【 📢FOODIVAL Blog✏️ 】2025 Policy Address: 7 Essential Measures Every F&B Industry Leader Should Know!

Given the intense competition and high operating costs in Hong Kong's F&B industry, along with the uncertain global economic environment and ever-changing consumption patterns, the industry is threatened by growing crises and challenges with a wave of closures in recent years. In response, the government proposed a series of supportive measures in its latest Policy Address on September 17, aimed at alleviating the operational pressure on local restaurants. The measures include concessions of fees and charges, streamlined licensing application procedures and more, in the hope of removing barriers for the industry and help it overcome these difficult times. The new initiatives will not only create new business opportunities and expand customer bases, but also reduce operating costs. 

FOODIVAL has  compiled a list of key points and measures related to the F&B industry from the Policy Address for our clients. If you want to stay up-to-date on the government's policies and industry trends, don't miss this month's  FOODIVAL Blog! 

1. Provide concessions of fees and charges to alleviate pressure on business operations
   

   

   The Government will reduce water and sewage charges for non-domestic accounts by 50%, subject to a monthly ceiling of $10,000 and $5,000 respectively per account. About 260 000 non-domestic accounts are expected to benefit from the measure. Apart from that, the trade effluent surcharge will also be reduced by 50%, which is expected to benefit about 35 000 businesses mainly in the catering industry. In addition, fees for the first issue or renewal of licences and permits, including those for hawkers, food businesses, agriculture and fisheries industries and liquor licences  will be waived, which is expected to benefit over 60 000 licensees. The F&B industry-related licenses include General Restaurant Licence, the Light Refreshment Restaurant Licence, Factory Canteen Licence, the Food Factory Licence, the Siu Mei and Lo Mei Shop Licence and more.
   

2. Extend the application period for SME Financing Guarantee Scheme to support SMEs in difficult times
   

   

   The government will extend 80% Guarantee Product under the SME Financing Guarantee Scheme for two years  and further extend the principal moratorium arrangement for one year.  The Government will also encourage banks to continue to adopt an accommodating and more flexible approach when processing loans by enterprises with sound repayment ability, supporting the SMEs through these difficult and challenging times. 
   

3. Streamline the restaurant licensing regime to help new operators start business sooner

   
   

   

   The government will implement a “licence first, inspection later” approach for restaurant licence applications, which allows new operators with provisional licenses to begin business while seeking to complete their formal licence application. This arrangement can accelerate approval procedures and streamline administrative procedures, helping new operators start their businesses sooner. At the same time, the Food and Environmental Hygiene Department will adopt a new way to expedite the approval process for applications for outside seating accommodation (OSA) of restaurants by proactively co-ordinating with relevant departments under “joint-vetting” approach to resolve applications and escalate the processes together. The streamlined procedures include adopting standardised Government rent for OSA, allowing some applications to proceed without the requirement for increasing kitchen area and bathroom facilities and not reviewing the walkways with a remaining width of three metres or more on a case-by-case basis after the provision of OSA. 

   
   

4. Promote pet-friendly restaurant licensing to create new business opportunities

   
   

   

   To create new  business opportunities for the F&B industry, the government will introduce a licensing arrangement allowing F&B operators to permit dogs in their restaurants or food premises. Under the new arrangement, restaurants can display clear signage to indicate that they are pet-friendly, ensuring customers are aware that dogs are welcome on the premises.

   
   

5. Promote “Tourism is Everywhere" to explore new visitor sources 

   
   

   

   Apart from enhancing immigration experience and providing a rich array of local thematic immersive tours and mega events, the government also encourages the F&B industry to provide more Muslim-friendly facilities and food options. In view of this, the Hong Kong Tourism Board will launch a fund scheme for restaurants that have acquired Halal certification. The certified restaurants can receive a half-rate certification fee subsidy, capped at $5,000. 

   
   

6. Inject into BUD Fund to help local F&B Operators expand overseas markets

   
   

   

   Inject $1.43 billion into the BUD Fund and expand its geographical scope to cover eight more economies, including the Belt and Road countries. The government will also enhance promotion and facilitate the participation of companies in exhibitions and export marketing activities through “Easy BUD”.
   

7. Improve Enhanced Supplement Labour Scheme (ESLS) to ensure employment priority to local workers

   
   

   

   Despite the fact that importing labour on an appropriate scale helps ease manpower shortage in Hong Kong, it is crucial to ensure the employment priority of local workers. In light of this, the government will launch measures to combat the abuse of ESLS when importing waiters/waitresses and cooks. The local F&B operators should pay attention to the following new requirements:
   

   • Extend the local recruitment process from four weeks to six weeks, during which employers must once a week attend an on-site job fair organised by the Labour Department (LD).
     

   • Implement the manning ratio requirement more stringently such that it is calculated based on posts being applied for, but not on all posts engaged by an employer (The ratio of full-time local employees to imported workers is 2:1). In other words, an employer applying to import a waiter/waitress and a junior cook must have already employed two local full-time waiters/waitresses and two local full-time junior cooks. 

Understanding Government Policies to Unlock Business Potential

In the face of intense competition and an unstable economy, F&B operators should closely monitor the latest policies from the government and develop the industry to fully utilize the convenience and business-friendly measures provided by the parties. This definitely helps you alleviate operational pressure and seek new business opportunities even in challenging times! 

If you wish to improve the procurement and inventory management of your restaurants while strengthening cost control and boosting profitability, please don’t hesitate to contact our system consultants for a free system consultation and demo session here!