow Pierre Stanghellini, COO / Founder, Viazul – CRM & Data

FOOD & BEVERAGE | Café Culture

CAFÉ CULTURE Cafés have come a long way in Hong Kong. Alain Decesse, CEO of Classified Group, sat down for a chat with us about how their concept has evolved in a time where there’s a hip coffee shop on every corner.

“I

t doesn’t matter what you do in the F&B industry in Hong Kong; what you start with will never be how you end.” It sounds slightly ominous. But for CEO of Classified Group, Alain Decesse, it’s an explanation of the natural flow of things in Hong Kong.

Now the group operates 10 of the cafés as well as the iconic restaurant, The Pawn, in Wan Chai. Classified has also become a franchise brand with a first partnership in Indonesia which operates two locations, with a third opening in April 2018.

beverage choices relevant by refreshing it constantly,” says Alain, reeling off things like their zero-caffeine tea and a specialty protein used for milkshakes as examples of consumers “wanting more,” from what a café in Hong Kong means these days.

The Frenchman’s melodic and decidedly un-French accent reveals a glimpse of someone who hasn’t been afraid of adventure. Stints in Dubai, Australia, France, and of course Hong Kong, punctuate his 25 years in the hospitality business. Beginning his career as a bartender, he’s had a progression that he describes as “organic”. It’s perhaps why the CEO still prefers to spend three out of the five working days on location at the various Classified cafés.

Over the past 10 years, they’ve seen their share of troubles – as any operator around for that length of time has. At one point, they operated 15 outlets under six different concepts. Closures occurred for a number of reasons. Some were simply unprofitable, for others the landlord demanded exorbitant rent. “Are we smaller now? In terms of concepts, perhaps. But we’re also bigger in terms of our actual locations as well as revenue generated.”

Alain is confident these elements prevent them from becoming a stale chain outlet. After all, no one wants their neighbourhood hangout to feel like it’s a cookie-cutter replica of something else. Interior design has played its part too. “In the past year-and-a-half in particular we’ve had dramatic changes in the colours of chairs, the lighting, tiles, cushions; all to try and create a fresher, newer look.”

Classified is, itself, a portrait of organic progression. The first café opened in 2006 on Hollywood Road in Sheung Wan – where it still sits today. “It was a place where you could find the best artisan cheese, coffee and boutique wine. Before that, they were only really available in five-star establishments.

We created something that had those elements but was also very casual and affordable,” he says.

Today the environment is also vastly different. Cafés with a boutique, premium offer are no longer revolutionary. The group has had to go from a position of being the first to open in areas where there were very few similar concepts to one of fierce competition.

The adaptation has meant moving from niche to more of an all-day café.

The menu has gone from 10 items to 50. “We have to keep the food and

With a coffee scene that’s more developed than ever, Alain is keen to see how other operators also evolve. “I think we will continue to see new emerging concepts in the coming years. Interestingly, new comers don’t seem to necessarily ‘copy’ the existing offer. They focus on creating a ‘new customer experience’ centred on cutting-edge design and speciality coffee.

I think this is positive as it diversifies the offer and will target a slightly different audience.”

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FOOD & BEVERAGE | Cuisine Capital

CUISINE CAPITAL If you’re a Michelin-star chef setting up in Hong Kong, you’ve probably met Jacques Boissier. The Regional Director – North Asia of Classic Fine Foods has been supplying the very best of Hong Kong’s chefs, hotels and supermarkets for roughly two decades. He tells us why food in Hong Kong has never been so good.

H

ongKongEcho: You first arrived in Hong Kong 24 years ago, how

far has Hong Kong come in the F&B industry?

Jacques Boissier: When I arrived, ‘fine foods’ were not such a big thing. When the company started 17 years ago, Hong Kong was starting to move up the ladder of fine foods, both on the retail side and in restaurants. In this respect, the Michelin guide really helped Hong Kong as a lot of international well-known chefs moved to the city to open restaurants. Today Hong Kong is recognised as the fine food location in Asia – except perhaps for Japan which has the most Michelin stars in the world. Whether it’s for Western or Asian food, Hong Kong is absolutely on the world map. We’ve seen the same changes on retail side; you can buy more and more high quality products. People now want traceability on what they eat, in the same way a chef does.

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HKE: With that influx of high level chefs and cuisine, how has that changed some of the challenges over the years?

JB: We’re in a highly competitive world now, so you have to be extremely efficient. This applies to chefs as well.

Food cost was not an issue 17 years ago.

Today people pay such high rents that it’s become an issue. The fine dining chefs aren’t cutting cost on the quality of products, but they still have to pay close attention to controlling costs. And these chefs want a very high level of service from importers like us, not only the right products and price. Things like quality chain used to be approximate; today that’s not the case. You also need to deliver fresh products every day to the customer; in the beginning we used to import vegetables and seafood once a week, today we have four shipments a week. Why? Because of freshness.

Michelin-star chefs coming to work here from Europe want the same quality of product and service that they have there.

So overall quality has gone up.

HKE: Is there also a change in the sort of products people are looking for?

JB: There are a couple of clear examples of changes. Twenty years ago, very few people were consuming dairy here. Now dairy is a huge market for us. Twenty years ago in Hong Kong, men were just starting to consume red wine and not drinking white wine at all. While women weren’t really consuming it at all. Today, both men and women are drinking red or white wine and they have very good knowledge and appreciation of the products. You still have a middle class who have some difficulty knowing what to order, but that will come with time. We’re also hearing more and more about ‘organic’ products, but that doesn’t mean much to me by the way; so-called organic products are grown in Hong Kong but when it rains, heavy metals fall on the vegetables. I prefer to say ‘clean’ produce.

HKE: In terms of experience, what do you think people want from a restaurant?

JB: People like to discover things, to see the magic of the ingredients and how something is prepared. The young generation can’t yet afford highend restaurants so they go for new experiences that they weren’t able to have at home. Their parents would have most likely cooked traditional familyorientated Chinese food. Today they’re able to try more sophisticated versions of that food, or Western cuisine. It’s really about discovery and sharing. In Hong Kong there’s also generally a move towards eating for pleasure rather than just eating to feed yourself. People want to share time with their friends and have a healthy and enjoyable meal together.

In the last few years we’ve seen Spanish restaurants doing particularly well, especially with a tapas focus on both medium and high-end price levels. This has worked very well with the local and Chinese population because it’s all about sharing. French cuisine, for example, doesn’t really allow that.

HKE: You mention some of those popular Western cuisines – do we sometimes go too far in Hong Kong

and turn certain cuisines into a gimmick or cliché?

authentic for me. Top chefs know how to

JB: Yes, I think so. In Hong Kong there’s lots of what I’d call ‘trendy’ restaurants where they forget about basic things like the ingredients and the quality of cooking. These are basically chefs who don’t have a technical background. A good chef can take a good fish, cook it to perfection with a very nice sauce on the side and it will be a great dish. You don’t need to cover it with so many different tastes. We used to call it the ‘Australian style’ of chefs – these chefs have changed tremendously by the way – but previously they would go over the top. If you look at a European dish, you’ll have two or three tastes on the dish. The Australian style was to pile up five or six ingredients and really focus on volume.

The key is to go back to the basics.

and have great presentation, but actually

HKE: How does this relate to what you understand by the word ‘authenticity’? It seems like something that’s thrown around a lot in the industry.

JB: For me authenticity is all about the quality of the products, their origin, and a respect for ingredients. If you have good produce, don’t try to do anything fancy. Respect it, cook it how it should be cooked and it will be delicious. That’s

do this. The dish can still look beautiful beneath all that it’s very simple.

HKE: Do you feel that with all this progression in quality that Hong Kong is the place where you can find the best new experiences or concepts in the region?

JB: If you look at all the top chefs of the world, they all want to move to Hong Kong. They’re coming to Hong Kong first, not Singapore, because they know it’s a place that loves food and where there are people ready to spend money for pleasure. So Hong Kong will continue to have this role of attracting high quality chefs while developing local ones also.

For that matter, there are lots of local chefs who have excellent restaurants here and they’re doing both Chinese and Western cuisine. There are some doing very modern adaptations, like Alvin Leung at Bo Innovation who’s doing modern Chinese food. It’s something completely new and original. He’s really taken Chinese cuisine to another level.

That’s what Hong Kong is about.

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FOOD & BEVERAGE | Street Sensations

STREET SENSATIONS Wandering past the open-air food stalls of Stanley Street in Central at lunch time is like a beautiful, unapologetic assault of the senses. It’s loud, packed, unrestrained. Watching this historical piece of culinary theatre unfold before your eyes, you forget that the people running these restaurants have defied all odds. They’re business people too, after all. And their stalls are disappearing before our eyes. Known as dai pai dong, licences to operate the stalls are heavily regulated and only allowed to pass through family lines. Today there are only 28 of them left across the city. We asked them what it’s like running a business that embodies Hong Kong’s culinary spirit.

“We have different challenges to typical restaurants”

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SING 成記 KEE

The way we operate is very different to other local cooks – we use an old traditional style that we’ve used for the past 60 years. You have to pay attention to a lot of details. For example, here one chef cooks two crabs at a time. In chain restaurants it’s often one chef who’s cooking 10-20 at the same time.

No one really wants to learn this craft anymore. In summer the weather is very tough to take, you need great energy and stamina. Not everyone can do it. People want to work in Western restaurants because it’s more comfortable.

I’d say we have different challenges to typical restaurants. Rainy days impact our business much more. But at the same time we’re competitive because we draw in lots of tourists who want to eat at a reasonable price.

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FOOD & BEVERAGE | Street Sensations

The shop has been here for over 50 years and I inherited the business from my father. This isn’t an easy business to be in. You need to be extremely dedicated and committed to the work. I consider myself both a business man and a chef.

You have to do both. I get here at 8am to prepare the food and ingredients and we close by 8pm. So it’s at least a 12 hour day, every day.

CHUNG KEE 忠記

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We’ve been lucky because we reached an agreement with the government authorities to continue our licence.

In Sham Shui Po, or other places in Kowloon, they’re less likely to let operators continue. But for the future we just don’t know – it’s entirely up to the government.

Things have changed a lot here. It’s a more diverse crowd than ever before.

Now we have French, Germans, South Africans, Americans, Mainlanders – it’s varied. I think if we moved inside to a wet market it would kill the experience of what a dai pai dong is and it wouldn’t be special anymore.

“I consider myself both a business man and a chef�

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FOOD & BEVERAGE | Street Sensations

“We bridge all levels of society from construction workers to lawyers”

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CHAN SZE KEE 陳 泗 記 My mother-in-law started this dai pai dong over 60 years ago and I’ve been working here since 1988. There have always been talks about moving to a wet market like most the other dai pai dongs but I have a connection with this street, it’s in my blood. For the moment, however, I feel the government would like to preserve the street in this way.

I’m passionate about what we do because this is a special part of what Hong Kong is. We bridge all levels of society from construction workers to lawyers and bankers who come here to relax and take a break from work.

Actually our biggest challenge is recruitment. The mentality of Hong Kong people has changed. They don’t want this kind of environment to work in because it’s too harsh.

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THE MILLENNIAL’S CHOICE | Back to basics

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FOOD & BEVERAGE | Back to Basics

BACK TO BASICS Forget the wild launch parties. A good restaurant is about getting the basics right.

Geoffrey Wu, Hong Kong local and Founder of PR agency specialised in F&B, Forks & Spoons, gives us his bite-sized take on what sounds simple but rarely is.

H

ongKongEcho: It seems like coming up with a good concept is simple, and yet it’s not. What are the essentials?

Geoffrey Wu: In my mind, there are four things to get right. Food, service, ambience and price. Unfortunately not a lot of places get that right in Hong Kong. In general we advise clients to not go over-the-top with gimmicks and to stop thinking about crazy ideas to hype up the launch and so on. Ultimately it never works. We’ve done so much brainstorming with clients who want to have that ‘wow factor’ on opening night.

But in the end, trust me, nothing is ever ready; the licence, the staff, whatever it might be.

What’s working very well right now is restaurants in that average to low-average price range – maybe HK$200 average spend per person. These are small places seating maximum 30-40 people. It’s also brought up this debate about whether fine dining will eventually fade away.

Personally I don’t really agree with that – it still has its place.

I’d also say that Hong Kong consumers in general – although they’re getting

better – are not that welcoming to more exotic or mysterious cuisines. Let’s be honest, the three key cuisines in Hong Kong are Italian, Chinese and Japanese.

I think concepts focusing on more exotic cuisines like African or Middle Eastern have plenty of room to grow.

HKE: Do you think there are enough places doing interesting local cuisine?

GW: Well there are, but the problem is they don’t get much recognition. There are amazing restaurants in the New Territories or elsewhere in Kowloon, but often the problem is they don’t have people like us to package and brand their concept. Hence a lot of the Hong Kong food scene is focused on places in Central, Sheung Wan, Wan Chai and Soho. We’re often encouraging journalists to go out there and write about those other places outside that circle. Why don’t they write about some great restaurant in Yuen Long or Sha Tin? We need to do a better job of promoting some of those hidden gems.

HKE: Restaurant operators in Hong Kong always begrudge how consumers seem to jump from

concept to concept – is that something you see a lot?

GW: Certainly, but I think at the same time there’s probably too much choice.

The market is oversaturated. The other part is that a lot of restaurants aren’t actually ready when they open. The food might not be up to scratch yet or the staff maybe aren’t trained but you have to open because of the rent. That means the consumer is going to a restaurant that’s not ready, so they’re unlikely to return – and word of mouth spreads quickly here.

On a similar note, another trend I would like to see is less consumers booking and doing a no-show. It’s a big problem in Hong Kong that no one has been able to resolve. Restaurants are losing business every day because they hold tables for people who don’t show up.

We’ve tried having a restaurant that has a ‘no reservation’ policy, but that’s also an issue. For a lot of local consumers they don’t want to come to a place where they can’t book because they fear they’ll have to wait. Overall I think there needs to be a bit more consumer etiquette.

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FOOD & BEVERAGE | Across the Seas

ACROSS THE SEAS Do you know how the food you eat ends up in Hong Kong? The duo behind food wholesaler Culina (HK) Ltd, tell us why it’s never an easy journey in the importation business.

I

n a city that produces little, importers are the lifeblood of the F&B ecosystem.

Managing Director of Culina (HK) Ltd, Philippe Lalanne-Tauzia, explains that the bulk of their business has shifted to sea shipments rather than air freight in part due to reductions in the number of flights between Europe and Hong Kong.

“Air freight has become increasingly complicated and space is difficult and costly to book. Often carriers cannot guarantee us space in busy periods like Christmas,” he says.

Fresh imports have never been easy.

Take seafood, for example. The seafood section of the Rungis market in Paris – where most importers source their seafood coming from France – does

46 | HongKongEcho

not open on Mondays. When its doors swing open on Tuesday, buyers rush to get their hands on the latest produce to be flown Wednesday for arrival in Hong Kong on Thursday. That means the ‘fresh’ fish caught on Sunday (at the latest) are at least 4-5 days old once they reach consumers here. “It makes quality control very complicated, so we’ve shifted our focus away from these kinds of perishable products,” says Philippe.

Shipping frozen or longer shelf-life products, like butters and creams, provides its own headaches too. There’s roughly a two-month gap between a client making an order and a shipment arriving. The supplier processes the order in the first month and the second

month is spent shipping between Europe and Hong Kong. Since the collapse of South Korean shipping giant Hanjin in 2016, shipping schedules have faced delays and prices have risen. What used to be a three week journey is now more like four or five. “It’s more difficult than before and it means you have to be very calculated in how you plan orders in advance,” explains Philippe.

Once the frozen or refrigerated goods arrive, it’s a bit more straightforward.

“Hong Kong is known for its strict guidelines for cold chain compared to a lot of other Asian countries,” says Assistant Managing Director, Josephine Lalanne-Tauzia. Goods are kept refrigerated or frozen in their warehouse

in Wong Chuk Hang and are delivered across the city by cold trucks. “I’ve seen plenty of things in my time here, like frozen goods being delivered in normal trucks. Fortunately that’s improved a lot in the last 10 years. Now our clients, and the government, have very strict guidelines,” says Philippe.

“Large groups have begun to ask for more documents about traceability; regulations generally seem to be getting much tighter,” explains Josephine. If you want to work with this level of operator, you simply have to be up to that standard, the pair explains, who receive

rigorous site checks at their warehouses from such groups at least once a year.

It’s unfortunately true that Hong Kong hasn’t been short of food safety scares.

In November this year Ombudsman Connie Lau Yin-hing criticised the “hasty” border inspection of imported fruit and vegetables coming largely from the mainland. “It’s quite incredible to see that considering how much paperwork and checks are required for the products we import from Europe,” says Philippe.

Still, the beauty of Hong Kong is that there are always products available

from all corners of the world, explains Philippe. “Sometimes clients in Hong Kong have a hard time understanding that certain products are seasonal and we simply can’t get them all year round.

But the thing in Hong Kong is there are imports from all over the world, so what might not be available in Europe could, for instance, easily be coming from Australia or Japan.”

Culina (HK) Ltd has been supplying restaurants, hotels, supermarkets and even airline caterers in Hong Kong with imported food products – largely from Europe – for over 20 years.

Fresh goods imported from France

5

Days SAT/SUN

TUE

WED

Longer shelf-life / frozen goods imported from Europe 1 MONTH

2

Months 1 MONTH

THUR

Advertorial

49 | HongKongEcho

Advertorial

Hong Kong’s culinary scene: opportunity and challenges

Hong Kong continues to attract food entrepreneurs and F&B experts from all over the world, including France. Philippe Guettat, Chairman & CEO of Pernod Ricard Asia and one of the Conseillers du Commerce Extérieur (or Foreign Trade Advisors) shares with us some insights from successful French F&B professionals to better understand this vibrant city.

W

ith no less than 14,000 restaurants in a limited territory, and the highest number of restaurants per capita, Hong Kong is without doubt the culinary capital of Asia. Its people’s passion for food can be mostly explained by its long working hours, high rate of women participating in the labour force and small apartments with limited cooking space which leads many to dine out regularly. Thus the astonishing range of choices on offer from high-end outlets to casual, everyday food such as simple noodles. Like its people, Hong Kong’s dining scene is open to all cultures: French restaurants and bistros are no exception.

Creations. In 2009, he opened his first French bistro, Pastis, in Central, which saw an immediate success, enthusiastically endorsed by the French community. Later, his audience gradually expanded to other western and local consumers.

Today, his group operates 10 successful French bistros and bars across Hong Kong island. “Authenticity is key to our success,” he says. “We never invented anything – but we brought something new and authentic to Hong Kong: a place where everyone can experience the genuine atmosphere of a friendly casual bistro with home-made classics, using quality French ingredients.”

The dynamic, rapidly-evolving F&B market makes it challenging to keep consumers satisfied and loyal. Frequent travellers and familiar with the world’s best culinary offerings, consumers here are not only demanding in terms of quality and price; they’re fascinated by latest trends, obsessed to try out new places. Some have succeeded in adapting to consumer needs, such as the Hotel Icon, hosting three restaurants, including the famous Cantonese restaurant ‘Above and Beyond’. “We constantly try to innovate and offer an experience full of surprises and delight,” says Harry Massolin, its French F&B Manager. “We also embody the Asian hospitality, which is a little different from the style of services you would experience in a western dining place. The people here look for a less conservative and more personal, friendly style of service as if they were treated as part of the family.”

While consumers in Hong Kong appreciate French cuisine, some experts feel that the level of knowledge and expertise of staff still needs improvement. “Hong Kong’s western dining scene is still quite young,” points out Yohann Jousselin, Master Sommelier and Director of Wine of the three ShangriLa properties in Hong Kong, renowned for offering one of the most extensive wine collections in Asia. “The market has been evolving so rapidly here that sometimes the education of the staff is not able to keep up.”

More and more food entrepreneurs are f locking to the city from all over the world, including France, to set up. Administrative ease is clearly a strong attraction.

Entrepreneurs enjoy significant support from the government, the procedures are easy, affordable and quick.

It’s therefore “always worth trying to start something,” says Jérôme Spitzer, co-owner of restaurant group French

50 | HongKongEcho

The Conseillers du Commerce Extérieur (CCE) in Hong Kong, or Foreign Trade Advisors, are working with the French authorities to support and foster a positive image of France. Broadcasting our culinary heritage and educating the people on our wines and gastronomies is crucial to protecting France’s image and increase its attractiveness. Supporting and accompanying food entrepreneurs who have the courage and passion to embark on this adventure and bring our culinary culture to Hong Kong is also part of our mission.

This vibrant city offers huge opportunities in F&B. Having even more French entrepreneurs in this sector will contribute to promoting France’s attractiveness in the long run. “Passion is key to succeed,” to quote again Yohann Jousselin. “With hard work, creativity and passion, nothing is impossible in this city.”

LookingBack

Luxury Symposium hits new heights in second edition Driven by the French Chamber’s Luxury & Retail Committee, the second edition of the French Chamber’s Luxury Symposium took place on 14 November 2018, welcoming 180 guests for an afternoon full of insights on the ever-evolving world of luxury and retail.

The aim? Learn from disruptors, thought leaders and key industry players to re-imagine luxury as we know it and create a better experience for consumers in the connected age.

Opening speaker and platinum sponsor, Alexis Bonhomme from Curiosity China, set the scene with aplomb. As he highlighted, the numbers are staggering. Luxury goods make up a US$300 billion market worldwide with Chinese consumers responsible for roughly 32% of these sales. Just last week, records were once again broken for Chinese Single’s Day, with total sales amounting to US$25 billion.

Throughout the day, we heard from speakers from the likes of Christies, XXII, Curiosity China, IPSOS, DFS Group, Next Beauty, Bluebell Group, MyMM, Mei.com, Sephora, Maserati, Clever Age Asia, KPMG, Au Coeur du Luxe, Value Retail China and K11 Concepts. They covered how to better tap into this enormous market through everything from Augmented Reality installations to targeting Key Opinion Leaders and innovative WeChat campaigns.

In acknowledging that Chinese consumers are more sophisticated and discerning than ever we must look beyond classic digital marketing strategies. Luxury brands that fail to understand are already being left behind.

A big thanks to our sponsors Curiosity China, KPMG and Nespresso.

Check out our Facebook page to see full video and photo highlights from the day: facebook.com/fccihk/

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Annual Soirée goes to the races This year’s Annual Soirée was held in the inimitable surroundings of the Jockey Club at the Happy Valley racecourse for an evening full of surprises under the fitting theme of Casino Royale.

The Annual Soirée is an occasion to get together just after the summer break and to catch up before the end-of-year period starts to kick in. Held just after the Annual General Meeting, it’s also a chance for new members to come along and meet the French Chamber Councillors who’ve been able to stick around to enjoy the evening.

Of course, you can’t come to the Jockey Club without seeing some horse racing. Well, some sort of racing at least. After the meal – and a few glasses of wine – all the tables gathered on the terrace overlooking the iconic racecourse for a race of our own with novelty dice and horses. After a few false starts, the winning table took home a gift hamper thanks to La Boucherie.

The night wasn’t over yet. With the dining room transformed into a makeshift casino we settled in to more than a few games of blackjack, roulette and sic bo – all for fun of course – to cap off an excellent evening.

HongKongEcho | 51

LookingBack

LevelUp pitches unique device to the Business Advisors Group In November LevelUp was the latest startup to present to the Business Advisors Group (BAG) – which this time had a distinctly healthcare-orientated makeup – about their unique hearing aid device aimed at reaching an untapped market of some 720,000 customers in Hong Kong whose needs are not adequately met by existing actors.

The BAG is one of the French Chamber’s 20 committees which is specialised in providing networking, advice and coaching to startups or small companies undertaking new developments. 80% of the advisors are themselves entrepreneurs – crucially though, these entrepreneurs act in a diverse range of fields and thus offer a variety of expertise no matter the pitch presented.

Open to receiving both members and non-members, the modus operandi of the BAG is to help, thus the approach is altruistic. It’s also important to make a clear distinction between the counselling aspect of the BAG (which is linked to the Chamber) and the financial relations / input of the advisors which is not related

If you’re an entrepreneur and you:

to the Chamber itself.

The BAG typically advises on three key questions: How to prepare for a pitch to investors, how to further develop and reach the next level, and how to develop in Asia and best adapt to the market.

Under a new initiative, the BAG also operates a ‘Pitch Clinic’ in collaboration with members of La French Tech and which is specifically targeted to tech startups to advise them prior to pitching to potential investors.

The BAG’s offer in five points: Meet with professionals, free advice, confidentiality guaranteed, positive critiques and when possible the candidates may be put in contact with relevant persons.

Infrastructure Committee hears from HKSAR Government on Lok Ma Chau Loop In September the Chamber’s Infrastructure Committee had the pleasure of welcoming Phyllis Li Chi Miu, JP, Deputy Director of Planning/Territorial of the Planning Department and Natalie Luk Lok Yin, Town Planner. The Planning Department is frequently invited to talk at the Chamber and this time the discussion centred on the Government’s ambitious Lok Ma Chau Loop project on the border between Hong Kong and Shenzhen.

Members of the committee heard first-hand about new road developments to connect the Loop with new and existing areas while also going into some of the finer details of the project’s Smart City ambitions and opportunities.

It’s always engaging to have the possibility to exchange directly with government representatives on these projects and we look forward to further discussions in the near future.

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- Want to prepare yourself before pitching to investors; - Are wondering how to take your project to the next level; - Would like to exchange with experienced entrepreneurs on how to adapt your offer specifically to the Asian market…

Contact us at: catherine.pielawa-ko@fccihk.com

FrenchChamber

BUSINESS DEVELOPMENT SERVICES

THE FRENCH CHAMBER OFFERS A HIGHLY UNIQUE ONE-STOP SOLUTION TO SUPPORT SMES TO SUCCESSFULLY ESTABLISH AND DEVELOP THEIR BUSINESS IN HONG KONG ENTERING THE HONG KONG MARKET • Sourcing/exporting missions in Hong Kong and France • Market studies

SETTING UP A COMPANY • Legal setup • Registration • Bank account • Company secretary • Domiciliation

RECRUITING STAFF AND JOB SEARCHING

TRANSLATION

RENTING OFFICES AND MEETING ROOMS • NextSpace: Our business centre in the heart of Central • Open space work desks, private offices • Meeting rooms from 1 to 45+ persons capacity

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Contact: Clement Brumeaux | adm@fccikh.com | +852 2294 7718

DISCOVERING THE HONG KONG AND SOUTH CHINA MARKET WITH HUAWEI FRANCE The French Chamber offers an array of business services to help companies prospect the Hong Kong market. This November, Huawei France looked to the French Chamber in Hong Kong to organise a mission to accompany 10 selected French startups under their Digital InPulse program (huaweienfrance. fr/digital-in-pulse) to discover the Hong Kong and South Chinese markets.

To better understand the Hong Kong market, delegates met the French Chamber Executive Director, who gave an overview of the business ecosystem.

They then visited and spoke to a range of key players including IoT specialists GS1 HK, incubator Blueprint, Energizing Kowloon East Office as well as the MTR operations control centre in Tsing Yi. Cooperating with CCI China, the Chamber arranged visits with key economic actors in Shenzhen including forerunners in the drone industry DJI, and electronic vehicle manufacturers BYD. These targeted and high-level meetings ensured an action-packed and eye-opening immersion into the local market for all those involved.

Our dedicated, experienced and multi-lingual team would be delighted to see how we could help you also make the step into the Hong Kong market.

Contact us to learn more: business@fccihk.com

HongKongEcho | 53

FrenchChamberFoundation

FOUNDATION’S FOOD PARTNER IN THE SPOTLIGHT: FOOD ANGEL A practical solution Food Angel’s evocative slogan - “Waste not, hunger not, with love” perfectly summarises its vision. From logistics to transformation of the collected food, Food Angel constantly try to file the gap existing between profitable industries and people in need of healthy and affordable meals.

Every morning, a team collects edible surplus of food from local industries that would be otherwise thrown out. Under a very careful safety protocol, the collected food is transformed into nutritious meals within two central kitchens in Chai Wan and Sham Shui Po. Fresh meal trays are then transferred immediately to the Foundation’s four Lunch Clubs across town and made available to our beneficiaries. “We are glad to collaborate with the French Chamber Foundation in providing hot meals to the low-income community in Hong Kong. We both hold the view that it’s not just food that we are sharing with these beneficiaries, it’s also about the love and care that we share with them,” says Ms Gigi Tung, Founder of Bo Charity

Lunch Club in Wan Chai

Foundation.

Numbers speak for themselves Currently, Food Angel rescue five tonnes of edible surplus food and prepares 7,000 hot meals and 1,000 food packs daily for those in need. In the past 12 months, over 42,000 nutritious meals and soups have been served to the beneficiaries. The French Chamber Foundation is delighted to collaborate with Food Angel and hopes that food waste and hunger in Hong Kong will become two things of the past in the coming years.

Food assistance for the underprivileged In constantly trying to find the most concrete solutions to alleviate poverty in Hong Kong, the collaboration between the French Chamber Foundation and Food Angel makes perfect sense. Avoiding food waste is the core mission of Food Angel, a food assistance program launched in 2011 by Bo Charity Foundation. 33% of food waste in Hong Kong is produced by major industries, representing over 3,300 tons of surplus food discarded every day. With over HKD 2.4 million spent daily by the government to process waste, Hong Kong is close to reaching saturation point: all three of the available landfills will be full by 2020. Taking action is therefore urgent, and when a charity turns such a pressing challenge into a social opportunity to feed people in need, it becomes even more meaningful.

SUCCESS STORIES

TWO NEW STORIES THAT INSPIRE US TO DO MORE Helped by the Lunch Club in Wan Chai, Ms L., a 48-year-old woman, is currently living with her family in Lai Chi Kok. Since she had strong interests in medical assistant courses, she immediately enrolled in the Patient Care Assistant Course and went to one of our job matching sessions. We’re glad to say that she is now a medical assistant at a local hospital.

Ms L. was an occupational therapy student when she came to the hot meal service at Mong Kok. She was highly motivated in her job search and was looking forward to joining the health care related industry. The French Chamber Foundation provided her with related job information and followed up her job searching process. Social workers gave her some tips to prepare herself well in job interviews and she is now a patient care parttime assistant.

54 | HongKongEcho

Mandarin skill training at Mong Kok Lunch Club

Members'Highlights

ALSTOM AND SIEMENS JOIN FORCES FOR GREATER MOBILITY On 26 September 2017, Siemens and Alstom signed a Memorandum of

“Today is a key moment in Alstom’s history, confirming its position as the

Understanding to combine Siemens’ mobility business including its rail

platform for the rail sector consolidation. Mobility is at the heart of today’s

traction drives business with Alstom. The transaction brings together two

world challenges. Future modes of transportation are bound to be clean and

innovative players of the railway market with unique customer value and

competitive. Thanks to its global reach across all continents, its scale, its

operational potential. The two businesses are largely complementary in terms

technological know-how and its unique positioning on digital transportation,

of activities and geographies. Siemens will receive newly issued shares in the

the combination of Alstom and Siemens Mobility will bring to its customers

combined company representing 50 percent of Alstom’s share capital on a

and ultimately to all citizens smarter and more efficient systems to meet

fully diluted basis.

mobility challenges of cities and countries. By combining Siemens Mobility’s experienced teams, complementary geographies and innovative expertise

“This Franco-German merger of equals sends a strong signal in many ways.

with ours, the new entity will create value for customers, employees and

We put the European idea to work and together with our friends at Alstom,

shareholders,” said Henri Poupart-Lafarge, Chairman and Chief Executive

we are creating a new European champion in the rail industry for the long

Officer of Alstom SA. “I am particularly proud to lead the creation of such a

term. This will give our customers around the world a more innovative and

group which will undoubtedly shape the future of mobility.”

more competitive portfolio”, said Joe Kaeser, President and CEO of Siemens AG. “The global market-place has changed significantly over the last few

www.alstom.com

years. A dominant player in Asia has changed global market dynamics and digitalisation will impact the future of mobility. Together, we can offer more choices and will be driving this transformation for our customers, employees and shareholders in a responsible and sustainable way”, Kaeser added.

ALVANON AND BROWZWEAR ANNOUNCE STRATEGIC REGIONAL PARTNERSHIP Browzwear, provider of 3D solutions for apparel design, development and

potential to transform the fashion industry, this strategic partnership will

merchandising and Alvanon, the global apparel business expert, announce a

facilitate and push the conversation forward. Being able to use Browzwear’s

new strategic regional partnership to provide their combined expert offerings

latest technology to offer innovative solutions to our clients throughout Asia

throughout Hong Kong and China.

is exciting.”

“We are excited to expand our partnership with Alvanon,” said Sharon Lim,

www.alvanon.com

CEO at Browzwear. “The joint offering of both fit consulting and 3D solutions will improve our customer response time and help us dynamically overcome the challenges our industry faces today.”

Under the new agreement, Alvanon will collaborate with Browzwear to leverage the power of 3D among its China and Hong Kong sales team, showrooms, marketing/forum events, press releases and other professional means and channels of trade. The company will package end-to-end solutions for prospective clients and collaborate with Browzwear to provide support and implementation plans for new clients.

“Strengthening and expanding our partnership with Browzwear made perfect sense,” said Jason Wang, Chief Operating Officer at Alvanon. “3D has the

HongKongEcho | 55

Members'Highlights

BILINGUALISM IN ACTION AT FRENCH INTERNATIONAL SCHOOL The multiple benefits of bilingualism have been lauded in a variety of research which suggests positive impacts on the brain as well as instilling an appreciation not only of a different language but also of another culture.

The French International School of Hong Kong (FIS) recognises the importance of bilingualism in both its French stream, following the French National Curriculum, and its International Stream, following the English National Curriculum. “Almost all of our Secondary school students are bilingual in French and English when they graduate from FIS,” shares Headmaster, David Tran. “The importance we place on language acquisition was a key factor in the design of our new Tseung Kwan O (TKO) Primary campus.”

In September 2018, FIS will open a new forward-thinking, eco-friendly campus.

The ambition to innovate is central to the campus design which not only considers sustainability and environmental issues but also accommodates the exciting new pedagogical approach which will be adopted.

“Our objective is to implement collaborative practices on a daily basis to create a naturally bilingual environment where students switch effortlessly between English and French,” explains Ian Clayton, Head of the International Stream. “The Primary school has been designed following a ‘villa’ concept.

Each ‘villa’ contains one entire year group, both French and International streams, and has five classrooms, each with retractable walls, opening onto a central communal area. The space on offer is highly versatile allowing teachers to select when their classrooms will be ‘open plan’ to allow shared projects between French and International students.”

This pedagogical project will be based on five pillars: • A Shared Curriculum: While each stream will continue to follow their own curriculum, there will be themes common to each ‘villa’ which the whole year group will work on.

• Assembly Time: Held for the whole ‘villa’ in either French or English, to help build a bilingual identity by encouraging students to listen and speak in both languages.

• Bilingual Integrated Learning: Implement bilingualism in action by creating groups where French and English teachers collaborate to co-teach through the curriculum.

• Shared Projects: Each ‘villa’ will have designated times to work towards group projects that will be shared with the community such as ‘Art Week’, for example.

• Language Approach: Bilingualism on a daily basis. “We are excited that Primary students at TKO will have the opportunity to benefit from this early focus on bilingualism,” adds Mr Clayton.

The French International School looks forward to seeing bilingualism in action at TKO.

www.fis.edu.hk

56 | HongKongEcho

UNIVERSAL MUSIC GROUP LAUNCHES ACCELERATOR ENGAGEMENT NETWORK Universal Music Group (UMG) today announced the launch of a first-of-

In making the announcement, Michael Nash, UMG’s Executive Vice President

its-kind accelerator engagement network by a major music entertainment

of Digital Strategy, said, “UMG is launching the Accelerator Network to build

company aimed at promoting the development of innovative music-based

on the company’s stellar track-record of supporting entrepreneurs around the

startups around the world.

world and licensing more than 400 digital services globally. By developing a robust network of accelerators, UMG will play a more central role in helping

To support the key contributions that accelerator programs provide to the

to support the next generation of entrepreneurs who are already hard at work

global startup ecosystem, UMG will work closely with key entrepreneurial

to bring innovative ideas to market that will create exciting new experiences

programs based in countries around the world to assist in the evaluation and

for artists and fans everywhere.”

development of music-based startups. UMG will contribute music industry expertise during the application process and mentor accepted digital music

Tuhin Roy, UMG’s Vice President of New Digital Business, said, “UMG has

companies, while accelerators will guide these new companies in developing,

the potential to serve as a strategic bridge between the creative minds

launching and raising funding for innovative new products.

working in the epicentre of the entertainment industry and the immensely innovative startup communities in entrepreneurial centres around the world.

UMG anticipates working with as many as ten programs in the first year of

From this vantage point, UMG is uniquely positioned to help foster the next

launching the accelerator network. The first accelerators to join the network

wave of innovative digital music startups, while also learning from these

include Axel Springer’s Plug and Play, a media-focused accelerator based in

amazing entrepreneurs about new ways to apply digital technologies in our

Berlin; LeanSquare, a music technology accelerator launched by the Liège,

own businesses to benefit artists and

Belgium-based investment firm; and NYC MediaLab, which runs programs

labels.”

for student and faculty entrepreneurs at New York-area universities who are interested in launching digital media startups.

www.universalmusic.com

HongKongEcho | 57

VEOLIA BECOMES FOUNDING PARTNER IN WORLD'S FIRST AIR QUALITY INNOVATION ACCELERATOR

On National Air Quality Day in France (20 September), Airparif launched

From its launch, AIRLAB is supporting six innovative projects in the following

AIRLAB, the first air quality innovation accelerator, an initiative of which Veolia

fields: urban logistics, air quality in buildings, urban furniture, heating, citizen

is a founding partner.

information and mobility, and citizen participation.

In the context of this platform, an innovative project will be put together in

In the framework of AIRLAB, Icade and Veolia will jointly implement an

collaboration with Icade, focusing on testing a new generation of sensors to

innovative project, relating to the development of a new generation of sensors,

control indoor air quality in office buildings.

which will measure and continuously act on indoor air quality: ventilation, recycling indoor air, measuring hygrometry, CO2, fine particles, and volatile

Air quality in the Ile-de-France region is improving, but too many people are

organic compounds.

still being exposed to levels of pollution that exceed the recommendations laid down by World Health Organization (WHO). To further improve air quality,

Veolia and Icade have called on several innovative startups to design these

the AIRLAB ecosystem proposes an open and collaborative innovation

sensors. This open-innovation approach will give rise to initial tests in the

approach through its partners and its community, which brings together

spring of 2018, notably on tower PB5 in La Défense (Paris).

users, businesses (startups and SMEs), research institutes, local authorities, the state, and citizens.

www.veolia.com

The AIRLAB platform is being launched by Airparif in partnership with Région Ile-de-France, Mairie de Paris, Métropole du Grand Paris, the prefecture for the region, Ile-de-France Mobilités, Veolia, SNCF Logistics, Air Liquide, Icade, Citelum - EDF Group - and Engie France réseaux.

HongKongEcho | 58

NewFaces

NEW MEMBERS OF THE FRENCH CHAMBER NEW CORPORATE MEMBERS ALLIED PICKFORDS

AXYS ASIA

Allied Pickfords focuses on the delivery of door-to-door household goods moving services in over 800 locations worldwide.

SIRVA Relocation provides a full range of relocation services, including Assignment Management, Destination Services, Visa & Immigration, etc.

Bringing a rational approach in your digital transformation.

We help our clients to create value through Digital, CRM and analytics.

Arnaud PERIN Partner Digital Transformation Simon LESIEUR Senior Consultant

Nicolas RICARD Sales Consultant

BOOK PARTNERS CHINA LTD

BA&SH ASIA HOLDING A leading French fashion brand in the affordable luxury market bringing an effortless chic and feminine ideal wardrobe to women.

Printing.

Pascal PLUCHARD CEO

Isolde ANDOUARD CEO Asia

Alex WONG Manager

DRAGON LAW LIMITED Dragon Law is a LegalTech company & an online platform where Startups & SMEs can handle all their legal needs.

Medhi AIT HADI French Desk Consultant

GUERLAIN ASIA PACIFIC LIMITED Established in 1828, Guerlain is a major Parisian parfumeur house dedicated to Philippe GUITELMANN beauty & sustainability. By incorporating Regional Managing Director Asia artisan know-how and cutting-edge technology, Guerlain strives to enhance the natural beauty of all women by specializing in a variety of luxury goods ranging from fragrance, make up to skincare products.

IDSUD

Stephane PIERI CEO

IDSUD Energies works hard daily to offer its clients innovative energies solutions.

“PRODUCE, STORE and SUPPLY” is the brand motto.

HongKongEcho | 59

NewFaces

NEW CORPORATE MEMBERS MANDARIN ORIENTAL HONG KONG

Christophe CAMBOURNAC Nicolas BIJUK CEO APAC, Head, Reputation Ipsos and Corporate Communications, Ipsos

Alexandre DE SAINT LEON MD, APAC, Ipsos Loyalty

Pierre BARTHES General Manager

MEDIA 6 ASIA PRODUCTION LIMITED

IPSOS

Silvia HERRANZ Managing Director, Ipsos Connect Asia Pacific

At Ipsos we are passionately curious about people, markets, brands and society. We deliver information and analysis that makes our complex world easier and faster to navigate and inspires our clients to make smarter decisions.

Mona DJEBBAR Sales Manager

Zina LAM Managing Director - Asia Pacific

The Kooples is an accessible-luxury French fashion brand founded by Brothers Alexandre, Laurent and Raphaël Elicha in Paris in 2008. Epitomising effortless elegance, the brand is a perfect combination of chic and modern looks for both men and women.

Laetitia MERGUI CEO Asia

UNIVERSAL MUSIC GROUP

THE MURRAY, HONG KONG, A NICCOLO HOTEL

Maxine HOWE Director of Sales & Marketing

60 | HongKongEcho

The Murray, Hong Kong, opening in late 2017, will feature 336 rooms and suites spanning 25 floors. Facilities include a stunning rooftop bar with views of the central business district and the green oasis of Hong Kong Park, remarkable restaurants, as well as creative meeting and event spaces.

MEDIA6 ASIA PRODUCTION LTD belongs to MEDIA6 Group who creates and fits retail outlets and manufactures advertising and display materials that increase point of purchase traffic, attract clients’ attention as they make their purchases and thus optimize sales.

THE KOOPLES

SEAFRIGO HONG KONG LIMITED Full-fledged integrated freight and logistics services including airfreight, sea freight, land transport, intermodals, temperature controlled warehousing and distribution, value added services and tailor made endto-end supply chain solutions.

Located in the heart of the Central district, Mandarin Oriental, Hong Kong is the epitome of contemporary luxury that delivers Oriental charm. Delighting guests for over 50 years, the hotel is legendary for its award-winning services and five-star facilities.

Universal Music Group (UMG) is the world leader in music-based entertainment, with a broad array of businesses engaged in recorded music, music publishing, merchandising and audiovisual content in more than 60 countries.

Franck VILLET Chief Operating Officer, Asia

NewFaces

NEW ENTREPRENEUR MEMBERS

Steve ROSENBLUM CEO

BAIA LTD

BEABA ASIA LTD

All covetable, collectible, captivating— and customized just for you and your crew. Our shoes and bags are objects of fascination—pure eye candy that excites and entices your entire community of friends. Anything is possible, everything goes, and everyone partakes in the fun.

BÉABA® is known worldwide for its unique ability to create innovative products for baby care industry with a focus on design and technology. For 30 years, BÉABA has created products that help families enjoying easier and healthier lives.

Isabelle BRAHIN APAC Development Director

CRÉDIT EXPAT

Marjorie COCCHI Relationship Manager

CRÉDIT EXPAT is specialized in real estate loan for French expatriates and nonresidents.

In the framework of a real estate investment project in Europe, or simply to negotiate the conditions of a pre-existing loan, our job is to facilitate the process for French expatriates and non-residents, and to enable them to access to the best loan conditions as well as for the related insurance.

DEVENISH HOLDINGS LIMITED Exporter, Wholesaler and Retailer of medical & cosmetic raw materials and products.

Akemi SHIBUYA Managing Director

FIRST BLOOM LIMITED

ECRITEL / CDN TECH ASIA LIMITED

First Bloom brings you tailor-made training and educational products and services to boost your staff’s performance in real work situations after training, by combining both high-end technologies and sound pedagogical theories.

Ecritel Asia is a managed hosting company, providing cloud computing, internet hosting and CDN solutions.

Hugo AGUADO CEO

Jiani WANG Managing Director & Senior Trainer

INTERNATIONAL ASIA INC. LIMITED International Asia is a Human Resources consulting firm offering one-stop solutions for optimizing the effectiveness of “Organization System and Leadership”.

Jean-Benoît KAEPPELIN Founder & CEO

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Viriginia WAN Consulting Director

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NewFaces

NEW ENTREPRENEUR MEMBERS

Philippe GUIARD Managing Director

LLAGOSTI

LORE LTD

Seafood Global Sourcing: Crustaceans, fish and Mollusks.

Supplier identification / Produce specifications alignment / Price negotiation / On site production monitoring / Pre shipment inspection / Shipment documentary follow up / Financing solutions

Pan-Asia, we create, craft, produce and stage live immersive experiences, stories, events engagements, and environments for brands and corporations. Using theatrical mastery and marketing and communications acumen, we relay the most critical business messages to last.

Beatrice REMY Managing Director

PRESTIGE & PERFORMANCE MARINE

SEDONA

- Yachts Brokerage, Charter & Management - Yacht Design & Construction - Project management - Sailing Coach from beginner to pro.

Thierry BAROT Yacht Broker & Consultant

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Landry LE RAY Managing Director

Founded in 1998 as a small startup, Sedona have rapidly grown to become a prominent mid-size player in the IT services arena, the SEDONA Group is an Information Systems services and a management consulting company, specialised in the implementation of business applications, web and mobile solutions for the private and public sectors.

THE FRENCH CHAMBER 21/F, On Hing Building, 1 On Hing Terrace, Central, Hong Kong Tel: (852) 2523 6818

EXECUTIVE DIRECTOR - C HIEF EDITOR Delphine COLSON

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EDITORIAL COMMITTEE Philippe MASSONNET

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HEAD OF MEMBERS SERVICES Sophie LECONTE

DESIGN MANAGER Louise HO

The views expressed in the publication are not necessarily those of The French Chamber. The editor accepts no responsibility for unsolicited material submitted.

Shares awarded for free

TALKING TAXATION On 27 September 2017 the French government presented the finance bill for 2018. Wealth management experts, Banque Transatlantique explains what these measures mean moving forward.

Implementation of the single flatrate tax (prélèvement forfaitaire unique - PFU) The finance bill confirms the application of a single flat-rate tax (“Flat Tax”) of 30% to non-real estate investment income as of 1 January 2018. This rate covers income tax (12.8%) and social security contributions (17.2% as of 1 January 2018) but does not cover the exceptional contribution on high incomes that is maintained. The marginal rate of tax at IR + PS + CEHR would therefore be 34%.

The PFU would be based on the gross income received without abatement or deduction of costs and would be recovered instead of the current income tax instalment. Taxpayers who would have an interest in this could opt for taxation at the progressive scale of income tax when filing their income tax return. This option would be global: all income falling within the scope of PFU would then be subject to the progressive scale.

Income subject to PFU would be: • Dividends and distributed income (where the beneficiary opts for progressive taxation, the 40% abatement would be retained).

• Interest and similar income. The interest from housing savings plans and housing savings accounts opened from 1 January 2018 would become taxable at PFU. On the other hand, the interest from ‘Livret A’ savings accounts, ‘Livret d’Epargne Populaire’ savings accounts, and ‘Livrets de développement durable’ (sustainable development) savings accounts, would remain exempt from tax.

• Redemptions on life insurance and capitalisation contracts as of 1 January 2018. For premiums paid from 27 September 2017, as soon as all outstanding amounts (all contracts combined)

exceed €150,000 per person on the 31st of December of the year preceding the redemption, the products related to these premiums would be taxed at the PFU in proportion to the amount outstanding exceeding the threshold of €150,000.

For premiums paid before 27 September 2017 or for premiums paid on or after 27 September 2017, as long as the outstanding amounts do not exceed €150,000, the current plan would be maintained.

• Capital gains on the sale of securities.

The PFU would be applied to capital gains from the sale of securities realised from 1 January 2018 for their net amount after deduction of realised losses in the year or previously (in the previous ten years and not imputed). The abatement for the duration of ownership would be abolished. However, a safeguard clause is provided in favour of securities acquired or subscribed before 1 January 2018 and sold after that date: the taxpayer could benefit from common-law tax abatement or the enhanced abatement for the sale of securities of SMEs of less than 10 years provided that they opt for the taxation of all of their income from capital on the progressive scale.

For retiring SME executives, the bill establishes a fixed abatement of €500,000 applicable to realised capital gains from 1 January 2018 until 31 December 2022.

PEAs and PEA-SMEs would not be affected by the PFU.

A new tax regime is introduced for free shares whose allocation is authorised by a decision of the extraordinary general meeting taken since the entry into force of the law. Acquisition gains would be taxed on the progressive income taxation scale after a 50% abatement for the fraction not exceeding €300,000/year. The fraction of the gain exceeding €300,000 would, as now, be imposed on the progressive income taxation scale without the application of any abatement.

Wealth tax on real estate The bill would eliminate the ISF from 1 January 2018 and replace it with a wealth tax on real estate assets (impôt sur la fortune immobilière - IFI). Certain rules shouldn’t change, like the scale and the obligation threshold, the 30% abatement on the principal residence, the impatriate regime (5 years), the exemptions applicable to woodland and forests as well as to professional goods, and the cap. The IFI base would include properties held directly by natural persons, the shares of companies or organisations (whatever the legal form or the location) for the fraction of their representative value of real estate or real estate rights, the value of redeemable insurance contracts in units of account for the representative portion of taxable real estate assets. It would exclude all movable assets, including securities of companies that do not hold real estate assets and all financial assets such as bank accounts, life insurance policies, etc.

Hervé Guinebert International Private Banking Department, Director, Hong Kong Representative Office

Banque Transatlantique has been providing dedicated services to French expatriates for over a century. The Bank has dedicated significant resources

to

support

these

international

T: +852 2106 0391

M: +852 9380 8917

customers over time, and is the preferred partner

E: bthongkong@banquetransatlantique.com

of French professionals living abroad.

Website: https://expatries.banquetransatlantique.com

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