IT is going to be a gloomy Chinese New Year for restaurants, as companies cut back on the traditional staff dinner, a main revenue generator for the year.

To save money, some companies are even going Dutch, asking their staff to chip in for the annual event which was once sponsored fully by employers.

Jessica Liew, a manager at a Chinese restaurant, said eateries like hers have had to introduce new Chinese New Year packages as reservations have slowed compared with last year.

To ensure they still get customers, her restaurant introduced smaller packages of 10-course dinners for five people per table, rather than the traditional 10-person package, to cater to small families.

“We cut the serving size by half,” Liew told The Malaysian Insight, adding that they have also cut the price of piglets to attract more customers.

Other restaurants also expected depressed sales during the festival going by customer trends at the start of the year.

Kyna Tan of Green View Seafood restaurants said revenue for January dropped by 50% compared with the same period last year.

“A lot of restaurants will close on the eve and the first day of Chinese New Year, so restaurants like us that are still open will receive a lot of reservations.

“Although we will be full, we’re still anticipating that customers will order cheaper and fewer dishes,” said Tan.

Most reservations are for the cheapest packages – at RM1,888 and RM1,288 for a 10-person dinner, she said.

“Some of the regulars who went for the RM2,000 plus packages last year only took the RM1,600 package this year.”

With some 50 workers, Tan said the restaurant can’t reduce its prices as the cost of raw food has not gone down.

“Our piglets come from Vietnam. The trade is in US dollars, so when the ringgit depreciated, the price went up from RM120 per piglet to RM240 each.

“Usually the customers will go for more seafood during Chinese New Year… the price of imported seafood will only rise, never decline.”

Tan’s restaurant has postponed its renovation plans indefinitely until the economy improves.

“Our suppliers say it’s a difficult time for other restaurants, too. We can only try to maintain our business at such times.”

CNY treat

Some wage-earners however, are adamant about holding a company new year dinner even if their bosses are cutting back on expenses.

Low Watan, 33, who works at an IT company, said his employer will not treat them to dinner but each Chinese employee will receive a hamper.

His colleagues have agreed to organise their own festive dinner, at about RM1,088 per table.

“It’s not cheap but we agreed to treat ourselves before CNY. Everyone will go except the boss, that’s the unspoken rule.”

Sophia Ong, 26, who is helping her father at the family’s paint and coating factory said the company could not afford to fund the dinner.

“It isn’t generous but this is not something I can decide,” she told The Malaysian Insight. The company used to pay for the annual dinner and would even hire a lion dance troupe for the occasion.

This year, all employees who attend will split the bill.

“Last year, the organiser collected RM40-RM50 from each person. We eat at a restaurant in Shah Alam, which is cheaper compared with the city centre where a table can cost more than RM1,000,” she said.

However, Ong said the company would still give each employee a RM30 to RM40 angpow.

The more than three-decade-old factory employs nearly 100 people, a quarter of whom are migrant workers. The foreign workers’ levy and increased cost of raw materials have increased their operating expenditure.

“We still have to send to clients, which will cost RM200 to RM300 each.”

Morale booster   

But even in these tough times, some companies will still buy their staff dinner and hand out gifts as a way of keeping morale up.

Ng Chon Giap, 26, the owner of a self-improvement, training and events agency, said he would still treat his five employees to dinner even though the company’s revenue took a dip last year.

“Last year was a bad year. Our business took a beating because of the economy, the government’s increased tax collection, policy changes… causing us to cut expenses.

“I’m treating my staff to dinner as a good start. For prosperity and a good year.”

He aims to spend on one or two tables for his staff and business partners.

Ng said the company will also not scrimp on angpow for his employees to keep morale up. Gifts for business partners and customers will also continue to maintain good ties.

“When the business is stable, we can give more angpow. When business is not good… still need to give even if it is just a token.”

Liew, the restaurant manager, said although sales are generally down, the eateries’ nine VIP rooms, which feature karaoke sets, are fully booked for all 15 days of the festival.  

Each room costs between RM1,500 and RM3,000 but they were the first things many asked for when they called for reservations.

“People like to have their own space, where they can also sing karaoke.” – February 12, 2018.