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From an owner-managed model to a more sustainable and professional management structure, the newly-appointed CEO shares how to ensure internal engagement, communication, and a shared vision at the "Hongkonger's canteen”.
Having joined Hong Kong's iconic food chain Café de Coral Group in 2019, Piony Leung took on the position of the Group’s Chief Executive Officer on 1 April 2024.
Overseeing the overall management and operations of the organisation, Leung plays an instrumental role in spearheading the strategic direction of the Group’s growth and profitability. In this exclusive with Tracy Chan, she shares about the Group’s transformation, and how this change has driven its talent strategies.
Q: What has been your most memorable moment/milestone since you joined Café de Coral Group in 2019?
Since joining Café de Coral Group in 2019, my most memorable moment and milestone has undoubtedly been navigating through the challenges posed by COVID-19. The company faced significant hurdles such as the suspension of dine-in services during dinner hours, a decline in visitor numbers, and changes in customer dining preferences (favouring takeaways or home cooking).
I take immense pride in how our team stood strong together and tackled these difficulties head-on. Despite the immense impact of the past five years on our operations, I am delighted to see our colleagues embracing an open mindset and keeping pace with the company's initiatives, particularly the digital transformation and the flexibility in facing changes and challenges.
In the post-pandemic era, my primary focus is to stabilise our business, improve growth and profitability, and aim to restore our performance to pre-pandemic levels within the next one to two years. We are confident in achieving these goals and moving the company forward in a positive direction.
Q: The Group has transformed the business from owner-management to a more sustainable model through a succession plan in the past 10 years. Can you elaborate on the Group’s transformation of the management structure?
We have implemented a comprehensive succession plan that has transformed our business from an owner-managed model to a more sustainable and professional management structure.
One of the key changes is the shift from a centralised, top-down management style to a collaborative, result-oriented, and customer-focused cross-functional business unit team, with the Lo family remaining as major shareholders.
With this new structure, the board of directors, acting in its role as the governing body, assumes responsibility for charting the strategic direction for the company. The Lo family members retain their positions as decision-makers on the board, while the day-to-day operational oversight has been entrusted to a professional management team.
The Lo family members contribute their deep industry knowledge, extensive experience, and understanding of various sectors and the overall economic and social environment, and they collaborate closely with our management team. We learn from each other and work together to lead the company to new heights.
This structured approach ensures continuity, fosters innovation, and positions us for long-term success in a rapidly changing business landscape. By clearly delineating the roles and responsibilities of the shareholders, board, and management, we have created a robust and sustainable framework for the company's future growth and development.
Q: What are the implications of this change to the Group's business operations and talent strategies?
To ensure our staff fully understand the planning, we have worked closely with our HR team to enhance the internal engagement channels. This includes the establishment of a Transition Office and the implementation of various initiatives aimed at ensuring our employees comprehend the new management strategies and direction.
This alignment of understanding is crucial for the successful implementation of our goals and objectives.
Through platforms such as town hall meetings, team-building activities, and one-on-one sessions, we not only foster a culture of trust and collaboration, but also provide a space for open dialogue and feedback.
This enables us to gather valuable insights from our colleagues, and drive innovation and continuous improvement throughout the organisation.
Additionally, these efforts facilitate a smooth transition for our staff as they adapt to the operational changes brought about by the new team-based management approach. Recognising the importance of talent development, we have strategically prioritised training programmes.
Our focus on enhancing the soft skills and management capabilities of our managers equips them to effectively communicate, inspire, and build trust among front line colleagues. This strategic investment in leadership development strengthens our management team and empowers them to drive performance and engagement at all levels of the organisation.
Furthermore, we understand the industry-wide challenge of labour shortages and the need to attract new talent. By implementing innovative strategies, we aim to position ourselves as an employer of choice, making the industry more appealing to newcomers.
This includes offering attractive career opportunities, competitive compensation packages, and a supportive work environment. By establishing a sustainable pipeline of talent, we mitigate the pressures of inadequate human resources and ensure the long-term success of our business operations.
In summary, these strategic changes will have a transformative impact on the Group's business operations and talent strategies. By fostering a people-centric culture, strengthening communication channels, and investing in talent development, we create an environment of collaboration, operational excellence, and continuous growth. This positions us as a market leader, capable of driving sustainable success in the face of evolving industry challenges.
Q: The Group has been actively advocating for sustainability in recent years. Please share the most impactful initiatives/measures you have put in place.
Collectively, the Group has always been committed to promoting sustainability. In the fiscal year of 2023/24, we have achieved our sustainability targets in our Hong Kong operations one year ahead of the original timeline, as we have met our reduction goals set for 2024/25 in four major aspects – energy consumption, greenhouse gas emissions, water usage, and food waste.
We have been tirelessly working towards meeting these targets by closely monitoring our use of resources, and continuously enhancing our efficiency with advanced technologies and refined procedures.
In response to the disposable plastic tableware ban in April 2024, we took proactive measures to phase out disposable plastic tableware at all our 380 Hong Kong outlets one week before the regulation came into effect, transitioning to more environmentally friendly, non-plastic alternatives.
Further promoting green lifestyles, we launched a "Love the Earth" campaign, in collaboration with the beloved character Hello Kitty, across our six major brands – Café de Coral fast food, Super Super Congee & Noodle, Mixian Sense, Shanghai Lao Lao, The Spaghetti House, and Oliver’s Super Sandwiches. With any purchase of our designated products, customers can redeem a limited-edition Hello Kitty reusable cutlery set, encouraging them to bring their own reusable cutlery and support a green lifestyle.
We have also made remarkable progress in reducing food waste, which forms a major part of the waste produced from our operations. Since 2020/21, food waste segregation has been implemented at all our outlets. Working closely with the Environmental Protection Department, and landlords, we continue to actively seek food waste recycling opportunities. In 2023/24, we have successfully expanded our recycling network, and increased the recycling rate of the food waste produced from our Hong Kong operations to 40%, which is equivalent to 2,643 tonnes of food waste.
We are equally dedicated to contributing to the community, and we are delighted to witness the incredible impact of our flagship food assistance initiative “Bon Appétit Café”. With an expansion of its scope in 2023, the programme has reached 4,000 beneficiaries in 2023/24, offering a total subsidy of HK$12mn, with an emphasis on supporting caregivers.
Q: How do you ensure the entire company, from management to employees, are all aligned to the Group's sustainable vision?
Café de Coral Group's enduring success is rooted in its commitment to aligning the entire organisation – from management to employees – behind a sustainable vision. As pioneers of the Chinese fast-food concept, the Group has integrated both Chinese and Western culinary traditions to build our reputation as the "Hongkonger's canteen”.
This spirit of innovation and adaptation is central to the Group's corporate culture, which emphasises continuous learning and a positive, problem-solving, mindset.
With the goal of bringing happiness to our customers, employees, and shareholders, Café de Coral is committed to spreading this spirit throughout the region, fulfilling its role as a community dining hall by offering delicious, nutritious, and hygienic food at reasonable prices.
Committed to the highest standards of governance, transparency, and integrity, our management team leads by personal example, setting a high bar for business ethics by living up to our core values: pursuit of excellence, people-oriented, integrity, keeping up with the times, and creating sustainable value.
At the heart of this alignment is a strong emphasis on people and cultural heritage. We believe that business success is achieved through teamwork, not individual efforts.
To this end, the Group places great importance on internal and cultural communication, ensuring that its over 19,000 colleagues thoroughly understand the organisation's objectives and aspirations.
By valuing the unique perspectives of its diverse workforce, and fostering strong relationships, the Group has been able to maintain its people-centric culture for over 50 years.
Recognising the importance of a sustainable leadership team, Café de Coral strives to provide growth and development opportunities for colleagues across different positions. This approach aims to strike a balance between experienced and new team members, creating an empathetic, yet high-performing workforce.
Colleagues are encouraged to adopt an entrepreneurial mindset, treating their respective branches as their own businesses and leading with both quantifiable standards and compassionate management.
By instilling a sense of ownership and accountability, Café de Coral empowers its colleagues to take pride in their work and strive for excellence. Through these initiatives, the Group fosters a cohesive and motivated team that not only achieves business objectives, but also cultivates a supportive and nurturing environment.
By providing growth opportunities and empowering colleagues, Café de Coral has established a culture where everyone feels valued and motivated to contribute their best towards the organisation's sustainable vision.
Q: How would you describe your leadership style, and how has it evolved over the years?
Fostering alignment around a shared vision is key – I work to ensure everyone in the organisation is united behind a clear vision and purpose. By aligning our collective efforts towards a common goal, we can maximise our impact and achieve greater success together.
I always believe building trust among colleagues is of utmost importance. Trust stems from consistency in decision-making and clear communication. Therefore, I strive to enhance collaboration within the organisation, encouraging empathy and the ability to see things from others' perspectives.
It is essential to foster a win-win mindset, where everyone goes the extra mile, cares less about personal gains, and focuses more on helping others and accomplishing our shared objectives. Collaboration and teamwork are fundamental to our success.
I encourage my colleagues to share knowledge and leverage each other's strengths to tackle challenges. When we work together with a spirit of co-operation, we can accomplish far more than we ever could alone.
Passion and compassion are essential qualities I aim to cultivate. I want my team to approach their work with enthusiasm, creativity, and a genuine desire to make a difference. At the same time, I strive to lead with empathy, offering support and understanding during difficult times.
Appreciating diversity and different perspectives is also critical. I actively seek out diverse viewpoints and am open to new ideas, knowing that this diversity of thought will drive innovation and better decision-making.
I encourage my colleagues to treat their roles as their own businesses, taking full accountability and responsibility. When everyone adopts an entrepreneurial mindset, we can achieve amazing results.
As a leader, I think it's important to lead by example. I strive to provide a clear vision and alignment for the team, equipping them with the necessary capabilities and skills. Beyond that, I also aim to support them with compassion and empathy, especially during difficult times. By setting the right tone and lighting the way forward, I can empower my team to reach new heights.
Q: Overseeing the business in Hong Kong and Mainland China, what, in your view, are the similar and different challenges and opportunities across the two places? How would you address these challenges and opportunities?
With the changing economic environment after the border reopening, many people are inclined to spend more in Mainland China. As a local catering business in Hong Kong, we need to consider how to excel in customer service, maintain strong customer relationships, and make customers feel at home. It is crucial for all our brands to prioritise these aspects and put in the effort to improve our own competitiveness.
In the post-COVID era, we also need to focus on increasing our digitalisation efforts, enhancing our mobile app capabilities, providing more personalised customer experiences, and implementing robust customer reward and incentive programmes. Embracing these strategic priorities will be key to delivering exceptional and differentiated services that resonate with our customers and keep them engaged with our brands.
Additionally, we continue to seek opportunities and stay attentive to market changes. For instance, we need to be responsive to different customer needs and create demand. This could involve offering innovative menu items beyond the traditional breakfast, lunch, and dinner options, such as pot dishes and festival food items. Furthermore, we explore ways to effectively target new, younger customer segments through the introduction of products catered to evolving dietary preferences, like meat-alternative, high-protein, and low-carbohydrate offerings. By diversifying our menu and addressing emerging customer trends, we can stimulate demand and stay relevant in the dynamic food and beverage market.
In Mainland China, our strategic focus is on the disciplined and sustainable expansion of the Café de Coral store network. We remain confident that our positioning in the fast-casual dining sector will give us ample room to grow as the market continues to develop.
Our aspiration is for Café de Coral to become the go-to canteen for Mainland Chinese residents, just as it is the top choice for dining among Hong Kong people. Café de Coral's positioning is as a classic Hong Kong-style fast food brand that has grown alongside generations of our customers. We aspire to establish a deep emotional connection between the Café de Coral brand and our customers.
To drive this growth strategy in Mainland China, the Group is committed to expanding our footprint, starting with our natural home market of Guangdong and then building on this competitive edge to broaden our reach throughout the Greater Bay Area.
Q: Concluding the interview on a funny note, if you could choose only one dish to represent Café de Coral Group, what would it be and why?
If I had to choose just one dish to represent the Café de Coral Group, the baked pork chop rice would be my top pick. This iconic dish embodies the very essence of our brand – it's hearty, satisfying, and appeals to the appetites of the masses.
The baked pork chop rice is truly the hero product of Café de Coral. With its tender pork, flavorful sauce, and perfectly cooked rice, it's a dish that has stood the test of time and remains a beloved favourite among our customers, both young and old. But what really makes this dish so special is the perfect balance of flavors and textures and its vibrant and colorful presentation. The tender pork, the savory sauce, and the fluffy rice come together in a harmonious and satisfying way that keeps our customers coming back time and again.
An extract of this article first appeared in the H1 2024 edition of Human Resources Online's Hong Kong e-magazine. View the e-magazine here, where you'll find power-packed features and interviews with leaders across various sectors!
Image / Provided (Lead image: Piony Leung, Chief Executive Officer, Café de Coral Group)
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