Wong Chi Kei:Reformer in Traditional Food Industry

Noodles are an important part of China’s extensive culinary history. Wong Chi Kei is famous for its technique of making noodles with bamboo sticks and has, in the 50 years since its inception, developed into a noodle restaurant renown in Macao and Hong Kong. For visitors looking for local delicacies, Wong Chi Kei is a place that has to be on the ‘to do’ list. Originating from Guangzhou, Wong Chi Kei has experienced its ups and downs but managed to eventually gain a foothold in the industry since moving to Macao.

Wong Chi Kei moved from Guangzhou to Macao’s Rua de Cinco de Outubro in 1959 and continued its traditional technique of making noodles with bamboo sticks. It ran into great difficulties in the 1990s when its founders, Wong Wun Chi and his wife died, and the Inner Port Area where the restaurant was located was no longer prosperous. Mr and Mrs Wong’s successor, their son Wong Tin, started to consider the future of the restaurant. “We began to worry about our future in 1997 when Macao was in a very bad shape economically and socially. It was the most difficult time for us. We had to choose between sticking to what we had or changing. Rua de Cinco de Outubro and the rest of the old town were in decline, so we decided to open another restaurant elsewhere.” Wong Tin, Managing Director of Wong Chi Kei said.

Attracting Customers from Different Walks of Life

Wong Chi Kei opened in Senado Square on 11 November 2000. With a total area of over 4,000 square feet and seating for over 120, it is quite a big noodle restaurant. Wong Tin said, “Only overseas investors dared to open stores in Senado Square at that time as Macao was not doing well economically and local companies chose not to expand, so even real estate agents thought I was being foolhardy.” In addition to expanding his business, Wong Tin also attended to the detail of interior decoration such as using paper place mats printed with the history and traditions of the shop to keep the tables cleaner and also familiarise customers with the history of noodle making. Glasses were also replaced with traditional Chinese teacups. “China has a long history of tea drinking. Many restaurants do not give credit to that as they use glasses to serve tea. We aim to provide better hygiene standards and services, while giving customers a different impression to the stereotype of traditional noodle shops so as to attract customers from different walks of life. Senado Square is the heart of Macao and a must-visit place on tourist’s itineraries, so we needed to make our shop look very pleasant and inviting. The restaurant is decorated in a style which is very Chinese by using a lot of wood and is therefore in tune with the food we serve.”

Learn from Experience and Make a Difference

With their success in Macao, Wong Tin decided to branch out and open in Hong Kong, which was also his father’s dream. In 2003, Wong Chi Kei inaugurated its Causeway Bay branch, thus making its first foray into the Hong Kong market. Unfortunately this venture ended with failure. “Bad management and the location were the two major reasons for our failure. Although Causeway Bay is very busy and bustling, it is very expensive as far as rent is concerned. Most of the people visiting Causeway Bay are young, Wonton Noodles are too old-fashioned for them; when they go out for a date, they prefer Japanese Ramen. We also suffered from the SARS outbreak. The failure of our branch in Causeway Bay cost us dearly.” Nevertheless, Wong Tin picked up the pieces and had the guts to open yet another shop – this time in Central – Hong Kong’s central business district. “I know how to learn from my failure. Central is very different to Causeway Bay. Customers here are older and have more money to spend. We also hire local people to manage the shop as it is easier to recruit suitable people in Hong Kong than in Macao. So far, this branch is the one I’m most satisfied with in terms of operation.” Wong Tin opened a second branch in Hong Kong International Airport in 2007.

Staff- the Key to Success in Expansion

“People from Beijing, Dongguan, Guangzhou, Hangzhou, Shanghai, Shenzhen, and Tokyo approached us about opening shops there, we declined because we are very cautious and careful. We want to make sure that we have the right people for expansion before we make a move.” Mr. Wong explained.

Wong Tin spent seven years in Japan and was very impressed with the strict discipline in the Japanese style of management. He is therefore fully aware of the importance of good management. “Without good management personnel, there will not be good management and quality control, our reputation could be damaged and the result would be catastrophic. Our two outlets in Hong Kong are long-term investments, we are not interested in short-term gains, otherwise we would not have invested so much in the interior decoration. Each of the shops cost us over MOP2.5 million. In addition, rental leases in Hong Kong are more stringent, therefore, rent is a big concern and also quite a burden for us.”

Wong Chi Kei is well-known for its technique of making noodles with bamboo sticks. However, as times change, the noodles are now factory made Wong Chi Kei’s factory in Macao makes over 4,000 noodle cakes every day for its Hong Kong and Macao outlets.

Wong Tin declined to disclose the exact figure when asked about the company’s turnover. He said instead, “Let me give you an example. We sold 2,100 portions of noodles on the third day of the Chinese New Year, a new record. You can image how many customers we served that day. Thanks to the size of our shop, we can serve a relatively large number of customers.” Although the Hong Kong and Macao branches each contributes about 50% of Wong Chi Kei’s turnover, more noodles are sold in Macao as the price is slightly higher in Hong Kong in terms of the quantity sold.

A Boost to Staff’s Sense of Belonging

A lack of staff has been haunting the development of SMEs in Macao, in particular those in the service industry and Wong Chi Kei is no exception. “We have 50 staff in Macao and over 50 in Hong Kong. However, nowadays, young Macao people are reluctant to work in a traditional restaurant like Wong Chi Kei, so we are likely encounter a shortage of manpower in the future and will have to employ imported labour or new migrants. We need to increase their sense of belonging in an attempt to retain local staff.” Wong Tin said. It is easier said than done, so he turned to his seven years of experience in Japan for inspiration. “Why are employees in Japan willing to spend their whole working life with the same employer? How could I increase my workers’ sense of belonging? When the store in Senado Square opened, I told my employees, ‘Give me one year, if we do well, you will also benefit.’ I kept my promise one year later. I give my employees monthly bonuses, healthcare and housing allowances to boost their salaries.”

Wong Tin next objective is the development of noodle gift packs which are prepacked noodles with ready-made soup ingredients. He said, “When customers have finished their meal, they can place orders for take-away as a souvenir. We can also sell them at the jetfoil terminal and if it works, we can even export them. I believe there is potentially a good market for them.” He noted that Wong Chi Kei has established a brand name, but still lacks the staff, in particular experts in the food industry.

Although Wong Tin has not been running Wong Chi Kei for very long, he has made some observations about its development. People keep on saying that Macao SMEs should keep changing to keep pace with the constantly altering situation, but how? Wong Tin has accumulated some experience and commented, “First of all, you need to make an evaluation and see if your industry is in its sunset years, if so, it will be difficult to reverse the trend. If not, you need to change your mindset. Consider what is needed to modify outdated business models, evaluate the product packaging and how appropriate plus the business location, and of course you need to find the right management personnel to achieve your business objectives.”

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